If you have a poor credit score, chances are high that you will pay a higher interest rate for auto loans and home mortgages. Often, getting a loan on bad credit is tough for applicants, but with the online marketplace, there are definitely more options. So, what is the easiest loan to be approved for? As long as you have a stable income, getting a bad credit personal loan shouldn’t be hard. Here is an overview for your help.
What is abad-credit personal loan?
True to the name, bad credit personal loans are available for people who don’t necessarily have a great credit score. Most lenders promise guaranteed approval for applicants, and you can expect the money in your bank account in one to two business days. The process of application is also online, so it can be discreet, and you can ask for as much as $15,000, but it depends on your current income. For loans up to $5,000, approval is usually guaranteed.
What are the basic requirements?
To apply for bad credit personal loans, the following criteria must be fulfilled at the least –
- Applicant must be 18 years or older
- Applicant must have an active US bank account for receiving money and paying installments.
- Applicant should have a stable job with reliable income
- Applicants shouldn’t have existing personal loans or payday loans and shouldn’t have a history of defaulting on quick loans.
Factors that matter
Getting approved for bad credit personal loans is easy, but we strongly recommend that you consider the option wisely. These loans are better than payday loans, because you have a much longer span to repay the money in installments. Also, the APR is typically less than 36%, which is again lesser than what many direct payday lenders end up charging. The payment term varies from 3 to 5 years, and as we mentioned earlier, $5,000 is usually guaranteed. The lender is interested in your income and ability to repay the money, so the credit score doesn’t really matter. Lenders are taking the risk of giving bad creditloans without a collateral, so expectedly, the interest rate is higher.
Final word
We recommend bad credit personal loans for people in a financial mess, but don’t forget to review the terms and conditions. You must have the intention of repaying the money in time, or else, getting a second loan in the future will be hard.
