Getting or acquiring a loan if you have bad credit is a risky process, as it has high-interest rates, shorter loan terms, and requires a recurring monthly income. Loans that accept terrible credit history are helpful to sustain daily needs and other financial obligations.
Nowadays, it is easier to find loans for bad credit—unlike before, where most lenders, banks, and other financial institutions require a hard credit check and other requirements. Nonetheless, lenders who accept loans only with a soft credit check have high-interest rates, so you should be mindful before applying for one.
Due to technological advancement, getting a loan today is hassle-free and easier than ever. Typically, you would have to go to a physical institution or lending store to apply for a loan. Now, you can simply visit a website and apply for one. Most of these websites are brokers for lending companies that process your application and match it with a lender who will most likely accept your application despite your credit difficulties.
If you are looking for one of the top services in the US that offers all types of loans and accepts poor credit history, Capital Pacific Loans is the perfect choice. With just one application form, we will match you with a legitimate lender who will help you ease your financial problems.
How to Choose a Legitimate Broker Website
If you are new to borrowing money through an online broker, you must be vigilant to scam websites that offer fake loans to those with bad credit. Here are some tips to follow when checking if a broker website is legitimate:
- The site does not charge registration fees to their platform.
- The site must have at least a few reviews from any legitimate review websites.
- The site should not require you to accept their website cookies.
- The site must have all the loans you are looking for (e.g., payday loans, title loans, personal loans, etc.).
- The site must have an ABOUT US section to check the company’s background and history.
- There should be common questions (FAQ) displayed on their platform.
- The site’s physical address should be displayed.
- Customer service or any type of contact information must be available.
- Their loan application form should be thorough and easy to comprehend.
- The broker must be regulated by the country’s top three credit bureaus—Experian, Equifax, and TransUnion.
Pros and Cons in Getting a Bad Credit Loan
When borrowing money from any broker, especially with a low credit score, there will always be pros and cons.
- Fast and Easy. Most brokerages that allow you to borrow money from their lending partners have a fast and easy application process.
- Help You Get Back on Your Feet. You can use the loan for whatever you like as long as it isn’t for gambling or anything unlawful. Home upgrades, debt consolidation, and high-value expenditures, such as getting a new car, are common reasons for taking out a loan.
- Build Your Credit. One of the great strategies to improve your credit score is establishing a positive credit background. Bad credit loans can help you accomplish this by allowing you to repay your loan on time. By demonstrating that you are a responsible borrower, your credit score will improve over time.
- Guaranteed Acceptance of Loan. Most lending institutions now accept credit scores as low as 300—you can be accepted for any loan as long as you meet their requirements.
- Quick Response. Most lending companies will verify your application within one hour. After providing all the requested information, the money will be sent to your bank account as soon as the next business day.
- High-Interest Rates. If you have a bad credit history or poor credit score, lenders will charge you a higher interest rate. Imposing high interests is a lender’s way of compensating for the risk of not issuing a hard credit check. The lower your credit score, the more interest you may be charged, making the cost of borrowing more expensive. So, you should consistently assess if you can afford the loan repayments before you enter an agreement.
- Fixed Repayment Terms. Unlike credit cards, any bad credit loan has a defined monthly payment that was agreed upon with your lender before signing the contract. Therefore, it is important to think twice about whether you can afford the loan installments for the entire term or not. Missed payments might harm your credit score and put you in financial distress.
- Endless Cycle. The significant reason why people apply for loans despite their poor credit scores is because of their other debts; however, paying your current debts through a loan can be an endless cycle if you are not careful. Thus, you must assess your financial obligations and plan how the loan will be used beforehand.
Top Three Bad Credit Loan Options
A set of studies from Fair Isaac Corporation (FICO) found that more than a quarter of Americans have credit scores in subprime or lower ranks by major credit bureaus. According to the FICO credit score, these individuals have credit ratings ranging from 300 to 620 on a scale of 850, with less than 580 being deemed low.
People with poor credit scores or have bad credit history may find it troublesome to get a loan from traditional banks. One of the options for those who have poor credit is through emergency loan lenders.
Online Payday Loans
Payday loans can be obtained through a physical store or an online broker. When borrowing from a broker online, the company has connections with many different lending institutions, giving you a wider range of options. This concept allows you to borrow money from any lending institution for a limited time or until the given loan term. You can usually borrow money from $100 to $1,500; however, the maximum loan amount varies by state.
