Online Loan Options For Bad Credit
Got Bad Credit? You are not alone, don’t feel bad about it. Millions of Americans are in your situation. Less than perfect credit and looking for a loan. Luckily, these days you have a lot of options with the internet. Let’s take a look at some of your top choices for poor or bad credit loans.
Online Cash Advances
These will be your easiest and quickest option. Cash advances take little in the way of qualifications, compared to conventional bank financing. In fact, many lenders do not even pull a credit report from one of the three major credit bureaus. Instead, they tend to use less traditional means of credit verification and their requirements are much less stringent. If you have a source of income, a checking account and a valid ID, you are well on your way to getting approved.
Getting A Bad Credit Cash Advance
The first step is to get a quote. TO do that, you have a couple of options. You can go to a direct lender and apply or you can work with a loan network. The problem with direct lenders is that they all have unique requirements. So, if you get turned down, even for something trivial, you have to start all over again with a new lender. Loan networks solve this problem. With a network, if one lender turns you down, you get another shot with another lender. This happens again and again, automatically until a lender is found that wants to make you an offer. Want to see how it works? Get access to our loan network with the short quote form below.
Is An Online Cash Advance The Right Move
Like with any financial decision, you should give thought to weather a cash advance is the right choice for you and your particular situation. These loans are quite convenient and often beneficial to consumers but it is not all roses. There are pros and cons to taking one out.
On the pro side, you have numerous benefits. First and foremost is the fact that approval is super easy. Almost anyone who has a source of income and has never defaulted on a payday loan stands a great chance of approval. Another great thing is that they fund super fast. Most loans will be in your bank account the very next business day. That is hard to beat with any other loan. Finally, these loans are simple to apply for. It takes just a few minutes to fill out your quote form and there is usually little to no additional verification needed.
On the con side of things, there are also numerous things to mention. First, you have the loan fees. Lenders for these types of loans typically talk in fees instead of interest. An example of a fee might be $15 on every $100 borrowed. Doesn’t sound like much but when you factor in the second negative, the short loan terms, you get a very high effective Annual Percentage Rate. One final con to a cash advance is that the amount that you can borrow is limited. In many states, you can borrow up to $1000 but some states limit this amount further and in some states, cash advances are not allowed at all.
Online Installment Loans
Installment Loans will be a bit trickier to get. Your lender will be much more likely to pull a traditional credit report with one of these loans so if your credit is really bad, you might not qualify. If you qualify for a bad credit installment loan however, you get a number of benefits that a cash advance can not offer. Namely, you can get more money and you will have much longer to pay the loan back. This can be of great help to you if you are using your loan to catch up on bills and need time to get your finances in order.
Getting A Bad Credit Installment Loan
Just like with cash advances, you can get a quote for an installment loan online. It does not take long to fill out your quote form and to get your answer. If approved, your lender will give you the loan details and most of the time, the entire process can be handled online without additional documentation. Sometimes, a lender might require a dew documents for the loan or will need to contact you directly, so make sure your email address and phone number are listed correctly.
As fas as installment loan lenders go, you have a few options. One is BadCreditLoans.Com which, as the name implies offers loans for those with bad credit. This would be a good place to start your loan process but if you need another choice, you could try PersonalLoans.Com, as it is always good to compare services like these.
Is An Installment Loan Right For You
Loans are never to be taken lightly even if you have few choices due to bad or poor credit. So, before you commit to that tantalizing loan offer, take a look at the pros and cons of a bad credit installment loan.
Let’s look at all of the good things first. On a good note, you can do just about everything online to get this bad credit loan. That makes it super convenient to get your loan answer so that you can solve your money needs. In addition, an online installment loan can provide you the opportunity to pay out your loan in multiple installments. This allows you to spread out the debt over many months. That will drastically lower your payment and give you some breathing room to catch up on expenses.
On the bad side of things, you have the fact that these will still be high interest loans in most cases. You may not be paying payday loan levels of interest but you will still be paying a lot of money in interest. The overall interest, in fact, may wind up being more than the charges from a smaller payday loan. Finally, installment loans tend to be for more money and you may be qualified for an amount that you do not need and really can not afford to pay back. Be careful with how much of a loan you accept.
Online Auto Loans
If you are looking for a loan specifically to pay for a new vehicle, you are in luck. Numerous companies make it easy for you to shop for a loan online, even if you have bad credit. So, if you are afraid of the embarrassment of getting turned down for a loan at an auto dealership, you can do it all online in your home. Private, secure and embarrassment free.
