Bad Credit Loans Guaranteed Approval

There are plenty of places that give out loans for various situations for those of us with less than perfect credit. No matter what your situation, from online payday loans to bad credit car loans and even those just looking from some fast cash we can find a lender to provide you with the fast loans you need. We also are able to help with credit repair to get you within the credit score range you want to be in. The reason there are so many bad credit loans guaranteed approval lenders is they often charge quite a bit of interest on the loans in order to cover the assumed risk of lending money out to a person with poor credit, these are called high risk loans. If you are in need of taking out loan with bad credit it is important to know the different types of loans out there.

The Different Types of Bad Credit Loans

Bad Credit Auto Loans – These are the most common form of loans out there. Almost everyone at some point in their lives is going to need one form of transportation or another, and lets be honest most of us have less than perfect credit. There is a common misconception that getting a bad credit auto loan is easier to get on a used car than it is on a brand new car. This is completely inaccurate as most lenders and banks are going to want to be able to cover their loss in the event that the payee is unable to meet the terms of the loan. New cars will be easier for the banks to resell if they need to. That’s not to say its not impossible to get a loan for a used car with bad credit, you will just need a larger down payment. Speaking of down payments there is another common misconception that you don’t need a down payment with car loans, this is also completely false. The bigger the down payment, the lower the risk will be to the credit lenders.

 

Bad Credit Motorcycle Loans – These loans are going to operate very similar the auto loans described above. The biggest difference is motorcycles tend to hold their value a little better so these loans tend to be a little easier to get as the financial risk tends to be lower for banks and the amount loaned is usually the fraction of an auto loan. In fact if you are able to get your motorcycle license I definitely recommend getting financed for a used bike for cheap while you rebuild your credit, this could save you thousands in the long run.

 

Online Payday Loans – These loans are great for those of us who are in a temporary jam and just need some fast cash to cover some unexpected expenses. With pay day loans you can usually get immediate loans for as little as $250 and as much as $1500 with little more than a signature and a pay stub. These are the best guaranteed bad credit loans as you are securing them with a post dated check, so your credit score does not come into play at all. I do want to throw a bit of caution to those who are looking into getting a payday loan online, these are great for quick fixes, but they usually need to be repaid by your next payday. Using these as a long  term fix (getting payday loans week after week) can leave you in a far worse financial situation they you were in before you receive the payday advance. s

 

Car Title Loans – These are another great way to get some quick cash when a payday loan will not  suffice due to either how soon it needs to be repaid or if yo need more than a payday loan will typically allow. The way a car title loan works is usually pretty simple, you can borrow up to 50% of you cars value if you sign over ownership of the car to the lender. Before you get too excited about car title loans, you need to actually own the car and can not be currently making payments on the car. You also need to be careful with these types of guarantee loans; as you can potentially lose your car if you can’t make payments leaving you in a worse financial situation than before.

Should You Be Taking Out a Loan With Bad Credit?

Taking out a loan can be the perfect solution for a lot of situations, and really ease financial stress for a lot of us with out the best credit. I do want to put a word of caution out there, if you are not 100% sure you can afford the terms and conditions of the loan you need to stay away from it. If you are approved for a bad credit loan and can not make payments and default on the loan then you will end up with an even worse credit score and make it virtually impossible to qualify for a loan in the future. You will end up paying significantly more interest on loans with less than perfect credit, in fact on big purchases such as cars, the difference in interest you pay with bad credit versus good credit can add up to thousands of dollars by the time the loan is paid off. This is especially when purchasing a home with a bad credit mortgage, where a few points of interest can add up to tens of thousands of dollars.

It’s important to have a financial plan for being able to repay your loan, and even if you qualify for a bad credit loan, be sure you start taking the steps necessary to improve your credit so you can get the best terms on all future purchases be it a credit card application or leasing a new car.

Your credit score is a reflection of your credit worthiness, it is a number assigned to you by the credit bureaus based off the information they have on file for you. Most of us fixate on this number as the end all tell all to our ability to purchase a car or apply for a mortgage. While the credit score is important, it does not tell the whole story, and most banks when looking over someone’s credit worthiness for a loan application, they want the whole story not just the number.

