Bad Credit Loans To The Rescue

Published on March 28th, 2014

There are many things in life that can be challenging. However, one of the most difficult things to deal with is a bad credit score. Not only does this number impact your ability to buy a car, finance a home or get a credit card, but it can also prevent you from getting a loan from your own bank or financial institute. If you are a person with bad credit and you need cash fast, bad credit loans may offer the answer you have been looking for.

How They Work

Bad credit loans are relatively uncomplicated and straightforward, especially when you are working with a highly professional and reputable lender. These loans are designed to be very short in duration, usually two weeks to one month, and allow you to borrow cash that will be automatically withdrawn from your banking account with your next payday.

The lender makes money on bad credit loans by charging a flat fee for the loan. This fee will be determined by the amount that you borrow, which can range from a hundred dollars to a thousand. The fee is the profit that the lender makes for arranging the loan and lending you the money.

No Collateral or Credit Check

Instead of having to provide collateral, as you would with a secured loan, or go through a credit check to provide your ability to repay, the lenders for bad credit loans use your employment to prove your ability to repay.

You will need to provide your current employer information as well as proof of you income. The more that you make the more you will be eligible to borrow, up to the maximum allowed. While you may be able to borrow the maximum, it is important to consider if you want to pay the fees for that amount and if it is reasonable that you can repay the loan with your next pay.

Are There Risks with Bad Credit Loans?

There are no risks for the borrower, but if the loan is not repaid according to the agreed upon terms there may be additional fees and charges to extend the loan. The lender also has minimal risks, but as with any type of loan, the lender does assume some risk with the deal.

Bad credit loans are a good option for people that have poor credit. They can help in an emergency and, with repayment on schedule, they can be a cost effective option.

Back to News