No matter your credit history, whether you have excellent credit or terrible credit, there are times in life when a financial emergency can back you up against a wall. This can include a sudden job loss, unforeseen medical bills, or even a family member who desperately needs help. Many people worry that if this happens to them their bad credit will prevent them from getting the money that they need in order to survive. Yet, there is no real reason to fret. In fact, bad credit lenders online can help you out in your times of financial struggle through personal loans designed specifically for those in your circumstances.
Look Closely at Your Budget
Before you contact any lender, online or in person, about getting a bad credit loan, it is important to first do a self-assessment that will tell you how much you can afford. Write out a careful budget that takes into account your monthly expenditures as well as the cost of the new loan. Different lenders will have varying requirements in terms of money you should have free each month, but regardless of this outcome, you should know how much you are comfortable with spending.
In order to speed up the lending process once you contact the lender, make sure that you gather together all the necessary paperwork before you make any calls. In general, the following items will be required:
1) Identification (2 forms) - both will need to be government-issued (such as a passport, driver's license, or Social Security card) and at least one must also contain a photo.
2) Proof of Residence - you need to establish where you live. This can be done with a current utility bill, lease or deed.
3) Bank Account - the most popular way to receive bad credit loans from online lenders is through direct deposit into your existing bank account (either savings or checking).
4) Employment/Income - you need to prove that you can afford to repay the loan with a reliable source of income. This can be from either a steady job or a business that has been proven profitable. You need to furnish either a recent paystub or a W2.
Gathering these documents first will ensure a speedy processing of your loan applications. A good tip is to have everything in a labeled folder for easy access when talking to lenders.
Finding and Contacting Lenders
Once you have figured out how much you can afford and have gathered all the necessary paperwork, the next logical step is finding the lender who you want to work with for your bad credit personal loan. Start with a simple internet search. Once you generate a list of at least half a dozen potential lenders, do a background check on each of them with the Better Business Bureau. This way you are ensured that the company you choose to work with is not just scamming you.
You may also want to consider finding a broker to work with. Through a loan broker, you are able to compare the rates of several different lenders while only providing your information once. The broker will then work to get you the best deal.
Once you choose a lender and loan, the approval process is generally short. Plus, once you receive your approval you will be able to access the money from your bad credit personal loan within 24 hours. This is the benefit of the direct deposit system and will get you on track to handle your financial emergency as soon as possible.