To be honest, this is entirely fair. However, the problem arises when people take this chance to exploit the ones in need.
If you are not sure what you need to look for in such a situation, we have compiled a comprehensive guide for you. If required, make a checklist of the mentioned features when sitting down to compare the lenders.
- Lender’s Requirements
That’s why you have to be careful about many things when applying for a bad credit loan
Every lender has a predefined set of requirements based on which he approves a loan. Mostly, these are some basic requirements, like U.S. residency, a minimum monthly income, minimum credit score, etc. The point here is that you must check these requirements before applying for a loan anywhere. This can save you a lot of time and effort because your application will automatically be rejected where you don’t fit the criteria.
- Interest Rate
The companies we have discussed in this article have extensive networks of lenders where each lender has unique rates and conditions
The interest rate varies based on your credit scores, the state in which you reside, and the lender’s terms-usually, the better the credit scores, the lower the interest rates. In bad credit scores, look for the standard rates between 5.99% and %. The final rates are mainly decided after the terms are discussed and agreed upon.
Although setting the interest rate is primarily a lender’s call to make, some states prefer to keep things in their hands. Good for you because they don’t let lenders charge you unfairly. Thus, make sure your creditor follows the state rules in this regard, and if they don’t, look for another creditor.
- Lending Power
It’s likely that you might not get the whole amount you need from one lender. That’s because every lender has a lending capacity due to which they can only offer a certain amount. Most lenders providing bad credit loans with guaranteed approvals allow a maximum of $5000 as a loan, while some may go as high as $35,000.
Just as it goes with the interest rate, the lending power varies from lender to lender within a platform. However, checking the minimum and maximum lending capacity on a platform can payday loans in Euclid OH give you a good idea of the range within which you can get a loan.
- Conditions for Repayment
Repayment terms define how you’ll be paying back the loan to your lender. It can be a lump sum or in installments. For a salaried person, paying back the whole amount in one go can be difficult without enough savings. Therefore, it is essential to discuss the repayment beforehand.
- Extra Fees or Hidden Charges
Some companies try to trick their users with hidden charges that they disclose after the contract is signed. No matter how inappropriate it is, people have made it a source of income. Don’t fall for such traps, and make sure to discuss all the charges and additional fees before signing any contract. Considering this, we have only included the most transparent companies in our list.
- Time for Processing Fund Transfers
Once the loan is approved, having it transferred into your account may require some patience on your part. It doesn’t happen overnight and generally takes about 24 hours. But it also varies from lender to lender based on the channel they use to transfer the amount. Thus, make sure to check it out with your lender.