It is difficult to predict circumstances and almost once in a while, you are forced to deal with things that you have not planned for. It may be an injury that leads you or your spouse, sibling, or child to the emergency room. It can also be your car that developed a fault while you are on a trip. It can even be a forgotten bill or a theft where you lose all your valuables.
When things like these happen, you will need to deal with them as soon as possible. Sometimes, your issues can become worse when you do not attend to them fast. This is why you some lenders have made the application process faster so that you can access a loan just when you need it.
The first step is to complete the online application form in less than 10 minutes. The form is easy to complete and you will need only your basic information to do so. When you are completing the form, you will need to provide your name, your residential address, contact information, employment information, income details, and bank account details.
You should be at least 18 years old and you should a citizen of the United States to apply for the loan. Bad credit lenders often run soft inquiries on your credit report to know your financial background. However, your credit score will not influence their lending decision. Lenders now use your income to make a lending decision.
This is because some lenders believe that it is unfair to make an approval decision based on your credit score because your poor credit score may be as a result of a bad decision in the past. Hence, they will rather consider your current financial status in deciding if you qualify for the loan or not.
The lenders will review your application and inform you about the status of your loan in no time. That means you do not need to wait for long to know if you have been approved for the loan.
Once the lender approves your loan, you will need to sign the loan contract. This is to confirm that you agree to the terms and conditions of the loan. You will receive the cash in your account as soon as the next business day.
The interest rate depends on the lender. Lenders charge interest rates based on the risk involved in lending to the borrower. If the borrower has a low income or if he or she has a low credit score, the lender bears a high risk when they offer a loan to the borrower.
For this reason, the interest rate will be higher than that of a borrower who is more creditworthy. Fortunately, the lender will tell you all about the interest rate before you complete the application. Online lenders are transparent with their rates.
Lenders generally offer an amount that ranges from $100 to $50,000. Lenders tend to offer low amounts when you apply for short term loans. The amount you will get will depend on the amount you will request and your creditworthiness.
If the lender is certain that you can pay the amount you are requesting for, they will give it to you. If not, they will offer you a lower amount.
Lenders provide several repayment options to their borrowers. You can pay using a check or you can set up an automatic payment. You can also pay directly into the lender’s bank account. The most convenient loan repayment method is the automatic payment. With this option, you do not need to take further steps to repay the loan at the end of the month.
The cash will be paid once you leave enough money in your account by the next due date. If you are unable to repay the loan by the next due date, you may be charged a penalty fee. You will be informed about the late fee when you apply for the loan. Some lenders do not charge late fees and other lenders will give you some extra time before they begin to charge the late fee.
It is important that you avoid the late fee at all cost so that you maintain a good relationship with the lender. If you have a good relationship with the lender, you will be able to easily access another loan when you next need one.
Some lenders also report to some or all of the three credit reporting bureaus. If you pay your loan on time, you will be able to build a good credit history and improve your credit score. If you do not pay your loan on time, it will show on your credit report and that can further destroy your credit score.