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What are Bad Credit Loans?

April 29, 2020 | Leave a Comment

Bad credit

Bad credit

Whenever people are unable to finance a certain project, they refer to the banks and online lenders for a credit loan. Online lenders are more famous for handing out smaller amounts of personal loans, while the banks deal with much bigger numbers. People often apply for these loans when they buy an apartment, car, or when they send their kid to college. Whatever the reason may be, the bottom line is that they don’t have the finances required at the moment.

Of course, not all credit loans are approved. The lenders do a background search on each client to see his or her credit score, their history with paying them off, and whether they caused any trouble. If a potential client has a low credit score, then the chances of being approved are low. Luckily, there is an alternative for those people and it goes by the name of bad credit loans. Although the name might not be the catchiest, it allows many to apply for a credit loan, even though they don’t have the best credit score.

We wanted to introduce you to this type of credit and that’s why we are willing to dig a bit deeper and give you an overview.

The Difference Between Bad and Regular Credit Loans

As you may have figured it out by now, people who apply for bad credit loans are seen as risky borrowers. That is why you may be faced with more interest rates and higher fees, which is not the case with regular loans. The only mutual thing that these two types of credit have is the application process.

The lenders check your credit history, your financial status, and with that information, they decide whether you’ll be eligible to repay them. If you are looking to read the tiniest details, like the credit score categories, best lenders, as well as guides to get a better loan, head over to bestloansforbadcredit.com – they have everything that you need to know.

Are Scams Possible?

The Internet opened up many possibilities for us. Unfortunately, not every outcome can be positive. Scams are happening much more often than they should since many people see the Internet as the best place to rob people of their money. So, to answer your question, yes – scams with bad credit loans are possible.

But, if you follow a couple of simple steps, you will be safe. First off, if the lender is asking you to register in a different state, rather than you home state, then the chances are that you are contacting a scammer. Guarantees without approval, lack of communication skills, and advertising methods are also some factors.

Extra precautions are always welcomed, especially if your financial status is not the best. On a side note, we wanted to mention that if you are struggling to pay off your debt, there are a few side jobs which can be helpful and provide you with a good income.

Types of Bad Credit Loans

Lastly, we wanted to cover some of the bad credit loans. There are 4 types in this section: instalment loans, payday loans, cash advances, and bank agreements. Payday loans and cash advances are the easiest to get, since they are considered short-term loans, but they have greater interest rates.

The bigger interest rates and more detailed background checks that we are witnessing today, especially when dealing with banks, are the result from the 2008 world crisis when the banks around the world were handing out loans without having a plan of action.

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Image Source: Cafe Credit.

Filed Under: Credit Tagged With: bad credit, bad credit installment loans, bad credit loans

Guaranteed Installment Loans for Bad Credit Aren’t Really a Guarantee

January 3, 2019 | 1 Comment

guaranteed installment loans for bad credit

If you’re hard-up for cash, guaranteed money never sounds like a bad thing. However, many creditors use the word guaranteed to lure you into an agreement that will put your farther in debt for a longer period of time. Here are a few reasons you should probably steer clear of guaranteed installment loans for bad credit.

There Are No Guaranteed Installment Loans For Bad Credit

Not everyone is guaranteed to be approved for the money they need. If you have bad credit and are unable to get loans elsewhere, there is probably a reason why. Anyone guaranteeing you a loan should be approached with caution.

It is also important to keep in mind that even though a company says it can guarantee you a loan with bad credit it may not be able to finance the amount you need. For instance, if you need $5,000 desperately for some type of emergency but they were only able to finance you for $1,000, that wouldn’t be very helpful. You’d only get a portion of what you needed and wind up paying a ton in interest.

Many Have High-Interest Rates

Oh, yeah. Most installment loans for folks with bad credit are extremely high-interest. In many cases, they have more than 26% interest. This makes them practically impossible to pay off. You’ll also have another item on your credit report for up to six years, depending on how long it takes you to pay off.

They Aren’t Interested in Your Financial Well-Being

Lastly, companies offering up guaranteed installment loans aren’t interested in your financial well-being. If they are guaranteeing anyone money it means they are not interested in your ability to pay it back. The last thing any of us needs is a collection account hanging over our head.

What To Do If You Need Cash Now

Most people who are looking for installment loans and have bad credit don’t have great money habits, to begin with. That doesn’t mean you don’t have options though. If you need money right now, here are a few things to consider.

  1. Sell items around your home you don’t use anymore. You’d be surprised how many people would pay for things collecting dust around the house.
  2. Ask a family member or friend for a loan. Many friends and family will understand you are in a tight spot. Just make sure you set up a plan to pay them back. This will prevent you from paying interest or having additional items on your credit.
  3. Get someone to co-sign a loan for you. This can help decrease your interest rate as well as help you increase your credit score (if you make on-time payments).

More importantly, if you find yourself having trouble with money on a regular basis, you should consider seeking the help of a professional. Getting the input of a financial advisor can change the way you manage your money and set you up on the right track.

Readers, have you ever fallen for the trap of a guaranteed installement loan?

Read More

  • Beware of Bad Credit Installment Loans With Guaranteed Approval
  • Consolidation Loans Are Tempting – Here’s Why You Shouldn’t Get One
  • Debt Snowball vs. Debt Avalanche: Which is a Better Approach to Paying Off Debt?
  • Here’s How to Gauge How Long It Will Take You to Pay Off Your Debt
Amanda Blankenship
Amanda Blankenship

Amanda is an editor and writer. She has a passion for sharing information that helps people and communities to better themselves in some way. In addition to writing online, she also freelances for local newspapers in her hometown of Charlotte, NC.

www.savingadvice.com

Filed Under: Credit, Get Out of Debt Tagged With: bad credit, bad credit installment loans, bad credit loans, Guaranteed Installment Loans for Bad Credit, guaranteed loans, installment loans, installment loans for bad credit, loans for bad credit

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About The Author

Amanda Blankenship is a 24-year-old full-time website manager and blogger. She is currently hacking her debt by saving money and investing, all while managing her family and enjoying her adult life.

 


Five Steps To Debt Freedom

Here are five simple guidlines that will help you pay off debt.  

1) Get an emergency fund so you don’t take on debt when something comes up.

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