Bad credit loans usually come with fixed rates and are offered by lenders willing to lend you funds despite your limited credit rating. These types of loans can help you build credit so that, eventually, you can qualify for better loan terms and other financial opportunities. Bad credit loans aren't just limited to traditional unsecured loans. Here are the types of loans you can get with bad credit.
The easiest loans to approve would probably be payday loans, car title loans, pawnshop loans, and personal installment loans. These are all short-term cash solutions for borrowers with bad credit who need them. Many of these options are designed to help borrowers who need fast cash in times of need. The easiest personal loan to obtain is one with a low credit rating threshold, which will vary depending on the lender.
However, most of the time, online lenders have less stringent qualification requirements compared to traditional lenders, such as banks and credit unions. If you know you have damaged credit, you'll likely have better luck applying for a personal loan through an online lender. Since this is deducted from your loan income, you'll need to consider this when determining the loan amount to ensure that you receive the amount you need after the fact. Many people who apply for payday loans usually have to apply for additional loans to pay off the original payday loan, trapping them in a cycle of debt.
Quick loans, pawn shop loans, and car title loans are also easy to obtain, but are extremely expensive. Maximum loan amounts are low compared to other lenders, but the low minimum amount and flexible repayment terms (two to five years) make it an affordable option for borrowers. Because unsecured loans don't require borrowers to provide guarantees, lenders of these types of loans rely primarily on factors such as credit history, income, and debt obligations to determine your eligibility. LendingPoint doesn't offer wedding loans, specifically, but their personal loans can be used for just about anything, including funding a wedding.
While payday loans don't require a credit check, they usually have a three-digit APR and short repayment periods. Since it can be easy to transfer your original payday loan to a new one, you could get stuck in an endless cycle of debt that's hard to escape from. The easiest way to get a loan if you have bad credit may be to apply for a quick loan or a loan at a pawn shop, since you're not required to undergo a credit check to get either. Then, you'll make payments that add up to the savings account amount, plus interest, until the loan term ends.
The best way to check if you're likely to qualify for an unsecured personal loan with a credit rating of 500 is to check the prequalification. Unfortunately, people with unpolished credit scores often have to shoulder higher interest rates and other unideal conditions when they apply for a loan. People with bad credit are more likely to qualify for a lender's minimum loan amount than the maximum, so it's good to apply with a lender that has a high minimum, such as LendingPoint. You can usually get more money with a personal installment loan than with some of the other fast cash options, such as payday loans.
When the loan period is over and you have made all your payments, the lender will hand you the money into the savings account. If you need money and don't qualify to apply for a personal loan, you might want to consider a crowdfunding site like GoFundMe or Kickstarter. .