What Are Short-Term Loans For Bad Credit?
Short-term loans for bad credit are instant loans or quick loans designed to help you when you are struggling with financial issues, unplanned bills, or emergency expenses, and you will have a short period of time to repay the loan. It is a good option for borrowers with bad credit history. These loans provide quick funding, with many lenders able to deposit funds into your account as fast as the same day of approval.
Generally, short-term loans for bad credit do not require collateral and do have minimum requirements to apply. However, these loans have low borrowing amounts, high-interest rates and fees, and a relatively short repayment period from months up to a year.
How Do Short-Term Loans For Bad Credit Work?
Short-term loans for bad credit are available to any borrower with a high or low credit score who can repay the loan over the agreed repayment period. As its name suggests, the repayment period for a short-term loan can usually be a few months or up to one year.
You can get short-term loans from direct lenders or can also access loan offers from loan brokers like US Installment Loans. Most lenders we work with provide fast approval services, and depending on their operation process, they may be able to release the funds as quickly as a few hours or the same day that you're approved.
It's important to note that no short-term loans for bad credit are the same. Borrowing amounts and interest rates vary from one lender to another. Your credit score and overall financial condition may also affect how much you can borrow and at what interest rate.
What Are The Pros And Cons Of Bad Credit Short-Term Loans?
Many people consider short-term loans for bad credit as their go-to solution whenever they need cash right away. It's indeed a convenient option since most lenders will accept your application even if your credit history is not spotless. However, there are pros and cons to these loans, and it's important to know them before deciding to choose them over other types of loans that may be available to you.
- Bad-credit friendly
- Easy and fast application process
- Many loan options available from lenders and non-traditional lenders
- Short repayment period
- Will involve high-interest rates and upfront fees
Will Lenders Approve My Request If I Have A Bad Credit?
Many lenders will still approve your loan application even if you have a bad credit history, but this does not mean they will not check your credit report.
At US Installment Loans, most lenders we work with are already fully experienced in providing bad credit loan services, and they will likely conduct soft credit checks to get an idea of your credit worthiness. Soft credit checks will not affect your credit score, but they will give the lenders an idea of how risky a borrower you are. They will also consider your employment history and financial condition, and this information will help them determine whether to approve your application or not and if approved, how much to lend you and at what interest rate.
Do Short-Term Loans Have Fees?
Lenders that offer short-term loans for bad credit may charge different fees other than interest, such as origination fees and early repayment fees.
The Origination Fee is a one-time upfront fee that lenders deduct from your loan proceeds. This fee will take care of processing and administration costs, and it can range between 1% and 5% of your loan amount, or it can also be a flat fee depending on the specific lender you work with. For example, if the amount you borrow is $500 and there's an origination fee of 2%, you will only receive $490 in your bank account. On the other hand, some lenders charge a fee as a penalty if you repay your loan before the agreed repayment term.
Where Can I Get Short-Term Online Loans For Bad Credit?
There are different online platforms where you can get short-term loans for bad credit. You can start by visiting our partner websites to access reputable lenders that offer loans at competitive rates:
- CashAdvance - CashAdvance can help you get access to different types of short-term loans for up to $10,000.
- BadCreditLoans - BadCreditLoans is a highly secure website where you can connect with reliable bad credit lenders.
Alternatively, you can choose US Installment Loans. US Installment Loans work with partner lenders offering various loan services for our customers. You can get started now by following these steps:
- Submit your information. You can submit your information and related documents in the comfort of your home by using the website's online form.
- Choose a loan offer. Your information will be shared with partner lenders immediately after your submission, and based on the information you provided, you may receive loan offers from different lenders. Choose a loan offer after comparing their rates and terms.
- Review and sign agreements. Once you make your decision, review and sign loan agreements to confirm your choice with your lender.
- Get the funds. After approval, you can now withdraw the funds the lender deposited into your bank account.
How Much Do You Want?
Why Should I Choose US Installment Loans?
We strive to provide you with a better borrowing experience at US Installment Loans. If you let us help you find a suitable short-term loan for bad credit, you will enjoy the following benefits:
We forward your information to our partner lenders as soon as we receive it. Most of these lenders will get you a result almost instantly, which means that you don't have to wait for days until you hear from them.
Many of our partner lenders have high approval rates, giving you more chances of getting the funds you need. There's also minimum documentation and requirements needed for these loans, saving you all the hassles associated with traditional loans.
Reliable Lender Partnership
We only work with trustable lenders in the industry, and most of them are available across different states in the US. Whatever kind of loans you want to get, we are assured that there are lenders in our network that can handle your request.
Our partner lenders recognize the urgency of your needs. That is why they will not let you wait for days to receive the funds into your bank account. Some lenders can even deposit the funds within the same day of approval.
Bad Credit Friendly
You have nothing to worry about in getting rejected because of your low credit score. Our partner lenders will consider other aspects besides credit score when making a convincing decision regarding your application.
How Does US Installment Loans Compare?
|How much do I qualify for?||Up to $35000||Competitive rates|
|What's the max loan length?||Up to 36 months||Fast decisions|
|Do lenders check my credit?||Yes||Soft credit checks|
|All credit levels accepted?||Yes||Bad credit doesn't matter|
|Chances of approval||Good||High approval rates|
|When am I allowed to apply?||24/7 online||Easy application|
How much can I borrow through US Installment Loans?
You can borrow as much as a $5,000 payday/installment loan through US Installment Loans, while personal loans have a higher ceiling which is $35,000. Of course, not all partner lenders may be able to offer these amounts, so it's important to check the loan offers before committing.
Can I get bad credit short-term loans without credit checks?
To clarify, you can’t get loans without credit checks. Due to the ongoing financial regulation, it is almost impossible to find short-term loan lenders that do not conduct any credit checks at all. Generally, these lenders perform soft credit checks to get a sense of your financial behavior and how well you are managing your capital, without harming your credit score. They will also look at other factors like your employment history and income status to assess the financial risks involved.
How do I know if I have good or bad credit?
There are different scoring models out there, and each may have different score ranges in identifying what's a good or bad credit score. Major credit bureaus follow a 300 to 850 score range, and a low score means bad credit while a high score means good credit.
Here are the score ranges based on the FICO model for your reference:
- Excellent Credit: 800-850
- Very Good Credit:740-799
- Good Credit: 670-739
- Fair Credit: 580-669
- Bad Credit: below 579
How can I estimate the monthly repayment amount?
Lenders will typically give you a schedule of your monthly repayment so that there's no need for you to compute the figures manually. However, if you are looking to get an estimation of the loan you try to get online, pay special attention to the following major online loan cost factors:
- APR rates. Stands for annual percentage rates, it’s the total amount of interest you pay for a year.
- Interest rates. For promoting reasons, lenders will mention monthly interest rates to you as it “looks smaller in amount.”
- Upfront fee. Some lenders may charge you some one-time fee separately when they release your funds as processing fees, but some lenders include this part of the charges in APRs.
Noted that there isn’t any general formula to rely on when estimating your monthly payment as each lender calculated their repayment plans differently.