What I mean by this is you have have two people with the exact same credit score, say each person has a credit score of 600. If they both apply for a new car loan, exact same year, model and mileage. They both have the exact same down payment amount, and they both apply for a car loan through the same bank. It is entirely possible that one person gets approved and the other person gets declined. You see what is contained within a credit report is as important as the score they get, if not more important.

Did You Know There are Two Different Types of Credit Scores?

Yes, that is right, to make matters even more confusing, there are actually two completely different credit scores. There is the FICO score, this is one that most of us are familiar with, and there is another called VantageScore. The later is used far less often and the majority of lenders are going to look at your FICO score along with the contents of your credit report, when making a decision to give you a loan.

There is actually a third score as well, this last score is called the Industry Option FICO or your NextGen score. Most of you have probably never hear of this score, and there is a reason. You as a consumer can not actually view this score. It is only available to car dealerships, this score is essentially your credit score with a few specifics related to car sales. Its possible that this score can be much lower or higher than your credit score, and you should ask to see it if you are car shopping, if it comes down to showing you this ‘secret’ credit score or losing a sale, most dealerships will just show you the Industry Option FICO.

We will be discussing FICO credit score ranges. This is the most common scoring method and used the by the majority of money lenders out there. Your FICO score is weighted by several different variables and can range from 300 up to 850. While the exact analysis and calculations to determine your credit score are kept secret, it has been confirmed that certain variables are worth more to your credit score than others. These are all approximations and not exact weighting, but should help you with understanding why you score is what it is

• ~10% – Recent Credit Inquiries – Note: I never really understood why doing credit checks actually lowered your credit rating
• ~10% – The variety of credit you have. Its good to mix it up with personal loans, credit cards, etc.
• ~15% – How long you have has those credit accounts open, the length of your credit history
• ~30% – The ration of credit to debt, also known as your credit utilization. The more unused credit you have the better – Note: While this does make sense, it is a bit backwards that the less credit you have the harder it is to actually get credit
• ~35% -Your overall history of payments. This is affected by both how many times you were late, and how late you were on the payment. Late payments are measured by the number of day you were delinquent in payments, usually 30 day blocks.

Excellent Credit Score Range 750+

If you credit score is above 750, you are considered to have excellent credit. You should be able to qualify for the best financing deals available. If you are car shopping this is usually the credit range that actually qualifies for those $0 Down 0% APR deals you see advertised on TV. You should have no problem getting anything financed with this credit score range, and often times the won’t even looks to see what is actually in your credit report with a score like this. This range you should be seeing a lot of pre-approved credit applications in the mail.

Good Credit Score Range 700-749

If your credit score is between 700 and 749, you are considered to have good credit. Rarely will someone with a credit score in this range have their credit application denied. They may not be guaranteed the best financing available but rarely will you see a decline. This is usually the lower end of what you want your score to be if you are going to purchase a house, having a good score can save you a few points on your mortgage terms, and in turn save you thousands in payments over the course of the loan. This is a good range to be in.

Fair Credit Score Range 650-699

If your credit score is between 650 and 699 you are considered to have ‘fair’ credit. In this credit range you will no always qualify for the credit terms and can end up seeing a fair amount of declines. You still can qualify for decent financing on cars and other large purchases. This is the credit range were most lenders really look into your credit report to get a picture of the whole story of your credit worthiness. This range what is in your credit report is weighted a little more heavily than your actual score. While you still may qualify for some prime rates, you credit risk at range is average to moderate.

Poor Credit Score Range 600-649

If your credit score is between 600 and 649 you are considered to have poor credit. You will see a large number of declines in this range. Depending on what is in your report you may not qualify at all. From the chart above, if you have a history of not paying on time, or if you have a large debt to credit ration (over 50%) you will have a really hard time getting approved for anything without a significant down payment. You are considered sub-prime at this point and pose a moderate credit risk.

Bad Credit Score Range 599 and below

If you have a credit score below 600 you are considered to have bad credit. You will see almost all of your loan applications denied. Most lenders don’t even care what is in your credit report at this point as you are considered a severe credit risk. You are typically limited to online payday loans, car title loans, and other bad credit lenders. The interesting thing about having bad credit, is you are actually sometimes slightly better off than those with poor credit. Bad credit loans can often have absorbent interest rates, which makes them highly lucrative from certain types of lenders. You are a high credit risk, but you are potentially a huge profit for those who are willing to lend to you, also those who get bad credit loans tend to pay in a more timely fashion to avoid damaging your credit score even further.

