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Upsides and Downsides of Poor Credit Loans
When you are searching for ways to make ends meet, you could be considering overdrafts or credit cards to help you. However, have you ever considered poor credit loans? There are a number of advantages and disadvantages to poor credit loans and you could find that they are just what you need.
Just as it says, poor credit loans are for those with low credit scores. There are no credit checks done, which means that it is possible for anybody to get one of these loans. However, lenders will be putting themselves at risk and it will mean that you should always look for the requirements of the loans.
Most of the requirements center around the amount of money you earn each month and the type of employment that you are in. However, just because you are in part time employment or work with contracts does not mean that you will not be able to get one of the poor credit loans. There are some lenders that will lend to you but you will need to shop around and take your time to find the best rates.
The interest rates will be high for the poor credit loans because the lenders are putting themselves at so much risk. However, the first month of the loans will be fairly low and usually less than your overdraft and credit card fees. This is something that you will need to check with each company because they will differ in the rates that they charge and there may be some fees just for taking out the loan.
A big benefit with poor credit loans is that you can get the money within an hour of being approved for them. This is great if you have a lot of last minute bills that you have forgotten about. Most of the companies will also work on weekends and bank holidays, which will help you gain the money even out of business hours when you would not stand a chance with a normal bank loan.
Of course, this will all depend on the company and your bank. There are times that you will have to wait for three business days to get the money in your account because your bank does not allow quick money transfers. Not all companies will work the weekends so you will need to shop around for the lenders that are available when you need the money.
You will only need to take out small amounts of money with poor credit loans; just what you can afford the next month. This is excellent for those who really do just need a little to pay a small utility bill or be able to afford a week of groceries. This will help to keep the interest rates on the poor credit loans low, which will mean that they are more affordable and you are more likely to pay the money back as soon as you are supposed to. However, some companies do have minimum amounts that you will need to take out.