People consider online payday loans as one of the to-go options if you need money urgently. This is because payday loans only need a few requirements for approval. Capital Pacific Loans makes the process of getting a payday loan hassle-free, and we do not require any fees. More importantly, you will get instant approval of the loan despite your bad credit score. If you’re looking for an online payday loan right now, you can apply here.
Secured and Unsecured Bad Credit Personal Loans
A secured personal loan is one of your best options when you need money for your daily finances, especially if you have a low credit score. Most secured loans require an asset you possess, such as a car, real estate, gold or jewelry, bank deposits, or even stocks. These assets will be considered as collateral, meaning they will be taken if you do not pay or default on your loan.
An unsecured personal loan is secured by your promise to repay the debt. Usually, unsecured loans are only available to bank customers who can demonstrate they have an incurring income that is enough to repay the loan. As a result, banks are wary of lending money to people who do not meet their terms and conditions.
Because an unsecured loan poses no danger to the borrower but a significant risk to the bank or lending institution, you should expect considerably higher interest rates, shorter loan durations, and 50/50 qualifications. To be eligible, you must be a current member who has received a direct deposit from the same source for at least six months.
Payday Alternative Loans
The Payday Alternative Loan (PAL) is a small-dollar, short-term loan that would help and assist those who need money asap to cover unexpected financial problems. One of the requirements of this loan is you must be a current member of the institution who has received a direct deposit from the same source for at least six months.
The National Credit Union Administration (NCUA) oversees and insures federal credit unions. In addition, they protect credit union members and chartering and regulate them in the United States. These are their conditions when getting a loan:
- Regardless of how much the loan fluctuates throughout its life, the interest cannot exceed 28%.
- The maximum loan amount is $1,000, with a $200 minimum.
- The borrower has one to six months to repay the loan.
- The application fee for a loan cannot be more than $20.
- By avoiding a PAL overlap or rollover, an eligible borrower with a low credit score has the right to three PALs over six months.
What Is the Easiest Loan to Get With Bad Credit?
Having a bad credit score can be very inconvenient, especially if you are applying for a loan in a bank or financial institution because they will most likely reject your request. In today’s time, there are a lot of lenders (through a broker) who offer different loans for bad credit. Most of these options loans are:
- Car Title Loans
- Payday Loans
- Pawn Shop Loans
- Personal Installment Loans
- Local Credit Union Loans
These loans vary in requirements and have different maximum and minimum amounts.
Where Can I Borrow Money Immediately?
If you are looking for money asap, one option you could opt for is a fast cash loan. This type of cash loan is like a salary loan where you can get the funds in less than fifteen minutes. Unlike other loans, a fast cash loan is hassle-free and only needs a few requirements from you. You can apply online through Capital Pacific Loans if you need to borrow funds to finance your financial obligations. We only work with legitimate brokers in the US who can guarantee instant approval.
Can You Borrow Money Online Instantly?
Through the advancement of technology, the options for borrowing money are limitless. If you need funds urgently, your best option is through a broker with a set of loan offers. Make sure they only do soft credit checks because this assures that the broker trusts you to repay the loan at a given time. More so, if you are having second thoughts on borrowing money through a broker, you can visit Capital Pacific Loans for assurance.
Am I Eligible For Any Loan Despite My Score?
Regardless of your score, there are plenty of loans for bad credit available for you, especially if you reside anywhere in the US. Nevertheless, one of the most convenient ways to get loans for bad credit is online because it is secure and does not charge any fees.
Additionally, online bad credit loans allow you to send in a loan request wherever you are as long as you have internet connection. Choosing a legitimate broker like Capital Pacific Loans is better than going to a bank that requires a lot of paperwork and a lengthy approval decision. To check your eligibility, you must:
- Be a permanent resident of the United States.
- Be at least 18 years old—you may be asked to present proof of age in the form of a government-issued photo ID.
- Provide your name, phone number, active email address, and bank account information.
- Provide your Social Security Number (SSN).
- Have a monthly recurring income of at least $1,500.
What if I Don’t Pay Back the Loan at the Agreed Time?
If you fail to repay your loan by the due date, your online lender may charge you a higher interest rate and penalty fees. The worst-case scenario is that the lender would pursue legal charges against you; however, this only occurs if you completely fail to repay and avoid contact with the lender.