Emergency Loans Bad Credit Direct Lenders
An emergency loan can be your saving grace when hit with an unpredictable obstacle. No one’s life is free from unexpected doctor’s appointments, sudden job losses, late rents, or even weather-related events.
If you don’t have enough savings or other liquid assets to cover unplanned expenses, an emergency money loan can be your best friend. However, with bad credit, things can be a bit tricky, yet not impossible. Continue reading to know how to get an emergency loan even with bad credit.
Why Choose Direct Lenders for Emergency Loans?
Seeking an emergency loan from a direct lender is beneficial in many ways. When you dismiss the step of finding a loan broker or lead provider, you save yourself the time wasted on three parties instead of two. You can file an application instantly and get your fund quickly with fewer steps in between.
Moreover, you’ll have the freedom to look for as many providers as you want until you settle for the one with the best terms and conditions, not the ones provided on your middleman’s shortlist. Not to mention you’ll be saving the additional costs you’ll have to pay the broker for their extra service.
Emergency loans come in many forms, but the best and most secure ones are unsecured personal loans. The said 1 hour payday loans can be issued and wired to your bank account within the same day -or the following business day- of the application so that you can attend to your emergency as soon as possible.
Usually, they have lower interest rates than credit cards, with an average rate of 12.4%. They’re also better than payday and auto title loans, whose interest rates can reach up to 300-400%.
Depending on your credit score and financial history, the lender will determine the rate of your loan. People with epic scores can get interest rates of less than 2%.
Apart from the speed and affordability, you get many advantages from taking out an urgent loan bad credit from direct lenders.
For instance, since lenders want to attract customers, they tend to offer tailor-made plans to fit every individual’s budget. Finding the best deal won’t be much of a hassle, even if you’re in a hurry for the fund.
The terms and conditions they offer are more flexible, too. Most direct lenders offer emergency loans, ranging from $100 to $2,000 that you can repay in monthly instalments over a period of 2-5 years. However, some lenders go as far as offering up to $10,000 for you to cover higher expenses. You can get terms that allow you to pay over a period of seven years, as well.
Last but not least, some direct lenders consider high credit scores a non-obligatory condition, which takes us to our next point.
Emergency Loans (Bad Credit) – Direct Lenders
Direct lenders know that not everyone is blessed with credit scores that go above 700. Also, they understand that some people haven’t borrowed money in the past or used credit in many years, so their reports feature blank pages with no financial history to be judged with.
Just because you made a few mistakes in the past doesn’t mean you have no way of covering the gap in your savings. Some direct lenders are happy to help in such situations. Instead of basing their opinion on your score and past doings, they use other data to get a better idea about your ability to repay.
However, you’ll still be a risky client to them since they have no clue in their hands that proves you’re responsible with the money you borrow. So, most of the time, you’ll be offered loans with shorter repayment terms and higher interest rates. Also, the amount of money you can borrow will be limited, but you can still get enough to cover an emergency.
Our advice is not to jump into the first offer you find. We understand that in an emergency, it can be tempting to accept any offer you can lay your hands on, even if the terms and rates translate into a nightmare. Yet, with a bit more shopping around, you can find lenders with more flexible requirements and decent rates.
An excellent way to do that is to submit your information and get quotes from multiple lenders so that you can compare and choose the best terms before you commit.
How Can I Apply for an Emergency Loan with Bad Credit?
As we said before, direct lenders may disregard your credit score, but they’ll require other data and documents. You’ll be asked to provide the usual things:
- Proof you’re 18 years or older.
- Proof of identity and permanent residence in Australia.
- A valid UK current account and telephone number.
Additional papers are required to prove your ability to repay:
- A recent bank statement: A read-only copy of your bank assessment that shows your banking transfers for at least 90 days.
- Proof of income: An employment contract or evidence of Centrelink payment. In the case of the latter, you have to show that 50% of your income comes from a source other than Centrelink.
- Copies of your tax returns for the past two years.
Even after submitting all these documents, you may not be granted the loan. Remember that the better you plead your case, the higher your chances of getting approved. Lenders need to be sure that you’re serious about the loan you’re requesting and the repayments.
Providing proof of your emergency may convince lenders to give your application more thought. For example, if you’re taking out a loan to cover a medical situation, try including the hospital bills in your application. If it’s for a relative’s funeral expenses, show them the death certificate, and so on. We also have bond loan for bad credit here at Perfect Payday.
Can Bad Credit Emergency Loans Fix My Credit Score?
That depends on how you’re going to deal with the loan. Sure, taking out a fast loan may have a bad impact on your already hurt score. However, with on-time payments and responsible use of the loan through the lifetime of your debt, your credit score can recover significantly. It may even get higher than when you first applied for the loan.
However, the opposite is also true! Late payments and defaults will further bring your score down, nullifying your future chances of taking out emergency money loans bad credit. For this reason, even with an emergency at hand, make sure you’re in good shape to pay back the money you owe. If not, you’ll be doing yourself more harm than good.
Before You Take the Jump
When life throws you a curveball, you’ve got to be prepared. An emergency cash loans unemployed no more hassle is accessible even for customers with bad credit. You only need some patience and a little bit of knowledge to work around the rules.
Keep in mind that shopping around for the best lender won’t hurt your score. All it takes are a few soft inquiries that don’t leave any marks in your report. Only worry when there’s a hard credit check waiting for you upon submitting the application.
Also, more often than not, direct lenders will offer you the option of either a fixed or a variable rate. A variable-rate may look tempting at first since they’re usually lower than fixed ones.
However, by taking them, you expose yourself to future rate increases and unpredictable raises in your debt burden. A fixed-rate may not be appealing at first glance, but it’s always a more secure solution. If you need centrelink loan assistance, apply for one today here at Perfect Payday.