When you need fast cash Banks lend money to people on the basis of their credit scores. Different people have different credit scores. These scores are essentially an indicator of the likelihood of a lender defaulting on his/her loan. There are many advantages for differentiating potential customers as high risk and low risk. But, there is also a downside to credit scores. It tends to classify good people, who will not always default on their loans, as “bad” with lower credit scores. Someone may have had an emergency situation, which forced them into maxing out their credit card or borrowing money which they weren’t able to repay in a timely manner. One bad experience can hit a person’s credit score. Some examples which can lead to bad credit are:
Banks would argue that it costs them the entire principal amount for a bad loan which went into default, while they only earn the interest payment on good loans. Let’s say a $1000 loan was made (principal amount), then the interest payment at 6% on the borrowed amount would be $60, which is far less than $1000. So for banks to cover the $1000 loss on a default, they would need many more “good” borrowers. In this case, it would be something like 16 good borrowers for every default. The entire process is very data-driven and statistical in nature. It is designed to create a distinction.
The downside of this statistical process is that it unfairly penalizes people with limited credit history or someone with a lower credit score. Such things, however, do not always make a borrower a “bad” or “high-risk” borrower. There are some things which you can do to get into the “good” borrower group. The other more direct option is to go for a payday, personal or short-term loans. These are direct lender loans designed for people with bad credit.
Traditional loans from sources such as banks, credit unions, etc. place a lot of emphasis on your credit score and credit history. However, they are out of bounds for anyone with a low credit score. In such a case, you can explore direct lender online personal loans. We can connect you to a large lender network of lenders where you may be able to get a short-term direct lender loan. The best part about availing such loans is that they do not emphasize as much on your credit score. They may perform a soft credit check, but there is nothing in the process which can harm your credit score or keep you from getting a loan. Such bad credit loans are so convenient that you may not have to even leave your home!
Another option for a borrower with bad credit is a payday loan. These are very short-term loans that you have to repay on your next payday. They are great for an emergency or the sudden need for cash. These loans tend to have a higher interest rate, but they do not focus very heavily on credit scores. A soft credit check may be performed. However, their main focus is on the employment that you have and the pay which you will receive. The lender will look into your ability to repay this short-term loan by your next payday. Payday loans are loans for people with bad credit. They are unlike traditional installment loans which are offered by banks.
It is possible to get a loan against the title of your vehicle. If you are looking for some fast cash, but are being turned down by traditional lenders due to lack of credit history or a low credit score, then title loans are an option worth looking into. You can use the cash from a title loan to pay for repairs, finance education or deal with a financial difficulty. Such loans involve only a soft credit check to simply verify the information which you submit. In order to be considered for a no-credit check title loan, you have to be 18 years of age, have an active checking account in the US and be employed.
Online personal loans and payday loans are great because they can be accessible much faster than a standard loan from the bank. The entire application process can be done online very quickly. You can apply from the comfort of your living room. There is no need to spend time driving, parking your car and then waiting at a bank branch to understand the entire application process. Things move a lot quicker with online direct lender loans. Once you apply, the processing from the lender is also quick. You may be able to see the loan amount in your bank account the next business day. Such loans are convenient as the documentation requirements are also not as extensive, whereas a traditional lender like a bank could ask you for an entire file of documents.
Please note that we do not take loan applications, neither are we an associate or affiliate of such lenders. We do not give you such loans or make any decisions on the suitability of the borrower either. We simply provide a service that connects you to one of the lenders in our extensive network for payday and personal loan lenders. We are not responsible for any decisions or actions of the lenders in our network.