Changing time changes the financial needs of everyone. These financial needs leave many people with bad credit scores. If you are looking to fulfill your needs, the high-interest rates of banks may be impractical and dishearten you from getting the mandatory financial help.
Why does someone lend you a loan if you are having a bad credit score? However, with time change the industry of loans is not what it was a few years back. Now, many organizations are willing to lend you a loan even if you have a bad credit loan. Even though the interest rates are higher, it is a convenient way to get rid of the financial crisis.
Before we get into this in depth review, here are some no credit check loans that you can apply for if you need emergency cash now.
#1. MONEYMUTUAL – Overall Best Payday Loans Online
#2. FUNDSJOY – Emergency Cash Direct Lender
#3. MY USA LOAN – Top Bad Credit Loans With 24 Hour Approval
#4. TRUE AMERICAN – No Credit Check Loans With Guaranteed Approval
#5. MODO LOAN – $255 Payday Loans Online Same Day Direct Lenders
MoneyMutual : Ranked as #1 for a bad credit loan provider
MoneyMutual is in the loan lending business for over a decade and ranks as the #1 lending platform in America. The most trending and reputed lending platform has helped over two million people in the United States.
MoneyMutual has a very straightforward and easy online form that can be filled in 5 minutes. The lending amount is up to $5000; however, depending on your qualification and credit score, you can get more than $5000.
Every lending organization expects the money back on time thus; our opinion is to borrow the amount according to your requirement. We recommend this because no one wants to be in a situation one cannot handle.
An important thing to know is that MoneyMutual is not a direct lender to get a loan. It is an essential platform, which works as the middleman between borrowers and lenders. It is a hassle-free online platform because you don’t have to be in a queue to submit the application or go out for any document verification. All you need is to submit an online application form and there you go!
The actual credit score that lenders required for bad credit loans are not mentioned on MoneyMutual’s website. Therefore, before signing the deal you have to read the terms and conditions and interest rate of lenders which suits you according to your returning capacity.
You have to fulfill the eligibility criteria of MoneyMutual before getting a bad credit loan. Whatever financing sources you have, (a regular job, social security checks, or retirement plans) it should not be less than $800 per month. Besides, you have to provide income proof to qualify for a loan.
The documents and information requirements are:-
1. Age must be over 18 years
2. Valid contact information
3. Social Security number
4. Permanent residence and citizenship in the US
5. Valid bank account number
6. Confirmation of regular monthly source of income
7. Information about the current employer (if any)
What’s Positive about MoneyMutual?
1. The application form is short and easy to fill
2. Convenient monthly payment
3. The borrowing limit is up to $5000
4. Fast loan approvals (within 24 hours)
5. A secure platform where your privacy is ensured
6. No extra expenses
7. More than 60 lenders
What’s Negative about MoneyMutual?
1. Some loans are not available in every State
2. No upfront information about lender’s interest rates
A company or organization is always known by its customer’s reviews. According to them, they feel safe and secure while using this network. MoneyMutual is the network, which proved itself as one of the best online platforms to lend fast cash even with a bad credit score. It is a safe and legit website for over a decade that operates with around 60 Lenders.
So, if you are looking for a legit and trustworthy platform to get a payday or no credit check loan, MoneyMutual is the one you got to go with.
IMPORTANT THINGS TO KEEP IN MIND WHILE APPLYING FOR A BAD CREDIT LOAN WITH MONEYMUTUAL
Borrowing a loan through a legit network like MoneyMutual is very simple. However, you should know about the technicalities to avoid getting in trouble. Here are some important things to be kept in consideration while applying for a bad credit loan.
Be Careful While Getting Loan on Low-Interest Rate
Many people get into the trap of getting loans at low-interest rates. This kind of offer might seem so convenient at first, but remember that the loan offers with bad credit scores are more difficult to fulfill. So before taking the loan, you must read the terms and conditions of the lender.
Knowledge about Types of Interest Rates
There are two types of interest rates when someone offers you a bad credit loan. Some people fail to pay back the loan amount with high-interest rates but it varies from case to case. The fixed interest rates are much cheaper than variable ones, which are usually offered on a declining basis.
Any Additional Charges with Bad Credit Loans?
Interest rates are not the only fee that has to be paid in bad credit loans. There are some other extra charges to be paid as well.
1. Processing Fee
According to the total loan amount, lenders charge an extra processing fee that ranges from 1% to 2%. Definitely, the lower processing fee offer will be better to choose because it will not be reimbursed.
2. Prepayment Penalty
A prepayment penalty is an extra fee, which lenders charge if you pay off your loan before the projected time. In some cases, you can pay back your loan amount whenever you want, while in the other, lenders charge an extra penalty when you pay off early.
Keep in mind to add on the prepayment penalty while calculating your loan charges. Lenders try to let borrowers remain in the loan for payment of the entire interest rate. Although paying early can help you save the interest charges, do remember, that it will trigger the prepayment penalty.
