Bad Credit Loans FAQ
About Bad Credit Loans
? What is a loan for bad credit?
A bad credit loan is a loan offered to borrowers who have bad or no credit history, a low credit score, or had declared bankruptcy in the past. Because of their credit rating, lenders charge the borrower a higher interest rate than would be normally charged. Even with bad credit, a borrower can be eligible for a loan as a lender will look at the overall ability of the borrower to be able to repay the money.
? How are you able to offer bad credit loans?
We partner with a wide network of lenders. These companies are open to approving customers who may be rejected by traditional lenders because of low credit scores. Bad credit loans do carry higher interest rates and fees, but they remove barriers for those people to borrow cash.
? Is approval guaranteed?
No. No one can guarantee approval for any loan. Companies that make this claim are being deceptive.
? What are the minimum requirements?
This varies from one lender to the next. General requirements are the same as for all type of online unsecured personal loans:
- Be of 18 years;
- Have a stable income;
- Have an active bank account;
- Be a US resident;
? What if I have no credit?
Each of our lenders makes individual decisions when it comes to specific credit scores. The same is true for a lack of a credit score. Usually, our lenders are willing to consider borrowers even if they have no credit!
? Will applying for a bad credit loan hurt my score?
No, you do not need to worry about additional damage to your credit score. Since our lenders make a “soft inquiry,” your credit report remains unaffected.
? Will I have less time to pay back my loan because of my bad credit?
The duration of a bad credit loan is not necessarily shorter or longer than that of a “good credit loan.” What determines how much time you have is the subset of loan you choose, not your credit score. If you get a bad credit payday loan, you may need to pay it back within a couple of weeks. If you get a bad credit personal loan, you might have years to pay it off.
? What are the consequences of late payment?
If a customer falls behind on payments on a bad credit loan, fees and interest may be tacked on. Additionally, that borrower’s credit score could take another hit.