Elements of Bad Credit Loans
What is a Bad Credit Loan?
Bad Credit loans are short-term loans that you can use to pay for whatever it is that you may need before your next Bad Credit arrives. This type of loan offers you a particular amount of money based on your income amount and is usually able to be received from the lender the same day. And because Bad Credit loans don’t require a credit check, the interest rates are high and should only be used for short term financial circumstances. The loan is usually paid back on the date of your next check.
There are so many places to choose from, which do I use?
While there are many bad credit loan companies out there, you’ll have to find out which one is right for you. Each center will offer its own uniqueness and therefore your particular needs will need to be assessed before you choose any certain company.
What are some of the differences between each company or what can I expect?
Although each company offers similar loans, there tends to be distinct differences between each one. Some companies allow for you to get a loan even if you’re unemployed but are receiving unemployment insurance. Some companies may have a higher allowable loan amount. Some may give you a lengthier loan period or lower interest rates. Some companies will only accept a check stub within the last 14 days and some may accept them from up to 30 days in the past. Some also offer a grace period or a payment plan which will allow you to pay your loan back over a specified amount of time. Whatever the case, be sure to do your research to find out which best suits your needs.
How much can I borrow?
Unlike traditional loans, this amount will depend upon your income. The higher your income, the higher the amount you can borrow. The interest rates usually adjust accordingly.
Loans usually have to be paid back on your next Bad Credit , hence the name. The lender will review your check stub to see how often you are paid and will give you a “buyback” date in which your loan will be due.
Can I qualify to take out a loan from more than one company?
Usually not. The lender will run your information through a system and this acts as a credit check. Usually if you have a previous loan out, the lender will not lend until that loan amount is fulfilled.
What information do I need before I go to apply for a Bad Credit loan?
This will differ depending on what company you use. Most lenders require proof of identification using either your driver’s license or state-issued id card. They also usually require your most recent check stub to verify your last pay date and the amount that you and how often you make it.