Easy tips to help you apply for bad credit loans

If you have bad credit, but still need to apply for a loan for a car, to pay bills or any other reason, you will have to apply for what are known as bad credit loans. These are loans to people that have poor credit, and could even be a credit risk for the lender.

Applying for bad credit loans is often more complicated than applying for a loan if you have good credit. It does not have to be impossible, though. Not if you follow these easy tips.

A loan with longer repayment terms — One of the first signs of a lender that is going to cheat you is one that offers you bad credit loans with a very short repayment term. These terms can be as short as seven days.

Look for a lender offering repayment terms over several months or longer, however, and you are much more likely to be dealing with a legitimate lender that will not cheat you.

A loan with affordable interest rates — The sign of a disreputable lender is one that charges outrageously high interest rates. Interest rates that kick in the minute you accept your new loan.

Of course, with any bad credit loans, your interest rate will be higher than if you had good credit. It should not be exorbitantly high, however, which is why you should only take out a loan with a lender offering interest rates only a few points above the average.

A lender that reports your payments to a credit bureau — You are only eligible for bad credit loans due to having bad credit yourself. This is why you need to improve your credit rating as fast as possible, so that you can be eligible for new loans without the high interest bad credit loans charge.

One way of doing this is getting new credit and paying it off responsibly. Those payments need to be reported to a credit bureau, however, or they will not help you improve your credit rating. This is why you should only take out a bad credit loan from a lender that reports all your payments to a credit bureau. If you are not sure, ask them before you agree to a loan.

Lenders that run soft credit checks — Every ‘hard credit check’ that is made by a lender on your account potentially affects your credit rating in a negative way.

This is why you should only ever apply for a bad credit loan from a lender that runs what is called a ‘soft credit check’, for example see NeedMoneyNow. This is a check that allows the lender to see what kind of risk you are likely to be, but does not negatively impact your credit rating in any way.

Only ever accept a loan from a lender doing a soft credit check. Otherwise, you could end up with even worse credit than when you started looking for a loan.