Bad credit and how it affects borrowing money
In today’s economy, credit scores are essential to a consumer’s borrowing power. The ability to pay back a loan is judged primarily on a consumer’s credit score. Higher credit scores indicate a higher likelihood of paying back loans. Lenders offer lower interest rates on loans to consumers with higher or good credit scores. While inversely, people with bad credit or lower scores have limited loan options. With subpar credit, consumers may not be aware of the options available to them. There are companies that provide bad credit loans (such as Zebra Loans, for example) to give consumers with bad credit history a second chance. The definition of bad credit ranges from lender to lender. Credit scores below 650 are considered bad credit. People with a credit score in that range are considered high risk and pay higher interest rates. These consumers are ideal candidates for bad credit loans as their options are limited.
Bad credit loans
Bad credit loans are one solution to having less than favorable credit. Some banks won’t lend to anyone with a credit score under 650. Bad credit loans are an emergency financial relief option for consumers with low credit scores. Bad credit loans are a way for consumers to move forward from bad credit and taking a step towards rebuilding and starting a good credit history. To help loanees get back on track and take advantage of a second chance, there are inclusive non-credit based criteria for them to qualify. The criteria are as follows: permanent employment, an active bank account (paycheck being directly deposited), and a low weekly income. These basic categories help to determine how much of a loan the applicant can qualify for and how long the repayment terms will be. The process is fairly quick taking less than 60 minutes to get an approval.
How to get a bad credit loan?
To receive a bad credit loan, the applicant must complete a 3 step application process online. The first step is for the borrower to pick how much money they would like to borrow on an online calculator, and then choose the terms of the loan. There is a verification process whereas the applicant must provide a phone number which they must verify via SMS text. A bank account with online login details must also be provided to record banking credentials. The second step of the process, once the application has been approved, will be the transfer of the funds directly into the applicant’s bank account. This usually happens within 60 minutes of approval. The repayment is the last step of the application process. The payments are automatically deducted from the bank account via direct debit according to the payment schedule. The repayment is calculated during the application process and would be no more than 25% of the income each paycheck.