Bad credit loans are among the best helpers for debt consolidation when you face a dangerous financial situation. You can take one lump sum and repay it within the stipulated term. During that time, you see your credit score getting brighter, and worries go away. With guaranteed approval, you can remain safe that MaxLoan is here to serve you and guide you through any financial situation you need help with.
Loans for people with bad credit are highly common and, in fact, an accessible procedure. In the topics below, you can learn about rates, terms, fees, and requirements. You will also learn about the application process and how much time it takes to get approved.
Are Bad Credit Loans Safe?
Getting offered a loan with bad credit simply means that your lender is willing to make a deal with you even if your credit score is way lower than what is desired by most common lenders, banks, credit unions, etc. Bad credit loans represent a risk to the lender, thus getting called high-risk loans sometimes. To cover those risks, the lender already charges specific fees when the contract gets signed.
Many elements are in play when applying for bad credit personal loans, so let’s understand what is considered a bad credit score.
Credit Score
The Fair Isaac Corporation has devised a scale that rates the financial habits of common people of the United States. This scale is known as the FICO score. There are other ways of calculating a credit score, but the FICO score is the most used. Five elements are used to calculate a client’s score:
From those elements, the FICO score gives you a number. The number ranges between 300 and 850.
» COMPARE: Bad Credit Payday Loans
Rates and Fees
It is a known fact that some loans can have very high-interest rates. In the case of bad credit loans, the APR can go up to 35%. Plus, the fees can go from 3% to 5% of the requested amount.
As for terms, you can borrow a quantity of money to pay in 30 days, or you can get installment loans which you will be able to pay throughout many months to come. That way, it becomes a no-brainer to get a loan with bad credit.
What Loan Can I Get With Bad Credit?
If you are familiar with personal loans, you know there are plenty of loan types, even if you are looking specifically for a sort of service (bad credit loans guaranteed approval, right?). Depending on the deal you make with your lender or bank, you will pay the entire debt in one lump sum or through several months.
Personal Loans
In this topic, a personal loan means a money advance that you take to invest in a personal project. It is a common purpose for borrowers.
For example, perhaps you want to start a new part-time job which consists of a business you will run at home. You will need an initial amount of money to buy whatever you need, and personal loans for bad credit will help you with that.
Payday Loans
Payday loans are popular, and sometimes “cash advance” might refer to this loan type. They are issued by appropriate payday lenders and offer low values, usually up to $1000. Their interest rates and fees are very high, but they are still on the market due to how easy it is to get one. Many borrowers who get a payday advance get the amount requested within less than an hour.
Cash Advances
“Cash advance” is a term used as a synonym for any loan type or payday loan. Many times, lenders offering this type of advance are offering a payday loan.
Title Loans
Title loans are secured by your vehicle’s title. When you are approved for this loan type, the lender keeps your car or motorcycle’s title until you can repay the loan. If you can’t pay the loan on the due date, then you can lose your vehicle. This loan type allows you to get amounts around $10,000, sometimes even more.
It sounds appealing, but it is risky. Since title loans can represent a risk to borrowers, not all states allow them. You can learn all about the legality of this type of loan here.
How to Qualify for a Loan With Bad Credit?
There aren’t many requirements to get bad credit personal loans. Most loans, including those for bad credit, will usually require the same things, and they are listed below:
Other than that, you have to make sure that your FICO score isn’t too low to get guaranteed bad credit loans. Even though lenders already cover their risks before lending loans for bad credit, there is a ceiling for how much risk they can take. To get a loan with bad credit, your credit can’t be too low.
How Can I Get a Loan With Bad Credit?
Getting bad credit loans is more painless than one might think. All you have to do is find the lender of your preference physically or virtually. Nowadays, applying for online loans with bad credit is the quickest way. Even old-fashioned folks noticed that online services are here to stay, and they can deliver the promised features just as well.
If you want to apply for online bad credit loans with MaxLoan, you can follow these steps:
Can I Find a True Direct Lender for Bad Credit Loans With Guaranteed Approval?
There are plenty of direct lenders nowadays offering all types of loan deals for clients. Many of them promise that approval is guaranteed; when, in fact, guaranteed loans for bad credit don’t exist.
As you are already aware from reading thus far, there are risks involved in lending online bad credit loans. Because of that, no lender can genuinely guarantee that you will get approved, and then the promise of guaranteed bad credit loans vanish instantly. Even bad credit loans have minimum requirements. If your credit score is too poor on the FICO score, for example, even bad credit lenders will probably turn you down.
With that knowledge in your hands, you have to be careful and not fall for lenders that promise bad credit loans with guaranteed approval and don’t explain to you how credit score works and what is at risk both for you and them.
The simple fact of loans for bad credit being risky makes you wait for a while before you get approval from any lender. Sometimes the approval will be instant or nearly instant because one’s score is good enough, and no type of check (automatic or manual) will slow the processing of loans for poor credit.
Where Can I Take a Loan With Bad Credit?
Nowadays, new direct lenders are very reliable when you want to get poor credit loans or any loan type. MaxLoan has risen in the market recently and gathers a team of experts that are serious about their business. That way, you will receive careful attention if you need to learn about our procedures regarding loans for bad credit. You can reach us by phone or email. If, after taking a loan, any doubt arises, you are more than welcome to get in touch.
Moreover, the overall advantages you get by applying for loans include:
