You will need to do some calculations in order to get a clear idea about how much loan you actually need. A lot of people tend to borrow a greater amount which they think might come in handy but it is a big mistake. This will affect the interest that you will pay and the repayment plans.
The next step after calculating the desired amount is calculating how much you can pay back each month. This should be properly planned since you have to pay the installments every month as a fixed amount. Delayed payments can result in late payment charges and might cause troubles with the lender. An easy way to work out your plan is by breaking down the total amount into monthly installments. If you’re comfortable with the plan you can continue with it or you could choose a suitable lender/loan term. Every company has its own loan term so be very mindful of this.
3. Application Submission
After you have done all the homework, this step is easier and takes only a few minutes. However, you need to do your research and find out a company which is the most suitable for you. After this, you can start filling out the form. The form requires filling in a few details like personal and financial information. After this, you will have to upload a few documents and submit the application. If you have any questions you can contact their support team.
After the application submission, it will be reviewed by lenders. If your application fits their requirements they will send an offer that usually takes 1 to 2 business days.
Advantages of Bad Credit Loans Online
1. Forget about credit check
One of the biggest advantages of applying online, as compared to traditional lenders, is that the lenders won’t judge you on the basis of your credit history. The only downside to this is that you will have to pay higher interest rates.
2. Swift Approval
The world of technology and the internet has made everything two clicks away. When applying to a traditional lender, it can take days or weeks to view and approve the application manually. Whereas the online system only takes minutes. You can get approval within 24 hours and the amount will be transferred right away. It’s the best option for emergencies.
When you take a loan online, you have the independence to use it for any purpose. Other than that, you won’t have to prove the need for a loan to the lender. In the loan application form, if you can’t find the right option on ‘Loan Purpose’, you can also select ‘Other’ which gives you flexibility. However, you should avoid taking loans for unnecessary reasons.
Disadvantages of Instant No Credit Check Loans
1. High-interest rates
Your credit score usually plays role in deciding the interest rates. Lenders tend to apply more interest rates on poor credit scores. As previously stated, high-interest rates are said to be put in place by lenders if your credit score is not sufficient. The rate may range from 200%-1300% on average and can go lower or higher depending on the lender that you are working with. Proper calculations of the applicable interest rates are very important before accepting a loan.
2. Processing Fee
A processing fee is an inevitable form of payment that must be paid before you receive the actual loan. A large number of people don’t consider the processing fee to be something important as its deducted from the amount to be paid but in actuality, it’s very important and can range from 1%-3% of the total amount and sums up to a large amount if you’re getting a big loan.
What to do if you can’t find a loan from a direct lender?
1. Borrow from Friend Or Family
A family member and a good friend will most definitely help out a person, if discussed professionally you can get them to pay you so that you may return the money to them later either in the form of installments or altogether.
2. Borrow From Employer
If you have good working relations with your employer you may be able to convince him to pay you some advance salaries, or just simple loans that you can pay later as installments or salary deductions.
3. Be creative
There are many ways you can improvise if you think you can’t loan an amount because of repayment issues. You can always borrow from someone close to you, either a relative or friend who can trust you or you can also sell your assets. Mortgaging is also an option. In this way, you can easily get the amount without everyone knowing your financial conditions and without any legal approvals.