Getting A Bad Credit Auto Loan
Like everything else online, getting an auto loan quote is super easy, even with bad credit. There are numerous outlets that will let you do it securely and in just a few minutes. A dealership can take hours to do what these websites do in just minutes so save yourself the headaches and try an online company such as 1-800 Auto Yes or perhaps even MyAutoLoan.Com. Both of these companies can often get you approved when other lenders can not because of your bad or low credit score.
In most cases, an online lender such as the ones above can get you your approval win no or minimal documentation requirements. If they do require docs, they can often be sent via email with no faxing required.
Is An Online Auto Loan The Best Thing
The answer to this question will probably depend on the loan offer that you receive but there are pros and cons to everything financial on the internet and in person. Here are some things to think about.
The Good stuff with online auto loans is that they are easy to apply for. It is much easier than going to a dealership and waiting hours for a loan approval. They often wait until you have spent half a day there, wasting your time before hitting you with an absurd offer. This is so you want to just get the whole thing over with and you will accept anything. By contrast, with an online auto loan, you can walk in with financing already arranged. In addition, not every dealership finance department is on top of their game. In many cases, an online finance company may be able to get you an approval where the dealership can not. In any case, if you walk in to a dealer with financing arranged, you have a starting point on your interest rate and can challenge the dealer to beat it.
As far as bad things go, there are not too many bad points. One though might be the fact that these companies often specialize in bad credit which means that the rates and terms of your loan might not be agreeable to you. Still, it gives you a jumping off point for when you have to deal with the dealership finance department.
Fun Fact: While gap insurance is a valuable thing when buying a vehicle, most people do not get the best deal on it. The dealership will often sell it to you for higher than they need to to make money. So, a gap policy for $900 can often be negotiated down to a lower amount, even $400. Check our article on other ways to make $500 quickly.
Online Home Loans
You get every other type of loan online, so why not a home loan. The days of a local broker are coming to an end with online companies offering easier and faster loans, even if you have bad credit. If you have bad credit, conventional financing is probably out the window. You will want to consider FHA, USDA and VA loans. All of these programs will work with those with lower credit scores. FHA will require a minimum of 3.5% down while USDA and VA loans can do loans with no downpayment. There are restrictions with both of those loan types however. With a VA loan, you must of course be a veteran and with a USDA loan you must buy a home in an area considered rural and it is subject to income restrictions.
Getting A Bad Credit Home Loan
The first step in getting an online home loan with bad credit is filling out your application. Choose a quality online lender that has a history of working with those with bad credit such as BadCreditLoans.Com. A company that specializes in such a thing will have a couple things going for them. One, they will have previous experience getting tough applications approved. They will also be willing to work with you even with the going gets tough. A regular broker might spend more of there time focusing on their high credit applicants.
Is An Online Home Loan For You
Only you can answer this question but, yes it probably is. Everything is online these days, so why not do your loan online, even if you have”bad credit”? With an online home loan, you will be able to do everything easier and from the comfort of your own home. It really is a win win situation but you decide for yourself.
Improving Your Bad Credit
If you have bad credit and need a loan, the above resources should be of use to you. If you were unable to secure the financing that you needed with one of those options, it is probably time to turn to improving your credit. It is not as hard as it seems and most of the things that you need to do to increase your credit are actually common sense. Here are some useful tips.
Fix Bad Credit With On Time Payments
Paying your bills on time is probably the single biggest thing that you can do to improve your credit rating. A single “30 day late” strike on your report can cost you 20-30 points or more. If you have some “30 day” or even “60 day” late strikes on your report the way to fix it is to start making your payments on time. In as little as six months you can start seeing your scores increase. Give it a year and you could see a drastic improvement.
Low Balances Improves Bad Credit
Another huge score factor is the amount of credit that you have available. Keep your balances low. It shows that you have credit available to you and that you know how to use credit responsibly. How low? Aim for having your credit balances at or below 30% of the limit. That is the ideal amount but you will see improvements in your score incrementally as you lower your balances.
A Secured Credit Card Can Help
So, what do you do if you have no credit available and your score is too low? Get a secured credit card. Most cards are for in the neighborhood of $500. Open one of these accounts, use it responsibly and pay your bills on time. In about 6 months, apply for an unsecured card and get your credit moving in the right direction.