Therefore, have a look at the fixed prepayment penalty and remaining interest charges. It might be possible to continue with a monthly low-interest rate instead of paying a high prepayment penalty or vice versa. So choose an option that might save you some bucks.
3. Late Payment Fee
When you are borrowing a loan with a bad credit score, do not be late with your payments. Always try to repay the loan in a given time period to avoid any uncertain conditions with the lender. If you fail to do so, an extra charge will also be imposed on you as a late payment fee. Late payment fee charges depend on the extra time you take to pay the dues.
4. Borrow Only What You Need
Don’t go for more if you don’t need it. The Interest rates vary according to the amount you get and bad credit loans have high-interest rates. The lender often tries to convince borrowers to get more amounts from their requirements. So don’t take any additional loan beyond your need to avoid extra interest rate charges.
5. Don’t be in a Hurry
Indeed every online loan providing platform has a wide range of lenders, such as MoneyMutual which has around 60 lenders to work with. So, don’t be in a hurry when choosing a lender, it is in your favor to look for the lender with the best interest rate. Before finalizing any deal, it is your right to have a thorough look at all the offers you receive. The least interest rates with easy terms and conditions are what you should be looking for.
6. What to Avoid?
Everyone is here in the market for the best of his interest. Lenders always try to convince you of some add-on offers for their extra income which definitely increases your loan amount.
For example, sometimes they add insurance costs to your monthly payments. You have the right to decline such kinds of offers before dealing. Not only this but there are a lot more offers they have to convince you to generate more income from you.
Always have a thorough understanding of the terms and conditions before finalizing the deal with the lender. Because once you agree with the conditions, you are all alone responsible to face the result.
LOAN TYPES WITH BAD CREDIT SCORE WITH MONEYMUTUAL
MoneyMutual – Let us have a look at the loan options for you to get fast cash for your requirements. The important thing to keep in mind is that every option is different on the basis of interest rates, repayment schedule, and much more!
1. Payday Loans
Payday Loans are short-term, short-amount loans with high-interest rates. They are the easiest loans to obtain. These loan amounts are in the hundreds of dollars range so they are not repaid in monthly installments, but payable in the next paycheck.
Despite getting a short amount in no time it has been observed that since payday loans are offered at high-interest rates, many people are not able to repay them. That’s why they go for another loan offer and this continuous borrowing locks them into a debt cycle and the annual percentage reaches triple figures because of the increase in interest rate.
Payday loans are also called cash advance loans or check advance loans and it is based on your monthly earnings. You can even get payday loans if you don’t have a bank account, as sometimes a prepaid card account may also work to get the loan amount.
So, before getting a Payday loan, you have to scrutinize your financial condition to pay back the loan amount at the very next paycheck with a high-interest rate.
2. Student Loan
University and college students in the US are usually bound by their expenses to fulfill their needs. Whether it is to buy a new laptop, stationary, semester textbooks, and a lot more, they always face a shortage of money. In these conditions, students turn towards getting quick loan amounts to meet their expenses.
Student loans with low-interest rates are designed by lenders for students with bad credit scores; because lending companies know that paying back with high-interest rates would be much harder for students.
Students can avail of this offer through online lending platforms, which allows them to escape the burden of working part-time jobs while studying.
3. Auto Loans
Auto loans are given to the car owners, which are up to 25 – 50% of their car value. Lenders are happier to borrow an auto loan because it is a secured loan that uses your car as a guarantee. This means that if you fall behind on paying back, the lender can repossess your car until you repay the loan with additional late payment charges.
4. Home Equity Loan for Bad Credit
If you have enough equity in your home and the current value of your home is less than your remaining mortgage balance, you will be able to get a home equity loan even with a bad credit score.
Qualifying for a home equity loan is easier than a personal loan if you have bad credit because it is a secured loan. Lenders use your house as a guarantee, which offers them security in case you don’t repay the loan. The interest charges on a home equity loan depending on how poor your credit is.
MoneyMutual Is The #1 Lender And Not Involved In Bad Credit Loan Scams
MoneyMutual – Borrowing a loan on a bad credit score portrays the declining status of a person’s financial situation. But unfortunately, there are still multiple scammers out there who try to loot these people out of their hard-earned money and if you get into the hands of such scammers, you will lose your money before you even know it.
You should be well aware of online loan lending to prevent yourself from online lending scams. Here are some questions you should ask yourself before dealing with lenders to mark the scammer.
1. Do A Legit Lender Dials Direct Call?
Yes, a legit lender calls you directly, but it is not random and happens only after you submit a loan application. If you are having bad credit and one day you receive a direct call from a lender, it might be possible that it is a scam alert.
Normally the lender calls you when you submit an online application to borrow a loan. This call is for verification or confirmation purposes. But, if you didn’t fill out an online form to get any bad credit loan and still got any phone call with many good-looking offers, simply say no and don’t give any personal information. It might be possible the caller would be a robber and just trying to get your bank details to steal your hard-earned money.
