When your credit is not the best, it’s easy to assume that a loan is out of the question. In fact, there are lenders who provide loans for people with bad credit. That’s something you need to know if an unexpected expense threatens to derail your carefully crafted household budget. Here are some basics you should know about these bad credit loans and how they work.
Your Present Matters More Than Your Past
Bad credit lenders place more emphasis on your financial state today than what happened a few years ago. Perhaps you went through a difficult time due to a job loss, illness, or other issue. The result was that your higher credit rating fell quite a bit. Little by little, you are rebuilding your rating, but it’s still low. For now, more traditional lenders may have no interest in doing business with you until those unfortunate events are off your credit reports and the credit score is higher.
Lenders who offer bad credit loans are more interested in how you are managing your obligations today. If all your current secured and unsecured debts are up to date and you’ve been on time with your payments for at least a year, there’s a good chance of being approved for up to a certain amount.
Your Income Matters
Lenders who provide loans for people with bad credit are less concerned with credit scores, but they do want to make sure applicants have enough money coming in to make the loan payments. Many require that applicants provide proof of steady income. There may be a minimum amount the applicant must generate each month in order to be approved. Assuming you do have an income that is at least equal to that minimum, the lender will continue evaluating the application.
The Interest Rate is More Competitive Than You Think
It’s true that loans for people with bad credit often come with interest rates that are higher than the rates extended to those with excellent credit. What you may not realize is that those bad credit loan rates are often better than most people realize. Depending on the specific criteria used by the lender, it’s possible to lock in a rate that is more competitive than you expected. That’s good news, since the monthly loan payment may be lower than you anticipated.
You Can Apply When It’s Convenient
One of the great things about doing business with a lender who offers bad credit loans is that you can apply online. Instead of having to take time off work to visit a local office and fill out paperwork, you can prepare and submit your application any time of the day or night.
Lenders who offer loans for people with bad credit often assess applications for more hours than traditional lending institutions. Along with standard hours during the day, the lender may have a team of qualified loan professionals who evaluate applications well into the night. It’s not out of the question for you to have an answer quickly no matter when you submit the online application.
Visit 365LoanMore today and read more about how you could have a loan quickly and without a lot of hassle. If the application is approved, the money will be deposited directly into the bank account that you specify. Once the money is there, you can use it to take care of those car repairs, pay off pressing debts, or anything else you choose.