Applications that Guarantee Approval
With the current economic situation, millions of people have lost their jobs and this resulted in a drop in their credit scores. So if a good credit standing is a major requirement to get a loan approved, then getting approval these days would be impossible for many people. To help solve people’s financial problems, more and more lending companies have started offering small loans even for those with poor credit rating or no credit history at all. These companies even offer small loans online. All you need to do is send your application online and the company will call you or respond to your application in as little as one hour to a maximum of 48hours.
Small Loans for People with Bad Credit Rating
People with bad credit score can now easily obtain small loans from lending companies online. These small loans are usually unsecured type of credits, which do not require the borrower to present a valuable assets as collateral. Small loans are usually short-term credits that you can pay back in one payday to 1 month and a half. The best thing about such type of small loans is that they do not require credit check. This means that even people with badly beaten credit scores can still obtain such small loans as long as they can present a proof of income and they are at a legal age. However, one thing that you should remember is that small loans are just short-term credits and are only best to solve temporary financial problems such as electric bills, and unforeseen financial problems caused by illness or accidents. Small loans should not be used to solve or pay for long-term loans, or purchase a property.
Small Loans Applications Online
Another good thing about going for small loans is that applying can be done online. Most lending companies have a website through which you can send your application. These online lending companies will just call you upon receipt of your loan application, and requirements. The advantage of applying online is that you do not have to submit an original copy of your important documents so the risk of losing them to careless lending companies is eliminated.
To obtain small loans online, all you need to do is fill up an application form, provide a soft copy of the requirements, and send them via mail or via the lender’s website. Common requirements include pay slip or proof of income, proof of address or residence, and birth certificate. Depending on your state, you can borrow 25% or more of your total monthly income. In most states, most lending companies do not offer more than $1000 per loan.
As mentioned, small loans are short-term credits and have to be paid on the next payday, although some companies allow up to three paydays. While you can easily obtain small loans, the drawback to these types of loan is that they charge high interest rates. Defaulting of payments may also result in financial charges. Thus, borrowers should never default payments to avoid charges.
There are various ways to pay for small loans. Some online small loans companies require borrowers to issue post dated checks, while others just require you to pay through bank deposit on or before the deadline.