Applying for a loan online with bad credit is not easy. If you’re in the market for a personal loan, you’ve probably already discovered that. If this is the case, you may have a difficult time finding a reputable lender. You also might realize that interest rates and terms are not as favorable with poor credit.
Luckily, CreditNinja is here to help with the following guide to applying for a loan online with bad credit. Read on to learn more about what to expect, and see how CreditNinja can help you.
Applying for Personal Loans Online With Bad Credit
Nowadays, personal loans of all shapes and sizes are easily available online. But just because something is easy, doesn’t mean it’s the right choice. It’s important to beware of lenders that want to take advantage of borrowers in tough situations.
If you’re applying for a loan online with bad credit, there are a couple of steps to take beforehand. First, make sure you check your credit score, this way you’ll know what kind of interest rates you’ll qualify for.
The next step would be to research lenders and types of loans. No matter which type of loan you choose, it’s important to read reviews for the lenders you’re considering. Check out their website, and also read reviews from previous customers on other websites.
If you’re not sure which type of loan to choose, here a couple of the most common online personal loans:
Applying for Installment Loans Online With Bad Credit
If you’re searching for a quick cash advance loan, then you’ve likely already heard of installment loans. These are unsecured, personal loans. They allow borrowers to make monthly payments or “installments.” An unsecured loan is one that doesn’t require collateral. This means you can be approved simply based on your borrowing history, income, and a promise to repay.
CreditNinja offers personal installment loans online, for borrowers with bad credit. This means you can apply, get a decision, get your money, and repay the loan all from the comfort of your home.
With an online personal installment loan, the process can be quick and easy:
- Fill out the application online — Many lenders will require information about your current financial situation, your income, and your previous borrowing history.
- Get a decision — Find out right away whether or not you’re approved for a loan, and how much.
- Get your cash — At CreditNinja we directly deposit your money into your bank account. If approved, you’ll receive your cash quickly through direct deposit.
- Repay the loan — You make monthly payments or “installments” until the loan and interest are entirely paid off.
Payday Loans for Bad Credit
An online payday loan is another example of a quick cash personal loan. Payday loans are also unsecured, so you won’t need collateral. But there are a few main differences between payday loans and installment loans.
The most notable difference between a payday loan and an installment loan is that payday loans have shorter repayment periods. Many payday loans are due back within two weeks, or on the borrower’s next payday.
Another main difference would be that payday loans tend to carry higher interest rates. Many of the people who need payday loans have lower credit scores, which means they tend to be less trustworthy when it comes to borrowing money.
If you’re in need of some quick cash and you have a poor credit score, it’s wise to first find a reputable installment lender.
Can I Get Loans Online With No Credit Check?
Getting a loan with no credit check may seem appealing. But there are a few key things to remember when considering this option.
Most reputable lenders will want to run some sort of credit check to make sure that the borrower has a decent history of repaying loans and paying bills. If a lender is willing to offer you a loan without checking your credit, they may not be the most trustworthy.
Some lenders will run “soft credit checks,” and this simply means that they can review aspects of your borrowing history, without affecting your credit.
What Is a Guaranteed Approval Loan?
A guaranteed approval loan would be one that the lender guarantees to provide to a borrower regardless of their financial situation. Much like “no credit check loans” this should be something you steer clear of.
If a lender will offer you money even without reviewing your financial history and income, then they may not be trustworthy. This is because any legitimate lender will want to make sure that you can repay the loan, this way you won’t get trapped in a cycle of debt.
For more information about online loans, bad credit loan options, and other personal finance tips, check out the rest of the CreditNinja Dojo.