What you should know about loans with bad credit is that while they are easy to get, you do pay for the convenience with something else. And that something else usually means higher interest rates and short payment terms.
These loans with bad credit are usually in the form of payday loans, which you pay on your next payday, or cash loans, which are no-collateral loans that you pay after a month or so.
If you’ve ever been on the lowest possible side of the credit score scale, then you already know how difficult it is to get a loan from the bank, and you’d be lucky to have friends or relatives who will loan you money.
But bad credit loan companies have been the silver lining in the dark cloud called “no access to credit”. But again, as we said before, you pay for this bright spot with higher interest rates and short payment terms. How high are we talking about? Well, if you make some calculations, you will see that the interest rate could be as high as 300% per annum. That’s higher even when you compare it to the most expensive bank on the planet.
However, you can – and should – get loans with lower interest rates simply by comparing the terms and conditions of at least three different lenders. So, when you’re ready, search for a portal website where you can apply for a loan once and then get a quote from at several lenders with that just one application alone.
More than the interest rates, you should make sure to compare the terms of the loan. There are some creditors out there that offer interest-free loans if you can repay the money within 30 days. Try looking for these loan companies.