It is not surprising why bad credit loans have become the most popular loans today. Because bad credit loans do not require credit check, they have become the number 1 option among those with bad credit. However, aside from this enticing feature of bad credit loans, there are so much more benefits that bad credit loans offer.
Bad Credit Loan Advantages
Bad credit loans offer plenty of advantages. As compared to regular loans offered by banks, application is convenient and fast. You can apply online and you don’t have to go through any embarrassing personal loan interview with an agent. In most cases, you just have to fill out an application form, which will ask about your personal information, source of income, and other pertinent information. The online lender will then validate your information, and will contact you after assessing your information.
Another advantage is that online lenders give fast approval. In most cases, it just takes 1-2 days to get approval. And because there are minimal requirements to obtain such loans, the approval rate is high. As long as you can prove that you can pay back the money, then you are guaranteed to obtain the loan. Requirements you may need to submit are: proof of employment/ income, and IDs or proof of identity. You must also be of legal age and a U.S. citizen to qualify.
Then, of course, after getting approved, you can expect the money in your bank account the next day. The loan process is indeed fast, making it perfect for urgent financial problems.
Moreover, compared to regular bank loans, bad credit loans require no collateral and credit check. They are unsecured loans, which do not require you to present any form of collateral. In addition, bad credit loans lenders do not run a check on your credit score. In most cases with bank loans, you cannot obtain a loan if you have a poor credit rating unless you can present a valuable asset as collateral. This means with bad credit loans, you need not to risk a valuable asset against a loan.
The Amount You Can Borrow
Bad credit loans are designed for short-term and temporary financial problems, and this means they only offer smaller amounts. They are certainly not perfect or ideal source of funds for large purchases such as house, car or to fulfill a dream vacation.
The amount you can borrow vary depending on your lender and your credibility as borrower. You can borrow small amounts from $100 to $1500 and to as much as $15,000. Note however that the amount you can borrow will depend on how much you earn per month. In most cases, bad credit loans lenders online will only grant you up to 40% of your total monthly income.