While I definitely understand the desire to be a home owner, buying a home even if you have an excellent credit score range may not be the best move. Sure there are plenty of benefits to owning a home – having stability and being able to remodel your home to your liking are two of the most common; amongst many others. There is also the downside of massive debt and the very strong possibility that your home will be worth less and less every year, leaving owing more money than your home is even worth.  If you have had credit troubles a bad credit mortgage is most likely not going to be the answer you are looking for. You would be taking on a huge amount of debt and be paying an extreme amount of interest, leaving with monthly payments you can’t afford or a loan you can’t ever pay off. Worst case you could be out tens of thousands of dollars and without a place to sleep. I am not here to tell you what to do, or if you should be considering bad credit mortgage loans or not. The point of this is to provide you with as much information as possible so you make the decision yourself. Remember renting is not that bad of an option!

How Does a Mortgage Work?

On the surface, applying for a home loan is a lot like applying for a car loan. They both require down payments and you to pay interest. Mortgages usually require you to put 15-20% of the total home value down to show you are serious about being a home owner (mortgage loans for bad credit may require even more). These are fairly large down payments, as 15% of a $400,000 loan is $60,000, this is a significant sum of money for almost all Americans. Down payments are almost always required now days, (though before the housing bubble burst it was possible to find no money down bad credit home loans) you might be able to negotiate a lower down payment, but skipping the down payment all together is going to beextremely unlikely.

Here is a quick reference of the common mortgage terms –

Equity – This is how much your home is worth compared to what you own, a negative equity would be owning $100,000 on a home only worth $75,000. Ideally you want to have a positive equity in your home, meaning the house is worth more than you owe on it.

Principle – The total amount of money you are a borrowing for your loan

Interest – This is the amount the banks will charge you for lending the money, its how they make their money. The better your credit score range, the lower your interest rate, bad credit mortgage rates will carry a much higher interest.

Amortization – The process of decreasing the principle of your loan over time. Most home loans have the same monthly payment throughout the life of the loan, what will change is the amount of interest you are paying compared to the principle.

Insurance – You will be required to get insurance on all property purchased with a mortgage to protect the property against damage such as fires and floods. You may also be required to purchase an insurance policy for the loan itself to cover paying off the mortgage in the event of default. The latter insurance is more common with lower down payments or bad credit home loans.

What are the different types of mortgages?

There are several different types of mortgages available to home buyers, not all of them are entirely  straight forward on how they work. These are some of the most common types of mortgages that are offered.

Fixed Rate Mortgages

This was the most common type of mortgage available; these are not as common these days. Fixed rate mortgages are home loans where the monthly payments and the interest rate does not change for the length of the loan. This the type of home loan you should be shooting for, as there are no surprises and you will always know how much your mortgage payment is going to be for the entire length of the loan. These are usually offered as 30 Year Fixed Rate, 20 Year Fixed Rate and 15 Year Fixed Rate loans. The only difference between them is the length of the loan. If you get a 30 year fixed-rate mortgage you will end up with lower monthly payments but will pay more in interest, making it harder to have a positive equity in your house.  Then there the flipside of the 30 year, the 15 Year Fixed Rate mortgage will have the highest monthly payments, but the least amount of interest paid, making it easy to have a positive equity on your home.

Adjustable Rate Mortgages (also known as ARMs)

These home loans have an interest rate that will change over the course of the loan. These loans are usually less desirable because your mortgage payment can change year to year, making it difficult to stick to any sort of budget. There is also the possibility that your interest rate can raise high enough to make your mortgage unaffordable, though there are usually caps put in on how high the rates can raise, a little like rent control you find in major cities.

