The thought of getting a loan for making a purchase or some home renovations can be overwhelming when your credit score is far from being stellar. But do you know that your credit may not be as much of a barrier as you think? Currently, there are a lot of non-traditional lending entities that offer loans for bad credit borrowers.
Ahead you will find the information needed for making informed decisions on taking out bad credit loans.
A Quick Overview of a Bad Credit Score
Let’s start defining a bad credit score by figuring out the factors that contribute to the formation of the latter.
A credit score depends on five separate factors: payment history, amounts owed, new credit, credits owed, and the length of credit history. Though each of them has an impact on the formation of a bad credit score (A score below 580), the lion’s share of the impact belongs to the payment history (35%) and amounts owed (30%).
Your bad credit signals that you are less likely to make timely payments than those with higher credit scores (above 580 according to the FICO Score). Thus as a “risky” borrower, you face more difficulties while getting loans from traditional lenders.
5000$ Loans Are Here
In contrast to traditional lenders, there are numerous online lending platforms like LendersAdvance where we accept that there may be thousands of reasons behind your late payments. We work with trustworthy lenders who may lend you the needed $5000 ignoring your previous credit defaults. For our lenders, your current financial standing is above your credit score.
The requirements for approving your loan embrace being an adult with US residency and having a sound income. The processing of the loan is simple and straightforward. At LendersAdvance, you can get $5000 without much hassle. You take the money and pay for it in the course of the upcoming months in accordance with a fixed schedule. Monthly payments include a portion of the principal amount and interest of the loan. The amount of the monthly payments depends on the length and amount of the loan.
You may need $5000 for buying a new car, consolidating your debts, making some minor repairs, covering emergency expenses, etc. Thus, from making purchases to preparing for a family holiday, you are free to take avail of the loan, as our lenders don’t question you about the reasons for taking the loan.
To the Borrowers
Here are some precious tips for the borrowers to keep in mind:
- Don’t jump on the first offer. After submitting the loan request, don’t agree upon the first offer. Shopping around is important to make sure you are on the best deal that suits your current situation.
- Take as much as you need: We strongly advise you to take as much of the loans as you need. So, if you are considering taking $5000, don’t take more, even if you have the opportunity.
- Be cautious with rollovers: You can renew or rollover the loan in some states if you can't pay it on time. But be aware that rollovers don't reduce the principal amount of the loan; they just help extend the repayment date. That being said, with the loan due date extension, you may put yourself in a chain of debts.
- Ensure you can pay the loan back: Remember that late payments may reflect in penalties and additional charges.
- Know your rights: In the case of credit defaults, the lenders may outsource the debt-collection activity to a collection agency. Note that the law puts restrictions on how collectors contact borrowers, for more information see The Fair Debt Collection Practices Act (FDCPA).