Don't waste your time. Get a loan online.
getting very poor credit loans is bit tricky and most of the lenders out there try to get you though highest APRs, which may or may not be in any of your favor and you might end up getting in to endless debt cycle and much more burden than your current situation. Here in this article we will help and guide you with how should you get desired amount of cash with such poor score.
We compare loans that can be paid back over terms of between 1 and 25 years. The APR interest rate you’ll be charged depends on your personal circumstances, and will be between 5.99% and 35.99%
If I have bad credit, What are the options for me?
If you’ve got a poor credit or limited credit history, i mean you haven’t borrowed money at all or borrowed very less with less frequency, you’ll have fewer options available to you for taking out a loan – and in any case you’re likely to see higher interest rates. You should be able to choose from:
Personal loans: A personal loan won’t require you to put any assets up as security – but if you’ve got bad credit you’ll have limited options when it comes to lenders, and interest rates tend to be higher.
Don't waste your time. Get a loan online.
Secured loans: A secured loan is when you borrow a certain amount and use assets you own as collateral security. This is most commonly your home (also known as homeowner loans) or your car (sometimes referred to as auto title loans), but lender may also accept other forms of collateral.
If you’re taking out a secured loan you should be sure you’ll always be able to make your payments – if you regularly miss payments the bank will be able to seize your collateral. This could mean you end up losing your home.
Guarantor loans: A guarantor loan is when another person commits to making your repayments if you miss them. This will generally be a friend or family member with a good credit score.
Guarantor loans are a good way to avoid risking collateral if you can’t make your debt repayments, but bear in mind if your guarantor has to do the payments if you’re not able to.
Peer-to-peer loans: Peer-to-peer lending involves borrowing money from other individual lenders, rather than a bank. You’ll be matched up with people who will lend you money at a certain interest rate, and you might be able to borrow larger sums at lower rates than you would with a bank. You will however still need to pass a credit check to qualify for a peer-to-peer loan.
What should I must take care of before I apply for a loan?
Before you are going to apply for a loan, consider the following factors:
- How much you need to borrow: Borrowing larger amounts can sometimes lead to lower interest rates, but be careful with this catch, Don’t apply high amount just sake for getting low rates. you have to pay back those borrowed sum in monthly EMIs so you might end up getting high EMI so apply what you can pay back with monthly expense and few reserved money for hard time is always good idea.
- How long you want to borrow the money over: If you’re taking a loan out over a longer term you’ll likely make smaller repayments – but you’ll also pay more in interest, making the overall cost of the loan higher. So Don’t take unnecessary long term loan, try to get it with fair tenure and try to clear it within time period.
- How much can you afford to pay back every month: If you have bad credit it’s vital to ensure you’ll be able to make all your repayments on time and in full to prevent your credit score from falling further. You can better understand how much you can afford to borrow with online available loans calculators.
Can I apply for a loan without affecting my credit score?
Even a successful application for a loan can sometimes cause a temporary dip to your credit score. The safest way to see which loans are available to you without doing damage to your credit report is to run a ‘soft credit check’ – as you can through online on your own at Motiveloan.
Once your loan is in place and you are making the monthly repayments on time then gradually your score begin to improve to its normal value as it was or even increase its initial value if you do payments regularly on time every time.
What happens if my loan application is refused?
If your application for a loan is refused, it will show up on your credit report. A single failed application isn’t the thing of much worry, yet multiple rejections will damage your credit score and ring alarm bells to lenders, so you’ll struggle to take out credit or another loan in the future. so what we suggest is don’t just directly apply to lender, you should use lender matching service so that they have panel of lenders from which one of the lender could approves you and you can get accepted without hurting your credit score with much more timely and with very less effort.
