The Different Kinds of Loans You Can Avail Even with Bad Credit

The Different Kinds of Loans You Can Avail Even with Bad Credit

A credit score is an essential element if you’re looking to take out a traditional load. Unfortunately, lending companies will always take a look at your credit history and decide based on your credit score. If you have a bad credit history, a lender will most probably decline your loan qualification because they simply can’t trust you enough that you will be able to pay your loan on time, not to mention the other fees that they will add on top of your initial payment. Fortunately, you can still take out a loan with the help of creditbono.

We all need a second chance, and that’s what CreditBono offers. You can easily apply for a loan as long as you qualify. But, most of the time, a lender will base on your financial situation first. And you also need to make sure that you understand the terms of the loan you’re applying for to avoid unnecessary charges. So let’s see what kind of loans you can apply for, even with bad credit. 

Personal Loan

There are many reasons why a person will want to take a personal loan. It may be due to emergencies, a home renovation project, buying a new gadget, or maybe you want to pimp your ride. Whatever the reason, a personal loan is an example of a loan you can take even with bad credit. But you will need to apply with a cosigner, and the lenders will determine your interest rate depending on your qualification requirements and credit score. Aside from that, you will only have one to five years to pay for your loan.

Before all that, the lenders will approve your loan depending on how much you are asking for and the reason. So make sure to ask for a personal loan that you can pay for and never take a loan you’re incapable of paying back. 

Payday Loans

Payday loans are like when you’re asking for a cash advance from your employer. But instead of asking your employer, you’re applying for a payday loan at a bank, credit union, or a lending company. These are short-term, and the amount is fixed most of the time. The only problem is that these have high interest rates. When you choose to take out a payday loan, you need to pay for the total amount with interest and a fee. Most of the time, these are due in 30 days.

You don’t need collateral or a cosigner to back your payday loan. You will only need proof of employment, your bank account, and a valid ID. You also have to be 18 years old and above. These are all you need to get a payday loan. 

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