Bad Credit Loans From Slick Cash Loan
If bad credit is preventing you from qualifying for a loan, it can feel as if you are stuck in a hopeless situation. However, bad credit loans can work as a perfect solution in such cases. We provide personal loans for people with bad credit, helping individuals gain the money they need and potentially improve their bad credit rating.
Personal Loans for People with Bad Credit
It happens to pretty much everyone: emergencies arise where you need extra cash – whether it's in the form of an unexpected medical bill or roof repair. Maybe you need some money to fix your car. Whatever the reason, online bad credit personal loans can help you get the cash you need to respond to an emergency.
You are not alone, either. Folks with bad credit, have very limited options when it comes to access to quick cash. A recent survey found that nearly 30% of American households have under $1,000 in savings at any given time. And with minimal savings, paying for unplanned bills or covering living expenses in the event of job loss is quite tough. And this is where loans for people with bad credit come in handy.
So what are Bad Credit Loans?
These are credit facilities offered to individuals with poor, weak, or non-existent credit. You can use loans for bad credit on anything, from home repair and medical bills to fixing your car.
Generally, personal loans for people with bad credit tend to attract higher interest rates and fees, along with less desirable terms for borrowers. Lenders interpret poor or non-existent credit scores to mean that you are a high-risk borrower who is highly likely to default on a loan than individuals with high credit scores. To offset this risk, lenders tend to charge much higher interest rates. This way, should you default on the loan or declare bankruptcy, the lender will recover their loss from the additional money charged in high-interest rates.
And what is considered a Bad Credit Score?
This is generally any credit score that is below 560 on the FICO scoring system. A low credit score might be caused by maxed-out credit cards, failure to make payments on time, or a negative incident like home foreclosure. Your credit score can also be affected by public records like bankruptcy, as well as state and federal tax liens.
Here are the FICO credit score ranges:
- Poor or bad credit score: 559 and below
- Fair credit score: 560-669
- Good credit score: 670-739
- Very good credit score: 740-799
- Exceptional credit score: 800 and above
Types of Bad Credit Loans
Generally, personal loans for people with bad credit come in two varieties: secured and unsecured.
1. Secured bad credit personal loans
These are loans granted to borrowers who deposit their assets as collateral. Most lenders accept vehicles, boats, homes, or savings accounts as collateral. With a secured loan, the lender is legally permitted to seize the collateral if you fail to pay back the borrowed amount. While these loans attract higher interest rates and terms, the borrowing limit tends to be much higher than in unsecured bad credit personal loans.
2. Unsecured bad credit personal loans
These loans are granted based on the borrower’s credit score history. As the name indicates, no collateral is required when applying for this kind of loan, and the lender cannot seize your property if you are unable to repay the loan. While unsecured loans for people with bad credit are often harder to approve, it is still possible. Additionally, their terms and interest rates often depend on the lender.
Like other loan types, loans for bad credit require signing a contract when your application is approved. You will be required to agree to the rates, terms, and conditions of the loan. A failure to repay the loan may result in the lender selling your account to a collections agency as well as having negative feedback on your credit report. That is why it is important that you only take the loan when you are confident of repaying it back lest it negatively impacts your credit history for years to come.
How do Bad Credit Loans work?
Unlike loans from the bank or mainstream lenders, bad credit loans can be applied for online and are usually approved quickly. To qualify for a bad credit loan, an individual will not be judged based on their credit score; they will instead be judged on their income or job status, for example. Once a person has passed the approval stage of the bad credit loan application process, a direct debit of cash will be deposited into their account, providing they agree to the terms of the loan.
How long does it take to apply?
In most cases, applying for a bad credit loan is simple, with an easy online application form that can be completed in a matter of minutes. The application will require you to fill in basic information about yourself, such as where you are currently employed, your date of birth, and your bank account details.
How long does it take to be approved?
As a company that partners with online direct lenders to provide bad credit personal loans, we don't need to complete or analyze a credit check. Bad credit loans can receive quick online approval. This is ideal for individuals who need to borrow money quickly and want the application process to be as fast and efficient as possible.
Are Bad Credit Loans available in flexible amounts?
Depending on which state you reside in, payday loans can be restricted to certain amounts, often to $1000. With online bad credit personal loans, payment amounts can be much more flexible, and loans are often available up to $3000. This ensures borrowers can access enough money in one loan and do not have to take out multiple loans at once, which can lead to multiple financial problems, and some states even have rulings in place to prevent an individual from taking out multiple loans in the first place.
What happens if late payments are made?
If a person has agreed upon a bad credit loan and fails to make the specified payments on time, they may be liable to additional charges. The exact procedure for late payments will be outlined in the loan contract, and an individual should fully understand the procedure and any potential consequences before accepting the loan.
Are Loans for People with Bad Credit convenient?
Bad credit loans are incredibly convenient as they can be applied for from the comfort of the applicant's house, or wherever they have access to the internet. Unlike banks and mainstream lenders, the applicant never has to have a physical meeting for the loan to be approved, and if their application is successful, they can receive a direct debit of the loan in their bank account in as little as 24 hours.
The Next Step
Don't let a bad credit score prevent you from living your life to its fullest. There are many reasons why an individual may need to apply for an online loan, such as to help a friend or family member to fix an urgent problem or to prevent their family from entering any financial trouble.
Whatever your reasons may be, applying for a bad credit loan today is a great step toward financial freedom.