Maybe a big expense popped up, maybe you need to pay off bills, or rent a moving truck to relocate for a job. In a perfect world, everyone would have a healthy savings account to dip into. But where can you turn. What are Bad Credit Loans. A bad credit loan is a type of offered to borrowers with weak, bad, or no credit. There are many different loans and many different types of financial institutions that offer them—banks, credit unions, and online lenders, among others. One characteristic of bad credit loans is that they will generally be expensive. This is because lenders charge higher interest rates to borrowers with bad credit than they do to borrowers with good credit. So what is a good credit score and what is a bad one. To see where you fall, use the table below. You can also get a free credit score through sites like and. At this point, you may be thinking: Wait a minute. Well the answer, sadly, is yes. Lenders are going to charge you extra. When you haveit means you have a history of paying your debts late or not at all. You can read more about credit scores and what they mean in our. This makes it riskier for lenders to let you borrow money. From their perspective, you already have a history of not paying your debts, so why should they expect it to be any different with them. To compensate themselves for that risk, lenders charge higher the cost of borrowing money to borrowers with bad credit. This way they make more money on these risky lending arrangements, which offsets the very real possibility of many of their borrowers failing to repay their debts. The lender needs to make enough money on the other 80 to cover the loss on the 20 and make a profit. Even People with Bad Credit Have Options There are two basic types of bad credit loans: secured and unsecured. An unsecured bad credit loan means that borrowers sign a contract and promise to repay their homecredit personal loan according to the terms and conditions of their loan. If they fail to repay their loan, the lender may pursue collection of the money owed through a collections agency or other legal mechanism. Typical unsecured bad credit loans include personalcredit cards, and student loans. This means that if a borrower is unable to repay the loan, the lender is legally allowed to seize the collateral and sell it to recoup their losses. Typical secured loans include mortgages, car title loans, and pawnshop loans. Technically, a is a secured loan. Bad credit loans—or —are risky. Dealing with the Risk in Bad Credit Loans Say you want to buy a set of used furniture for your living room. You could visit the online used furniture store website with great customer reviews—an A+ Better Business Bureau rating, and friendly and knowledgeable customer service reps you can actually talk to on the phone—or you could buy it from a sketchy looking stranger selling it out of the back of his truck. If you need a bad credit loan, you can expect a lot of sketchy strangers to come calling for your business. If you need a bad credit loan, it can be done safely. Here are the steps we recommend to find socially responsible, legitimate lenders who can get you the money you need now and even help you improve your credit score. Getting a payday loan is never worth the risk. Remember: four out of five payday loans are rolled over or renewed, and the typical payday borrower spends more than half of the year in debt to their payday lender. And all this for a loan that was supposed to only last two weeks. No matter how you look at it, the odds are stacked against you. Instead, you can find a bad credit loan from lenders who offer personal installment loans. Personal installment loans come with longer terms, lower rates, and—unlike predatory payday and homecredit personal loan loans—are designed to be repaid. If your potential lender performs no credit check whatsoever, run. These credit checks signal the credit bureaus and can harm your credit score. Hard homecredit personal loan inquiries or hard credit checks are typically initiated by lenders or credit card companies—and require your authorization. When a hard credit check is run, it can remain on your credit report for up to two years. You can run a soft credit check on yourself, or it could be initiated by a lender, potential employer or landlord. Soft credit checks do not negatively impact your credit score. These are a safe alternative to hard credit checks. Typical payday lenders offer terms of two weeks. Typical title lenders offer terms of 30 days. Instead, look for a personal installment loan with longer terms. Generally, longer terms will translate into lower monthly payments, and a more affordable loan that borrowers will be able to repay. When you repay an installment loan with a lender who reports payments to the credit bureaus, you can actually improve your credit score over time. Check with your potential lender and ask them, do they report on-time payments to the credit bureaus. If they do, you can use that installment loan to solve your short-term problem and grow your credit over the long term. OppLoans is Different If you have bad credit, then you are likely all too familiar with the frustrations a low credit score can bring. Even the most damaging credit mistakes can be repaired over time. The first step toward fixing your credit is to put a stop to the habits that are contributing to your low credit score. And if you ever have questions, or need help, you can call us. Taking out a bad credit loan is a major decision. Accessed February 7, 2017 from. Accessed on February 8, 2017 from. Accessed on February 8, 2017 from. Accessed on February 6, 2017 from. California applicants may be funded by one of several lenders, including: i FinWise Bank; or, ii OppLoans, a licensed lender in certain states. All loans funded by FinWise Bank will be serviced by OppLoans. Box 25101, 2550 Cerrillos Road, Santa Fe, New Mexico 87504. To report homecredit personal loan unresolved problems or complaints, contact the division by telephone at 505 476-4885 or visit the website. Customers with credit difficulties should seek credit counseling before entering into any loan transaction. Ohio Credit Services Organization Certificate of Registration No. OppLoans performs no credit checks through the three major credit bureaus Experian, Homecredit personal loan, or TransUnion. Based on customer service ratings on Google and Facebook. Testimonials reflect the individual's opinion and may not be illustrative of all individual experiences with OppLoans. Not all loan requests are approved. Approval and loan terms vary based on credit determination and state law. Applications processed and approved before 7:30 p. Rates and terms vary by state. If you have questions or concerns, please contact the Opportunity Financial Customer Support Team by phone at 855-408-5000, Monday-Friday, 7 a. Central Time, or by sending an email to.
