More and more people find themselves in difficult situations and need funding. As you know, a Payday loan is the fastest way to get money in order to cope with expenses. However, what if you have a bad credit history? Are you eligible to receive funding and how to do it? These questions will be answered by our today’s guest – the chief editor of Maggie Loans Maggie Miller. Thanks for coming to thenationroar.com and nice to meet you, Maggie!
Good afternoon, Paul, and thank you for inviting me. I would be happy to answer your questions regarding lending to people with bad credit, as they often feel they are not eligible for a Personal Loan. Today we will try to dispel this myth.
- Wonderful! Tell me, Maggie, are Personal Loans popular at the moment and why?
Undoubtedly! Nowadays, Personal Loans are becoming more and more convenient as most lenders provide the option to get approved online. Thus, borrowers do not even need to visit the lender’s store. Moreover, they have fairly favorable interest rates that do not prevent borrowers from repaying the loan in regular monthly payments. Also, the loan is unsecured, which is also an advantage for most borrowers.
- Please tell us in more detail what is an unsecured loan and why do people prefer to choose it?
An unsecured loan is a type of loan that gives borrowers the opportunity to receive money without providing collateral. In order to provide people with an unsecured Personal Loan, the lender will only check creditworthiness and income to make sure borrower can repay the loan. Thus, the borrower does not need to draw with his property in order to get approved.
- Wonderful! Could you also give us some basic information about Personal Loans that you should know before applying?
Certainly! A Personal Loan is a type of loan that enables borrowers to quickly get money to meet their needs. Many people use a Personal Loan to pay for emergency medical treatment, extra purchases, car repairs, and other needs. If we talk about the amount of the loan, then most often it varies from $1000 to $100,000. The Personal Loan is repaid in regular monthly installments. As a rule, the repayment period is from 1 to 5 years.
- Maggie, what do people with bad credit do? Are they eligible for a Personal Loan and how much will they have to pay for it?
Here we come to the most interesting question! Many borrowers believe that they cannot apply for and receive a loan for bad credit, but this is not true. Personal lenders have long been working with different types of credit and provide money to borrowers even if they have previously had problems paying off debts. As for the cost of the loan, everything is a little more complicated here. Interest rates on the Personal Loan range from 3 to 36 percent. The rates that the borrower will receive depend on his income, credit history and other factors. In other words, the better the loan, the better the interest rate.
- Thanks a lot, Maggie! One more question, what are the requirements for a Bad Credit Personal Loan? Will borrowers need to provide any additional information?
In fact, no, and the requirements will still remain minimal. The borrower must be a US citizen or an official resident who is 18 years of age or older, and provide proof of income, as this is the main factor influencing the approval of the application. It is also common for lenders to ask for government-issued ID and a social security number. If the borrower applies entirely online, they must provide an active bank account.
- Maggie, how does a borrower with bad credit get a Personal Loan?
In order to get a loan, the borrower needs to fill out an application, which can be done both online and offline. With an online application, the borrower does not have to spend time getting to the lender’s store and waiting hours for approval. By filling out the form, the borrower will be able to receive approval on the same day. However, it is worth remembering that it is important to double-check your data before sending an application, otherwise it may be disqualified. If the application is approved, the lender will respond almost instantly. After contacting the borrower, he will tell you more about the loan offer. If the borrowers are satisfied with the terms of the loan, they will be able to sign a contract and receive money. As a rule, the amount will be transferred to your bank account within one business day.
- How people with bad credit can repay debt?
The loan is repaid in fixed monthly installments. Depending on the chosen lender and the loan amount, terms vary from 1 to 5 years, but other terms are also available.
Maggie, perhaps the last question for today. How can a borrower with bad credit increase their chances of getting approved?
Good and important question, Paul! First of all, use prequalification. More and more lenders are now offering prequalification as it gives borrowers an opportunity to understand what potential interest rates and loan terms they will receive. It is also important to study the requirements of the lender and state laws in advance and make sure that you comply.