Whenever you wish to get loan, the bank first checks whether you have the ability to repay the loan. This ability is often defined as a credit score. The people who have a good credit score are always able to get loans and that too at very discounted rates of interest. However, those who are not as lucky have to get loans at a very high rate interest and that too with a number of hassles. If you have bad credit and want to get financial help as soon as possible, then you should be getting bad credit loans. These loans have specially been designed to provide hassle free and almost instant loans to those who cannot secure a credit from banks and other traditional financial institutions.
In order to get bad credit loans, you will have to go to specialized bad credit financing institutions. They will not ask for your credit report, nor will they pay attention to your credit score. You can simply go ahead and get an instant loan approval from here. You will find that getting bad credit loans is easier and faster. In the case of a good credit loan, you will have to perform a lot of paperwork and wait for weeks before you finally get any amount. However, in the case of bad credit loans, you can get a loan within just one day, sometimes within a few hours only. Therefore, getting such a loan becomes easier for you.
You will be finding that bad credit is not necessarily a measure of the amount of money you earn. A lot of people who have bad credit earn good incomes. The bad credit loans often have a very high rate of interest because of which they are a costlier deal as compared to traditional loans. Bad credit loans are really available and they are quite helpful as well. You can get a loan for handling your small personal demands, for buying a car or even for fulfilling your financial emergencies. However, you must be making sure that you get these loans only when you need them.
In case you believe that paying back the loan will be difficult for you, then you must definitely avoid the bad credit loans. They are a good measure for those who wish to get instant loans for emergencies but will not suit people who cannot arrange to pay for the high rates of interest.
All the loans that we review or recommend all have:
- Minimum period of repayment: 6 months. We do NOT recommend taking any loan with repayment period of less than 6 months, as you will have difficulties paying back
- Maximum period of repayment: 3 years
- Annual Percentage Rate (APR): less than 12%. Any rate higher than this will negatively impact your finance
- Below is an example of the loan mentioned in this article, with a loan amount of $20,000
|Flat Interest Rate||7.50% p.a. (Effective Interest Rate of 14.39% p.a.)|
|Total Interest Charged for the Loan||$20,000 x 7.50% p.a. x 3 years = $4,500|
|Loan amount + Total Interest||$20,000 + $4,500 = $24,500|
|Monthly Instalment||$24,500 / 36 = $680.56|