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Short Term Loans For Bad Credit
There are several short term loans for bad credit borrowers. Traditional banks and financial institutions don’t encourage such short term loans for bad credit borrowers because lending to them is risky.
So many alternative lenders have taken advantage of borrowers with bad credit and captured that market. Sometimes you need a little money to sort out some few financial issues but you don’t have money and unfortunately, you don’t have a good credit.
You will ask yourself what can I do and where can I go for a loan? In the past, this would have been a lot of headache for borrowers with bad credit but not anymore with the rise of alternative lenders all over the internet. These lenders however hardly grant long-term loans.
What they give are short term loans for bad credit borrowers and borrowers with good credit but need money in the shortest possible time. We have all had dreams of a ‘fat’ bank account where the need for money is no worry at all. Unfortunately in reality that is not how it works.
Are There Lenders Available To Give Bad Credit Loans
Most people are living with loads of debt or seeking for lenders who can give them credit whether their credit score is good or bad. Many people living with bad debt don’t even know there are lenders who are willing to give them loans. Well, there are, and there are so many you can actually choose a lender that is suitable for your specific need.
Another good thing about these alternative lenders is that they are less rigorous in processing loan applications, compared to banks and other financial institutions. This makes it possible to get the money faster and the process is stress-free.
What is a short-term loan?
A short-term loan can easily be described as a loan that is given to be paid back in the shortest possible time. Mostly the length of time given for repayment of these loans does not go beyond a year.
Lenders of short-term loans don’t only give individuals loans but businesses can also apply for short-term loans from lenders who give loans to bad credit borrowers.
The only catch is that the loans don’t last for a long period of time. So an individual or business who decides to go for short-term loans must be sure the loan can be paid back without any difficulties.
Loans which are given to borrowers for purposes such as purchasing cars, houses etc. are long-term goals because of the huge amounts involved.
Whereas short-term loans are mainly small amounts used for purposes such as paying off bills, home improvement, and some emergency situations. Due to the length of time for repaying of the short-term loans, the interest rates on the loans are much higher compared to long-term loans.
Normally the conditions and terms that are associated with short-term loans for bad credit borrowers are different when you move from lender to lender.
In as much as the conditions and terms vary there is one similar trait that runs through all the short-term loans for bad credit borrowers. The interest rates for all short-term loans for bad credit borrowers are very high no matter the lender you borrow from.
When you are not able to pay back a short-term loan at the agreed time, the charges on the loans are much higher too. So its best to pay off short-term loans as specified in the contract to avoid all kinds of charges.
Individuals seeking short term loans
We all in one time in our lives seek loans because of one emergency or the other. Sometimes it might not be an emergency but need money for a holiday or a family engagement.
All these situations will put an individual in a place where money is needed as fast as possible. Payday loans are the most common type of short-term loans for bad credit holders most people are used to or have heard off.
Payday loans are a bit on the high side with regards to the interest rates and it’s the same with all other charges associated with payday loans. Some people refer to payday lenders as predatory lenders because of the fact that people who go for such loans end up getting stuck in the borrowing world.
Credit cards are also another type of short-term loans. Some don’t see credit cards as short-term loans but technically they are. With credit cards, you pay a percentage of interest on the amount of money credited which repayment was delayed.
Cash advances are also short-term loans which have higher interest rates than that of credit cards.
If you know paying back a short-term loan will be a problem because of the one-time repayment, it will be best not to go for the loan at all. Because the charges put on delayed repayment is so huge making it even more difficult to pay back.
Falling into a debt cycle with short-term loans is something that can happen easily. So borrowers beware! If possible, a borrower should consider installments loans or even credit card options since they have repayments which are much more flexible.
What do I need to be eligible for short-term loans for bad credit
Not having a good credit does not mean you can not get a short-term loan. It does not matter what your credit score is although some lenders will check your credit scores from credit bureaus. Though borrowers with bad credit will still get loans from lenders, most of these lenders don’t give loans that are above 1000 dollars.
This is because, in as much as the lenders are very open to giving loans to bad credit borrowers, they try as much as possible to reduce the risk associated with lending. There are a number of requirements that need to be met by borrowers to be able to qualify for short loans for bad credit.
Loan delays depend on some of the below reasons
The time it takes for a loan to be given to a borrower actually depends on the lender, the loan applied for, your credit score etc. When you apply for a loan online, it means your loan will be processed much faster than someone who applies physically. This is because when a loan is applied online the computer does most of the assessment which is quicker.
