Try walking into a bank and asking for a loan that’s only for a few hundred dollars and pointing out you have a bad credit history. When the laughter dies down, it will become clear that going for a bank loan just isn’t an option. But, personal loans for bad credit do exist. You just have to know where to look and apply.
Getting Funding with Bad Credit
Getting personal loans for bad credit is a whole lot easier than most people realize. Payday loans provide a viable, fast solution when all other options are out. These loans are so easy to apply for, get approval on and repay that even those with good credit opt for them when the cash involved isn’t a huge amount.
Applying for a personal payday loan is fairly simple. Since most lenders offer online applications, the entire process might only take a few minutes to undertake. All that’s required is:
1. A brief application form. Just fill this out online and answer simple questions about personal history, income and the desired loan amount. Keep in mind these loans are generally pretty small. They’re meant to cover minor emergencies in between paychecks, so don’t plan on buying a car with the proceeds.
2. A short approval process. While lenders can vary in their approval times, most loans are approved within a day or less. The funding typically appears in a bank account within 24 hours, which means these loans are ideal when cash is needed right away. Try getting bank funding that fast! And, since personal loans for bad credit generally rely on income only as a qualifier, most people who are employed find out they can get the money they need.
3. A simple repayment process. Repayment terms can vary, of course, but they are generally fairly easy to handle. Since these loans are meant as short-term vehicles, the repayments might only take a few paychecks to completely cover. This means an emergency can be handled and paid for in little time at all, leaving a borrower debt free fast.
What About Collateral?
The beauty of personal loans for bad credit is that collateral isn’t generally involved. Since the amount of loans doesn’t typically exceed about $1,000, proof of income does the trick, making these loans fast, easy and convenient.