Looking for Personal Loans for Bad Credit?

Personal Loans for People with Bad Credit

When you have bad credit, getting the loan you need for personal expenses can be a discouraging process. You’re either not approved, or have to deal with questionable lenders that ask for money in advance. Even if they’re willing to work with you, these predatory lenders will often set unrealistic terms, loan limits, and interest rates, that can leave you in worse shape than before. If you have good credit or bad credit, getting a personal loan approved doesn’t have to be a scary or frustrating process. Loans Now is here to guide you through the process of getting unsecured loans for bad credit, or whatever your financial situation may be.

What are Loans for Bad Credit?

Your Credit Score reflects your record of paying off financial debt.  Miss payments on credit cards, student loans, or medical bills, and your score goes down. Credit scores are an easy way for lenders to assess risk when underwriting loans.  They can instantly see your credit history, and use that to decide if they are willing to loan you money, and the rate of interest they will change when you pay it back. Having a less than perfect score can affect your ability to get approved for a credit card, personal loan, or even an apartment.  

We know how hard it can be to get the money you need with a bad credit score, and we’re here to help.  No more frustrating rejections, or worse yet, scams to trick you out of your hard-earned cash. A personal loan for bad credit can be a way to get the cash you need to live life.

How Can a Low Credit Score Personal Loan Help Me?

Besides just getting you the money to do what you need to, a personal loan has several other benefits that can enrich your life, even if they aren’t a priority for you.

For one thing, a loan has the potential to help you raise your credit score. By receiving a loan, you’re increasing your available credit limit, and strengthening your credit history (so long as you make your minimum payments). These two factors have the biggest impact on your credit score, as we’ll illustrate later.

A low credit personal loan can also allow you to wipe away credit card debt, by consolidating your debt in one location. With credit cards, you have to keep track of how much you have charged on each card, your credit limits, the minimum payment for each card, and different interest rates. With a personal loan, there’s only one monthly payment you have to keep up with, and the interest rate can be lower than those on credit cards. If you’re looking to clear away your debts, and get your finances in order, a personal loan is a great option.

Ultimately, a loan can be a great way to save money in the long wrong. With inflation on the rise, but the average increase in wages falling behind, it’s getting harder to afford anything. Waiting to make a big item purchase can lead to the price jumping dramatically, meaning that you’ll never be able to afford it. A personal loan ensures that you can afford the things you need now, before the price jumps again.

Finally, at Loans Now, we only work with unsecured personal loans. We’ll never present you with lending options where you’ll have to put your house, your car, or any other form of collateral on the line in order to secure a loan.

What Kind of People Look for Loans for Bad Credit?

The short answer is people who are just like you. Having a bad credit score doesn’t mean that you’re a failure, or that you’re irresponsible with your finances. We all have instances in our lives where things happen that we can’t control, and obligate us for money that we simply don’t have. Examples of this can include:

  • Medical emergencies
  • An automobile accident
  • A death in the family
  • A crash in the stock market
  • A housing bubble bursting
  • Loss of a job

None of these examples are often anything that you can control, but you’re nevertheless left to deal with the fallout. In many cases, people are left with no option but to deal with these issues by maxing out their credit, or prioritizing their bills, even if that means they have late or missed payments.

These aren’t people who are irresponsible; they’re just doing what they have to, in order to provide for their families. You shouldn’t think that having a bad credit score means that you have failed to keep your life in order, or that there’s any shame in seeking a loan, or any kind of help, to get your life back on track.

I’m looking for a Bad Credit Loan. How can Loans Now help me?

Loans now is changing the model for bad credit loans, helping people identify the personal loan that’s right for them.  Through our Loan Discovery Program, we team you up with a representative, if necessary you could have a one on one conversation about your credit score and the loan that’s right for you. The best thing about it? It’s completely free.

With our process of identifying your situation, we make sure you’re assisted during the whole process, some say with that you’re practically assured approval for a bad credit personal loan, with no initial credit check required. If you have bad credit and are looking for a loan online, there’s no easier way to do it. The only thing we require is that you know your current (today’s) credit score, and we have resources dedicated to showing you how to find your credit score.  Because we ask you to know your credit score beforehand, we don’t run a hard credit check initially, so your score doesn’t take a hit.  

We don’t offer payday loans or title loans, so we’re experts at unsecured personal loans.  

We don’t give out your personal information to anyone- in fact, we don’t even gather unnecessary personal information, so you can rest assured that you’ll have the utmost privacy.  No more unwanted solicitations, annoying phone calls or junk emails, your information is safe with us.

Bad Credit? No Problem!

At Loans Now we understand that life sometimes gets in the way, and we completely understand that everyone has less than ideal circumstances, so you and others can obtain personal loans for people with bad credit right away. We also offer credit cards for bad credit, allowing you to responsibly start building up your credit score, so you can get better rates on a personal loan in the future.  

