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Bad Credit Loans

If your credit report is far from perfect, it may be hard to qualify for a personal loan. Bad credit loans are similar to personal loans. Borrowers pay back the loan amount in monthly installments with interest. It's common to see bad credit loans used for short-term loans in an emergency financial situation. They can be unsecured or secured loans. Borrowers with bad credit typically have low FICO credit scores. High amounts of credit card debt, late monthly payments, and poor repayment history can all be reasons for a bad credit score. If you're not sure why your credit score is low, obtain a copy of your credit reports from the three major credit bureaus. When financial institutions run a credit check, they review your credit history to determine your creditworthiness. Lenders may also review a borrower's bank account history and debt-to-income ratio. When searching for a loan, look for lenders that offer prequalification. This means that the loan lender has done a soft credit check on your credit report. A soft credit check shows up on your credit report, but does not hurt your credit score, unlike a hard credit inquiry. Generally, borrowers with good credit or excellent credit have access to loans with lower interest rates. They'll also have the most loan offers to choose from, as well as favorable repayment terms and loan rates. Lenders generally view individuals with low credit scores as risky borrowers, so loan options may be limited. Some online lenders and credit unions may offer you a bad credit loan at a high interest rate with less favorable loan terms to compensate for poor credit history. Payday loans, title loans, cash advances, and an emergency credit card can also be loan options for those strapped for cash. Typically, these types of loans don't require a hard credit check, but they can end up being costly to borrowers because of high interest rates. A lower-cost option for borrowers with bad credit may be to ask someone trustworthy with good credit to be a co-signer. Using a co-signer with excellent credit on your loan application can help you secure a lower interest rate and loan term. During the application process, the lender will consider your co-signer's credit score and credit history process to help make a decision on whether to fund the personal loan.

 

Financial Health Guides

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Bad Credit Loans

A bad credit loan can help an individual whose credit score isn’t high enough to receive a loan from a traditional financial institution. Read More

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No Credit Check Loans

Lenders that offer no-credit-check loans typically don’t look at your traditional credit history, and can be an option for those with bad credit or no credit. Read More

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Installment Loans

There are many forms of credit and financial products, the installment loan is a common one. Read More

demography

Personal Loans

Personal loans come in a variety of shapes and sizes. Here’s a bite-size FAQ to break down the basics. Read More

  • contract_delete

    Bad Credit Loans

    A bad credit loan can help an individual whose credit score isn’t high enough to receive a loan from a traditional financial institution. Read More

  • rule_folder

    No Credit Check Loans

    Lenders that offer no-credit-check loans typically don’t look at your traditional credit history, and can be an option for those with bad credit or no credit. Read More

  • article_shortcut

    Installment Loans

    There are many forms of credit and financial products, the installment loan is a common one. Read More

  • demography

    Personal Loans

    Personal loans come in a variety of shapes and sizes. Here’s a bite-size FAQ to break down the basics. Read More

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