Having a bad credit rating is a common issue among most Americans today. Since the recession, many Americans have lost their jobs, and failed to pay for their financial obligations which resulted in bad credit rating. However, while having a poor credit rating used to be a problem years ago for those who want to secure a loan, it is now never an issue when taking out a loan with online bad credit loans lenders. These lenders offer bad credit loans for people who find it hard to secure a loan from traditional lenders due to their bad credit rating.
Bad Credit Loans: What Are They?
Bad credit loans, as the term suggests, are loans that you can secure even if you have a bad credit standing. Contrary to popular belief, they are also actually offered by traditional lending institutions such as banks. However, these institutions have more stringent set of requirements. In fact, banks usually require either collateral which can be a valuable asset such as real estate properties and car, or a guarantor, who is someone with good credit rating and steady source of income. In the first case, you are risking your valuable asset to the loan. In the second case, your guarantor will be called up or may be responsible for paying for your loan if you fail to settle it within the repayment term.
However, if you don’t have an asset to put against your loan and have no one interested to become your guarantor, you still have another option: online bad credit loans. They are unsecured loans that require no collateral and no credit check. All you need are a stable source of income/ proof of income, U.S. citizenship, and being of legal age. If you can show that you can pay for your loan within the repayment term, then you’ll most likely be able to get approval on your bad credit loans.
Get Instant Money!
With bad credit loans, you can have the cash you need almost instantly. This is most especially true if you already have a credit history with your lender or you are a repeat borrower. If you are a first time borrower though, expect to get the money you need in as little as 24 hours.
The approval process is very fast because lenders don’t check your credit history, a process which usually takes days to complete. Another reason is that lenders do not do assessment as thorough as traditional lenders on regular loan application and this is because the money involved is not as much as regular bank loans. Bad credit loans are small loans only offering from $100 to $2500, compared to regular bank loans which can go as high as millions.
In addition, bad credit loans are processed online through the lender’s website. There is no need for you to personally visit the lender’s office, file your loan application, come back for an interview, and then come back again to get your money. With online bad credit loans, the transaction is done online, at your own time and convenience.