Having good credit is considered by many to be a badge of honor. It means you pay your bills on time and probably have a decent income. A good credit score means you pay less in repayments and can even affect rates for other bills like insurance. It can even be considered in job promotions and new hires.
A poor credit score can hold you back from opportunities, including getting a personal loan. Yet, it doesn't have to be the final word because some companies specialize in working with people who have bad credit.
All credit is associated with a FICO, or credit score. This is a score produced by one or all of the three major credit bureaus which are TransUnion, Equifax, and Experian. While all three will probably show similar scores, each will have its own score based on specific factors such as length of loans, amount of debt, and how many payments are missed, late, or paid on time.
The FICO scoring system goes from 300 to 800.
Many people with poor credit may think they are one of the few in that range. The truth is 25% of Americans have either poor or fair credit with scores that range from 300 to 649.
Many people mistakenly assume that bad credit is always a result of financial irresponsibility, but this is not necessarily the case.
Various factors can lead to a poor credit score, such as job loss, significant medical expenses, divorce, death, or other unforeseen circumstances. Despite having bad credit, some lenders are still willing to provide personal loans to those who are in this credit range.
A personal loan is typically an unsecured loan or a loan that you don't need collateral to get. Your signature is the guarantee on the loan along with a review of your credit score, also referred to as a hard credit inquiry. A bank or other financial institution can lend you money with a personal loan that can be used for a variety of purposes.
Every institution has its own set loan amounts for these types of loans and those can typically range from $1,000 to $50,000.
Financial institutions also have periods for repayment from a few months to five to seven years.
When it comes to personal loans, a certain set of factors are used to determine approval — these will vary by lender. These include annual income, payment history, and debt-to-income ratio. Your income doesn't have to be high, but lenders want to see that you have a reliable source of income.
Lenders will also look beyond your credit score at your payment history and may ask for an explanation if they see a sudden change from on-time payments to missed or late payments. This is where you can tell your story and explain what caused the struggle.
Debt-to-income ratio is a crucial factor that lenders consider when evaluating personal loan applications. This is the percentage of your income that goes towards paying off debt. Lenders generally prefer this ratio to be below 30%.
Applying for a personal loan can be stressful as some banks and financial institutions require past tax statements, pay stubs, and bank statements from the past three to six months.
Another challenge is that most institutions prefer larger loan amounts, whereas some people may only need a few hundred dollars to cover an immediate need. However, times have changed, and online financial institutions now offer competitive loans to people who need money for various reasons, including those with poor credit.
Online financial institutions like Simple Fast Loans have changed the process of getting personal loans.
Traditional banks started implementing tighter lending criteria a few years ago but online-only lenders like Simple Fast Loans opened up a bundle of opportunities for online banks and lenders to help those denied by banks get personal loans.
Most banks require at least a 600 credit score to even consider someone for a personal loan but Simple Fast Loans will consider those with lower credit scores. Web-based lenders can also offer quicker decisions and access to loaned money faster than your local bank.
Simple Fast Loans, for instance, offers a decision in just minutes once the system verifies the information given to it about your identity, income, and banking information.
Simple Fast Loans offers loans from $200 to $3,000. Like all personal loans, no collateral is required and the repayment periods are flexible, which means the lender will work with you to pick an accommodating date of repayment.
That gives you more control over the final agreement and knowing the repayment date is the one you pick should eliminate a lot of stress.
Personal loans with Simple Fast Loans can be used for things like paying for a home improvement, buying a new home appliance, paying a utility bill, car repairs, medical emergencies like an emergency room co-payment, or other urgent financial needs.
It could make a difference if you have a refrigerator that breaks down, need new tires for a car, or a new water heater for your home.
Simple Fast Loans makes the process easy to apply for a personal loan. The first step is to fill out an online application where information is verified. The website program will determine your eligibility in just a few minutes.
Those approved will get the paperwork to sign electronically. That can be done on the Simple Fast Loans website or the paperwork can be accessed through a link sent to an email. You just follow the instructions on the screen to work through the simple paperwork to sign or initial highlighted spaces.
It is a completely guided experience so you don't need to worry about being confused by the paperwork.
You will be sent a text stating your signed loan agreement has been received and your loan is being funded. Once you are approved, money is deposited into your bank account either that day or the next business day.
Applying with Simple Fast Loans is much easier and less stressful than going through a bank or a traditional institution. Those types of personal loans require a lot of paperwork and you have to wait for days, maybe even weeks, to see if you're approved.
With Simple Fast Loans, you can apply from the comfort of your home on your laptop or computer. You can also manage your account from the website so you will always be able to see how much is paid and when the monthly bill is due.
You can make a payment through the website account also. Simple Fast Loans sets up loans to be paid with recurring, automatic payments but you can pay it off early or make additional payments. There isn't a pre-payment penalty so paying off a loan early is another way to save money.
Simple Fast Loans will electronically verify three things to consider you for a personal loan. It will verify your identity, income, and your bank account information. All personal information is securely transmitted and remains secure.
Applicants will also be required to provide a Social Security number and income statements to verify regular pay. You will also need to submit banking information to instantly verify your banking account is active so money can be deposited directly into it and payments can be made from it.
Simple Fast Loans provides personal loans to those living in 26 states including Alabama, Alaska, Arkansas, Arizona, California, Delaware, Florida, Idaho, Indiana, Kansas, Kentucky, Louisiana Michigan, Minnesota, Missouri, Mississippi, Nevada, Ohio, Oklahoma, South Carolina, Tennesse, Texas, Utah, Washington, Wisconsin, and Wyoming.
Simple Fast Loans is a no-hassle way for those with bad credit to get access to personal loan options to meet their needs. Other benefits of using this lender are it has a live chat and a customer service phone number so you have two ways to ask questions or address other concerns.
Customer service representatives are friendly, and helpful and do all they can to address all questions and concerns.
The online form makes it easy to apply for a personal loan, even if you have poor credit. It only takes a few minutes to submit the information. Simple Fast Loans never makes you feel bad about your credit score! It is a no-hassle way to find a personal loan that will meet the needs of your current situation.