Why is it that millions of Americans opt personal loans with bad credit when there are other traditional lending options? In fact, online loans account for about 32% of the 32 billion short term loan industry in 2010. One of the main reasons why this is so is because there are not a lot of documents needed to get personal loans with bad credit approved. You only have to prove that you are currently employed, and you can show that you can pay back your loan within the term, and you certainly have a good chance of getting approved.
Moreover, personal loans with bad credit work independently from your credit history. So it doesn’t matter if you a bad credit score or no credit history at all. There is no credit check needed. As long as you can satisfy the primary requirements, which includes employment, US citizenship and age, then you’re good to go.
Understanding the Maximum Amount
There are a couple of things that you need to know about personal loans with bad credit, though. First, the maximum amount that you can loan is just that – the maximum. It is not the same amount that you would get approved as personal loans with bad credit. Also, you may not get the amount that you applied for.
The size of your personal loans with bad credit (primary amount plus fees) must not exceed 20% of your total income. This is to ensure that you will have enough to pay for your loan within the agreed term. This is also the same reason why even the best lenders would need 24-48 hours turn-around time to review your application and calculate the amount that you will be approved for.
State-Specific Personal Loans with Bad Credit
Second, be aware that there are thousands of lenders online – each having their own terms and guidelines. Understand that online lenders are regulated by the state where they operate in, and they should only offer their services within the areas where they have the license to operate in. So when searching personal loans with bad credit, specify your location to find only the lenders that operate in your location.
Using Third-Party Companies to Choose Lenders
Now even if you’ve already specified your state, you will most likely be greeted still with thousands of options. If this is the case, then you can use the services of third-party companies who can match you with the best lenders within your area.
Hence, you don’t have to scour the Internet for lenders and then read their reviews. You can just focus on one site and launch from there. Good luck on finding the best personal loans with bad credit for you.