More than 50 percent of Americans say they’ve been turned down for a credit card or loan because of poor credit. If you’re one of them, you might be wondering how you can get access to the cash you need.
It can be frustrating to be turned down for a loan. You should know that you have plenty of options for getting a loan with bad or even no credit.
Sometimes, the problem is that you have too many options. If you’re trying to find the best short term bad credit loans, this guide is for you. With it, you can find a loan that works for you.
Determine What You Need
The “best” loan for you will depend a bit on your personal situation. If you need cash right now, then you’re going to want to look for options that don’t take weeks to process. You may also want to look at short term options like payday loans or online lending since they’re processed faster.
No credit needed loans or loans that don’t check in on credit history usually take less time to approve. Some lenders even offer specific emergency loans, designed to get you the funds you need fast.
If you can stand to wait a bit, you may want to look at other options. Secured loans take longer to process and usually involve a more extensive credit check. The best secured loans might offer you a lower interest rate, though.
If you’re in a cash crunch because of when you’ll get paid and will be able to pay the loan back in short order, then a short term option is a good choice. If you only need a small amount to see you through, then this type of loan makes sense too.
If you’re making a bigger purchase or need more cash, then paying it back over a longer period of time at a lower interest rate could be your best bet.
Research Short Term Bad Credit Loans
Once you’ve decided what you need, it’s time to do some research. You may feel pressured to just go with the first lender you come across. Even in an emergency, taking some time to research lenders will help you land a better loan.
First, you’ll want to be sure you know all your options. You might look to big banks or national chains to help you. If you have bad credit, though, you might be turned down by these lenders.
Online lenders may be more flexible, and they can often get you the funds you need sooner. Some may even have same-day turnaround on loan applications. You may want to check out some alternative lending options as well since they may be more flexible.
Be sure to check out local bad credit lenders too. They may be more willing to work with you to find a loan that will work for you.
Comparing Bad Credit Loans
Having bad credit doesn’t mean you should settle for a bad deal. That’s one reason researching your loan options is so important. When you do some research, you’ll be able to compare loan offers and make better choices.
Once you’ve found a few lenders you want to apply to, compare their loan offers. You’ll want to look at a few different factors, including:
- Amount of the loan
- Term length
- Interest rate
- Administrative fees
The term length is how long you’ll have to pay the loan back. Be sure to look at the total cost of the loan, which includes the interest rate, administrative fees, and sometimes other costs as well.
Also carefully consider the terms of the loan. Some loans will let you pay them off faster while others will assess a penalty for paying them down sooner. Others will impose fees on missed payments and delinquency.
Some lenders will also offer you more or less, depending on your credit rating. You shouldn’t take a loan that’s more than you need, even if the lender offers it.
Another consideration is the lender themselves. A lender may offer you a great rate or a large loan amount. Unless they’re the only lender who approves you, you don’t have to accept they offer.
You might be tempted to, but you should take a look at each lender, separate from what they’re offering. Some lenders are much more trustworthy than others.
You can read some reviews from other customers or check out third-party comparisons of different lenders. You should also think about your own interactions with the lender.
Even if you have bad credit, you should still look for great customer service. How fast did they respond to you? Were they friendly?
You also want a lender who is knowledgeable. They can help you discover the right loan for you, and they may even be able to help you manage your debt more effectively.
Building a Better Credit Rating
If you have no credit, getting a loan can be tricky. It’s also one of the best things to do. It lets you build a credit history, which means you’ll be able to secure better loan offers in the future.
If you have bad credit, it might seem impossible to build a better credit rating. It is possible, though. Getting a loan, even a small one, is often the first step.
Once you’ve been able to secure the loan, be sure to make payments on time. Missing payments hurts your credit score more. By getting a manageable loan, you’ll put yourself in a position to make those payments and raise your credit score.
Ready to Apply?
Once you’ve done some research and discovered lenders who offer loans that will meet your needs, it’s time to apply. Be sure to get your documents in order, and you’ll be more likely to get an approval.
Short term bad credit loans are effective finance tools. Get the right advice about how to leverage them, and you’ll be on your way to better personal finance in no time.