Short term loans with bad credit are exactly what someone in need of funding needs!
With a short term loan, expect immediate funding, as well as the convenience of not getting checked off based of a credit score.
Most financial institutions and banks don’t bother giving people with bad credit a chance!
And whatever the case may be, there are situations out there that might require that extra dough.
But where to start?
Here are a few tips that might help with the search along the way:
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- Search, Research and Decide: Think of finding a short term loan like buying a car. Always look at several choices and compare their advantages and disadvantages online before making a final decision. Short term loans may all look the same, but some lenders may offer better incentives or rates in the long run.
- Avoid Scams: Unfortunately, there are several fake companies out there that are taking advantage of unsuspecting people. Be sure to check out scam sites or community message boards to see if people experienced terrible service or lost personal information to over-the-phone “lenders” that were looking for a quick buck.
- Look for Bad Credit Loans: When checking the world wide web for short term loans, be sure that good credit isn’t a top requirement. Consumer loans come in all shapes and sizes, it would be annoying to spend time applying only to get rejected due to strict requirements. Terms like “despite bad credit” are loans that offer the type of flexibility you may be looking for.
- Meet or Call the Lender Beforehand: Lenders typically offer more than one way for borrowers to get in touch. They provide phone numbers, emails, and physical addresses for a reason! Always speak with the lender on the terms and other questions that may crop up before signing anything. Better safe than sorry!
Whether called bad credit loans or short term loans, these loan products are fairly simple to find. However, during the search it would be good to know the different variations of the short term loan, especially since they all have different perks that make them useful in different situations.
Types of Bad Credit Loans to Choose From
As the search goes on, be sure to know the difference between some of the following bad credit loans out there.
Peer-to-Peer Loans
Thank to the wonders of technology, there are several peer-to-peer loan options that feel like you’re borrowing money from strangers. Depending on which website is chosen for the search, many of these lenders may provide their own criteria on who they want as a borrower.
If someone looks hard enough and plays around with search tools, they may find plenty of bad credit loan lenders looking to help individuals with a bad or non-existent credit score!
Auto Title Loans
Also known as car title loans, auto title loans are a type of bad credit loan that’s provides borrowers with ample funding based on their residential state. Due to their tight regulations all over the country, these bad credit loans are probably the most secure loans out there.
A title loan can provide a good amount of funding because they are a type of secured loan. Using the title of the car as a collateral means that lenders have the title of the borrower’s car as a safety net. Once the borrower fully pays off the loan, the title of their car is then returned to them!
Many auto title loan lenders out there are available online and offer much of the same convenience. However, much of the funding for auto title loans does rely on the value of the vehicle!
Installment Loans
Due to the need of emergency cash from the likes of short term loans, there are several financial institutions that offer an option for those with a varying credit score.
In fact, some of these short term loans offered are called installment loans. With installment loans, the borrower will have to pay off the loan through several monthly installments, which could last several months to a whole year.
Although some of these loan options may not look too closely at credit, collateral or other factors may play a big role in qualification.
Payday Loans
One of the more popular and simpler of the bad credit loans out there, payday loans practically explain themselves by their own name!
Looking at a person’s income and bank account, a payday loan could be received in less than ten minutes once approved. However, the payment on the loan is based on the person’s next payday, hence the name.
If a person cannot fully pay off the loan with their next paycheck, the loan amount will rollover to the next paycheck. Depending on which state the borrower lives in, this could go on for awhile until the loan is fully paid off.
Because of their convenience and short term loan properties, these little helpful boosts could turn into big problems. Overtime, someone could end up paying more than they initially borrowed very quickly!
The Benefits of Getting a Short Term Loan With Bad Credit
After researching and getting the right short term loan, what kind of advantages can someone expect to get?
Well unlike other loans, getting a short term loan with bad credit may provide some of the following benefits:
- Improve Credit: That’s right! While paying off the loan, a borrower could improve their credit if they continuously make payments on time!
- Pay It Off as Quickly as Possible: Those who hate having to make numerous payments might love the idea of being able to pay their loan off whenever! Most short term loans offer no penalty for early payments, and lenders even encourage customers to pay their loan off quickly to avoid high rates.
- Stress and Hassle-Free: Traditional bank loans are still stuck in the past. Face-to-face interviews and proper paper documentation can take a lot of time. Many short term lenders provide faster documentation through their online approval forms and minimal qualifications!
Even with all these benefits, the key to searching for a good short term loan with bad credit is to figure out what you want out of it!
Disclaimer: This content does not necessarily represent the views of IWB.