Now What? I’m broke and I have bad credit but I need money!
If you don’t have a free and clear financial history, it can seem impossible that you could get a loan. A lot of people only think of payday loans or title loans when they think of loans for people with bad credit, and those often do more harm than good when it comes to helping you dig out of a financial hole.
It’s not impossible, though. There are good loans out there for everyone, and we’ll show you how to get a loan with bad credit, even if you don’t think you can.
Why Do People Need Bad Credit Loans?
There are a lot of reasons someone might need a loan, even if their credit isn’t great. Here are a few common reasons people need a loan, whether they’ve got decent credit or they’re looking for a no credit check loan.
Maybe you need a dental procedure done or you’ve got to have surgery and you’ll need a chunk of money to cover the fees that you’ve got to pay up front. Maybe you’ve just come up a little short and you owe the orthodontist money, but your child is at a sensitive point in their braces and treatment really needs to continue so their progress isn’t set back.
Even with insurance, medical expenses can be a tough burden for many families to bear. In fact, one study done by the Kaiser Foundation shows that only about half of all households have the liquid assets necessary to cover the common high deductibles of today’s insurance plans.
Home and Car Repairs
We need our homes to function properly and our cars to run so that we can carry on with our lives, and oftentimes so that we can keep going to work and earning money. The bad news is that homes and cars occasionally need repairs and those repairs can cost big bucks, the kind you’d need a personal loan to cover.
It costs money to travel, even if you’re doing so as cheap as possible. Maybe you’ve got a vacation planned. Something unexpected came up and you can’t afford the expenses, but you’ve already paid for part of it and you can’t get your money back. Maybe you need to travel to be with an ailing loved one or to attend a funeral.
Mistakes People Make When Covering Unexpected Expenses
When faced with the adversity of financial troubles, many people turn to payday loans. While these types of loans can put between $100 and $1,000 cash in your hand in very short order and they are almost always a no credit check loan, the fees are absolutely astronomical, and you have very little time to pay off the loan. With your next paycheck, you’ll have to pay back the fees plus the loaned amount. In many cases, people can’t afford their everyday expenses if they pay back the full amount, so they must get another payday loan and the cycle starts all over.
With average APRs of 400% on payday loans, even the highest interest rates offered by unsecured personal loans, bad credit loans, no credit check loans that aren’t payday loans, and other loans for people with bad credit are a much better deal.
Payday loans don’t take into account your long-term financial goals at all. They’re merely a means to an end, but unfortunately for a lot of people who get stuck in the payday loan trap, there’s no real end in sight.
What’s Stopping You from Looking at Loans for People with Bad Credit?
A lot of people get hung up about getting a ‘real’ loan. It can be an anxiety-inducing process and a long-term commitment, and the prospect of possibly being turned down for a loan can be embarrassing at best, and absolutely devastating at worst.
There’s a lot to consider if you’re thinking about getting a bad credit loan. A lot of people don’t know a whole lot about the world of finance in general and personal loans in particular, so they just assume that there’s no way they could get a personal loan if their past financial history isn’t so pretty. They’ve got a lot to learn about personal lending. The fact is there are lots of loans for people with bad credit available.
Despite that it can be scary, you won’t ever know if a loan for people with bad credit will work for you until you actually apply for a loan. There are a couple things you ought to do before you get to that point, though. We’ll show you what you need to do, then we’ll show you how to get a loan with bad credit the easy way.
Keep Calm and Check Your Credit Score
If you think your credit score is bad, you might not even want to think about it, let alone actually look at it. Maybe you’ve avoided checking your credit history for years, even, despite all the warnings you’ve seen on TV commercials to check your credit report for fraudulent activity or to keep an eye on your score so you don’t have to live in your grandma’s basement.
We get it, we really do. However, you’ve got to take a couple deep breaths and resolve to check your credit score, which you can do right here. You really don’t know until you know, and even if it is bad, you’ve still got to know so that you can determine what kind of loan terms you can get. Stay cool even if it’s lower than you anticipated. There are no credit check loans and bad credit loans that may still work for you.
Once you’ve checked your score, you’ll need to check your debt to income ratio. This is a big factor in lenders deciding which terms you qualify for and could make a big difference in how good a loan for people with bad credit could be for you.
How to Start Shopping for a Loan for People with Bad Credit
Now that you know your score and your debt to income ratio, you can get to shopping. You heard that right: shopping. Even if your credit isn’t great, you may still have options. One of the fastest, easiest ways to figure out your personal loan options is with Loans Now Discovery. You’re in no way obligated to do anything by using this service. You simply answer a quick questionnaire (the answers to which are kept private and are not used for other purposes) and a Loans Now expert will help you find the best loan possible for free.