If you have a poor credit rating, chances are that banks and other lending companies perceive you as having a communicable disease. In most cases, these establishments avoid having business transactions with you and may assume that you cannot pay the cash borrowed on time. Thus, applying for regular loans with these financial institutions if you have poor credit rating may be just a waste of time, energy and effort. Thankfully, with non-traditional lenders, people, whether with good or poor credit rating, can now obtain small loans easily and no credit check is required!
Small Loans for People With Poor Credit Rating
Have poor credit rating or no credit history at all? Do not worry! There are many online lenders who are willing to help out individuals who are in their financial tight spot. Most of these offers are designed for people with poor credit rating or no credit history at all. Just to avoid hassles in the future though, make sure to choose or deal only with accredited and licensed providers.
So how do these small loans differ from other types of credits? Here are some points you might want to know about small loans offered by online lending companies.
1. Also called payday advances, small loans have higher interest rates.
2. They are easier to obtain because no credit check is required. Thus, a poor credit history would not hinder you from obtaining small cash advances.
3. Small loans can be obtained online.
4. Expect faster processing. In fact you can get a response from the online lending institution in as fast as 24 hours. In most cases, you can get approval in 24 to 48 hours.
5. Expect more fees if you miss a payment or default payments.
6. Small loans you can obtain from online lenders are usually unsecured loans, which means presenting a valuable item as collateral is not necessary.
Small loans are also a great solution to financial problems. Here are some benefits:
• When you wanted cash urgently to pay for a medical expense, small loans for bad credit rating could be the best solution to your problem. No need to wait for weeks to months for loan approval because you get small loans approved very easily if you have proof of income.
• If you have insufficient financial reserves for emergency expenditures, or you need cash to pay for a disconnection bill or tuition fee for your kids, small loans could be your hero.
• Small loans not only help fix your temporary financial needs but also help save your credit scores from dropping or from getting worse. In fact, many people even avail of small loans to actually “fix” their credit standing.
However, because there are so many online companies offering small loans for bad credit, the selection process can be a really daunting process. When shopping around for an online lending company, always go for those who are accredited and have a license to provide small loans in your state. And do not forget to compare your options.