The types of loans for bad credit

Applying for a loan is not a problem, as long as you can repay it on time. Check out the types of loans you can apply for even if you have bad credit, here.

Unsecured loans

An unsecured loan is loan which is not collateralised. This means that the lender takes a certain risk and the logic goes that, in order to cover this risk, a higher interest rate is applied. This type of loan is short-termed and is suitable for small and purchases. (For example, credit card loans are unsecured loans.) If approved, the money is transferred to your account in 24 hours. What if I have bad credit? You can still apply despite having bad credit. Be aware that the interest rate can be quite high. However, with this being a competitive market, rates between companies vary and you need to shop for the best offer you can find. Remember to read the conditions of loan repayment before signing up.

Payday loans

This is a loan which is payable in the next 30 days, on your payday. The interest rate starts from
15 to 30 percent, which is high. Also known as an instant loan, the money is transferred to your bank account on the same day it is approved. What if I have bad credit? This type of loan is exactly meant for people with bad credit. There are many people looking for 'faxless loans', which means you can apply even without documentation. Almost anyone can apply including those who are bankrupt. In this case, your borrowing may be capped at $1,000 and is repayable within 30 days. You will need to be earning a minimum of $1,000 a month.

How do I apply?

You need to be a citizen of the country and be at least the minimum legal age in order to apply. You must be at least three months into employment with the minimum required salary per month. Your contact information is necessary, as is a permanent address of residence. Of course, a bank account number (of an active checking account) is required in order to receive and then pay back the money.