How often your interest rates can change will vary from every six months to every 3 years. The most common type is a 1 year ARM, so the interest rate, and your payment will change every year. There are also slightly more complicated ARMs, you may see things like 3/3 or 5/1 ARMs. These mortgages have a set rate for a number of years (the first number) then change every set number of years (the second number). This means a 5/1 ARM will give have the same monthly payment for 5 years but after that period your interest rate will get adjusted every year. The amount of the interest is usually that rate the Federal Reserve Bank sets for lending money to banks plus a few points of padding so the bank can make a profit from you.

Reverse Mortgages

These are fairly rare, and to be honest I am not super familiar with them so if anyone can provide me with more information about how to get a reverse mortgage or how reverse mortgages work, please use the sites contact form and shoot me an email.

Balloon Payment Mortgages

These are the most dangerous types of mortgage out there, they are enticing because they usually offer extremely low monthly payments for the first 5 years or so. These mortgages appear to be extremely affordable but the kicker is at the end of the predetermined period, you will owe the entire balance of the mortgage! This means if you will owe $300,000 on your house, you owe all that money at the end of the mortgage which means you need cash fast or you lose the house. Most of us do not have that kind of money lying around so if we cannot find someone to refinance our bad credit mortgage we are going to lose the house.

Is a Bad Credit Mortgage Worth it?

Honesty the opinion here at Bad Credit Loans Guaranteed Approval is no they are usually not worth it.  Renting is usually cheaper and unless you are generally debt free and have a good paying job with good credit, buying home might be something you want to wait on. If it’s something you truly want, and are determined to be a home owner, I  suggest you make a budget of what kind of mortgage payment you can afford every month and use a reverse mortgage calculator to determine how much you can afford to spend on a home. The last thing you want to lose a down payment of this size and still be homeless, and if you have been watching the news lately, some banks are even suing people who foreclosed on their homes, yes that’s right after taking your home they are suing you for the lost profits from sale of the house. So be careful out there.

Where Can I find Bad Credit Mortgage Lenders?

We will be putting together a list of mortgage lenders. This will take a bit of time, please feel free to submit suggestions to our contact page. Check back soon.

I have received a few emails about which credit reporting agency is the best one to use. The short answer is – there isn’t a best one. The longer answer depends on what you are looking for from the credit bureaus. Each of the big three credit reporting agencies (Experian, TransUnion and Equifax) keeps and records slightly different information in different ways. What shows up on one credit agency may not show up at all on another one. It is entirely possible to have different credit score range between each of the agencies. You may have one agency reporting that you have a much higher credit score than the other two. Unfortunately you do not get to choose which of your credit reports gets pulled when you are applying for a car loan, or any loan for that matter. If you generally have bad credit but one of your credit scores is much higher than the others, you can search and ask around from prospective lenders and find out who they pull their credit information from. That way, when you apply for a bad credit car loan, you have the best shot at getting the best possible financing for your new car. Don’t feel weird asking, people do it all the time.

Credit Monitoring Services

Each of the three agencies all offer a credit monitoring service when you order a credit report from them. There is not  a best credit reporting agency when it comes to this either. While they are all slightly different from each other they all offer the same basic functions and information. I have used them all, I personally like Experian because the interface looks nice and is easy to navigate.

Other Consumer Reporting Agencies

There probably another dozen or so consumer reporting agencies in the United States. I will expand this list as I find out more. Please feel free to use the contact form to update or add new information to this list.

• Innovis – I don’t know too much about them currently,I know that cellphone companies like Verizon Wireless uses them for credit checks on new accounts. Innovis offers their own credit report services as well
• ChexSystems – They focus primarily on how you handle deposit accounts, such as a checking or savings account. Negative items stays on file for five years and can cause you do be denied a bank account. See my page on Second Chance Checking for more information.
• Payment Reporting Builds Credit – This is an interesting consumer reporting agency, they actually require to sign up and report your on time payments yourself. Essentially making your own credit history, the website claims the benefit of positive remarks getting entered into your credit file for doing things that normally are not reported to the big three credit agencies – such are rent and utilities.

I have received quite a few emails lately from readers that need a checking account with bad credit. I realized there is a whole bunch of misinformation out there about second chance bank accounts. The first thing I want to make perfectly clear is your credit score range has absolutely nothing to do with your ability to open a checking account. Now it is possible that what you did to fall into a bad credit score range may be affecting your ability to open a checking account with some banks, but your credit score itself will not prevent you from getting a bank account. It is possible that you may have a bad credit rating with the banks; which is completely separate from your credit score.

