Bad Credit Loans

Bad Credit Loans

Bad Credit Loans are loans for people who have a very bad credit history and are in need of an urgent loan.

Similar to bad credit loans there is a better loan option very bad credit loans no fees

Every once in awhile there comes a situation where you are in need of extra money. You are in desperate need of cash but you don’t have any in the form of savings. This is something that you haven’t included in your monthly budget.
There are many circumstances under which you would need some extra cash. A vehicle repairing or servicing, pending mobile or electricity bills, household appliances, or any house renovation work. This is something that requires a little bit of money but you can’t put it in your monthly budget as would drain your whole budget.

bad credit loans

In situations like this you can go for a small loan which is reasonable for this minor financial requirement. Some lenders won’t provide you a small loan because of your bad credit score. There are many reasons because of which you can have a bad credit score.


Bad Credit Score

Bad Credit score is a score evaluated on your credit history. You can have a bad credit score if;

  • You have missed repayments in the past
  • Repayment amount was not paid in full
  • You had debts
  • Bankruptcy
  • Identity used for fraud

And many other reasons. Because of this bad credit score you can find it difficult to obtain a loan. Lenders see you as a risk, as you have defaulted on loans in the past. They don’t find you credit worthy enough to even provide a short term loan.

Your first step should be to improve your credit history. But improving your credit history can be a long process. It usually takes more than a year or so to get a decent credit rating. But your requirement for money is now, you cannot wait a year or so to get your vehicle repaired, to pay your bills. In such situation you should opt for bad credit loans.


Bad Credit Loans

As defined earlier bad credit loans are for people with bad credit. Bad credit loans are the savior of people who are in urgent need of money due to an emergency.

Many lenders now provide bad credit loans, all you have to do is choose a lender according to your convenience. Before if you had a bad credit, you needed a guarantor in order to back you for a loan if you fail to make the payment. However, now lenders are providing bad credit loans for people with no guarantor (No guarantor loans). This has made getting a loan for bad credit a lot easier than any other loans.


Advantages and Disadvantages of Bad Credit Loans

Advantages –

  • You get loans for bad credit history
  • No need of a guarantor to get a loan
  • No asset needed as a security to get a loan
  • You can get bad credit loans without any credit checks
  • They are easy to apply loan – Fill in the application form online, and within minutes the loan amount gets credited to your account

Disadvantages –

  • They have a High APR – Bad credit loans have higher rate of interest than other form of loans
  • Repayment has to be done in a short time span – you have to payback the loan amount with interest within months

Considering above factors, if you think that bad credit loans is suitable for your requirement you can apply for it on any lender’s website.


Read more:
What are Personal Loans