Folks who are considered bad credit risks, those with low credit scores, do have some options when it comes to borrowing money. The fastest and most convenient are Cash Advances or Payday Loans.
Some Lenders Cannot Offer Loans to Folks with Bad Credit
Banks, credit unions, and similar lenders rarely lend to those with bad credit records. They are bound by laws restricting the interest rates they may charge and those rates aren’t high enough to allow them to take obvious risks. They tend to make larger loans: Cars, mortgages, business start-ups, etc. Also, loans from the these institutions require considerable processing time, up to ten business days or more are required.
Facts about Loan Options for Those with Bad Credit
Cash Advance or Payday Loans usually have an upper limit of $1,000. These amounts can vary from state to state, from lender to lender. These are simple loans provided to borrowers who commit their upcoming salaries as repayment. These are usually best for people who need small amounts of money in a short period of time. These loans are usually needed for circumstances such as immediate medical care, forestalling utility cutoffs, or the purchase of important items.
Bad Credit Loan Options Offer Quick Turnaround
Loans of this nature are processed quickly, typically a few hours. No credit check is required. These loans often require that the borrower have a checking or savings account, the typical security sought by the lender.
The process is not difficult. The borrower approaches the lender, completes the necessary paperwork, and gives the lender bank and account number information. Along with proper identification, such as a drivers license, the lender will request a utility bill or some other proof that the address provided is current. The lender checks the credentials and disburses the loan.