What Are Short Term Loans for Bad Credit?
Short term loans for bad credit are loans designed to help people with bad credit cope with rising bills and emergency expenses. They typically have short loan terms and are quickly processed. They are also a sort of temporary financing and are not recommended as a long-term financial solution.
They are unsecured loans. That is, they are not secured by an asset or collateral. Therefore, the borrower does not risk losing an asset for missing payment deadlines. That’s not to say that there are no penalties for defaulting on payments. There are, but in most cases, this is limited to late payment fees.
If you are struggling to keep up with some bills between paychecks, but can’t approach traditional lending institutions because of bad credit, consider getting a short term loan for bad credit from online lenders.
To assess your eligibility, the lenders look beyond your credit history. Instead, they look at your spending history, debt-to-income ratio, employment history, and income to know your monthly disposable income and know if you are financially capable to take on more credit and payback on time.
Reasons For and Against Short Term Loans for Bad Credit?
For most people, taking out a loan can be a hard decision to make. Sometimes, it’s the last resort. Usually, the borrower considers taking out a loan when other efforts to get cash fail. However, loans are not as bad as people may paint them to be.
To begin with, loans, especially short-term loans, can help you in emergencies. They can also be good financial support for people with bad credit. Like with every other thing, they also have their fair share of downsides. Before taking out a short-term loan for bad credit, it’s important to place both pros and cons on a scale, to see whether taking out one favors you or not.
Here are some of the pros of taking out a short-term loan, especially if you have bad credit.
Pros of short term loans for bad credit
- Only soft credit checks are conducted.
- Easy and quick application process.
- Near-instant approval decision.
- Loan deposits can be processed within minutes or hours.
- Bad credit considered.
Cons of short term loans for bad credit
- APRs can be too high sometimes.
- Not a long-term financial solution.
- It’s relatively easy to miss payment deadlines and get charged late payment fees.
What Are the Prerequisites to Apply for Short Term Loans for Bad Credit?
There are a few requirements to be met before you are considered for a short-term loan for bad credit. Applying for one without meeting these requirements is just shooting blanks; you are very unlikely to get approved.
To qualify for a loan, the borrower must;
- Be at least 18 years old.
- Have a government-issued ID.
- Be a citizen of the US.
- Have an active checking account.
- Be currently employed.
- A monthly income of at least $800.
- Have a valid contact and email address.
Once you meet these requirements, you are almost sure you will be approved for a short-term loan, or at the very least, be considered.
How Can I Apply for Short Term Loans for Bad Credit Online?
Are you looking for a short term loan for bad credit lender with good loan offers? Have you searched tirelessly but found none yet? If yes, you are at the right place. We can help you get a willing lender with good offers right away. Just get the ball rolling by following the easy steps below!
- Fill out the short, simple form you find there. Provide relevant and correct bio and financial data that can help us connect you with a good-sit resource.
- Submit the form and we will send your submission to willing lenders. These lenders will review your submission and make an approval decision very quickly.
- You will be sent a free, no-obligation quote if you get approved for a loan.
- The advantage of using iPaydayLoans is that you have many options to choose from. Review the offers from our different partner lenders and you should find an offer that sits well with you.
- Seal the loan deal by signing the offer. The quote can be signed digitally.
- Then, wait to get paid. You should have your deposit ready a few hours from then.
What the Short Term Loans for Bad Credit Can Be Used for?
Short term loans for bad credit are often used by people with bad credit as a quick financial fix. They are a great financial resource to consider when you run out of cash, can’t get credit from traditional lending institutions but need some money to get some pending bills out of the way.
They can be used to cover credit card payments and routine living expenses like food, utility bills, car payments, plumbing fittings, and car repairs.
Getting a short term loan for bad credit can also be a good way to improve one’s credit ratings. By making early payments, a borrower’s credit score can get boosted by a few points.
Will I Get the Short Term Loans for Bad Credit Same Day?
Yes, you can. If approved, a lender can facilitate a loan deposit within the same day. It also depends on the lender, borrower’s bank processing speed, time of the day the borrower applied, compliance requirements, manual underwriting, and the number of checks needed to be carried out on the borrower.
If the deposit can’t be processed within the same day, the borrower can expect to receive it as quickly as the following business day.
Unlike cash advance apps like Dave that charge you for quick deposits, most lenders do not charge for same-day transfers or loan deposits.
Can I Get Approved for Short Term Loans for Bad Credit with No Credit Check?
Yes, you can. But the ‘no credit check’ here isn’t implied literally. The Consumer Financial Protection Bureau (CFPB) and other financial regulators in the US require all lenders to carry out credit checks on their customers.
However, because of the negative impact these credit inquiries can have on the borrower’s credit profile, some lenders run only soft credit checks. This way, they fulfill the legal requirements of running credit checks but protect the interests of the borrower while at it.
Since these soft credit checks are as good as no credit checks, short terms loans for bad credit obtained this way are referred to as short-term loans for bad credit with no credit check.
How Can I Increase My Credit Score?
Credit scores can make all the difference with how much loan you qualify for, interest rates on the loan, and the loan term. So, you should work towards improving it.
A good place to start is checking your credit report on your own. Get your credit reporting from a free credit reporting bureau and check that all its report concerning your credit repayment history is true. If you locate any errors, report them. A change here can improve your credit score by a few points.
Another way to do this is to close all credit cards and accounts that are open and you no longer use. Finally, pay off your credit card balances and other debts you may be owing.