Bad Credit Loans
Personal loans for bad credit online!
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Great opportunity to improve credit history by borrowing responsibly.
Bad credit personal loans are fixed APR unsecured loans for borrowers with low credit score. The borrower pays back a loan in equal installments. Usual loan amount does not exceed $10,000. Bad credit loans are good for debt consolidation, home repair, wedding, medical bills and other large purchases. APR for these loans is higher because lenders have more risks. Thus, such borrowers are in risk of unfair lenders. Let’s learn more about loans for people with bad credit.
What is credit score and bad credit?
A credit score is a number that shows ones creditworthiness. There are several types of credit score, but the most popular is FICO score. A credit score is calculated based on credit history records. The image shows main elements that affect credit rating. A low credit score means poor credit rating. For lenders, this results in more risks of missing payments or defaulting. So, such borrowers get small loan amounts at high APR. In order to prevent bad credit, one should avoid the following actions.
- Paying the bills late or not paying at all;
- Defaulting on a loan or missing payments;
- Having an account charged off;
- Struggle from debt collectors, getting a judgment;
- Using a full credit card limit;
- Applying for several credit cards or loans at once.
Ways to improve bad credit
Bad credit is not that bad. No matter the reasons why a person’s credit has become bad, there is always a way to rebuild it. Here are some tips on doing that:
- Pay bills on time;
- Keep credit utilization ratio low;
- Use less than 30% of credit cards limit;
- Consolidate all loans into one low-rate loan;
- Fix errors in a credit report.
What loan options do people with bad credit have?
The number one priority when having bad credit is to improve it. Until that happens, there are some ways of getting loans even for people with poor credit.
Credit Unions. Smaller than banks, they offer loans with better conditions than short-term lenders. Members can get a personal review of their financial needs.
Friends or Family. Borrowing from the close ones might be a good option. Thus, you may need to explain, why do you need the money for.
Peer to Peer Lenders. Convenient platform both for lenders and borrowers. Individuals estimate risks and bid for borrower’s loan giving fair rates.
Car title loans. One may get money, drive a car but keep it as a collateral. This is expensive and risky, since the owner may lose the car in case of loan default.
Secured loans. Collateral loans involve securing it with one of the borrower’s assets.
Co-signer loans. These type loans are secured by the person who guarantees for the borrower.
Online. Apply for a personal loan for bad credit on Direct Loans Lenders. Get up to $15,000 fast!
How are unsecured loans for bad credit different from other loans?
When somebody needs funds, the existing types of loans might be confusing. Personal loans are confused with payday loans and installment ones. All these loans can be approved with poor credit. Let’s check the differences between them.
Payday loans are for very short-term and must be paid back in full within in 14 – 31 days. High fees make this type of loans dangerous.
Installment loans are fixed rate loans paid back over several months. Repayment terms are more flexible than cash loans. The interest rate is not as high as for payday loans.
Personal loans provide large sums for a long-term up to 60 months. With lower rates and fixed installments, they are easy to manage. It’s a great option for rebuilding credit.
Why Bad Credit Personal Loans could be the right choice?
Personal loans have many perks. They can be a good option for those, who can’t take a loan from the banks. The main benefits of bad credit loans are:
- Soft credit check that doesn’t affect the credit history;
- Fast approval with nearly no fax and paperwork;
- Improve credit rating by making payments on time;
- Larger loan amounts and lower APR;
- Use the money for any expenses;
- Low risks of unfair lenders!
Ask questions and review rates before you borrow!
There are some things to know before applying online for any loan. Get information about state laws for bad credit loans if they are legal in your state? What is the highest interest rate and what are the penalties for late payment? Can borrower take more than one loan at the same time? Another thing to check is how your lender deducts money from a bank account. In some cases, automatic payments may lower loan rates. Let’s take a clear example and calculate how much a usual borrower is paying for using a loan. He borrows $10,000 for 5 years, and the average APR for bad credit is about 28%. To calculate your own rates use our loan calculator.
|Date||Monthly Payment||Payment Principal||Interest||Total Interest||Remaining Balance|
As we can see, in the beginning borrower pays much more interest than loan capital. The total overpayments for this loan is: $8,681.49 for 60 months or approximately $145 per month. Contact us for help or visit our FAQ and learning center today!
How to avoid Bad Credit Loans Scams
Nobody is secured against scams related to loans. However, there are some ways to avoid them. Here are the most important ones:
- Always apply on a website that is secured. Its address should begin with https. The website must look reliable and clean.
- Do a simple Google search and look for customer reviews. Find and read them thoroughly.
- Each lender must provide details about fees and charges. APR, late charges, processing and originating fees must be written in the contract.
- Check for a physical address and state license of the lender. Verify contact details by making a phone call.
- Avoid services that charge processing fees with no approval guarantee or send your details to third parties.
- Stay away from high APR loans with unlimited renewals. Unclear loan terms with no repayment plan is a bad signal!
- Do not apply with lenders who give “no credit check loans”, “guaranteed loans”, “instant approval loans”, “same day loans”. Most likely it’s a scam!
- For any online loans use only trusted services like Direct Loans Lenders!
How to apply for online loans for bad credit?
Submit an online application. Fill in form with name, phone, address, job, income, bank details.
Fast loan approval. Our team will send your details to several lenders. Once matched, the lender will send you a loan offer.
Accept the offer. Read term of the loan agreement. Note all fees, charges, repayment options. Sign the contract and wait for final approval.
Quick loan deposit. Once the lender approves your loan, he transfers money into your bank account in one business day.
Easy loan repayment. Online loan must be paid back according to the schedule. This may be one-time payment or several installments over a long period.
Repaying the loan on time may improve your credit score! Good credit rating guarantees better terms and lower rates for new loans!
Why Choose a Bad Credit Personal Loans Offers from Direct Loans Lenders?
People usually need loans fast. They need a solid partner who can offer a personal loan despite bad credit quickly. Direct Loans Lenders offers all that and even more!
- Free online application!
- Quick loan approval from the lender.
- Fast money transfer guaranteed!
- We promote responsible lending!
- Expert support team!
We offer online loans from direct lenders. Applying if free, with no obligations. We protect consumers from loan scams and predatory lenders. Apply today!
Financial information for consumers!
APR for bad credit loan ranges from 20.99% to 450%. Loan amount and interest must be paid back according to a loan contract. Non-payment, late or partial payment may incur penalty fees and charges. Lenders may contract third party debt collection services to handle delinquent accounts. This may negatively affect credit score. Renewal policies depend on state and lender and will result in extra finance charges. Read all papers before signing.