Checking Accounts for Bad Credit

If you have been denied a checking account with any of the major banks it is most likely that you have negative remarks in something called ChexSystems. ChexSystems is similar to the credit reporting agencies and must also abide by the Fair Credit Reporting Act which I believe is where most of the confusion comes from when people talk about banks accounts for people with bad credit.

While CS (ChexSystems) does in a way monitor your credit worthiness, it focuses more on how you handle deposit accounts. The reason most people show up as a risk is in CS is because they closed a bank account with a negative balance. This is actually pretty common when people are facing financial hardship, they overdraft and a snowball effect of overdraft fees brings their account into the negative by hundreds of dollars. Often times the negative balance can almost be as much as their next paycheck leaving them unable to pay. This leaves most of us with two choices, a payday loan or just walking away from the account. Most of us are going to go with the second option, not realizing the consequences until we try to open a new bank account when we get off our feet and end up being turned down or denied a bank account. The information stays in ChexSystems for 5 years before it gets removed.

Okay, So I am in ChexSystems, Now What?

No matter what anyone else tells you, you really only have two options (there is a third but success is unlikely).

The first is you wait and let the 5 year mark pass, which is not as crazy of an option as it sound. If you think about it, we really don’t need banks. The are definitely convenient and make life easier, but you can get by without a bank account all together. You are most likely going to have to pay a small fee every time you cash your paycheck, but depending on how much you make this can be cheaper that the monthly fees that come from opening a second chance checking account. You will also need to address the problem of where to keep the money, which would most likely mean you will be buying a small safe or renting a safe deposit box from the bank. Yes you can rent a safe deposit box even with terrible credit.

The second option is you start looking for banks accounts for bad credit – that is banks that do not use ChexSystems -  and try to open a new account there. You may need to look into online banking as brick and mortar banks usually check the credit rating of applicants wishing to to open a new account. Finding a physical bank that offers second chance banking is going to be difficult as over 95% of banks in the US all use ChexSystems.Most online banks that offer 2nd chance banking (like BBVA Compass) will charge you a fee to open the account and a monthly fee for maintaining your account. This is the option most people go for, but it has its cons along with the pros. You must have an employer who offers direct deposit, and in addition to the monthly fees, you will have to pay a fee every time you withdraw from an ATM. Even with the fees, your best option may be to open a second chance checking account online.

The third option is you can actually dispute the information contained in your file by ChexSystems. First you need to know what you are disputing so you will need to request a copy of your report. Once you have had time to go over the report you can being the process of disputing what is contained in your file. Most people have very little success with this, but it is definitely worth it if you believe the information is erroneous.

Banks That Offer Second Chance Checking Accounts

Note: This list is rather small but will be updated monthly, please use our contact form to address and errors or request additions. Links will take you to the banks website.

• BBVA Compass
• Armed Forces Bank
• ING Direct

This guide should give you the best chance at securing bad credit financing; we will go step by step through the bad credit loan process. First we need to decide if bad credit car loans are worth it.

Are Bad Credit Loans Worth It?

Before we get started the most important question to ask your self is – “Do I really need to do this?”

Now this may seem like a strange question, but chances are if you are on this site you have a few credit problems and your credit score range probably falls into the sub-prime category.  That bad credit score is going to cost you, as lenders specializing in bad credit loans will have a much higher interest rate to help cover the costs of these high risk loans. I know you may not feel like you have much of a choice but your credit score is going to determine your monthly payments and how much you end up paying for the car. The chart below represents your average monthly payment on a $20,000 car loan based off your credit score, these figures are for a 48 month term auto loan.

As you can see bad credit loans can be expensive, and dealers sometimes will add to these percentage rates to add to their profit, it is called ‘dealer markup’  and before you get upset this is totally legal and common practice. All dealerships do this, even the honest ones, it’s how they make their money.

Taking a Look at Your Credit Report

As you can see from the chart above really looking into your credit score range can help you decide if getting a bad credit auto loan is worth it. If you are unsure of what you credit score is you should definitely check your score. If you want to know which credit report is best, it depends on your score and what agency a dealer will look at.

