Loans for People with Bad Credit
Short term loans are often needed in today’s world, but what about short term loans for people with bad credit? Short term loans for people with bad credit provide a sum of money which usually needs to be paid back by the next payday. They are designed to be used for when you are facing a costly bill and unexpected repair, and by their very name, loans for people with bad credit help those who are trying to better their credit rating and cannot get credit from anywhere else. Loans for people with bad credit are now very popular, and definitely worth checking out, but how do they work?
Otherwise known as payday loans, loans for people with bad credit are short term credit options whose interest is based on a two-week period. It is common for these loans to be around 650% APR, which is over ten times the amount of interest you would expect for a normal bank loan or credit card, but this percentage is based annually, so let’s do a little calculation. If we assume that two weeks is 1/24 of a year, then the amount accrued over two weeks on what you borrow is equivalent to 650%/24, which is 27%. So if you borrowed $400 on an APR of 650%, then you would pay back $400 plus 27% of the amount, which totals $508. There are no better loans for people with bad credit which might offer a lower percentage.
Thankfully, if you do find loans for people with bad credit to be your only option then the chances of you being approved are very high. No thorough credit checks are performed, which means that when you enter your information, you will be notified in seconds whether you have been approved. If you are approved then the money will be in your bank by the next working day, which makes loans for people with bad credit a really speedy solution.
There are a number of prerequisites to getting approved with loans for people with bad credit. You must be over the age of 18, and you must be in regular employment usually earning over a specified amount. You need to prove you citizenship and living status, and hold a valid checking or savings account. Some lenders only allow permanent US residents to apply, and not citizens who live overseas.
Loans for people with bad credit are subject to the specific terms of each state, so make sure you check your own state laws. Loans for people with bad credit give you a real lease of life when you need it most.
Timely Money Solutions
Do you find it hard to sleep when you know that a bill is due and you don’t have the cash to pay it with yet? If you do, then you are one of the millions of people, who are stressed with money, particularly, by the lack of it. The stress builds up when payments upon payments are all due at almost the same time.
As consumers, we are bound by law to pay for anything that we consume or purchase. For so many centuries now, that has been the way of life. However, the scenario changes when you need to pay for something so promptly yet you don’t have cash at the moment. Don’t let stress and pressure get into you when you know you can apply for instant loans any time.
What Are Instant Loans?
You can use instant loans for anything that you need to pay for. Lenders of instant loans do not ask for the purpose of the loan nor would they require you documents that will support that purpose. You can use instant loans whether you need it to finance a business, pay a debt to friend, buy the groceries or eat at a restaurant.
Also called payday loans or bad credit loans, these require no collateral. Lenders also don’t require you to have a good credit, so regardless of your credit score, you may qualify for these loans.
Instant Loans Requirements
As mentioned, instant loans that are offered by online lenders do not require good credit rating, so you don’t have to check your score with the credit reporting agencies. The basic requirements you will need to prepare to qualify for these loans are:
1. Proof of income – it can be your payroll account , pay slips and proof of employment
2. Proof of address- prepare utility bills (under your name) for the last three months
3. Active bank account- some lenders require this to verify your identity as well. Some lenders also require your permission to deduct the payment from your bank account on your due date so you don’t have visit the lender’s office to make the payment.
4. Citizenship or residency- depending on your lender, you should be at least a resident of the state where your lender is operating or is a citizen of the United States.
5. Proof of identity- your company ID, driver’s license, passport, etc.
Who Are These For?
Instant loans are for people who need a quick way out of their financial troubles. Financial troubles like bills that are due tomorrow is quite pressing, while paying for a home mortgage due the next month is not quite urgent. Instant loans therefore allow you to borrow money instantly and use it instantly for whatever purpose.
For How Long Are These For?
Usually, you can borrow instant loans and need to repay them within 14-30 days. Instant loans often have fixed interest per due date, so if you failed to pay on the first deadline, the interest rolls over and is added on the second deadline. If you want to pay the smallest possible amount relative to your instant loan, strive to pay at the soonest possible time, ideally on or before the first due date.
When Are They the Best Options?
Instant loans become the best options when all your other low-cost options have been exploited. These options are of course relative from one person to the other. However, many financial experts would advise you to not apply for instant loans for bills and payments that can wait until your next payday arrives. However, if you qualify certain payments as urgent and need to be paid as soon as possible, getting instant loans is a good idea.
When Time Is of the Essence
You may have heard that there is nothing permanent in this world other than change. With every cent that come and go from our purses, our finances change as well. Adapting to change is a tricky part of life since humans are creatures of habit. If you habitually spend on impulse, you may habitually need to sign off promissory notes. However, there’s a need for us to adapt better finance habits so we can build a better future, send our kids to better schools, get better homes and enjoy life without the stresses caused by money.
But there are just times when we are pressed for financial solutions, yet don’t have much time to go about it. When time is of the essence, cash loans come into play.
Cash Loans – the Quick Way Out
Here’s a good analysis about cash loans. Consider them as shortcuts to traditional loans. The latter have heaps of requirements, needs so much patience for filing, falling in line and waiting for approval. The whole process could take several weeks to months. But cash loans horten this process considerably. You only need to fax a copy of one or two documents (other lenders don’t even bother requiring them), fill up a form, get a quote, consider if the quote is good and suitable for you, sign up an agreement, and voila, your instant loans have been deposited into your account. All of these steps require just a few minutes, even without you having to leave your home.
Use Cash Loans as Quick Financial Aid
Another thing about life is that it can surprise you at your most unguarded moments. Sometimes, these surprises aren’t really good. It’s like having to pay for your home mortgage when suddenly the bill for utilities just arrived and is due in a few days. Sometimes life is cruel that way.
If you do find yourself in one of these “urgent financial situations” and you can’t borrow cash quickly from friends, family and banks, perhaps the best solution is to apply for cash loans. Since cash loans provide instant access to borrowed cash, you know you don’t have to wait too long to pay your bills. These loans are best used for unforeseen need for cash or unexpected events wherein instant cash is needed.
Use Instant Loans to Your Discretion
Once you get approved for cash loans, you have the full freedom to use the money upon your discretion. The main reason why many traditional lenders take so long to approve loans is because they undergo their borrowers through background investigation. This investigation allows lenders to determine if you are indeed applying for the right type of loan and if you are capable to repay the amount you borrowed.
In the case of cash loans however, lenders do not discriminate borrowers based on their credit history or the purpose of the loan. You can use the money to pay bills, purchase something, pay off a debt, get your car and home fixed etc. They do not interfere with your purchasing decisions but certainly rely on good faith that you will repay what you borrowed on the agreed date.
A word of caution though: cash loans may be quick fixes, but their convenience does not mean that you should spend them on luxury. You can do so if you insist, but here are some reminders. For one, you may be getting cash loans because there is no other source of funds that you can tap immediately; meaning, you are financially unstable at the moment. Always remember that while cash loans are very convenient, they charge higher interest and failure to pay on time means you’ll be paying more until you’re able to pay in full. Therefore, it is best to explore this option only when greatly needed.