Sometimes people need cash quickly to either avert disaster or to pay for it. Maybe the car died, and you’re not on a bus line. Perhaps the washer broke, and you need to pay for it. An unanticipated visit to the ER would be a reasonable reason to need cash fast.
Those with bad credit aren’t automatically excluded from personal loans for bad credit. Today’s lenders understand bad credit and offer programs to help. What exactly is bad credit, and what are the loan requirements?
Credit Scores
Credit scores govern everything from getting a job to getting an apartment to getting a car or a credit card. The main purpose of credit is a record of timely payments and paying off credit cards and loans. Late payments, skipping payments, and sloppy use of credit means the credit bureaus don’t think you worthy of credit.
Credit is ranked as bad which is a score of 300 to 629. Fair is a score of 630 to 689 with good being a score of 690 to 719. Excellent credit is described as a score of 720 to 850. The interest you will pay on the loan is what’s important. Shop around for the best interest rate on your personal loans for bad credit.
Requirements
Interest on bad credit loans is capped at 28 percent. As the credit rating rises, the interest rate decreases. Fair credit scores pay 21.8 percent, good pays 18 percent, while excellent credits scores only pay 13.9 percent in interest.
As with any loan, you’ll need to provide identification, a bill with your current address, pay stubs, and some means of showing lenders that you pay your bills on time and in full. If you can show lenders you’re working on improving your credit, they’re likely to lend you more money.