This is where the decision comes into play, clearly you are in need of auto financing otherwise you wouldn’t be reading this article, but there are times where you are better off buying a ‘beater’ car that you can basically throw away after a few years. If you look at the chart above you can see that if you credit score is around 580, you can spend $1,000 on a car and work towards improving your credit score to the 620 range and still save $1,704 in interest. That beater car could almost be an investment, and if you are short on cash for the ‘beater’ you can always look into cash advance and payday loans online.

That being said, there are still going to be financial situations where getting a car loan with bad credit is what’s best for you. If you have decided that you definitely want to move forward then the next step is to decide between new and used automobiles.

Is it Easier to Get a Car Loan for a New or Used Car?

This going to be a huge factor and you may not have much of a choice. Most people are going to be inclined to get a used car because of the interest rates that they are paying for their bad credit, they want the loan to be cheaper – but chances are you will not get financed for used car with bad credit. While it may seem to go against common sense, being that a smaller loan would be less of a risk for a bank,  the banks are going to view the loan very differently. When a bank is going to take the risk of a bad credit loan on a car, they are going to look at worst case scenario and want to know what they will be left with if you default on your loan. You see for the bank, a new car is a much better asset than a used car, the biggest factor is it is worth more. This means if the bank needs to sell of the car in the event of a loan default, they have a better chance of making their money back by selling a newer car than they would with a used car. The other factor is a new car is going to be more reliable than a used car and they don’t want to be left with a non working car if you default on your loan. You really are going to be forced into getting a new car, which isn’t really all that bad, if you can keep they payments up and keep above water with the loan (meaning the car is worth more than you owe) you can try to refinance your auto loan after a year or so of payments. You do want to avoid being upside down on your loan (meaning you owe more on the car than is worth) in the even the car is totaled in a wreck, you don’t want to be out a car and still owe your loan company money because insurance only payed for the cars value.

So we have decided that we want a car loan, and have accepted that the car will more than likely be a new car instead of a used car. The next step is talking about your down payment.

Do You Need a Down Payment for Bad Credit Loans?

The unfortunate answer to this is definitely going to be a yes more often than not. You see the bank lending you money is taking a risk because of your credit, and more often than not they want the car to be worth more than the amount of the loan, again that way if you default on the loan they will have an easier time recovering the loss. You see a bank will be more likely to lend you $18,000 for a $20,000 car than they would lend you $12,000 for a $12,000 car. So the down payment is going to be a must if you want the best chance of securing a car loan. How much is needed depends on the bank, 10-15% would be the minimum, but you might need to go as high as 20% of the total loan. There is a little trick you can do to have the dealership help pay for your down payment. If car manufacturer is running a promotion and offering cash rebate or cash back on a car purchase you can often use that as part of your down payment.

I did this when I purchased my car, I only had $1500 for my down payment on a $20,000 car, which isn’t even 10% of the total, but they were offering $1750 cash back if you purchased a new Nissan Sentra. This brought my total down payment to $3250 which was more than 15%.

Okay we have may a lot of progress in the journey towards your new car, now lets talk about financing!

Bad Credit Auto Loan Financing Options

You basically have two choices of how you are going to get financed for your loan. The first option is to get your own financing before you go into the car lot, the second choice is get financing from the dealership, they both have their pros and cons when it comes to finance. Let’s take a look at the first one.

Getting You Own Bad Credit Financing -

Walking into a car dealership with your own financing figured out ahead of time can give you some distinct advantages, first you don’t have to worry about the dealership padding profits through the dealer mark up we discussed earlier, and the second you don’t have to worry abut them putting you into a car you don’t want. You have a little more control, but its harder to get financing ahead of time with bad credit. Your best bet is to talk to a local credit union, they often have specialized auto finance options for there members and will be more willing to lend you their money if they have your banking business, and even more so if you have signed up for direct deposit. Sometimes they want to know what kind of automobile you are purchasing in advance before they will loan you money, which could obviously limit your selection. If you live in the northern California area, Redwood Credit Union (RCU) can usually get you into a car even with poor credit if you choose to bank with them.

