Where to Find Legitimate Online Loans If You Have Bad Credit

If you have poor credit and haven't been able to find a legitimate online loan, don't fret. Contrary to what some might believe, borrowers with poor credit can still take out loans — even online. 

Many online lenders look at factors like your income and employment history in addition to your credit score. If you're trying to find online loans for bad credit, here are a few types of loans that you might get approved for.

Traditional Loans

Many traditional lenders, like online lenders and credit unions, will approve borrowers with different levels of credit history or score.

They'll often weigh your credit score against other factors, such as your income and employment history. Alternatively, they might let you put down collateral to secure the loan.

You can find these types of loans through simple internet searches, and you can use a loan comparison calculator to compare offers.

No-Credit-Check Loans

Some lenders don't run a credit check at all. Instead, they'll only look at your income, employment history, assets, and other factors to figure out your loan terms, as these factors help show your ability to pay back the loan.

Since there's no credit check with these loans, you won't be subject to a score-damaging hard inquiry. This may make it easier to continue working on building your credit in other ways while getting access to the funds you need.

Cash Advances

A cash advance is an unsecured loan that generally lasts for 14 days or until you get your next paycheck. Borrowers with poor credit and immediate monetary needs often turn to these types of loans.

Amounts you can borrow vary by your paycheck size, as well as state and local laws. The one thing to keep in mind, though, is that cash advances generally have higher interest rates. The lender may let you extend the due date. Make sure to pay off your loan as soon as you can to minimize costs.

P2P Lending

P2P lending platforms let individuals lend money to other individuals. Many of these platforms offer loans for bad credit, although you may have to deal with relatively high interest rates.

Still, P2P lenders don't usually care what you use the loan for, offering you a lot of flexibility. Plus, you can lock in a fixed rate when you borrow, making payments predictable and manageable.

Borrowers with Bad Credit Have Options

Just because you don't have the best credit score doesn't mean you can't borrow money when you need money urgently. You may have to spend a little more time looking, but there are many legitimate online loan options out there. Start with the sources listed above to quicken your search.

Notice: Information provided in this article is for information purposes only. Consult your financial advisor about your financial circumstances.

Source: iQuanti, Inc.

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Categories: Personal and Family Finances

Tags: financial services, loans, online loans, personal finance