Understanding what factors go into a credit score is important as the credit score itself.  A credit score is 35% payment history- your record of missed and on-time payments collectively, 30% accounts owed- how much you currently owe across all of your accounts.  15% credit history- how long you’ve had your accounts, and the time since account activity. 10% types of credit used- the mix of account types you have, such as revolving, credit, or installment.  The final factor that makes up a credit score is new credit- or the new credit checks on your account and number of recently opened accounts. Managing all these factors can be tough, but you have to start somewhere if you want to improve your credit score.

If you have time before you need a loan, maybe instead of getting a bad credit loan you want to improve your credit score.  The only way to truly improve your credit score is to become a responsible borrower, paying all bills and credit card debt on time each month.  If you have bad credit and debt, that can seem like an impossible task.

Why is My Credit Score Bad?

We listed the five different factors that are used to calculate your credit score, and as you saw, not all of them weigh equally. You can be excelling in one area, only to be dropping severely in another. More often than not, the two biggest reasons why credit scores are low are missed or late payments, and using too much of your credit limit. These may not be the specific reasons why your score is low – it could be that you’ve just started building credit, and don’t have an established history yet, or haven’t diversified your portfolio enough.

There’s usually not any one single reason why your credit score is low. Often, it is a cumulation of things, born out of unfortunate circumstances and ignorance about what affects your score. That’s why it’s so important that you learn as much as you can about how your score works, check your score often to see if it’s rising or falling, and actively work to improve it at all times.

What Does and Does Not Impact my Credit Score?

There’s a lot of information on the internet about credit scores, and credit in general. Some of it is very good, can really help you get your finances in order, and start driving you towards the score you really want. On the other hand, some of it is only partially true, or downright inaccurate, and will lead to you making your situation worse. One of the things that people most commonly get wrong is understanding what does and doesn’t affect credit.

It’s important that you know the difference, not only so you can avoid dropping your score by doing something you think is harmless, but also for not wasting time pouring energy into something that won’t help you increase your score.

Many people believe that by getting a raise, or by taking a higher position in a company, that their credit score will go up. That’s not the case – it’s definitely not a bad thing to have access to more money, but just getting a higher paycheck will not directly improve your score. There are plenty of people who make very little money who have phenomenal credit scores.

Another prominent example is your utility bill – just paying it on time will not automatically improve your score (it will improve your overall history, which does help), but many people think their score will jump up as soon as they pay the bill on time. This isn’t the case; however, missing that payment will cause your score to drop.

Did you know some people believe that by intentionally missing a payment, they will actually raise their credit score, because they have somehow successfully ‘gamed the system?’ Wherever that tidbit originated, it is completely false. A missed or late payment will always bring your score down. Other guaranteed ways to bring down your score are over-utilizing your credit, declaring bankruptcy, having a bank foreclose on your home, and having a hard inquiry made against your credit score.

Hard Inquiries Vs. Soft Inquiries

Amongst many people, there’s a misconception that every single time a check is made against your credit score, it will automatically cause your score to drop. Other people aren’t even aware that a check on their credit score can drop their score. Neither one is completely true, to a certain extent – it depends on the type of inquiry being performed.

A hard inquiry against your score will cause your score to drop. These checks are made by anyone who could potentially loan you money, or extend credit to you. These could include personal loan lenders, mortgage agents, auto loan dealers, and credit card companies. These types of inquiries are made whenever you’re seeking a loan, applying for a credit card, and sometimes when you’re requesting an increased credit limit. You need to be cautious, as many lenders will make a hard inquiry before they even start to talk terms and rates with you. At Loans Now, we never start with a hard inquiry. You tell us what you want, and what your credit score is like.

A soft inquiry is a check made by any person or agency that isn’t potentially going to extend you a loan or credit. Soft inquiries often come in the form of background checks for employment, promotional offers from credit card services, and others. Anytime you check your own score, it is always a soft inquiry, so you don’t need to stress about checking your own score.

How Do I Improve my Credit Score?

One of easiest ways to start improving your credit score is by opening an account with a credit card for bad credit such as the Freedom Gold Card.  Approval is almost guaranteed, giving you a $500 credit line, which is ideal for everyday purchases. If you make purchases with the card and pay it off immediately your credit score will slowly but surely start to rise.  It might seem like common sense, but never spend more on the credit card than you have in your bank account at the time, because credit card debt can spiral out of control and hurt your credit score even more.

Get a Personal Loan for Bad Credit Today

Improving your credit score takes time and effort.  We know that sometimes you need a loan and you need it now.  Whether you’re facing an unexpected medical bill or unexpected expense, sometimes you just need money.  The first step to getting a safe, secure, and confidential bad credit loan is to go through Loans Now’s Personal Loan Discovery Process.  It’s the easiest way to get a personal loan with bad credit. For more information on bad credit personal loans, and how the Loans now process works to connect you with the personal loan that’s right for you, head to our how it works page.  Interested in all things loans and credit? Check out the Loans Now Blog for content on payday loans, unsecured personal loans, and more!

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