Bad credit loans are much more useful than what many people think. These types of loans can help out in tough financial times, provided the borrower is careful and repays the loan on time. There are a few main situations that loans for bad credit companies can help someone who is in financial trouble more than another type of loan.
1. Better Finance Rates than Credit Cards
If you are dealing with a situation that calls for the need for a fast loan, a money provider that offers loans for people with bad credit may not be the person or company you think about first. You may actually be tempted to turn to a cash advance from your current credit card. While this may be a solution that works, it is also one that will cost you more in the long run. Credit card companies usually charge around a 25% finance fee for cash advances, even if you have a great credit score. So that $1,000 you borrow from your card will end up costing you $1,250 when you finally repay it, not to mention any late fees you may incur. Bad credit personal loans also charge a finance fee, but they will never be as much as your credit card company. And since these loans are short term and due back within a month, you won’t be paying an extra charge every payment period as you would with a credit card.
2. Faster Turnaround Times
Many consumers turn to their banks to get a loan when they need money. But not only will your bank require you to have a great credit score in order to be approved for a loan, they will also force you to wait at least a week or more to get your money. There are also many forms to fill out when you apply at your bank for a loan that you can avoid by choosing bad credit loans. A money provider can approve you for the cash that you need within minutes of you sending in your completed application, which is a far cry from waiting for days to even know if your bank OK’d the loan. Once you are approved for bad credit personal loans the cash is deposited straight into your bank account within 24 hours or less, depending on the day and time of your application. There is no waiting for the cash to be available and you won’t be stuck worrying for days whether or not you will be approved.
When you need a quick loan, a money provider can help you out, no matter how poor your credit is. Bypass the hassle of your bank or credit card and get the cash you need from a direct online lender instead. For more information, visit We Loan Money and learn more from the available resources.