Poor Credit Loans

How to cope with your financial emergency with poor credit loans

You must not be punished and denied to getting poor credit loans only because you have had some bumps in your life and garnered a poor credit rating. You have the right to get a loan to cope with the unexpected and unforeseen financial crisis of life with a bad credit loan with a reasonable interest rate. You’re not alone. In present economic scenario, millions of Americans are suffering from unhealthy credit. Although luxurious lifestyle and injudicious spending habit contribute a lot to it, yet rising inflation and mounting rate of unemployment also have contribution. Whatever be the reason, if you have even the poorest credit, then also you will definitely find a lender that would lend you money with which you may manage the cash crunches of your life.

Top tips to getting poor credit loans

Being a poor credit holder, if you’re trying to get a loan, here are some tips that would help you find the good loan with affordable interest rate.

  1. Find a lender – The first tip towards getting a poor credit loan is to make a list of lenders that offer loans to the bad credit holders. You can contact the bank which you already have a savings account with. If they don’t offer you loan even after considering your banking profile, look for online lenders that offer poor credit loans. Nowadays, these non-conventional lenders are ruling the loan industry. Unlike traditional lenders, these lenders don’t impose strict eligibility criteria on the borrowers. So borrowers, irrespective of credit, are likely to get a loan from such lenders at the time of financial hardship.

  2. Know the reason for seeking a loan – Now identify the reason for which you need the loan. If you want the loan for making any big purchase like a home or a car, then it would be better that you apply for a home loan or auto loan respectively. The interest rates levied on such loans are much less than what you need to pay for a poor credit personal loan. Make sure you improve your credit prior to applying for a home loan or an auto loan. However, for a small amount of loan for the purposes like home improvements, car repairing, paying utility bills or college admission, you may opt for poor credit loans.

  3. Gather your financial documents – It would help you have a complete and clear picture of your personal finance. Put together papers that reveal your income, your spending, your assets, and existing loan payments before you apply for a new loan. Gather copies of all bills, paystubs, bank statements etc. The lenders are likely to see these papers before lending money. These papers help them to assess whether or not the borrower has the financial capability to pay back the new loan. Unless they are satisfied with your papers, they may decline your loan application.

  4. Compare lenders – Now it’s time to compare the shortlisted lenders, in terms of the loan terms and interest rates they offer. Also look for the repayment options along with the hidden fees, service fees, closing costs and other loopholes, if any. You must check such fees and costs, as these can increase the amount of loan you’re going to end up paying back. It’s always better that you deal with a lender that has a physical office in your locality.

  5. Visit the lender personally – Meet the lender you have liked the most considering the loan terms and interest rates on the loan amount, in person. However, if you’re going to opt for an online lender, then fill out the application form provided on the official website of the lending institution. While submitting the loan application, ask them about what types of documents they need to approve the application. In case of online lender of poor credit loans, you need to fax the documents; while in case of local lenders, you need to bring them and furnish before the lender.

  6. Ask for secured loan – Instead of unsecured loan, you may ask for a secured loan which would require you to use collateral like a home or car to secure the loan. Secured loans come with lower interest rates than unsecured ones, but there is a risk that you may lose your asset used as collateral, in case you fail to repay the loan.

  7. Furnish your documents – Be it a secured or unsecured loan, after you submit the loan application, the next thing you need to do is to furnish the documents that prove that you have a steady source of income; for example, the paystubs of last 2 to 3 months. You may also need to furnish evidence of asset (if any) to prove that you have the capacity to pay back the loan. Also try to give the best impression that you’re trying your level best to improve your credit.

  8. Review loan agreement – Now it’s your turn; review the loan agreement very carefully to check if it has all those clauses promised by the lender. After you agree upon the agreement, sign it off. The lenders of poor credit loans usually transfer the fund to the borrowers’ bank savings accounts, once they approve the loan application. Usually, the total procedure of loan approval and loan disbursement doesn’t take more than 24 hours.

  9. Consider a payday loan – If you’re finding no lender to lend you money only due to your poor credit profile, you may try a payday lender as the last option; provided you should have a steady source of income.

All of these are necessary steps towards getting poor credit loans. You can’t skip any of these steps. Irrespective of the loan amount and type of loan, make sure you pay back the loan within stipulated time agreed upon by both your lender and you.

While you’re in dire need of poor credit loans, you may come to us. We will introduce you with the good lenders of the industry.  

Take control of your finances

EasyFinance.com Blog & Community provides readers with unique insight, helpful tips and straight answers about their finances.

  • Reliable resources
  • Useful tips and free tools

Find More Products & Services