Personal Loans For Good People With Bad Credit!
Your mechanic just told you that you need a new part for your car. You just got a bill from the doctor for being sick last month, and you have a credit card payment due. Your credit cards are maxed out, and you’ve already hit your family up for a loan that you are trying to pay back.
What you need is a loan that you can pay no matter what your credit score looks like. When you apply at local banks or through online finance companies, you’ll probably get turned down, so what you need is a personal loan from a company that understands your situation.
Why You Need a Personal Loan
You might not have assets or a co-signer, but that doesn’t have to stop you from getting loan. In fact, oftentimes all you need is a pen (or these days, a keyboard). That’s because a personal loan is often referred to as a signature loan since your signature is all that is required to receive the funds.
You can get a personal loan from a bank or other financial institution but they’ll probably have stricter credit requirements. You can also find numerous companies that specialize in personal loans online. Each loan company has its own requirements to qualify for approval, making the Internet a great place to find the right loan for your credit profile.
What can you use a personal loan for? You can use it to pay off debts, make a large purchase, or even take a vacation. While the application may ask the purpose of the loan, the lender may not have any restrictions or require you to prove the actual use of the funds. It really just depends on your loan agreement.
What is Bad Credit?
There’s nothing like the stress of filling out a loan application only to find out you didn’t get approved. The most common reason for being denied a loan? Bad credit. Most lenders have some kind of qualification requirements based on your credit profile. Luckily, what one lender considers bad credit may be different from another lender. Also, some lenders specialize in customers with bad credit so it’s important to understand what the term refers to so you know how your creditworthiness is viewed.
The term “bad credit” is rather unclear. In simplest terms, it refers to someone who has a history of not paying their bills. However, a person who falls behind on bill payments can be labeled the same as someone who never pays their bills and has debts charged off.
A lender can see exactly what type of financial history you have based on your credit report. When you use credit, you receive a credit history with a list of all your accounts. Each month, the accounts are updated with payment information. Were you late on your mortgage payment? How much of your credit card balance did you pay? What is your current balance? All of this information is used to develop your credit score.
Your credit score is personal and unique to you. Stand in a room with five other people and you’ll all have different credit scores. To determine your creditworthiness, you are assigned a rating based on all of that information in your credit report. If your credit score falls within a certain range, you are deemed to have excellent, good, fair, or bad credit.
Each lender will have a different range for what they consider each type of credit to be. For instance, one lender may say that bad credit is anything below 620 while another will consider bad credit to be scores beginning with 600 and lower. Another one may not consider a credit score “bad” until 580. As you can see, the lower your score, the more likely that the lender will say you have bad credit. This makes it harder to get a personal loan.
How to Apply for a Bad Credit Personal Loan
Ready to apply for a personal loan? It’s still possible, even with bad credit. Applying for a personal loan with bad credit is similar to applying for any loan, but there are a few things you need to know.
1. Find a Lender
First, you will need to find a lender who specializes in bad credit personal loans. You can input this term in a search engine to see what results you get online or click here. If searching online, make sure you include your because not all lenders provide service to every state.
You won’t want to waste your time with just any lender who offers personal loans. Every time you fill out an application, your credit history is pulled (unless it is a no-credit check loan), which lowers your credit score. You want to make sure the lender you are considering will accept people with bad or poor credit.
2. Compare Products
Before you select a lender, you need to find out how much they will lend and what rates and terms they offer. Make sure you can afford the loan’s monthly payments and that it is enough for what you need the money for. Most of the time, a lender or finance company will tell the maximum or minimum amount of loan you can be approved for.
Rates vary based on your exact qualifications, but there should be an indicator of the highest rate and longest terms allowed. This enables you to compare lenders to see which ones meet your needs best.
3. Get Your Information
Applications can typically be filled out either online or in person. You’ll need to have information about your employment and finances ready to provide answers to questions. Also be prepared to provide at least one or two personal references and bank information to receive your funds. Remember, it’s always better to be over-prepared than under-prepared, especially if you need cash fast!
Once you have all of this information together, you’re ready to fill out the application. After you submit the application, you may hear back right away with an initial approval or denial, or it may take a few hours. The lender may also ask for more documentation or you may just receive a final approval. Worried about time? Depending on the lender, you can have the funds in your bank account as soon as the next day.
A personal loan for people with bad credit may solve your immediate financial problems, and help you get a new start for the future. Just make sure you compare products to ensure you receive a loan that works for you.
Ready to find out if you qualify for a personal loan? Get started now!