Sometimes loans can be confusing and it can be difficult to work out exactly who or what they are for. With a bad credit loan, for example, you may wonder whether they are for specific people or if anyone can have one. Certain types of loans are like this and there are only certain people that really would want that sort of loan, however there are also a lot of general purpose loans as well. The name can indicate that they are only for people who have a poor credit score, but the loans are actually not just for these people. Anyone can apply for a loan and most people will be accepted regardless of their situation and needs. However, there are some people that they are better suited to and these will be explained in more detail.
- Poor credit score – a bad credit loan is suitable for someone with a poor credit score. Most lenders will do a thorough credit check to make sure that they feel that they can trust the borrower to repay the loan. They will want to be sure that the borrower will be able to repay it all in full. This means that if you have a bad credit score then you will not be able to get this sort of loan. However, it could be possible to get a different type of loan and there are actually quite a few bad credit loans. These will not consider credit score when they are deciding whether to lend you money and so you will be able to borrow even if you have not had success with finances in the past. However, a bad credit lender does not only take on people with poor credit scores. They will allow anyone to borrow from them, they will not worry about what their credit rating is like so you do not have to have a bad one but if you do then these loans will be the only ones that you can use.
- Need money quickly – With a bad credit loan you will be able to get the money that you want really quickly. It will be possible to get the money within a few hours with some lenders although this will vary and some might take longer. Some will even be able to get you money overnight or at weekends. This means that if you need money quickly, it can be a good plan for you to use this sort of loan. However, you need to be aware that it is not only for people that need money fast. You can delay applying a while if you are not in a hurry as you know that you will be able to get it quickly, so if you tend to procrastinate or not be that organised then this could be a good solution for you.
Want small amounts – a bad credit loan will tend to be for between £100 and £1,000 so if you do not want a lot of money it can be a good option. If you end up borrowing more money than you need then it can be expensive to do this. You will need to think about the amount that you need carefully. It can often be tempting to borrow more than you need so that you can spend a bit on something else. Try not to do this as it could make the loan unnecessarily expensive. Want to repay fast – if you want to repay your loan quickly then a guaranteed payday loan may suit you. These loans tend to be repaid when you next get paid in a lump sum. This means that you are likely to clear the debt in a few weeks on overage perhaps even perhaps a few days. This can be great for people who do like to be in debt for the smallest amount of time possible, However, there are some bad credit loans that can be repaid in instalments so they are not always repaid really quickly.
So, as you can see, you might think that the loans are specific types of people but actually they are quite flexible and have features that could suit all sorts of people. It can be easy to think that we are only really suited to certain loans, when we should be flexible. We cannot predict what our specific needs might be at a particular time and so we need to be open minded. We might find that at one particular time they will be the perfect fit but when we need to borrow again, they will not work for us. Therefore, it is good to make sure that we know about all types of loans and then we will be able to make the right choice when we need to borrow money.