How To Get A Quick Loan With Fair Terms If You Have A Bad Credit?
You Need Money Now but you have a bad credit score, what should you do?
Here are some things to look out for:
Choose personal installments loan over payday loans any day
The best way to get into a debt trap is to take out a payday loan. You carry very Greta risk of your payday loan to be renewed as opposed to personal installments loan. An average payday loan borrower is embroiled in debt for the better part of the year. These statistics are enough to persuade someone to not go down the payday loan road just because you have bad credit.
Can you repay a loan?
You need to ask this very important question to yourself and answer with a very rational mind not clouding your judgment at all. To ascertain whether a lender is responsible and not shady, they should be looking into your credit abilities and verifying your income and ability to pay back. If they don’t, they simply are looking to offer you a quick loan with a higher interest rate so that the loan will be renewed and not extended in a cycle of debt and despair for you and your family.
Does the lender undertake due diligence?
You can rest assured that if a lender is offering you a loan without even performing the basic checks for solvency, they really just want to simply embroil you in a cycle of excess payments and renewals to extort money out of you.
You should also avoid a lender who performs a hard-credit check. This means that they go up to the lengths of notifying your credit card company and concerned authorities about your interest in seeking a loan. Such notifications can remain on your credit sheet for a long time and can lower down your already bad credit report.
The best way forward is to look for something in between. Choose a lender who performs a soft credit check. A soft credit check doesn’t entail any harm to your credit score at all. You can simply just undertake it yourself too.
Look for reasonable terms and conditions in a loan
A sure-shot way to determine if you are in the midst of the wrong lender is if they offer a very short term loan that is not proportionate to the amount that you have borrowed.
A predatory payday loan term is of generally two to three weeks. Title lenders also have only a one-month repayment structure.