Sometimes, when you already applied for a bad credit loan, differentiation between a fraudster and an authentic lender might be a tough job. Therefore, make sure to go through with the certification, available on the state attorney general website before making any commitment.
Never trust a person who is not conscious of the payment method and offers easily achievable interest rates and terms and conditions, without caring about your credit score. Avoid these kinds of fraudster people to prevent yourself from facing a future loss.
2. What If you find the Cheapest Deal?
Always try to go for a bad credit loan from a reliable online platform like MoneyMutual; because on the random online search, you will find lenders offering many limited-time deals like bad credit loans with no interest rate, without any additional fee, or long repayment schedule. Remember these are a piece of a cake designed by fraudsters to convince you to trade with them.
Always keep in mind that the legal lender does not offer flexible interest rates and their terms and conditions are also flexible up to a certain extent. Therefore, do not trap yourself by falling into these low-interest rates deals.
3. Does Lender Disclose His Lending Fee?
Legal lenders are very conscious and wise about disclosing the lending charges for bad credit loans. While the fraudsters always keep themselves hidden behind many other charges instead of disclosing the exact amount.
They impose huge amounts on borrowers after finalizing the deal. Therefore, make sure you are well aware of all charges in detail before signaling the deal.
BENEFITS OF BAD CREDIT LOANS
If there is something in your mind that bad credit loans are not good at any cost, this is far away from the truth. We have disclosed many benefits of bad credit loans as:-
1. No Credit Check
Bad credit loans are designed for people who have a bad credit history. Thus, the lender does not check your credit history to prevent you from a further decrease.
Lenders usually are more concerned to provide you with bad credit loans if you have a valid source of income or any available asset to repay the installments on time. So, if you have a stable source of income your chances of approval will be higher.
2. Easy Access to Financial Assistance
Lenders not only provide your bad credit loan but also have access to finance associates that help you repay the loan. They also guide about managing the expenses to avoid any further decrease in credit score.
3. Borrowing a Huge amount is Possible
We always suggest borrowing the amount which you need. But if you have a stable source of income and you have the capacity to repay, you can also borrow a huge amount as well. However, you should not forget to review the interest rates as we have already discussed that normally bad credit loans come with huge interest rates.
4. Adaptable Conditions
Choosing the correct lender leads you to a loan that is customized to your circumstances. So be careful when choosing a bad credit loan and explain all your financial conditions to the lender. They may reconsider the loan amount among other conditions like time period, flexibility, interest rate, and any other additional charges.
Also, make sure to take your time to select the best offer according to your financial need and do not risk again while already having a bad credit score.
5. Receive Funds without any delay
The best thing about bad credit loans is you can borrow an amount in any emergency condition. There are many options available for borrowers to get the amount to their bank account 24 hours after finalizing the deal. Payday loans and other unsecured loans are easier to get with a bad credit score.
Frequently Asked Questions (FAQs)
1. What is an Annual Percentage Rate (APR)?
While applying for a personal loan, auto loan, or mortgage loan, APRs are also an additional rate you have to pay yearly. The annual Percentage Rate is the total amount of interest, which also includes some extra charges according to your loan type.
Generally, APR is 0.1 to 0.5% higher than the interest rate and more expenses associated with it will be higher too. APR rate can be lowered if you negotiate with the lender. Furthermore, try to convince the lender not to impose the first APR and get the rate down as much as possible.
2. Which Loan is good to go with? Secured or Unsecured?
Secured loans are more common than unsecured loans with bad credit. In secured loans, lenders keep something as collateral like your car, jewelry, or your house. These are for guarantee purposes that the borrower will do his best to repay the loan amount to get back his items. The lender also has the peace of mind that his lending amount is safe in any condition.
Unsecured loans do not require any guarantee, but these are with higher interest rates. Unsecured loans were backed only by the borrower’s promise to repay. Credit cards, personal loans, and student loans fall under this category.
3. What happens if a loan application is refused?
Keep in mind that do not rush for another loan option when your loan application is refused.
If you do so in a short time, it will tell lenders you are in desperate need of a loan which can lead them not to lend you money or impose strict terms and conditions. Ask the lender why they refused and they will better assist you and the answer might help you make successful applications for the next time.
4. What is the importance of a Credit Report?
Before lending you the loan amount, lenders take a closer look at your credit report and your previous financial activities. In case of a bad credit score, lenders are more concerned to take a look at your credit report to see if you have any delayed payments. An excellent credit report always enables you to bargain on the lender’s terms and conditions.
Take-Home Recommendations from MoneyMutual
MoneyMutual – That’s the end of our detailed review on bad credit loans. We hope you have got all the solutions to the questions in your mind. If you are having bad credit, the loan options are limited. But that doesn’t mean that you have to settle yourself with an unreliable lender.
Online platforms like MoneyMutual are excellent in providing great loan deals which suit your financial requirements. Make sure to negotiate with your lender about interest rates and terms and conditions, so that in the end you can repay easily.