how to apply for a loan with poor credit

How to Apply for a Loan With Poor Credit: A Guide

There are many, many reasons why you might find yourself in a situation where you need some extra funds. You might be trying to purchase property, pay off debts, or invest in a new business enterprise. No matter the reason, you might need the assistance of a money lender. 

Millions of Americans take out loans every year. These loans can help you weather difficult times or take advantage of great opportunities. However, it can be very difficult to successfully take home a loan if you have a poor credit background. Lenders are often risk-averse, and a less than stellar profile might be enough to get you turned away.

What should you do? In this situation, it is essential that you know how to apply for a loan with poor credit.

Your bad credit doesn’t have to be a dead-end. Read on and we’ll walk you through what you need to know.

Why Bad Credit Can Sink Your Lending Options

Why is a poor credit score such a big deal? If you’re not familiar with money lending practices, you might not understand what all the big fuss is about as it pertains to your credit score.

The fact of the matter is, your credit score is the main facet money lenders look at when deciding whether or not to loan you cash.

This is because your credit score is the common signifier of your reliability as a borrower. If you have a poor credit score, it means one of two things. Either you’ve borrowed money and failed to pay it back in a timely fashion in the past, or you’ve never really borrowed money at all.

To most lenders, being untested is just as bad as being a poor borrower.

Moneylenders are risk-averse. They want to ensure that when they give away their money, they’ll see it back in due time. This is why they want to take a look at your credit score, and only want to loan money to those who seem the most reliable.

Credit scores are provided by companies such as FICO and range from 300 to 850. You can access your score via these companies or often through your credit provider.

Generally speaking, any score below 700 is considered to be poor, while a stellar score would be anything between 700 and 850.

Some lenders, such as large banking institutions, won’t do business with people who have poor credit. This can make it feel like there’s no one you can turn to. This can be scary, especially if you have many good reasons to take a loan out.

Do Your Research & Homework

Finding a lender who is willing to work with you certainly isn’t impossible, no matter what your credit score is. You will need to put in a little bit of work, however.

First and foremost, you’ll need to make sure you understand the profile you’re bringing forward. Most Americans don’t know their credit scores. If you’re in this boat, it’s time to change this.

After all, if you don’t know what your score is you won’t know who to consider talking to!

Request them from the various credit reporting companies to ensure you’ve seen what the lenders you’re planning on speaking with will see.

You’ll need to prepare some other paperwork as well. Make sure you have proof of income and employment, your social security number, identification of some sort, and housing information on hand.

These are the common documents that lenders will request, and you don’t want to waste time by having to hunt them down later.

With all of this information together, you’ll have a good sense of what your profile looks like. Now the task at hand will be to find a few lenders who seem open to working with people like you.

Look up various lenders and compare what they’re willing to offer. Many lenders who are willing to work with poor credit borrowers will advertise this fact, so they shouldn’t be hard to find. 

If you have questions, reach out and start a conversation with these lenders. However, don’t apply for more than one loan at a time. 

What to Consider When Taking a Loan

More likely than not, money lenders who accept poor credit borrowers will take other steps to mitigate their risk. It’s important to understand what to look for when accepting a loan.

Many private lenders will offer loans with higher interest rates to those with poor credit. So while you’ll be able to get the money you need, you’ll have to pay a higher price for it as you pay it back then someone with better credit might.

Other private lenders might offer what are known as secured loans. This is a loan that requires you to tie a personal asset, such as your car or home, to the loan. If you aren’t able to pay back the loan, the lender has a right to seize your property.

In this situation, your personal assets are providing a contingency that your credit score isn’t able to.

It’s important to take the time to understand the terms of a loan before signing anything. 

How To Apply for a Loan With Poor Credit

No one ever seems to have as much money as they need.

In these situations, it’s essential to know how to apply for a loan with poor credit. Understanding the process will allow you to get the funds you need even if your borrowing background isn’t picture-perfect.

Have more questions about poor credit loans? Give us a call for assistance.

Applying For Good Credit Loans, Bad Credit Loans, And Poor Credit Loans

Applying For Good Credit Loans, Bad Credit Loans, And Poor Credit Loans

 

This Simple Guide Will Help You When applying for good credit loans, bad credit loans, and poor credit loans.

