The loan amount you can get with a Personal Loan will vary depending on your income, credit history and interest rate. Most often, APR varies from 4.98% to 35.99%.
Table of Contents
Bad Credit Personal Loan This Is Your Chance To Get Money For Any Need
If you are faced with personal needs, most likely you are looking for a suitable source of financing. Since many Americans do not have savings in case of emergency, they consider various loans in order to get money for their needs. A Personal Loan is one of the most popular types of financing at the moment as it helps borrowers get money for any personal needs. Keep reading to find out more about this type of loan and decide if this option is right for you.
What Is A Bad Credit Personal Loan?
A Personal Loan is defined as a simple unsecured loan that helps borrowers obtain financing for any personal need. This type of financing is a type of installment loan, so it is repaid in regular monthly installments over a fixed period of time. Most often, the repayment period of a Personal Loan is from 12 to 60 months.
Because the Personal Loan is unsecured, you do not need to provide collateral for your application to be approved. However, you will need to review your chosen lender’s eligibility criteria and your state’s laws to make sure you qualify.
How Do Bad Credit Personal Loans Work?
At the moment, Personal Loan works like this: you choose the most suitable loan offer, fill out an application online or in the lender’s store, wait for approval, and then receive financing.
Since personal lenders have virtually no restrictions, you can spend the money you receive as you see fit. However, remember that you will need to make regular monthly payments in order to pay off the debt with interest.
What Are The Eligibility Criteria for a Personal Loan?
You do not need to meet many eligibility criteria in order for your application to be approved. Most often, the most important factors influencing the approval of an application are income and your credit history. However, below is a more detailed list of requirements:
- Be at least 18 years of age or older
- Be a US citizen or official resident
- Have an active bank account for deposits
- Have a regular monthly source of income
- Provide government-issued ID
- Provide a social security number
- Provide contact details such as phone and e-mail
Can I Get a Personal Loan With Bad Credit?
More often than not, borrowers with bad or poor credit who have missed loan payments in the past believe that they cannot get financing, but this is not true.
Now more and more personal lenders are working with different types of credit, so you can get approved regardless of your credit history. However, it is important to understand that the worse your credit, the less favorable interest rates and credit terms you will be able to get. Because borrowers with bad credit are riskier, lenders want to offset the risk with interest rates.
How Much Can I Get With a Bad Credit Personal Loan?
The loan amount you can get will vary depending on the lender you choose and the state in which you live. Most often, personal lenders offer from $1,000 to $100,000 for any needs of the borrower.
However, it is important to understand that with a bad credit history, you most likely will not be able to qualify for the highest loan amount. Although, you can still apply for a secured loan or add a co-signer to increase your chances of getting approved and lower your interest rates.
How Can I Get a Bad Credit Personal Loan?
If you haven’t previously applied for Personal Loans completely online, then don’t worry, the whole loan process is as simple as it gets. Here is a step by step guide on how to get a Bad Credit Personal Loan as quickly as possible:
- Choice of a lender. In order to find the most suitable loan offer for bad credit, it is recommended to explore the various options in your state of residence. Pay attention to interest rates, additional fees and charges, and use prequalification.
- Application. After you find the most suitable loan offer, visit the website of the selected lender. There you will need to provide the necessary data about yourself, such as name, income, address of residence, etc. Please make sure that all the details are entered correctly, otherwise your application may be disqualified, and then submit the form.
- Approval. Once the lender has reviewed your application and made sure you qualify, he will contact you. Most often it takes about one business day. You will be able to discuss the terms of lending, as well as ask all your questions.
- Financing. Before you receive funding, you will need to sign a contract. Study it carefully and make sure that you can actually repay the loan amount with interest within a certain period of time specified in the contract. The loan amount will be transferred directly to your bank account
What Are The Advantages And Disadvantages Of A Personal Loan?
How Much Does A Poor Credit Personal Loan Cost?
The cost of a Personal Loan will vary depending on factors such as your income, credit history, interest rates, and more. Most often, APR varies from 4.98% to 35.99%. The better your credit history, the better interest rates you will get.
Also remember that some lenders charge additional fees and charges, such as an early repayment fee, late payment fee, origination fee, and so on, which also affect the cost of your loan.