Looking for guaranteed bad credit loans? How many times have financial organizations denied you a loan because you have bad credit? Most banks will not give loans to people who have a poor credit score. Generally lenders do not loan to people with bad credit because there is a strong possibility that they will not get their money back. It is possible to fix a credit score but the process takes a long time and you might not be willing to wait that long to get finances. The internet has transformed the lending industry by making it possible for people with poor credit scores to borrow money online.
There are different types of guaranteed bad credit loans such as;
Credit: MorgueFileThese are short term loans which can be taken out when you are in a rough financial spot. The borrowing process basically involves the borrower visiting a lender with verification that they are employed because repayment is done when they receive their next paycheck. The borrower is required to write a postdated check to the lender which has the loan amount plus an additional fee that the lender is charging for the service. The lender then gives the borrower the amount that they are applying for.
Once the loan matures, a borrower is expected to take the full amount owed to the lender personally. However if the borrower fails to do this the check is cashed out by the lender. The bank account of the lender might be short of funds to repay the loan, in this case the borrower will be required to pay a fee for the bounced check on top of the amount they owe. Of late, payday loans can be applied for online without getting out of the comfort of your home.
You are required to fill out an application form online and once the loan is approved, the money is wired straight into your bank account. On the maturity date the money owed is withdrawn from the same account electronically. This method of financing provides people with short term loans and enables them to pay their bills on time. The disadvantage of this loan however is the interest charged and since it is taken out by low income earners, they might find themselves perpetually in debt.
Car Title Loans
Credit: eGDC LtdThis is another guaranteed bad credit loan that requires the borrower to own a car. They can also be known as logbook loans. Application can be easily done online with the right documents which are government issued ID and car registration. The lender also needs to assess the car so as to decide how much to loan, the amount does not exceed 50 percent of the car’s total worth. Once this is done, lien is put on the title of the vehicle and the hardcopy of this title is submitted to the borrower.
This loan favors the borrower because they keep possession of their car as long as they keep making repayments as agreed. When the process of repaying the loan is completed, the title is given back to its owner and the lien placed is removed. In case of a default by the borrower the car is put on sale and the lender takes the money as compensation. High interest rates are also put on this loan due to its unsecure nature. Its advantages however are many and they include;
· The loan is given to you after a maximum of 24 hours
· There are no credit checks and this favors those with bad credit
· You can apply for it on your home computer
To take out these loans, people do not give collateral as security. They therefore involve high risks for the lenders and that is why they are usually cautious when approving them. Basically they are not easy loans to secure for people with bad credit. However many financial institutions are beginning to ease up regarding loans and bad credit. Unsecured personal loans come with higher rates of interest compared to secured loans.
The loans are short term and the amounts borrowed are not large. Your bank will be in a better position to offer you this loan because it is familiar with your financial history. You need to have a steady source of income because the lender does not look at either your credit rating or take collateral. So the unemployed and self employed persons might not qualify for this loan because they are the most likely to default. The payment is done in installments which should not be delayed as this will further worsen the credit score.
They have high rates of interest due to their insecure nature. There are several variants of this loan such as personal loans, consolidation loans and credit cards. Therefore if you are in need of guaranteed bad credit loans, you have many options.