When you need money now but have bad credit, BadCreditLoans can help you find a loan
We all know that you should get your credit score as high as possible before you apply for a loan. Sometimes that’s easier said than done. Life doesn't wait for your credit score and you don’t always have time to rebuild your score before you need to borrow money.
Until you can fix your credit score, banks might not lend you money when your credit score is below 680 FICO. In the past, your only local option to borrow money fast might have been a payday loan.
Unless it’s an absolute emergency, never get a payday loan. These cash advance loans are a debt disaster just waiting to happen with interest rates as high as 500% annually.
What should you do instead?
Thanks to the internet, you can apply for a loan online through sites like BadCreditLoans.com that connect you with lenders free of charge. The lenders in their network specialize in bad credit loans so you get several offers even with a sub-prime credit score.
Their are some drawbacks though so I wanted to review the website to make sure you know how to take advantage of the opportunity without being trapped in debt.
Pros of BadCreditLoans.com
- Connect with online lenders for free
- Not required to accept a loan offer
- Many different loan types
- BadCreditLoans has been in business for 20 years
- No collateral required
Cons of BadCreditLoans.com
- Can only borrow up to $1,000 with bad credit
- Interest APR can be as high as 35.99%
Personal Loans vs Payday Loans
The first thing you need to know is the difference between personal loans, peer-to-peer loans and payday loans. Personal loans and payday loans both give you cash that you can spend as you please.
Maybe you’ve applied for payday loans or title loans in the past that hold your paycheck or car as collateral if you fail to make payment. The BadCreditLoans lender network offers personal loans to every credit background without requiring collateral.
Personal loans and p2p loans also go on your credit report so they can help build your credit score as you repay the debt. Delinquent personal loans will harm your credit, but on-time payments can improve your credit.
You do need a steady income from a regular job or a benefit program to qualify for a loan, but you’ll avoid the hefty fees and exorbitant interest rates that payday lenders charge. As with any loan, you should only apply and accept a loan that you need and can afford.
One of the biggest differences, and this is how payday loans and cash advances trap people, is that personal loans charge an interest rate while payday loans charge a one-time fee. That fee may only be 15% per $100 of loan but it is the equivalent to an annual rate of over 500% because it's charged every two weeks.
If payday lenders charged that kind of interest rate, they wouldn't be able to operate in most states. The states let them get by on the ‘fee' because the pawn shops and cash advance owners pay off state legislators to look the other way.
Is BadCreditLoans Legitimate?
BadCreditLoans is a free service that helps connect you with lenders that offer loans to borrowers with bad credit. While they can’t guarantee you’ll qualify for a loan, the only possession you lose is your time if you don’t find a lender.
There are a lot of shady characters in the financial world that love to prey on borrowers with bad credit. I've seen a lot of these online loan frauds. BadCreditLoans has been connecting borrowers with lenders from more than 20 years through two recessions and four presidents.
There are no upfront fees to use the loan network and you aren't forced to accept any loans you don't want.
What Loans Does BadCreditLoans Offer?
You can apply for a variety of loans through BadCreditLoans including:
- Personal loans
- Business loans
- Student loans
- Auto loans
- Home loans
The most you will be able to borrow for any loan is $5,000, but most lenders will only lend up to $1,000 if you have bad credit. So, it’s probably best to only use BadCreditLoans for personal loans to cover your small expenses when you don’t have enough money in your emergency fund.
How Does BadCreditLoans Work?
Before you can apply for a loan, you must meet the following requirements:
- At least 18 years old
- Provide proof of citizenship
- Have a regular income
- Own a checking account
- Provide an email address plus work and home telephone numbers
If you meet the above criteria, you can request a loan with the following lending terms:
- Loan Amount: $500 to $5000
- Repayment Term: 3 months to 36 months
- Interest Rate (APR): 5.99% to 35.99%
To see how much you can borrow, start the application process by requesting the amount you want to borrow and your personal information. BadCreditLoans will run a soft credit check and immediately begin contacting lenders based on your credit profile and borrowing request.
If you receive a loan offer, the prospective lender will determine the repayment period and interest rate. The BadCreditLoans lender network never requires collateral and your application will never be denied solely from your poor credit history.
Applying for a Loan on Bad Credit
The application process is relatively simple with BadCreditLoans. As long as you have the required personal and employment information to submit online, most of the legwork is completed by the lender.
All of the lenders in the BadCreditLoans network try to have a rapid turnaround time from when your initial request until they disburse the loan. In some cases, it’s possible to receive your cash the next day after your loan application is approved.
You can begin the application process 24/7/365 online. The entire application process is online and you electronically sign the loan confirmation documents if you accept an offer.
Accepting an Offer for a Bad Credit Loan
Remember, BadCreditLoans never charges you a fee for any loans you receive on behalf of their service and you’re never required to accept an offer. In fact, BadCreditLoans recommends that you take your time to review the loan terms and conditions before you accept or decline the offer.
Use this time to look for the following information:
- The total amount borrowed
- Interest rate
- Monthly payment
- Number of monthly payments
- Any additional fees
Just because you are offered financing doesn’t mean it’s a good deal. As the borrower, you’re still responsible for making the monthly payment and you need to know you can afford it before accepting the offer.
On a positive note, your payment history will be reported to the three credit bureaus and successfully paying your loan can improve your credit score.
Depending on your creditworthiness, you might be able to borrow more money or qualify for a lower interest rate with a peer to peer lending site that lets you skip the bank altogether. While BadCreditLoans is a legit service, it isn’t for every borrower and you should not overlook P2P loans.
When you have bad credit, it’s challenging to borrow money when you need it most. BadCreditLoans is an excellent alternative to payday lenders. And they’re free to try so you have nothing to lose in case you can’t get credit through them.