Apply for a Loan with Bad Credit
High-risk borrowers often feel discouraged when choosing to apply for a loan with bad credit. The reason for this is that it is difficult to obtain a loan with a bad credit score. This is where Personal Money Network comes in. We work with direct lenders. These lenders work in smaller dollar amounts. The loans they offer are usually $1,000 or less. Because these lenders work in smaller amounts, the risk they take in choosing to lend to bad credit borrowers is lower. This means that the chances for a bad credit borrower to receive an approval from one of these lenders is improved.
What is bad credit?
Sometimes, individuals with bad credit often wonder how they managed to obtain bad credit in the first place. What bad credit really means is that your FICO score is 600 or less. There is a long list of complicated calculations that go into determining how the score is arrived at. What it means for a poor or bad credit borrower, is that they have less borrowing power. Individuals with bad credit scores often find that they cannot obtain loans of any type. Personal Money Network believes that everyone should have the right to request loans, regardless of their credit history.
How can I apply for a loan with bad credit?
Applying for a loan with bad credit is easy with Personal Money Network. Completing the form takes just a few minutes at most. Once you are sure that you have completed every box on the form and verified that all of the information you have provided is accurate, go ahead and submit it. Then simply wait to receive a decision. Many of the lenders working with Personal Money Network are capable of rendering near instant decisions, though not all of them are.
How much can I borrow?
How much you can borrow as a loan with bad credit depends on the type of loan that you qualify for. Because the lenders working with Personal Money Network all have different requirements and different lending products, it is not possible to explain what all of the options are on this page. However, the average loan is less than $1,000 and if you find that you need to borrow a larger amount, or want to make payments over a longer term, installment loans might be available through many of the lenders working with us as an option. Installment loans will allow you to repay your loan over a series of scheduled payments. If this seems like it might be a better fit for you ask your lender about installment loans today.
Will online loans impact my credit score?
The short answer is yes, but how it will impact your credit score is depends upon your decisions. It is important for borrowers of loans with bad credit to make sure that they understand how and when to re-pay their loan. Make sure that you don’t miss any payments, and that you repay the loan within the term of your agreement.
This also means taking the time to review the contract carefully because all of the details are contained in the contract. Pay particular attention to the details of fine print. This way, there won’t be any surprises when it is time for you to repay your loan. Something else to consider for bad credit borrowers, is whether this is the right time to request a loan.
Consider the reason that you are requesting a loan. Did your car break down? Maybe you got a little behind in your finances and need the loan to avoid paying late fees on another debt. Perhaps you need to consolidate some of your debts to make paying them on time a little easier. These are some common reasons that borrowers seek to get a bad credit loan.
How do loans with bad credit work?
How the loan works depends on the type of loan that you qualify for. One common option chosen by bad credit borrowers is a short-term loan or payday loan. This is a loan that is borrowed that is in an amount of less than $1000 that is designed to be paid back on or before the borrower’s next paycheck. These loans are very short term. For a longer-term agreement in multiple scheduled payments, another option available to bad credit borrowers is the installment loan. Mortgages are one example of another type of installment loan. When you take out a loan you receive a payment schedule of a certain number of payments that must be paid in set amounts, on particular dates.
When requesting a loan through the lenders working with Personal Money Network, when you receive an approval, you will be sent to a page where you can look over your contract. Again, review this contract carefully before you sign. Once you have done this and contacted your lender with any questions you might have, and you decide to sign your contract you just wait to receive the funds from your lender. This is may be as soon as the next business day.
What about instant approval or guaranteed approval?
Some companies will try to lure customers by making promises that they can’t keep. They make the claim that they offer ”guaranteed approval” and it is a dishonest claim.
No lender guarantees approval prior to reviewing an application. All loans must go through a review process to determine whether or not the borrower is eligible to receive a loan of the amount that they are requesting. A similar claim that you might hear is one of ”Instant approval.” What they imply is that you will receive an approval as soon as you fill out the form. This is not the reality.
Often, what they’re actually advertising is an instant decision. Many of the lenders working with Personal Money Network are capable of giving instant decisions, but this is not a guarantee that you will receive an approval. This is simply of an indicator of what you might be able to expect to receive based on a very cursory glance at your application. Calling this an “instant approval” is disingenuous. One further claim is the ”no credit check loan”.
All lenders perform some kind of credit verification. It is not necessary that these lenders go through a major credit reporting bureau. However, even examining a paystub to verify your employment is a type of credit check. Don’t be misled by companies that claim to offer any of these services. These are statements that are simply being made to convince you to choose their lending products over the lending products of another company. None of these things constitute a guarantee or any kind of assurance that you will actually receive an approval from a lender.