Lending For Bad Credit
If you have bad credit, your normal choice is the cash advance loan. It is a loan that is available to just about anyone as long as you can meet a few basic qualifications. Learn more about Obtaining other $500 loans here or keep reading to learn about those loans for poor credit.
Qualifications For Cash Advances
First, you have got to have some income that you can show. This does not have to be a job. It can be any money that you receive on a regular basis. Chid support, a structured settlement, whatever. As long as you receive it each and every month, you will meet this qualification.
You will need to have a checking account that is in good standing. Lenders will use this to deposit your money and to collect the repayment on the due date. It must be in good standing and no, a savings account will not do.
Good Contact Information
Your lender needs to be able to contact you. To meet this qualification, you should have a good address, phone number and email address. When filling out your quote form, it is best to double check the information you input to avoid any future problems.
No Bad Cash Advances
If you have defaulted on a payday loan in the past, you might have problems getting a new one. ad credit is okay but a lender will think twice about lending to you if you have recently defaulted on a similar loan.
Applying For A Bad Credit Advance Loan
Applying could not be any easier and we even include a quote form at the top of this page.
First, you will accurately input your information and then hit submit .The information you hit is ow in the lender network. It will go from lender to lender until one is found that wishes to make you an offer. If that lender is found, they will send you an offer with all of the details of the loan.
You will now have an opportunity to review the details of your loan. Your lender is required to send you all of the loan details in a standardized format that you can easily understand. Be sure to check out when the loan will be due and the total cost of the loan. You can use that information to determine whether the loan suits your need, if you can afford it and if it is worth the cost.
If you like everything about the loan, you can accept it. Once you accept it, you will be asked to sign the loan contract, usually online but your lender may vary. Your lender may also wish to contact you to finalize the agreement. When everything is complete, your lender will deposit the money into your account. Usually, you will have the money on the next business day. Holidays and weekends will delay the loan proceeds.
Finally, to complete the whole process, you will have to pay back your bad credit loan on the due date. Most lenders will automatically withdraw the money from your account so make sure that the money is there. If it is not going to be there, contact your lender right away to discuss arrangements. You may be able to extend your loan but be careful because there will be fees attached.
Alternatives To A Bad Credit Loan
If you need the money right away, the cash advance is probably going to be your best option but if you have a bit of time, you might have more options.
Improve Your Bad Credit
Improving your credit is a great choice and even if this is not the option you use to get your $500, you should look into it.
First, you need to pull a credit report and challenge any incorrect information. A lender will have to provide proof to the credit reporting agency about negative information. If they do not or can not prove it, it must be removed.
Next, you need to start a history of paying your bills on time. One of the biggest negative factors that can give you bad credit is late payments. Just 4 to 6 months of paying your bills on time can start to improve your credit.
Finally, you need to pay down your balances. If you are in need of money, this can be hard to do but try to pay a bit more than the minimum to get balances down.
Borrow From Friends
If you only need $500 and do not want to take out a higher interest bad credit loan, friend may be able to help. You might have to hit up a couple of different ones to make $500 happen but it is possible.
Once you have the money, pay it back as soon as possible. Thousands of relationships have been ruined by money. Money puts a strain on people. Even if your friend does not need the money, if they feel that you are taking advantage of them, it will not end well.
Selling something can keep you out of a bad credit loan. Look around and see what you can sell. Video games, designer clothes, purses or perhaps some old jewelry.
Questions About Bad Credit Loans
How can lenders afford to issue bad credit loans?
Lenders charge more interest for higher risk loans. This ideally will offset the cost of loans that are defaulted on.
What is the interest rate on a bad credit loan?
This will depend on your lender. In the case of a cash advance loan, the lender will charge you a fee per $100 borrowed. Because the loan matures so quickly, the effective interest rate is quite high. Many loans can have interest rates in excess of 400%.
Will bad credit loans build my credit?
If it is a cash advance, probably not. Most lenders will not report to the major bureaus unless you default on the loan. This is an emergency loan, not a credit builder.
Bad Credit Options
- Author Summary
Getting a review with bad credit is never easy but this article can be of assistance. I tried to give you some options that can help you solve your problem.