Do you have bad credit and need a loan for a vacation, a medical procedure or school clothes? There are loans with bad credit available for people with bad credit. One such loan is a personal loan. This loan can be used for any reason, such as home improvements, auto repairs or to consolidate several bills. The list of uses for a personal loan are endless!
The interest rate on a personal loan can be high if you have bad credit; however, these loans help build good credit as long as the payments are paid on time. This is a great way to improve your credit score.
Most personal loans are approved quickly. In fact, many lenders are able to process your loan and give you your loan within a few hours. Lenders only need time to verify your residency, employment and credit history.
When you apply for a personal loan, the lender will need several items. You will need to bring in a Social Security card, a state issued photo identification card or a driver’s license, a paycheck stub and a utility bill in your name.
Once the lender receives this information, the lender will verify your identity, your employment and your residency. The lender will then order a credit report. Once this is completed, the lender will ensure you can afford the payments by completing a budget. If your budget allows for the payment and you meet the lender’s minimum credit criteria, you will qualify for the loan.
If you do not qualify for the amount you requested, the lender may offer you a lower loan. If you are trying to build up your credit, take the lower loan and make your payments on time. After you have developed a good credit history with the lender, you may qualify for a larger loan.