Small loan companies for bad credit
6 Small Loans for Bad Credit – (Unsecured, Installment & Bank Loans)
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I had a friend in college who, despite his best intentions, was never able to hold on to much of his money. He worked hard, but always seemed to be overwhelmed by his bills, and he sometimes struggled just to keep the lights on. At those times, he would use a small personal loan to make ends meet until he could get back on track.
Whether it’s $200 to keep the power on or $2,000 to take care of an emergency medical bill, there are times when a small loan can make a huge difference. For many, however, getting a loan of any size can be difficult due to poor credit.
With a little research, even subprime borrowers can often find a small loan to help them through a tough financial spot. Read on to see how to get a small loan with bad credit, or use the navigation to learn more about the types of small loans.
How to Get a Small Loan With Bad Credit
Bad credit can make just about any financial issue more complicated — and getting a loan is rarely an exception — but it doesn’t have to be impossible. Here are three things you can do to help improve the process.
1. Know Your Credit Situation
The first step to getting a small loan with bad credit is to become informed. Knowing your credit score and credit history before you start the application process will prevent any unpleasant surprises such as being disqualified because of an incorrect balance or outdated account on your credit report. Many lenders will also have a minimum credit score, though those specializing in subprime borrowers will be more lenient.
Being knowledgeable about your situation will also make it easier to identify a good offer when you find one. Your subprime score does not mean you need to take the first offer you see, nor does it mean you can’t possibly qualify for something better. Know what your options are before entering any particular agreement.
2. Have a Steady Income
In addition to your credit report, a lender will usually look at your employment status. Subprime lenders, in particular, need to take some steps to mitigate their risks, so you’ll likely need to fulfill certain work requirements to qualify for your small loan.
Qualifications can include verifying that you meet a minimum monthly income level and demonstrating work history of a certain duration. Requirements will vary by lender and loan amount, so shopping around may get you better results if your first attempt doesn’t succeed. Most programs will also require that you have at least a basic checking account.
3. Use a Lending Network
Traditionally, borrowers needed to call or visit each bank or lender individually to get an idea of the various rates available on the market. Today, there are a number of lending networks available that make the process of finding the best rate much easier.
Lending networks allow borrowers to receive offers from multiple lenders at once, often after filling out a single form, and compare the available rates quickly and easily. For borrowers with specific qualifications, including bad credit, lending networks can be the easiest way to get the best options.
Small “Installment Loans” for Bad Credit
While specific payment plans will vary depending on the lender, you’ll generally either have a short-term loan or an installment loan. Short-term loans, including advances and payday loans, usually have terms lasting a week to a couple months. With most short-term loans, your entire loan — plus interest and fees — will be due on the specified due date, and late payments will come with hefty fees.
Installment loans are repaid over several payments, with payments and due dates set according to a prearranged schedule (often monthly). Installment loans are a good fit for those who need a larger loan or can’t pay back the entire amount right away.
The following lender networks offer installment loans, among other loan types. The loans offered to you will be largely based on your application criteria.
SOURCE: http://www.badcredit.org/small-loans-for-bad-credit/#Small loan companies for bad credit #Small #loan #companies #for #bad #credit