Loans for People With Terrible Credit
If you are someone who has terrible credit and is looking for loan options as a way to pay off bills, purchase a new vehicle, get a new home, or rebuild your credit you may think that there are no options left. You may be thinking that there are no other options for you going forward and that your head will soon be underwater from whatever financial grief you may be experiencing.
Personal Loans For Terrible Credit
You may be thinking that the road is coming to an end, but that isn’t necessarily the case. Even if a person has terrible credit, there are still plenty of options out there for terrible credit loans. Don’t be limited and continue to fall deeper into your financial sinkhole. There are still a variety of different loans that can be utilized by those with poor credit. If you could use a fast personal loan but have a low credit score, apply with us today.
Different Credit Scores Explained
What exactly is a credit score, and why is it so important for my financial well-being? To put it simply, a credit score is a numerical expression based on your credit filings that tell a lender whether you’re worth the risk of lending money to. It is mostly based on your credit report and is typically shared and sourced by different credit bureaus. Depending on your credit report, the score can range anywhere from 300 to over 850. The higher the score, the more trustworthy you are in the eyes of creditors. Here is a small breakdown of credit score ranges and how they are viewed:
Credit Score Ratings
Great: 720 - 850
Good: 680 - 719
Fair: 630 - 679
Subprime: 550 - 629
Poor / Terrible: 300 - 499
If you are unsure about where you stand with your credit score, there are plenty of free sites that will give you a personalized credit score and portfolio. Of course, always make sure you’re being safe with all of your personal financial information.
Poor Credit Unraveled
So, how did we get to this point in our lives? We may be finding ourselves looking at our specialized credit report and being baffled by the information on the screen. How did it get to this point? Let’s take a look at some of the different ways that our credit score can be ruined:
1. Late Payments
Credit agencies take a look at all of your accounts that you make payments on, like car payments, phone bill payments or credit card payments. If you have a history of past due payments, that will have an affect on your personal credit score.
If you have foreclosed on a home or on a property, it generally has the same affect on your credit as defaulting on a loan. All of the late or missed payments on a home will be shown on credit reports.
3. Defaulting on Payments
If a credit card that you have not made payments on in quite some time ends up being defaulted or the creditor sees that you have no intentions of paying off the debt any time soon, the total may “charged off”. This is even worse for your credit score, so don’t let this happen!
4. Filing Bankruptcy
When all else is lost, this is a last resort for those suffering with financial issues. This is the worst possible situation for your credit score, as it can absolutely destroy it.
5. Collections Accounts
If you have any accounts that have had such late payments that they are sent to collections, these accounts will show up as negative marks on your credit score report and will take some time to be removed, even after you finally pay the amount of the account.
Loan Amounts: $1,000 | $5,000 | $10,000 | $20,000 | $50,000
Now that we understand what can cause negative marks on your personal credit score, we can now look at what the different kinds of loans are out there for people with terrible credit. I know, it can be difficult to believe, but yes they are out there. Having a bad credit score can affect so many things like your ability to rent or buy a home, purchase a car, or get a new line of credit or credit card. Make sure to do plenty of research when looking into loans and other money borrowing situations.
Types of Loans for People With Bad Credit
We’ve already covered what can make for a bad credit score, so now we can take a look at the different options for loans that are at the disposal for people with poor credit. Here are some of those options and why they could benefit those with bad credit and what to watch for with these loans:
Yes, there are still ways to get a personal loan with a poor credit score. Many lending companies will offer personal loans to those with bad credit scores. Generally personal loans do not require a credit check and your FICO score will not be a factor.
This type of loan really shouldn’t be used unless it is an emergency. You definitely do not want to take out a loan with this type of interest rate to pay for entertainment events or vacations if you have a bad credit score, due to the interest rate.
Payday loans are typically a short term loan, usually under $1,000, that are due back by your next pay day. However, these can be very risky due to the fees and the astronomical interest rate that is attached, some well over 100%. While similar to a personal loan, payday loans are for much dyer situations like an upcoming mortgage or rent payment, car payment, or to avoid repossession and eviction.
Credit Cards for Those With Poor Credit
For people with terrible credit, some companies will offer a credit card that has a low limit (usually maxing out around $500) and a higher interest rate, generally around 29.99%. These are not a bad option for people with bad credit, as it can help rebuild the credit score quickly, as long as payments are being made regularly and on time.
Car Loans for Bad Credit
If getting a new car is a necessity and you have a poor credit score, do not worry! There are lenders out there that will give you an auto loan even with a bad score. The auto loan will carry a much higher rate than other car loans, as the lender will want to protect themselves. The interest rate could be between 10%-29% and could require you to put a down payment of at least 10% on the vehicle. When in this situation, it is always wise to know what you can afford and not go into a dealership expecting to get a brand new car, so keep it simple and make payments on time and it can help rebuild the credit score.
Get Approved Today
If you need a terrible credit personal loan, we can help you get approved today. Complete the short application and we will try to match you with a direct lender. If we are successful you will receive a loan offer. Review all terms and conditions, and decide if the short term financing is right for you. All loan amounts and interest rates are between you and the lender.
Terrible Credit Loan Options
$5000, $10000, $20000, $50000