Bad Credit Loans
Every person may suddenly experience difficulties that can be solved only with the help of money. When you do not have it and there is no way to borrow from relatives or friends, you will probably look for a way out in banking institutions. But what if you need an online loan with a bad credit history? In this case, it is worth contacting microfinance organizations in California that provide online bad credit loans.
How to get a loan with bad credit?
You can get a loan from a microfinance company either at an in-store location or via the Internet. Online application is more convenient if you need money urgently and outside of working hours.
Unlike banks, microfinance companies do not lend large amounts exceeding $5,000. But a payday loan amount is quite enough for solving most of the temporary financial issues.
There are several reasons to apply for bad credit loans California:
- the application is reviewed quickly, which means you can solve even the most urgent tasks the same day;
- you get funds transferred into your bank account – you will not need to visit the company’s in-store location;
- since payday lenders also send information about the borrower to the credit bureau, the bad credit history can be corrected by repaying loans on time.
New clients are typically able to get relatively small amounts. For starters, this is $100-$1000. Regular customers who fulfill their obligations in good faith can receive an extended credit limit – up to $5,000.
Another advantage of online payday loans: payday lenders often hold bonus promotions and form personal offers with discounts since they value their clients.
You can get a bad credit loan online according to the following scheme:
- Enter the required loan amount and term on our website – lendme1000.com;
- Fill in a short application form;
- Get connected to the best lender and wait for the decision. If approved, the funds will be transferred to your bank account as soon as the same day.
Information you need to enter when applying online:
- ID, age, living address;
- Education, employment status and monthly income;
- email address and phone number;
- Bank card details, etc.
To get a payday loan with bad credit, you need to:
- Provide some proof of income as well as valid identification;
- Be at least 18 years old (19 in some states);
- Have an active checking account;
How to improve bad credit history?
To avoid loan rejection, you need to try to improve your chances. It is not easy to do this when it comes to taking a loan in a bank, but everything is much simpler with microfinance organizations.
If you are unable to pay the debt or you already have late payments, try one of the following options:
- Extension. Find out whether this lending company provides it before taking a loan. Due to the prolongation, it is possible to postpone the full repayment of the loan without damaging your credit score. You pay interest for using the money, and pay the loan principal later;
- Restructuring. Your loan amount + interest will be divided into several parts that must be paid on time. But in order to request restructuring, you will need to provide documents confirming the lack of your ability to pay – illness, loss of work, death of loved ones, etc.;
- Refinancing. You will need to make a request to another organization to pay off the debt;
- Consolidation. It is used when consumers have several payday loans in different companies. All your loans are combined into one and you are already paying off one loan, instead of several.
Why won’t the bank give a loan with bad credit?
Compared to microfinance organizations, banks are less loyal when someone wants to take out a loan with a bad or fair credit history. What is the reason for the refusal and is there a chance to improve your credit score over time?
There are several reasons why banking institutions refuse loans:
- Credit history stores a lot of your data, which shows all your loans and the regularity of payments. If for some reason you did not pay interest, the banking system automatically blocks your attempts to request a new loan;
- If all loans have been paid long ago, but payment discipline has been violated, you will be treated with caution and can either get a rejection or a loan offer with a high APR. This situation can be corrected over time. After paying off all debts in banks, get a new loan and try to pay it off ahead of schedule.
What does credit history look like?
Credit history is an electronic document that is stored in the client base of banking institutions and credit bureaus. In fact, this is a borrower’s dossier, which reflects the following information:
- personal data (living address, ID);
- a summary of the loans taken (name of the lender, amounts and terms);
- loan status – open, closed, overdue;
- disciplinary notes (payment delays);
- legal proceedings.
When deciding whether to approve a loan or not, banks and microfinance institutions can request credit history from the relevant authorities to verify the applicant.