Did you know that 108 million Americans have a low credit score? In addition, 16% of the country’s population doesn’t have a credit score at all.
If your credit score isn’t where it needs to be, it can prevent you from securing the financing you need. Whether you’re applying for a personal loan, an auto loan, or even insurance, most lenders will closely analyze your credit score to determine if they can trust you with the money you’re borrowing.
This leaves a good portion of consumers without access to the funds they require. Fortunately, quick bad credit loans exist.
These loans are designed specifically for applicants whose credit scores require a little work, and they can help you finance a range of expenses, from home repairs to healthcare emergencies. Today, we’re sharing how the application and approval process works.
A quick bad credit loan is a special type of personal loan. It’s designed to help those whose credit scores aren’t high enough to receive funding from traditional institutions, including banks and credit unions.
The word “quick” refers to the expedited nature of this loan. While traditional bad credit loans exist, they usually take longer to process. In addition, traditional lenders will usually require a more stringent approval process, complete with a credit check and credit history analysis. To qualify for those loans, you’ll need to have a credit score that ranks as good or excellent.
As an alternative, quick loans are normally completed online, with the application and approval process often occurring on the same day. While some lenders will check your credit, most are primarily concerned with your ability to pay back the loan on time. As long as you can meet the terms of your loan agreement, your credit isn’t an issue.
Once you’re approved and you review the terms of your loan, you will pay the lender back in monthly installments.
You can use a quick bad credit loan to pay for a variety of different expenses and financial emergencies. A few of the most common ones include:
While quick loans usually carry higher interest rates than traditional loans, the rates are often lower than interest rates on credit card loans. As such, many people choose to use these loans to consolidate their various credit card debts into one lower payment.
When a financial need arises, it’s smart to research all of your options. While you can normally secure lower interest rates and more favorable terms by borrowing through a traditional lender, this might not be a viable solution if your credit score is low.
If that’s the case, a quick bad credit loan can offer convenience and funds. Here’s a closer look at how the application process works.
No, these lenders won’t assess your credit score when determining whether you qualify for a loan. However, that doesn’t mean that your score doesn’t matter at all.
As a consumer, it’s always a good idea to know where your credit stands. You are eligible to receive one free report per year from each of the three major credit reporting bureaus, including:
Go through each report closely and report any errors you find. This one step could help you improve your score, especially if there is erroneous information in your file. The better you understand where your credit score is lacking and how it got there, the easier it will be to build it back up to where it needs to be.
Though specific breakdowns can vary, the following credit ranges are considered standard:
If you’ve gone through your reports and your score is still low, don’t worry. You can always build it back up. In fact, investing in a personal loan is a great way to improve your credit score!
As you make regular, on-time monthly payments, you’ll prove to future lenders that you’re responsible and creditworthy. This can go a long way toward helping you qualify for traditional loans down the road.
Once you’ve taken a look at your credit and analyzed your score, it’s time to think about the type of lenders that will best meet your needs. This is easier when you work through a platform like ours at Fast Loan Direct.
When you complete our online form and enter your loan requirements, we can help match you with a lender that’s qualified to help. The lenders in our network are ready to finance your next project and help you obtain the money you need. Many offer bad credit loans designed for applicants just like you.
Depending on where you look, you may find a lender that prequalifies you to determine if you’re eligible to apply for a loan. Pre-qualification can also help you understand the different loan options that might be available to you. In most cases, prequalifying for a loan will not have a negative impact on your credit score.
Once you’ve found the right lender, you can begin the loan application process. Keep in mind that most lenders offering fast personal loans are ready to deliver your funds on a quick turnaround basis. Some will work on a same day loan approval basis, while others will offer next day funding.
Either way, make sure you have everything prepared so you can complete the application and receive your cash as soon as possible. While each lender will have different requirements, some of the forms and data you may need to compile include:
While you might want to apply for as many quick bad credit loans as possible, we suggest starting with just one at a time. Not only can applying for multiple loans at the same time hurt your credit score, but it can also be a lot of administrative work to juggle.
Once you’ve submitted your loan application, it’s time for your lender to act. They will review the documents and information that you provided, and assess if you’re a good candidate for their loan.
If they approve your application, you will usually receive the funds in your bank account by the next business day. The amount that you’re approved to borrow will depend on a few different factors, including your financial situation and the lender’s terms.
Keep in mind that even if you’re approved for a large sum of money, it isn’t always in your best interest to take the full amount. Only borrow as much as you need, and as much as you can comfortably pay back without dipping into your long-term savings. You can create a budget to understand how much you’re spending each month, and how much you can commit to paying on a personal loan.
Before you walk away with your money in hand, take the time to carefully read through all of the terms and conditions that come with your loan. In addition to the amount of money you’ve borrowed, you’ll also be required to pay interest on the loan, as well as any additional fees.
The cost of borrowing money for one year is known as the annual percentage rate, or APR. Most fast bad credit loans have an APR, which is based on the following:
Most of the time, bad credit loans come with higher APRs. While this is one drawback of the process, the upside is that you can apply for personal loans that your credit score would have disqualified you from otherwise.
To keep your interest rates as low as possible, remember to always complete your monthly payments on time. This way, you can avoid expensive penalties and remain in good standing with your lender.
Your bad credit shouldn’t work against you. If you need access to quick cash, you should be able to secure it.
Quick bad credit loans can make this process much easier. These lenders analyze other areas of your finances to determine if you’re a qualified borrower and don’t place as much emphasis on your credit score.
Do you need money to help pay for an emergency or unexpected expense? If so, start with Fast Loan Direct. Complete our online form and we’ll instantly connect you with our network of lenders, so you can take these next steps in confidence.