At times, you may need extra cash to cover an expense. Such emergencies can have a serious impact on your finances. In fact, it can be challenging to just pay rent or buy supplies when an emergency occurs in the month of the month. This will force you to look for another source of additional income.
The situation, however, can be tough if you have bad credit. For one, getting a loan with bad credit can be tough. So the only remaining options will be to ask for extensions on credit card payments or take out a cash advance. Credit card issuers may not give you a card. That might lead you to short term loans with high interest rates for poor credit.
Back to loans with bad credit, there are very few options available for people with bad credit. Among them are guaranteed loans for bad credit. Before deciding whether this is the best option for you, here is what you need to know about loans with no credit check.
To make it simple, the answer to this question is no. It is true that some loans are specifically designed for people with bad credit. But when it comes to guaranteed loans, whether for good or bad credit, there is really nothing of the sort. No lender can guarantee 100% approval for their loans.
Instead, people with bad credit can qualify for loans with no hard credit checks. With these loans, no hard credit check is done on your credit report. Rather, additional information is used by the lender to determine your creditworthiness, like your ability to repay the debt.
These types of loans are short term, requiring a borrower to make one or two payments. The payment is inclusive of the interest rate, principal amount and the associated fees. The loan amount varies from one lender to another. They can be put into your checking account the same business day and you do not need a good credit history.
That said, we are now going to discuss the different types of no credit check loans to help you make an informed decision
If you need fast money, it really won’t matter where this money comes from. All you wish you have is enough cash to cover an emergency at hand.
This can be a medical expense, house rent or any other issue. Getting enough cash to cover these bills can be a relief, but you also should be careful. There are important things you should pay attention to when looking for a bad credit loan.
When you apply for an unsecured payday loan, the lender will consider your monthly income to determine how much you can borrow and comfortably pay. Payday loans are also known as cash advances, credit success loans, deferred deposits.
The loans are offered in small amounts with a short repayment term. In most cases, you may have to pay the whole amount including the principal, interest rate and fees on your next payday. This can be a period of between two weeks and one month.
The maximum amount that you can qualify for depends on state laws concerning bad credit loans including other factors. To qualify for the loans, there are certain requirements that you have to meet. For instance, you may be disqualified when you do not make enough or if you recently defaulted on a bill.
Payday loans can easily lead an applicant in a debt trap. If you have issues repaying the loan, you may have to roll over the loan, and this will increase the interest and fees. Actually, more than 80% of people who qualify for payday loans find themselves in the rollover game. You should read the terms and conditions before applying.
This is according to information provided by the Consumer Financial Protection Bureau. The more you roll over the debt the more difficult it gets to complete your loan payments.
Unlike payday loans, secured loans need collateral when applying, which, in this case, is your car title. This is the reason why they are referred to as title loans.
Title loans have a short term and they offer fast cash with no credit checks. They are however different from payday loans. Here, the lender requires your car title as security for the loan. The amount you can qualify for will depend on the value of your car.
The lender remains with your car title until the loan is paid in full. The loans have a term of 30 days, although other lenders offers can agree on a longer term, so long as you make constant payments.
The risk of getting a title loan is that your vehicle will be repossessed if you default or miss payments. 20% of people who apply for title loans lose their cars every year.
When it comes to loans with bad credit, payday loans and title loans are not the only available options. Regardless of how bad your credit score is, it is still possible to qualify for other types of loans. But beware of lenders who claim to offer guaranteed loans for bad credit. Traditional financial institutions offer affordable personal loans. The factors used to determine whether you qualify for these loans include;
If you have an excellent credit score and have a tendency of paying debts on time, chances of qualifying for a personal loan in a bank or credit unions are very high. There are also other secured loans that need collateral in order to qualify.
If you have bad credit, consider applying for a bad credit loan from Killerkash. We do not play the rollover game and our fees are affordable. Besides, we don’t perform credit checks. If you apply and pay on time, you may even qualify for loans with affordable rates and have the chance to build your credit in the process.