What Is A Bad Credit Personal Loan? Here’s Your Guide!

Not everyone has the best credit score. Unfortunately, that can, however, impact your financial decisions significantly. If you don’t have a great credit, getting a loan might not be an easy task. As the name suggests, you can get a quick advance, even with a below-average credit score, with bad credit personal loans. If you asking this question – ‘Can I get a personal loan with a 500 credit score?’, the answer is yes. In this post, we are sharing all you must know about bad credit personal loans.

Knowing personal loans

Personal loans are easily to apply for – You can fill up an application online and get approval in less than 24 hours. Money will be transferred to your bank account in just 2 business days. Bad credit personal loans belong to the same category, but a few requirements must be met, such as –

1. The applicant needs to be 18 years or older
2. The applicant must have an active bank account for receiving money and paying installments.
3. The applicant shouldn’t have existing personal loans. He/she shouldn’t have a history of defaulting on such cash loans.

Are bad credit personal loans same as payday loans?

Yes, and no. While the requirements for getting a bad-credit personal loan is the same as a payday loan, the former is much more flexible. You can repay the loan in installments, so it doesn’t really impact your finances right away. As for the APR, the same ranges between 6% and 36% for bad-credit personal loans, but can be much higher for payday loans.

How much can be borrowed?

With bad-credit personal loans, you can borrow anywhere between $100 and $15,000, but most applicants easily get a loan up to $5,000, without a great credit score. Repayment can be done in easy installments of up to 60, so the term typically varies between three to five years. If you want a sum higher than $5,000, some factors will be considered, such as your current income and how much you have in debt. In any case, bad-credit personal loans or any cash loan shouldn’t be more than 20% of your income.

Final word

Be responsible with bad-credit personal loans, and make sure that you have a figured out a way to repay the loan, before you apply. These loans are great for consolidating debts and reducing unwanted bills, but use this as one of the last resorts. Apply online for bad-credit personal loans now!