Whereas taking your application with all the documents to a lender, means it will be assessed by an individual and that can take some time. Giving all the information requested by the lender drastically reduces the time a lender takes in assessing and processing a borrowers loan.
If a lender has to do a follow up on a borrower to provide details that have already been requested, that can delay the process because time will be wasted. The time that could have been used to work on the documents will have to be used in calling the borrower to ask for the information.
To avoid this, make sure all the information given to the lender is clear and straight to the point. As a borrower, you know your situation best and know which loan is most likely to be approved for you.
So with that information, a borrower should choose loans that are most suitable and most likely to be approved. To avoid being rejected or delayed in getting the loan which might affect the reason why the loan is being requested for.
One very important thing borrowers can do to also help in the processing of their loans is to check on their credit scores before applying for the loan. This can then help you choose the kind of loan that will best suit you.
Must have an income
Short term loans for bad credit lenders need to be sure their monies are safe with the one they are lending the money to. Especially when most of them don’t ask for collateral before giving the loans.
Having an income or showing that you are capable of paying back the loan is a way for the lenders to reduce the risk of lending to people with bad credit.
What borrowers are required to do is give a post-dated cheque to the lenders so the lenders can cash out the money at the end of the month. If the loan is more than a month, the borrower gives post-dated cheques for all the months until the loan is fully paid.
A valid email must be provided
An email is very necessary for this process since messages regarding the loan and all other charges in relation to the loan will be communicated through that channel. Having an email is not enough, it must be an email that is active.
Therefore a borrower must make sure the email address submitted to the lender is active and in use so not to lose out on any information sent.
A bank account in borrowers name
The importance of a bank account cannot be overemphasized. The money is disbursed into a bank account so it is a very important requirement in looking for and getting a loan. Not having a bank account will mean you are not ready for the loan.
Giving a wrong account number too will affect disbursement so that must be checked very well by the borrower.
Must be of age
The accepted age for most countries is 18 years for an individual to be eligible to vote. So a borrower must be at least 18 years or above to qualify for a loan from any bank, financial institution or any lender at all.
This is to say if you are below 18 you can not go for a loan. If it is necessary for someone to get a loan, he or she must do that through a guardian.
Proof of identity
This requirement is to make sure the borrower seeking a loan is of age and also a citizen of the country he or she is borrowing from. First of all, if you are not a citizen of a particular country, you cannot take a loan from that country.
So if you try to do that, you will be going against the laws of that country and can be arrested.
Address and telephone number needed
As a borrower, you must have an address for proof of residence and a telephone number to be reached by the lender as and when necessary. Not being able to produce these requirements means you will not get the loan since it’s a basic and very important requirement by all lenders.
Importance Of Short Term Loans For Bad Credit Borrowers
As humans, it is a natural thing to always put money aside for emergencies or even if just to save money (this doesn’t automatically apply to everyone). The money saved for emergencies isn’t always enough when the emergencies occur.
Sometimes when the time comes for using the money we are saving, we realize the money is just not enough for the purpose it was saved for.
Having a bad credit and looking for money when in an emergency situation can be very frustrating since most lenders will shy away from you. Short term loans for bad credit borrowers then becomes the lifesaver for these borrowers. This is when short-term loans become very important and well appreciated.
Truth be told the choice for short term loans for bad credit borrowers is very limited and the best loan available to them is payday loans. The borrower must make sure to stick to the terms of conditions for the short term loans so as to be able to rebuild his or her credit rating.
Also, he or she can be able to go for another short-term loan when the unexpected happens.
Terms And Conditions Of A Short Term Loan
Knowing the term and conditions of a short-term loan, helps a borrower prepare for it better than not knowing at all. Most short-term loans are paid once and not in installments as it is with most loans. If the loan is for a period of three months, then the amount will be divided accordingly including all charges agreed upon in the loan agreement.
The interest rates are high and that is made very clear in the agreement. All other charges are also stated in the agreement so as soon as a borrower signs the agreement it means he or she has agreed to all charges.
Scammers pose as short term loans for bad credit lenders online
Being a bad credit borrower can have its positive and negative sides. Normally the positive side is overshadowed by the negative side. When a borrower is desperately looking for bad credit loans, he or she tends to overlook a lot of red flags which could have easily been detected if not for the desperation.
Some lenders act like predators ready to devour their victims online so will present the loans they are offering in the most enticing way ever to lure victims to their site.
