Generally, when you are in the market for any sort of personal loan, a history of bad credit can really count against you. Bad credit borrowers face many obstacles in terms of finding a lender willing to work with them and then finding terms that do not border on usury. However, for the times when a borrower with bad credit needs a small amount of money for a short period of time, there are quick bad credit loans. These loans are not given based on credit score and can therefore serve an important purpose for those in need of quick cash.
No Credit Check, For Real!
So, what is the deal with these loans? How can a lender give you money without a credit check? Well, the answer lies in the details. Quick bad credit loans are generally given in small amounts based on the borrower's weekly or monthly income. These loans are used as means to bridge the borrower in need of cash between paychecks, which is why they are also called payday loans. Then, the borrower will use one or two paychecks to pay back the entire loan.
How It Works
If you think that a bad credit loan is the answer that you need for some quick cash, then the process of approval is really simple. Basically, all you need to do is prove to the lender that you make enough money in one or two paychecks to return the entire loan to him. This is generally done through the submission of paystubs. Once the lender sees that you can afford the loan, he will begin the fast process of approving you.
In addition to income verification, to speed up the lending process, just make sure to also have proof of identity handy as well as proof of residency and age verification. Once all the paperwork is in, the money that you need will be sitting in your savings or checking account within 24 hours.
What to Expect
As I mentioned above, the purpose of these quick personal loans is to provide an extra cash boost in between paydays. Therefore, the amounts of these loans are generally small - between $100 and $1,500 - so that you can afford to quickly repay it within 30-60 days.
Another important caveat is that the use of quick personal loans does carry a higher interest rate than what you are used to seeing attached to loans these days. Regardless of credit, the short term on these loans makes it essential that they have this higher interest in order for the lender to make any money.
Getting the Best Deal
Because of the terms and conditions of fast personal loans, you need to make sure that you take your time to compare rates among lenders. Since all of these loans will carry a higher interest than typical personal loans with longer terms, by looking at different lenders you will give yourself the best chances of getting an amenable deal. Doing a simple web search for quick personal loans or payday loans will yield plenty of lenders to choose from online.
Though having bad credit is certainly not an advisable position, there are ways to get around the barriers it presents in times of need. Fast personal loans for bad credit are one such option that can get you the money you need in little time and help you get back on track.