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Can I Get a Short Term Loan With Bad Credit
If your credit score ranges between 300 to 579, it’s safe to say you have a poor credit score.
This can make it hard for you to get long-term loans such as education loans, mortgages, business loans, auto loans, etc.
But what about short-term loans? Can you get a short-term loan if you have a bad credit score? Well, join us today as we look into whether getting a short term with bad or low credit is something that can happen.
Bad Credit and Short-Term Loans
If you’re wondering whether you can get a short-term loan with bad credit, well, yes, you can. Some lenders have something called bad credit loans.
What Is a Bad Credit Loan?
A bad credit loan means exactly what it sounds like. It’s a short-term loan for individuals with a not-so-perfect credit rating or those who haven’t had time to build their credit history. Some common examples of bad credit loans include payday loans and title loans.
These loans can either be unsecured with zero collateral or secured, meaning you may have to offer some collateral like your car. Bad credit loans come in all sizes, and the interest rates and payment fees vary from lender to lender.
Tips for Qualifying For Short Term Loan With Bad Credit
You can secure a bad-credit loan by following these easy tips:-
- Confirm your credit score- You’re eligible for a yearly credit report from three national credit reporting companies — Experian, TransUnion, and Equifax.
- Confirm whether you can repay the loan- Failing to repay this loan will only sink your credit score further down. Evaluate your budget and make sure you can repay the loan to the last dime before taking it out.
- Pick the best lender- As mentioned above, different lenders have different terms. As such, make sure you explore all your options to find the lender that suits your needs and budget. A few things to look at include the interest rate, services fees, repayment period, and prepayment penalties.
Also, before you pick a lender, visit online review sites and check what other borrowers are saying about the lender. If positive reviews outweigh negative reviews, then you can work with the lender. It’s also advisable to choose a lender who targets your credit profile.
- Collect all necessary documents- You’ll still need to submit your financial documents, identification information, and proof of income when applying for a bad credit loan. So make sure you have all the necessary documents.
Depending on your income and job stability, some bad credit lenders may ask you to add a co-signer who’ll take partial responsibility for your loan should you default on your repayments. So make sure you have your co-signer ready.
Bad Credit Doesn’t Equal No Loan
If you follow the above steps to the letter, getting a short-term loan, even with bad credit, will be easy and quick. Just make sure you explore your options and look out for unscrupulous lenders with outrageously high-interest rates. Lastly, make sure you pay the loan on time to ensure your credit score doesn’t plunge any further.