Since short-term loans are sort after by borrowers who are in crisis and need emergency money, scammers online offer very juicy offers to the borrowers.
Find below signs that need to be looked at very well because before accepting such offers.
No check is done on your credit
If a lender offers a borrower a loan without checking the credit score of the borrower, that clearly is a sign that the lender is not genuine. Because the genuine lenders always do a credit check on their clients be it a hard or soft credit check.
Payday loans may not do a credit check on their clients. However, the possibility of scammers using this as a way to get victims is so high that borrowers must be extremely careful with these offers online.
Find out if the lender is registered
Lenders advertise on the radio and TV all the time. These lenders are registered because it is usually said in the adverts. This is one way to spot registered lenders. Ask yourself why a lender who is a scammer will spend so much money on advertisement.
If you find out about a lender you haven’t heard from before but have been used by family and friends its most likely they have done the research on the lenders already. However, if it’s the first time you are hearing of the lender, research on them is the best option to avoid scams.
Other Signs To Look Out For Before Accepting Such Offers
Don’t pay any upfront fee charged
Genuine loans don’t have any fees charged before the loan is given to the borrower. Even those lenders who charge any fees normally take if from the loan given to the borrower does not have to pay any money to the lender before getting the loan.
As soon as the lender asks for any fees it’s a signal that this is a scam and the borrower must abort any kind of transactions. It doesn’t matter what name has been given to the fees being charged to make it sound legal or genuine, don’t fall for it.
Is the website of the lender secure?
Any serious business or organization who has a website will have their websites secured. Not securing a website is like living in a house without doors. Anybody can have access to the house, hence the need for doors to secure the house.
If there are doors and someone tries to enter forcefully, it is very obvious that person is a thief. The same theory applies to a website.
To know a website is secured look for the address bar and look for the symbol of a padlock and the web address which begins with ‘HTTP’ When you see these two things on a website it means the website is secured.
Then again the website being secured does not automatically mean the website is authentic or legal.
A deadline is given
Scammers are running on time. They need to make money as fast as possible and move on to other scams. Their main tool used to get victims is a sense of urgency. These scammers make it seem like the more you wait to sign on with them the more your chances are reduced.
There is no hurry in applying for a loan. No legitimate organization will give any borrower pressure to make a decision about taking a loan. The furthest a lender will do is to advertise their products to prospective clients.
Be on the lookout for lenders who come across as too forceful in making you take a loan with them. They might just need you to be part of their victims.
Short term loans for bad credit borrowers is a kind of loan given to bad credit holders for a short period of time. Payment is normally paid in bulk at the end of the month with the principal, interest and all other charges inclusive.
There are several lenders online offering such services however, there are also predator lenders and scammers all operating in that small space. Borrowers must be aware so as not fall prey to such scammers or predatory lenders. Every borrower must make a conscious effort to stay away from lenders who give mind-blowing offers.
To avoid being scammed, check the eligibility of the lender as well as making sure the lender is registered. Comparing the terms and conditions of different short term loans for bad credit borrowers can help you make an informed decision.
Sometimes as people our instincts give us signals but we ignore. When we feel something about an offer is not right we must go with that feeling. Because more than half of the time, our instincts are right.
Short term loans for bad credit holders have a couple of choices when it comes to choosing lenders and also types of loans to go for.
Don’t be pressured to go for a loan that does not suit you because of your bad credit history. There are lenders willing to give short term loans for bad credit borrowers that are genuine. Don’t fall prey to scammers in the haste to get fast money.
Disclaimer: All loans offered through this website are subject to credit and underwriting approval. AfterLoans.ca is a lead referral company, not a lender. AfterLoans only works with financial service providers that adhere to Canadian laws and regulations. You can borrow up to $20000. Loans amortization is between 6-36 months. APRs range from 19.99% to 55%. The actual APR charged will depend on the lender’s assessment of your credit profile. For example, on a $1000 loan borrowed for 12 months at 29.9%, the monthly payment will be $97.24; with a total repayment, including interest, of $1166.88 There is also lender’s optional loan protection policy. In the event of a missed payment an insufficient funds fee of around 45$ may be charged (dependent on the lender). If you default on your loan payment plan the lender may terminate the plan and the remaining balance will become payable immediately. Our lenders employ fair debt collection practices, but will pursue the payment of Outstanding debts to the full extent that Canadian law allows.