  1. Go to a bank

 If you go to a bank you will most likely need to have good credit. Banks today are going to look at your credit score first. If you do not meet their credit requirements you will automatically be declined. It will also help that you bank with the bank that you are trying to get a loan from, sometimes this will be a bank requirement. Make sure you know exactly how much you are needing and the exact need for your loan. 

 

  1. Search online

 There are plenty of places online to apply for a loan but you will need to be aware of what the minimum requirements will be. Make sure you identify what types of loans they do, payday loans, installment loans or personal loans. With a simple online application, you will be able to apply and find out if you get approved or not. If you are using the internet to apply for a loan make sure the site you are using is secure. You can do that by making sure there is a lock in the url window. Quick Loans America allows you to get quick loans near you for good credit, bad credit and poor credit in as little as 24 hours.

 

  1. Visit a brick and mortar store

 These brick and mortar stores still do exist but seem to be used less and less. You will typically need to take verification of income and verification of identity. When you go into these places most of them will specialize in payday loans or cash advances. The benefit of visiting these payday loans or cash advance stores is that you will typically leave with a check or cash.

With these being the main ways to apply for a loan, you will have to make a decision which way makes the most sense for you. Regardless of the way that you apply, make sure that you understand if they service bad credit loans, good credit loans or poor credit loans. Understand what your payments are going to be along with how much total you are paying for your loan. Whichever one of these options you chose to go with, quick loans near you are available in many different ways. 

 

If you choose to apply with us at Quick Loans America our requirements are as follows

 

  •  At least 18 years of age or older

  •  $1000 in monthly income

  •  A consistent source of income

  •  A checking or savings account 

 

If you have these you can apply with the link below to get started and get approved for $100 to $5,000. Once the application is completed you will find out if you are approved. If you are approved it will go over the terms and conditions of your loan. 

Top Benefits & Reasons to Get a Personal Loan

Top Benefits & Reasons to Get a Personal Loan

Regardless of what you may have heard from others, debt is not an evil thing. When used properly, it can be a great tool for either improving or making your personal finances easier to manage.

People who are financially responsible use credit cards for everyday expenses like groceries and gas. They also may take out secured auto loans and mortgage loans in order to purchase cars and homes they may never be able to pay for in full with cash.

It has become increasingly more popular for people to turn to online lenders for unsecured personal loans. When compared to other alternatives like traditional bank loans, credit cards, and payday loans, unsecured personal loans online have several key advantages.

Let’s dive in and look at some of the benefits of unsecured personal loans and some of the reasons you might want to think about using them.

5 Key Benefits of Getting a Personal Loan Online
Why should you choose to take out a personal loan online instead of other potential choices? Consider the following benefits, but keep in mind that the ideal personal finance product for any situation can depend on many different factors. This could include borrower credit, income, assets, employment, preferred terms, and the purpose of a particular loan. In some cases, your credit history may not matter when considering using a bad credit loan company.

1. Potential for a Higher Loan Amount Than a Credit Card
While people with exceptionally good credit may be approved for $10,000+ with a premium credit card, most people will not qualify for these types of credit cards. People with “good” credit may qualify for around $2,500 to $10,000, while people with bad credit or lower credit scores may only qualify for $300 to $5,000 max.

That being said, borrowing limits for personal loans are usually higher than what you can get with a credit card. While borrowing limits may vary by each loan company, most lenders will max out around $10,000 to $15,000 while a few may go as high as $40,000. In either case, you will generally always be able to obtain a higher credit amount from a personal loan than a credit card.

Similar to personal loan companies, credit card issuers may use many factors when determining a spending limit for applicants. Most of these are taken from consumer credit reports:
– Debt to Income ratio
– Credit score
– Payment history with other loan or credit card accounts
– Employment history
– Income
– Derogatory items like bankruptcies or late payments
– Credit inquiries (how often and how many)

2. Easier Approval For Online Personal Loans
Especially for people with poor credit, it may be difficult or impossible to get approved for a credit card. This doesn’t mean you can’t have access to unsecured credit though. There are many online personal loan companies who will approve you for an unsecured loan, even if you can’t seem to get approved anywhere else.

If your credit score is low, then you may consider getting a bad credit loans through an online lender. Regardless of your credit history, you can get approved for a personal loan online with no credit check!

