Do bad credit loans exist?
Yes, they do. Not only do they exist but they are becoming more popular. The key to getting personal loans with bad credit is having a steady job. Many lenders are looking at an applicant’s job as the best indication of getting paid back and not how good a person’s credit rating is. Because this type of loan does not require any security, the interest rates are higher than average. However, this is simply a trade-off that consumers have to live with. The good news is that if you have bad credit, there are loans that are available for you. They can be obtained quickly, and the money can be used for whatever you need it for.
Today’s new lending environment
In the past, these types of loans were impossible to find, but today, the economy has changed. Regulations for finance companies have been relaxed and have allowed for a more creative approach to lending. This is especially true with personal loans. Because of the Great Recession, many people have had their credit ratings drop significantly. Long periods of unemployment have led to late payments and other financial difficulties that affect a credit rating. The result has been a drop in the consumer’s credit rating. These same people have had to make adjustments in their lives. Today, they may have a different job in a different sector of the economy than in the past, but these jobs are steady. These jobs are now the assurance that lenders are looking for to approve a loan and not the credit rating.
What are the qualifications for bad credit loans?
A steady job is the most significant aspect of the qualifications for these personal loans, but there are other qualifications that are needed as well. Some of these will vary depending upon the particular lender you are applying with, but they are essentially the same. Your job, for example, may need to be one you have worked for a minimum amount of time. This period can be as small as three months but may be as long as six months. This requirement is used to give the lender a stronger assurance that your job is steady. Another common requirement is a checking account. Some lenders will transfer the loan money directly to a checking account and then take the payments directly from that same account.
Are there any other qualifications?
There are usually minor qualifications that almost everyone lender has. You will need to be an American citizen or a legal resident. You will sometimes need to be a resident of the same state as the lender is, but this is not true with all lenders. Naturally, you will need to be an adult of the age of 18 or older. Minors cannot enter into a contract. You will need photo identification to apply for a loan; a state issued driver’s license is more than enough to fulfill this requirement.
Where do I apply for bad credit loans?
These types of personal loans can be found locally in most states and in larger towns. However, they may not be in a convenient location for you. Often it is best to find a lender on the Internet. You can apply for bad credit loans from your computer and get a response to your application the same day. Another way to apply for personal loans on the Internet is by using a quotation service. This is a company that will take your information and then request quotations from several lenders at once on your behalf. This type of service saves you time in attempting to get the right loan for your financial situation. This type of company will have pre-approved lenders in their database that are waiting to give you a quotation.