Introduction
You need some urgent cash to fix your broken car or cover some unforeseen medical expenses. But unfortunately, traditional lenders and banks won’t hand you money because you have a bad credit score. So, what do you do next? The good news is that urgent loans near me are available offline and online. You can avail of such urgent loans for bad credit using WeLoan, a marketplace that helps borrowers and lenders connect. These lenders assess your ability to pay loans instead of relying on your credit score to evaluate your eligibility.
What is Bad Credit?
Let’s begin with understanding what bad credit is. Bad credit is when your credit score range falls between 350 to 579 on the 800-point scale that quantifies your credit history. You can have a bad credit score if you miss your payments or owe large sums compared to your credit limit. Then, your score is unsatisfactory to secure loans from banks and financial institutions. Having a bad credit score can be challenging. Because you don’t have favorable repayment conditions, raising your credit limit is near-impossible. Hence, it cripples your ability to cover emergency and unplanned expenses. Enter bad credit loans!
What are Bad Credit Loans?
These loans cater to individuals with bad credit history. For example, suppose you need to pay your utility bills. Then, you can try to get urgent loans for bad credit instantly with WeLoan. They partner with lenders who lend money to people with not-so-stellar credit. You sign-up to their website and fill up an application form to borrow money starting from $50 to $5000 and beyond. The best part of securing a loan at the platform WeLoans is you have better interest rates. The entire process of approval and deposit is fast and seamless. This convenience ensures you can also have money in your account beyond working hours, so you don’t have to wait in bank lines in emergencies. Plus, their services cater to borrowers with bad credit in particular. The creditors evaluate your ability to repay, utilizing stable income, recent financial transactions, and debt-to-income ratio. Such parameters ensure that you are eligible to secure a loan despite unsatisfactory credit scores. Finally, they take your privacy and security seriously, and your data won’t be prone to breaches.
Eligibility for Loans
Lenders don’t stress credit score, but you still have to meet specific eligibility criteria for lenders to trust you with their money. These are: Lenders will also perform a soft credit check on you to ensure you can repay the loan, regardless of your credit history. Your loan amount will differ based on the state you live in. In addition, factors like your employability status and loan type will also determine the amount you receive. A word of caution: If you come across an online lender willing to lend money with no credit check, it’s likely a scam.
Types of Bad Credit Loans
You can avail of one of the following types of a bad credit loan:
Payday Loans
These loans are small advances to cover urgent or unexpected expenses until you get your next paycheck. They are quick to secure but have high-interest rates. So, ensure you can pay back the fund in the stipulated period.
Title Loans
Title loans can be secured against the title of your car or any recreational vehicle. The amount borrowed can be 25-50% of the car’s value, and the loan duration is 15-30 days.
Personal Loans
Personal loans usually range from $1k-5k, and you can spend the money per your requirements. The pro of personal loans is a fixed APR and distributed repayment schedule. You can pick the lender who offers you a convenient repayment schedule and same-day funding.
Choosing the Appropriate Loan and Lender
While using an online lender gives you the liberty to choose a lender from multiple options, you can also have appealing interest rates and flexible repayment options. However, you must avail of a loan that offers you a comfortable APR and affordable installments. You must choose a loan to relax your financial burdens instead of aggravating your financial woes if you can’t pay a lump sum on your next payday. It would help if you stayed away from payday loans. The convenience of rapid disbursal of loan amounts comes at a high-interest rate cost. Carefully read the terms and conditions of the lender to avoid paying penalties or higher interest rates.
How to Improve Credit Score
A good credit score will help you have better loan terms and more credit card choices. In addition, you may have a better APR and can raise your credit limit. On the other hand, a bad credit score prevents you from enjoying these benefits. However, you can work to improve your credit score. Start with paying your outstanding debt in time, every time. Also, try making the overdue payment on your credit card as soon as possible in full. Or at least pay the minimum outstanding amount. Finally, don’t apply for several loans at once. These simple steps will help you increase your credit score.
Conclusion
You can improve your credit score, but not next week. But, you may need a loan by that time. Hence, you can always resort to online lenders like Weloan to overcome the shortage of cash at hand. But, be pragmatic about the type of loan and lender you choose to aid in your expenses and not add an extra financial burden.
