Unfortunately, life doesn’t care about our credit scores. People can still be impacted by everyday occurrences like medical emergencies, troubles with vehicles, and other unexpected expenses. When this happens, you want to know that you have access to funds if you need them.
So, what kind of options do you have if you are facing the perfect storm of bad credit and no access to backup funds? You might think you’re out of luck, but you’ll be happy to know you still have options with the top 5 short-term loans for bad credit of 2020. People with bad credit may believe the misconception that their options are severely limited, but this isn’t always the case.
What kind of short term loan options are available for bad credit?
You’ve probably seen the commercials on television talking about payday loans and other options geared towards folks with bad credit. The problem with payday loans is that they are meant to be paid in full in a matter of weeks, or maybe a month at best. For some folks, they may not have the funds to repay the entire loan in full in such a short amount of time.
Luckily, payday loans are not the only option available for folks with bad credit who need money right away. You still have options to consider, and you can find some of the best options for you by checking out resources dedicated to online lending networks, such as Let Me Bank, to help you get matched with lenders based on your specific needs.
With that in mind, what options do people with bad credit have when they are looking to get a short term loan, without having to resort to payday loans?
Cash Advance Loans
If you have had unexpected expenses come up, and need a little bit of cash on hand to help get you through the month, then you might find a short-term cash advance loan to be an option to consider. Some cash advance lenders offer flexible repayment options, with some repayment ranges spanning several weeks to even a few months, allowing you to have an ample window of time in which to pay back your loan.
You’ll usually need to meet a few prerequisites to qualify for these loans, however. These usually include:
- A checking account: You’ll have to provide your banking information so the lender knows where to send your funds through direct deposit.
- Proof of income: Most lenders require you to have proof of your income so they can verify that they will get their money back. This income can be counted whether you get it through your employer or even through the government.
Keep in mind, short term loans typically have significantly higher interest rates for folks with bad credit, so make sure you consider this when deciding whether it is personally worth it in your situation.
Installment loans are also an option for people with bad credit. This is usually a more attractive option, because many installment lenders are a little more flexible with the payment schedule. These loans can be paid out almost like a credit card bill, in that you can pay a minimum amount each month until the loan is fully paid off.
You will typically have a date that the loan should be paid off by, but it is usually months ahead, allowing you to plan your payments ahead of time. You should look at some of the fine print, however, and find out whether the loan’s interest is charged month-to-month, or if it is paid in a lump sum. Every lender is different, so make sure you know the smaller details before signing any documents.
Bad credit doesn’t mean you’re out of luck
As you can see, you have several options when it comes to getting access to short term loans, even if you have bad credit. While interest rates and other fees may be higher, you will still find these loans to be more flexible and easier to manage than payday loans.
With the right planning and making sure to pay your loan back in full, you’ll be able to rest easy knowing you have access to the money you need in emergencies, and paying your loans off on time will look great on your credit report, too.