Using the Dealership for Bad Credit Financing

If you are unable to lock down financing on your own, don’t worry getting a loan from the dealership is not all that bad. We generally suggest you actually stay away from places offering guaranteed bad credit loans and start your search off with name brand dealerships, they usually have access to in house financing and are large enough to take more risks in the name of a sale. Toyota and Nissan have great in house financing and if the dealership is a top performer meeting quotas, they often have financing ‘coupons’ they can offer to customers, meaning the can discount the APR in hopes of getting more sales. You can definitely walk away with a nice new car with financing below what you would get from a bank or credit union, there will definitely be pressure to make you buy an extended warranty but don’t feel like you have too, remember they ultimately want to sell you car and if they are pressuring you to buy add-ons then they probably already have you financed. If you don’t want to buy something you don’t have too.

Hopefully this guide will help get you into the car you need regardless of your credit rating, there is just one last thing we need to cover.

Rebuilding Credit with Bad Credit Car Loans

If you are able to get into the car you need, having a bad credit loan can actually be a great way to increase your credit score and make you credit report look much better. The very act of having an installment loan active on your report that is paid on time every month can be enough to raise your credit score 20 40 points within a year! So take this opportunity seriously because defaulting on a loan or having a repossession with already bad credit could do some serious damage to your credit file the will take years to fix.

Thanks for reading, if you have any comments or suggestions please use our contact page.

 

The short answer is yes, you can find easy online payday loans to get some fast cash.  There are plenty of lenders out there that work with high risk loans who are more than happy to help get you out of a financial emergency.  Let’s face it, we have all been there from time to time, anyone who says otherwise is lying. There are some dangers with payday loans and it is easy to get caught in a payday loan cycle where you are using one payday loan to pay off another, putting you in a worse situation than you were in before you even applied for the payday loan. However, in the right set of circumstances, finding cash advance and payday loans online can be the perfect fix for those financial woes.

Are Payday Loans Right For Me?

While the promise of quick cash can be tempting,  payday loans are not always the answer. Most of us can barrow small amounts from family or friends.

If you. . .

• Are having trouble making ends meet on a monthly basis
• Need the loan for a reoccurring expense
• Need an advance of more than 75% of you average paycheck
• Can make payments on the money you owe
• Have a decent credit score range
• Are currently serving in the military

Then a payday loan might not be the best solution for you. Now, I understand there are exceptions to every rule and each person thinking about an online loan is going to be in a unique situation, but if any of the above apply to your situation I recommend you at least look for other ways to get quick cash. There will be a lot of situations where the late fee or reconnect fee (say for a mobile phone) will be significantly less than the interest on a payday loan. If you find yourself looking into payday loans often, you might want to consider debt consolidation or getting some help in reducing your monthly expenses. If you have a good credit score you might be able to get a short term personal loan from your bank. If you happen to serve in our armed forces, you actually will not be able to receive a payday loan, due the a law passed that limits the APR (annual percentage rate) that lenders can assign to loans given to military personnel.

If you . . .

• Need money for a one time unexpected expense
• Will be able to repay the loan in full without further hardship
• Need money for an extremely time sensitive matter
• Currently have a bad credit score

Then an online payday loan might be just what you need to pull you back into the black. Generally due to high interest rates (upwards of 200% APR!) and the quick repayment, payday loans are not most ideal fix to a situation. They do work really well thought for unexpected financial emergencies, such as your car breaking down with expensive repairs. If you need the cash now and it is just a matter of waiting for your next paycheck for the funds, then these fast loans are the perfect thing.

What Are the Dangers of Payday Loans?

You will hear a lot of talk about scams surrounding payday loans, the Federal Trade Commission has done a great job of telling you what to look for. This market has become highly regulated and in fact there are only 37 states that allow the practice of payday lending. The 13 other states have either banned payday lending or the state legislation set in place makes it unfeasible to engage in payday lending. Most of the scams you will come across online will be payday lenders who actually have you enter your information and decline your application and turn around and sell your information to their affiliates. When searching for an online payday loan, a good way to protect yourself is to check to see if the lender is accredited with the Better Business Bureau. Don’t worry though, there are still legit lenders out there and there are many laws in place to protect the consumer. See Guidelines for Payday Lending.

Check out our list of Reputable Online Payday Lenders