All About Bad Credit Loans

If you are wondering about bad credit loans, they are the type of loans that you can easily get, especially if you go to Google and type in “bad credit loans”.

If you did just that, you will see that there are many lenders out that provide loans for people with less than stellar credit scores, and even for people with no credit scores at all. They are easy to get in the sense that when you apply for a loan now, your loan gets immediately approved and it will only be a matter of hours, sometimes minutes, before representatives from the lender call you to walk you through the completion process.

Then you can see the money in your bank account in as short as 24 hours. So, if you are in need of money but there’s friend or relative who can lend you some, and the banks have the habit of turning you away, go ahead and apply for a cash loan for people with bad credit. You should know, though, that while they are easy to get, they are very expensive with APRs double, sometimes triple, that of bank loans.

All About Bad Credit Loans

You could be paying anywhere from 25% to 36% in interest rate. Aside from that, the loan amounts are not that great. Most lenders, because of the risk involved, do not lend more than $1,000, although there are those that lend up to $10,000. But APR and loan amount aside, there is one other thing that makes these loans a little unpalatable: the repayment term. Most lenders expect you to pay after 30 days or else you end up with another smudge in your credit score.

That said, if you want to get a cash loan, make sure that you have the money to pay for it.

IF you are still building your credit score, or if you want to repair your profile with the credit rating agencies, you can use these loan products to get from A to B. Apply for a loan and then pay for it on time. Every time you do this, it’s going to reflect in your records, thus further adding to your credit score. Again, because cash loans are usurious, make sure that when you apply for a loan, you are deliberate about it and that you already have the money to pay for it, if at all possible.