3. No Requirement For Collateral
Unsecured personal loans don’t require you to secure any assets to the loan as collateral. While the consequences of not making your payments on an unsecured loan will be very negative, you don’t have to worry about losing your house, car, or some other asset that is important to you.

4. One Personal Loan Is Easier To Manage Than Multiple Credit Cards
Getting a single loan, with a fixed interest rate and a defined loan amount is much easier to manage than having multiple credit cards, all of which may have different credit limits, interest rates, due dates, policies, etc. So if you need to borrow $10,000, wouldn’t it be much simpler to apply for a single personal loan of $10,000 as opposed to getting four credit cards with $2,500 credit limits each?

5. Well Defined Repayment Schedule
When it comes to personal loans, there’s never a question about what the fixed interest rate, repayments terms, and monthly payment amount is. When you’re approved, you’ll know exactly how much you’ll need to repay each month, how many months you’ll need to make those payments, and what your total interest cost is over the entire loan period.

Credit cards are not nearly as predictable. The only thing that typically doesn’t change is your monthly payment due date. The required minimum monthly payment amount depends on what your balance owed is, and your interest rate could easily change since it will almost always be linked to a benchmark like the prime rate.

Top 6 Reasons to Get a Personal Loan

1. Refinance Existing Debts or Bills
Often times, personal loans are used as debt consolidation loans that are taken out specifically for the purpose of consolidating credit cards and other loans into a single personal loan, often times at a lower interest rate. A debt consolidation loan is easier to manage, more predictable, and may have lower monthly payments.

It may be that you’ve fallen behind on some bills and are needing an easy way to get everything caught up.  It’s so easy to get short term loans online, you could easily bring everything current and have one simple monthly payment.

2. To Finance a Major Purchase
An unsecured personal loan may be more suitable for you to use for some major purposes than a credit card. Often times your interest rate will be better on a personal loan, especially if you won’t be able to pay off the amount before a potential promotional period on a credit card expires. The vendor you are purchasing from may not accept credit cards. A personal loan may also provide a higher approval amount if the purchase price is greater than your credit card limit and you don’t want to open multiple credit card accounts.

Some examples of these major purchases could be:
– Purchase of an automobile
– Home improvement (especially if you don’t have enough equity in your home to qualify for a home improvement loan)
– Vacation

3. To Pay For Unexpected Major Expenses
Sometimes you may encounter a large expense that you aren’t ready for, but it is required and must be taken care of immediately. Some examples are:
– Major medical bills
– Vehicle repairs (either not covered by insurance, or you have a high deductible)
– Emergency home repairs like a hot water heater or your heating or air conditioning unit

Some online personal loan companies can fund your loan the same day or at least by the following business day. This is much faster than getting funds from a regular bank. 

4. To Finance a Wedding
Generally, many different expenses will come up during the months of planning and preparing for a wedding. In some cases, reservations for some catering and venues will have to be made at least a year ahead of time. Engagement rings will very likely come well in advance of the wedding too.

It may be a good idea to go ahead and take out a personal loan for all wedding related purchases, and then setting the proceeds aside in a separate checking account to be used exclusively for all wedding expenses.

5. To Adopt A Child
Kids, in general, are expensive, but adoption can require many upfront expenses.

Some of these expenses may include legal fees, travel and lodging if the child is in other city, medical expenses, application/administration fees, and possibly other expenses as well.

6. To Expand a Business
If you need money to help you expand your business, you could apply for a personal loan as long as the loan amount will be large enough to cover your business expansion costs. However, if you need a larger amount, you may want to consider getting a business loan online. The requirements are usually pretty simple, as compared to a traditional commercial loan at a bank. You’ll generally need to have been in business for at least 6 months, can provide bank statements, and possibly some other documentation that should be pretty easy to provide.

In Conclusion
While the above benefits and reasons are some great examples for taking on new debt through a personal loan online, obviously they’re not the only reasons to get a new loan. It could be anything!



Also, for whatever its worth, personal loan companies are just as anxious to approve your loan as you are to receive your cash! It can be a win-win situation for all involved. The important thing is to understand what you are needing and how a personal loan may be the best option for you to meet your financial needs.