One unexpected bill can throw off an entire monthly budget. You spend so much time calculating your income, your monthly bills, groceries, costs for your kids, and then the check engine light pops on in the car, making all that work pointless. Turning to a personal loan for fast cash emergencies is a common instinct. But exactly how fast are these “fast cash” solutions?
Read on to learn everything you need to know about instant bad credit loans, and how to get one as quickly as possible when you’re in a bind.
What Is a Bad Credit Loan?
A bad credit loan is essentially any loan product meant for borrowers with subprime credit scores. Having a less-than-perfect credit history makes it more difficult to find lenders that will approve you for a loan. However, there are specific types of lenders and loans that cater to customers with poor credit.
Generally, having a low credit score means that the loans you can get may carry higher interest rates, or other unfavorable terms and conditions. Luckily, there are lenders like CreditNinja that now offer better rates and terms for subprime borrowers.
Types of Bad Credit Loans
There are a handful of different types of loans that can be described as “bad credit loans.” Here’s a breakdown of the most common ones, as well as a brief description of each:
Personal Installment Loans — A personal installment loan is an unsecured loan, meaning that it doesn’t require any collateral to get one. These loans are issued based on the borrower’s creditworthiness, and their ability to repay the loan. While they are considered short-term loans, the repayment period for a personal installment loan is usually much longer than other short-term loan alternatives. The repayment period may last from a couple of months, up to a couple of years depending on the lender and the loan terms. Personal installment loans are also usually much larger, in terms of how much money you can get.
Payday Loans — A payday loan is also an unsecured, short-term loan. These loans usually only last a couple of weeks, and they’re used by borrowers who need some extra cash to make it to their next payday. They’re typically for small amounts, like a few hundred dollars, and they tend to come with high interest rates. Payday loans are designed for borrowers with poor credit scores, which is why they carry high interest rates.
Title Loans — A title loan is another example of a bad credit loan, but this one is considered to be a “secured” loan. This means that in order to qualify for one, you would be required to offer up collateral. In this case, the collateral you would have to offer would be the title to your vehicle. The lender would then assess your vehicle to determine its value, and offer you a loan that equals a fraction of what the vehicle is worth. Repayment terms can last up to several months, and once you pay off the loan, your title is returned to you. If you aren’t able to repay the loan however, the lender is legally allowed to seize your vehicle through a process called “repossession” and sell it to recover their loss.
What Is an Instant Bad Credit Loan?
Now that you’re familiar with a few of the most common bad credit loans out there, you’re likely still wondering what an “instant” bad credit loan is, and how quickly you can actually get one. The short answer is that it varies depending on the lender, the type of loan, and your own credit and borrowing history.
So what does an “instant” loan mean? Can you get one within seconds? When you see loans advertised as “instant,” this can mean a couple different things: that you can get approved right away (usually within minutes), or that you can get funded on the same day that you apply and get approved.
There are plenty of instant bad credit loans out there, that can give you access to money very quickly. Same day loans may be an option, but it’s important to be wary of any same-day loan. Make sure you do your research and look up the lender online before you agree to a loan with them. Check out reviews and see what past or current borrowers have to say about the loan process, the customer service, and the repayment process.
If you’re in need of some quick cash, check out CreditNinja. You can get approved in minutes, and have money in your bank account by the next business day. And our customer care team is here to help you every step of the way. Apply today, and get the cash you need to get your finances back on track.