Bad Credit Loans Information Library

BAD CREDIT LOANS

What are Bad Credit Loans?

Bad credit loans are very flexible loans created for people who have a bad credit score.

They are more flexible than other loans aimed at 'bad credit borrowers' (like payday loans, which have quite a fixed setup) – you can find personal bad credit loans and also secured bad credit loans. There are lots of loan amounts, terms and types available which all fall under the broader category of Bad Credit Loans.

How Much Can I Borrow?

This depends on how much you want to borrow – and what is available. Start by having a look at the Bad Credit Good Solutions comparison area to see what is on offer. You can find lenders that can lend you as little as $100 and as much as $2,500.

What is the Loan Length?

Bad credit loans are more flexible thanpayday loans – bad credit loans are not designed to be repaid within a month. Many bad credit lenders offer loans from 1 month to 36 months, while others can lend to you for only 8 days! There are lots of options so take your time to find a lender / loan which suits you individual circumstances.

Who is Eligible?

Worried about your credit score? With a bad credit loan this is something which won't stand in your way. Bad credit loans are specifically aimed at 'bad credit borrowers' so even if the regular bank has rejected your application for credit, you will find an alternative here.

The terms that do affect you usually include:

• Must be minimum 18 years old
• Must have some regular income
• Must have working checking account
• Must be US citizen with address and social security number

Things that won't stop the lender from providing you with a loan:

• A credit score which isn't perfect
• Rejections from other lenders / the bank

In some cases, you can borrow even if you are self-employed (so long as you can prove your income). The minimum amount you must earn each month depends on the lender.

Are Credit Checks Made?

Bad credit lenders might carry out a standard credit check on your application. However this is not likely to stop you from getting your loan. It may be used to help the lender determine the level of risk that you pose (i.e. are you likely to fall into repayment problems) and what loan amount to offer / interest rate to charge.

Even though a bad credit score is not seen as a major obstacle for a bad credit loan, be prepared that your application might be turned down. If you are worried, you can contact the lender before you submit your application, to check your chances.

What are the Benefits?

Bad credit loans have lots of benefits, including the fact that even people who might normally be turned down can get the loan that they want.

Other benefits include:

• Bad credit score? No problem
• Easy to apply (online)
• Most borrowers accepted
• Flexible terms / loan amounts
• Can borrow more than many other low credit products

Some bad credit loans carry great additional features, such as a 'credit rebuilding' facility. This allows you to build up your existing credit file based on a good performance on your loan. Fall into trouble repaying your loan and you could damage it further – so make sure you are well prepared for any loan!

Are there any Disadvantages?

If you have had problems getting a loan via the bank you may be relieved that there is a lender out there who will take you on. Bad credit loans are ideal for all kinds of purposes – so are there any disadvantages?

Any loan carries a level of risk – if you cannot repay the loan or fall behind, then you can damage your credit score. If your credit score is already in the 'bad' bracket then it is risky to take on another loan.

Bad credit loans are flexible and there are plenty of options available but they cannot be as flexible as the personal or secured loans that are offered to people with an 'A class' credit file. So, don't be expecting the lowest interest rates and the highest borrowing amounts!

Remember to always thoroughly check if you really are suitable to take a new loan. If necessary, seek independent financial advice from an expert.