FAQs: All the Answers You Need
• What is a bad credit score?
Credit scores are calculated by each credit bureau using a proprietary formula. The scores are then used by lenders and financial institutions to determine the level of risk you pose as a borrower. The lower your credit score, the higher a risk. Most credit institutions require a high credit score to loan money. This means the lower your credit sore, the higher interest rate and premium you will likely pay as you will have to depend on private lenders who specialize in bad credit loans.
• What are bad credit loans?
Unlike a bank or credit union, bad credit loans are specifically designed for people who have had credit problems. While they typically function in a similar manner to other loans, what they do not require I a high credit score. You need not provide any form of collateral, loans are easy to get apporoved and they are often approved quickly. Lenders will make you an offer that spells out their terms and conditions. Bad credit loans do not have any hidden charges for borrowing.
• Must I have a bad credit to get a bad credit loan?
Bad credit loans are available to anyone who cares to apply. When you run into an emergency and do not have time to wait for a traditional lending source to agree to a loan, bad credit loans may be the answer. These loans are also good if you do not wish to have a loan rejection reported on your credit report.
• How can I use my bad credit loan?
Lenders will not ask you how you intend to use the funds that are borrowed. This means you can use the proceeds of your loan in any manner you desire. It is very important that you use bad credit loans in a responsible manner which includes not borrowing more than you can reasonably repay.
• When can I use a short-term loan?
Short-term loans are perfect for emergency medical bills, automobile repairs or other urgent expenses. In most cases, these loans can be used any time you need a small amount of money within 24 hours. These loans are unsecured and can be used whenever an emergency arises.
• What is a payday, instant, or cash advance loan?
Payday loans are instant or cash advance loans. These loans are ideal for situations where payday is a few days away and you need cash quickly. Loans can be used for any purpose and typically are to be repaid in full with your next pay cycle. These loans fill in the gap and can cover bank overdrafts, and other similar emergencies.
• Can I get an instant loan if I am unemployed?
Provided you have a regular source of income such as Social Security when you are retired or disabled, Unemployment Compensation if you are laid off or other reliable source of income. Keep in mind, as long as you have income, can prove that you have an income, you can qualify fo an instant loan.
• Can a payday loan affect my credit score?
If you are looking for a way to boost your creidt report, you can use a payday loan. While these lenders do not require you to have good credit, if you repay your loan on time and as agreed, your credit score will increase. However, if you default on your loan, keep in mind that your credit score may be impacted negatively.
• Will I need credit check for a short-term loan?
In most cases, lenders who specialize in bad credit loans do not check your credit history. This is because they do not depend on your credit score to determine your eligibility. These l oans are also unsecured so your credit score does not prohibit you from borrowing money quickly. Typically, these loans are approved in less than 24 hours and you'll have the money you need.
• What are debt consolidation loans?
If you have a bunch of debts and you would prefer to pay them off in one lump sum, a debt consolidation loan is the answer. These loans can help reduce your overall interest payments, and help you avoid high interest rates from credit cards. There are numerous options available for those who are interested in debt consolidation.
• What options are available for me with a debt consolidation loan?
There are two primary types of debt consolidation loans and one lesser used option. One is secured and one is unsecured. With a secured loan, you will be asked to provide some form of collateral that is as valuable as the amount of money you plan to borrow. Failure to repay this type of loan could put the collateral at risk of being seized by the lender.
For most debtors, unsecured loans are the best option for debt consolidation. In many cases, lenders will loan money at lower interest rates than are available through credit cards. Overall, this means you are saving money since your interest rates are lower. When accepting an unsecured loan for debt consolidation, lenders will not require collateral.
Finally, for smaller amounts of debt, you can use a bad credit loan option. If you have an immediate need to pay off certain bills, this offers those with bad credit an opportunity to pay their bills. Qualification is easy: All you need to do is prove you have a steady source of income. These loans are short term.
• Can I get an Auto loan with bad credit?
Yes! Even if you have bad credit, you can get money to finance a car. Lenders are available who specialize in auto loans. Before accepting any auto loan, make sure you review all offers made to you and find the best loan to meet your needs. Remember, each lender will have different terms and you want to get the best loan possible.
• How can I calculate the total cost of an auto loan?
Many lenders offer auto loan calculators. These calculators are to help you understand exactly how much you will pay for your car after your loan is paid off. These tools are available and may be accessed at anyt time, and are especially valuable if you are comparing loans. These tools are always free to use.
• Can I borrow a short-term auto loan?
Short-term loans are available to help you pay for a car. Lenders will offer you different options to evaluate. Just keep in mind that short-term loans are harder to pay back as they require you to pay a larger amount of money back in a short period of time. Before you accept any car loan, make sure you carefully evaluate the terms and make sure you can afford the payments.