What Are Short Term Loans for Bad Credit?
Short-term loans for bad credit are unsecured quick loans specifically designed for people with terrible credit scores. This type of loan provides quick funding for those looking for instant cash to settle unexpected expenses like emergency medical bills, vehicle repair or maintenance costs, or cooling equipment repair costs. The repayment duration for this type of loan ranges between 30 and 90 days. Short-term loans for bad credit come at high interest rates and fees.
Can I Get a Short-term Loan with Bad Credit
Certainly, you can get short-term loans for bad credit, only if you meet other requirements as stipulated by a lender. Lenders consider other factors like your ability to repay a loan and whether or not you have a verifiable source of income.
A bad credit score should not prevent you from accessing a short-term loan to settle unexpected expenses. To have an edge over other borrowers with bad credit your best bet is to work with a credible broker that can help you facilitate the process so that you can get the best possible deals.
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How to Choose The Best Short-term Loans for Bad Credit
With hundreds of loan sharks on the loan market, it can be very difficult to choose the best short-term loans for bad credit. Remember, having a bad credit score has already put you in a difficult situation, which means online lenders and traditional financial institutions may not approve your loan request.
So, how do you choose the best short-term loans for bad credit? Below, we have highlighted the best way to choose short-term loans for bad credit:
Research The Loan Market
The first step to take in your quest to borrow money with bad credit is to carry out your own due diligence. The US loan market may be filled with loan sharks and online lenders that are not trustworthy. When you do your research well, you will be able to uncover scams and also know credible loan facilitators.
Know Your Loan Facilitator
Once you are able to identify a credible loan facilitator, the next step to take is to learn more about the lender. You can do this by getting in touch with other borrowers that have used the services of the facilitator before. You can also read reviews about the facilitator to know whether or not they are suitable for your financial situation. Knowing your loan facilitator will also help you better compare their different loan offers, interest rates, and repayment terms.
Comparing loan offers means taking a look at the terms and conditions of the lender to know their interest rate, repayment terms, repayment duration, APR, late repayment fee, as well as eligibility criteria. There is power in the ability to compare loan offers, as it will help you secure the best possible deal on the market. Compare loan offers and pick the one that offers the most flexible repayment terms and competitive interest rates.
Know the Terms & Conditions
The last step to take in your quest to choose the best short-term loans for bad credit is to know wholeheartedly the terms and conditions associated with the loan that you have chosen. All lenders in the United States have a prospectus that they usually share with borrowers. The prospectus contains the lender's loan offerings and the terms and conditions governing their financial products. Have a look at the prospectus to enable you to learn the terms and conditions that are binding between you and the lender.
How Does WeLoans Compare?
|Why Use Us?|
|How much am I allowed to borrow?||Up to $35,000||No hidden fees or charges|
|What are typically the loan terms?||Up to 36 months||Various repayment options|
|Do lenders check my credit?||Yes||Soft search only|
|Do lenders take bad credit?||Yes||Bad credit considered|
|Chances of approval||Good||Quick turnaround|
|How to apply?||Apply online||No paperwork needed|
How to Qualify for a Short Term Loan with Bad Credit
To qualify for a short-term loan with bad credit, you need to meet the following requirements:
- You must be at least 18 years old at the time of loan application.
- You must possess a valid ID card.
- You must show evidence of being employed or have a verifiable source of income.
- You must have an active email and phone number for smooth communication.
- You must have an account with any of the banks in the US.
How to Improve Your Credit
Taking out loans with bad credit can be difficult and overwhelming; as such, there is a need for you to take steps to improve your credit score. Find below the best ways or strategies to adopt when you are looking to improve your credit score:
- Pay Your Bills On Time: There's no strategy that you deploy that will improve your credit if you pay your bills late. To improve your credit score, endeavor to pay your utilities, rent, mortgage, and other debts on time. You can set up automatic payments on your checking account so that as soon as funds hit your account, your bank will allocate those funds to the areas where bills are supposed to be paid on time.
- Become an authorized user: Another way to easily improve your credit score is to become an authorized user of a credit card with a high credit limit. If you have a friend or relative that owns a credit card with a high credit limit, you can request the person to list you as an authorized user of the card. The credit limit of the card will help your utilization and thus boost your credit score. The original owner of the card does not necessarily need to let you use the card to make purchases.
- Dispute credit report errors: Failure to dispute credit report errors can take a toll on your credit score. In fact, a single mistake that you noticed in your credit report can put down your credit score. Remember, you are entitled to free reports from any of the three credit bureaus. Request your credit report from any of the bureaus, and if you notice any inconsistency or errors in your reports, do not hesitate to dispute those errors; otherwise, it will hurt your credit score.