Approximately 200 million Americans have what’s considered a bad credit score. Many do not realize that those with bad credit are not disqualified from taking out loans. Many lenders will still issue loans to people even with low credit scores.
If you’re struggling financially and need help but think your credit is too low to get help, or maybe you have a friend or family member that needs help but you don’t know how you can help them, bad credit loans are an option.
What Are the Requirements of Getting a Loan With Bad Credit?
There are a few requirements across the board that most lenders have. First, you must be 18 years or older and a United States resident to take out a loan. Then, you must be able to prove that you have a verifiable source of income that is deposited into your checking account each month. That source of monthly income must also meet the lender’s specific income requirements.
If you are having trouble keeping income, consider these passive income ideas to help you earn enough money for the loan. Another requirement is that you have a checking account which has been open for a specified period of time set forth by the lender. Lastly, you cannot be currently enrolled in a bankruptcy case or intend to voluntarily file for bankruptcy relief soon after taking a loan out. These rules help the lenders to ensure that they will be paid back within the agreed-upon time.
How Much Money Can I Take out on a Normal Loan?
Depending on which company you choose, you may be able to take out various amounts. The amount that you can take out will also depend on the amount of income you currently have. Returning customers with a good payment history can usually take out a higher loan as well.
What is a Payday Loan?
A payday loan is a loan for those with bad credit. It’s often one of the only options for those with poor credit. Generally, these payday loans are only for smaller amounts such as $500. They tend to have a very short repayment time such as being paid in full by the next payday. If the loan is not paid on time, much like other loans, you face the penalty of fees. The good news about these loans is that they are quick and easy to get and as long as you pay them back on time, they could really help in emergencies.
How Soon Can I Receive the Money from a Bad Credit Payday Loan?
Contrary to popular belief, bad credit loans do not have to take forever to be disbursed. Many times you can get the money the very next day. Many come with the option for same-day funding. So if you have an immediate need, this is a viable choice.
Whatever your choice for loans may be, it’s important to make sure you do not take out a loan that you don’t think you will ever be able to pay back. An estimated 80% of payday loans are rolled over and some are even followed up by another loan within 14 days. Doing this can ruin your chances of getting help in the future from lenders, it can hurt your credit and create a vicious cycle of debt. However, do not let this discourage you from taking help when you need it!
Even if you have a less than desirable score, don’t let this stop you from getting the help you need. There are options out there, you just have to know where to look.