Is a poor credit status preventing you from getting approved for a loan? Your creditworthiness varies among lenders, but it is considered bad if your FICO score lies between 300 and 579. For that, many lenders won’t touch you with a ten-foot pole.
But worry not! That shouldn’t give you sleepless nights! You can find plenty of trustworthy online lenders willing to offer you reasonable rates despite your bad financial history.
Read this US Bad Credit Loans review to learn everything about online bad credit loans. Let’s get into it.
Understanding US Bad Credit Loans
US Bad Credit Loans is an online platform with a vast network of lenders accessible around the clock. It makes it effortless for borrowers to find creditors who don’t do hard credit checks, hastening the bad credit loan acquisition process.
So, what does bad credit mean, and what are these bad credit loans?
You have bad credit if your credit score is lower than 580 on the FICO score. The FICO (Fair Isaac Corporation) is the pioneering method of calculating credit scores. It uses these five factors to determine bad credit.
- Punctuality in paying bills accounts for 35% of your credit score.
- Credit utilization ratio affects 30% of the credit score.
- Length of your credit history counts for 15% of your total score.
- Magnitude of recent credit applications is 10%.
- Mix of credit accounts contributes 10%.
Most lending institutions consider you a risky borrower if you have questionable credit due to the possibility that you may not repay a loan in the future. As such, traditional lenders like banks may not grant you any loans. That’s where bad credit loans with guaranteed approval come in handy. You can click here and check more information about bad credit loans with guaranteed approval.
These loans are extended to people with a bad reputation for unpaid debts, late payments, and those who are owed large amounts of money. Bad credit loan lenders have no strict credit requirements. They consider factors beyond creditworthiness to approve loan requests.
Benefits Of US Bad Credit Loans
US Bad Credit Loans is prominent in the industry for many reasons. Besides many loan offers and trustworthy lenders, here are other advantages of using the broker:
- Top-notch security. The website cares about your online security and data privacy. It puts in place end-to-end protection measures to encrypt personal information with industry-leading technology. No third party or people with prying eyes can access your data or facilitate transactions.
- Simple online application. As we have seen above, an online loan application is a breeze. US Bad Credit Loans has a user-friendly interface that is straightforward for all. Even better, everything is web-based, including signing, to eliminate lots of paperwork.
- Fast lender approval. Lenders on US Bad Credit Loans consider your needs for quick funding and facilitate quick loan approvals. They review your application instantly, and if you agree, the loan gets approved in a few hours or as soon as the next business day.
- No minimum credit scores for loans. Access the funds you need despite your credit background. Lenders on US Bad Credit Loans only perform a soft credit check to verify your ability to repay the loan. You can get a loan offer even if you have a bad credit score.
Frequently Asked Questions
Q1. Why do lenders check my credit score?
- There are different relevant reasons for lenders to check your credit score. These are:
- To decide whether to offer you loans.
- Predict your ability to repay the loan in time.
- Determine the credit limit and interest rates to offer you.
Q2: Is it risky to take out a bad credit loan?
- Not really. What would be risky is failure to take the bad credit loans to manage emergencies or see you through till month end. Nevertheless, my advice is to proceed with caution when taking out bad credit loans. Lenders can charge high-interest rates and apply stringent penalties upon default.
Q3: How much bad credit loan can I borrow?
- US Bad Credit Loans allow you to borrow amounts between $100 up to a maximum of $35000. However, you should only take out bad credit loans that you can repay without problems.
Q4: How do I raise my credit scores?
- The following are the various ways to improve your credit scores to attract competitive rates:
- Always pay bills on time. That’s because your payment history accounts for 35% of your FICO score, meaning even one late payment could adversely affect you.
- Reduce your credit utilization. Maintain your credit utilization ratio low by paying down debt, even if it means more than once in a billing cycle, to lower the reported balance.
- Enhance your score with a credit card. Just like the irresponsible use of credit cards negatively affects your credit score, responsible use improves your credit score and adds more points for a balanced blend of credit cards.
- Purchase the entire credit report. You are entitled to one credit report per year. But it doesn’t come with your credit score. By purchasing the whole report, you get your credit score and specific risk factors affecting the scores.
- Ascertain the accuracy of your credit reports. Request your credit report and ascertain that all negative marks are yours, as mistakes often occur. Then file any inaccuracies with the reporting agencies.
There, you have it. Even with bad credit, you know how to proceed when you need quick cash. Unlike in the past, online brokerage platforms have made it easy, quick, and convenient to find loans with guaranteed approval.
Simply visit the US Bad Credit Loans site, and follow the simple process to access any bad credit loan options. There is little documentation that won’t affect your credit score, and you get your money almost instantly. Try it yourself!