A short-term loan usually comes with a high-interest rate which is a hindrance that might discourage you from applying for it. Bad credit rating is another obstacle, as credit rating is the benchmark to gauge your financial stability. A credit rating shows your previous loan, its amount of it, and repayment schedule, with other parameters. Most lenders disburse the loan to individuals with good credit ratings. This is more pertinent to a personal loan as the loan is unsecured and not pledged by assets. But if you can prove some facts, you can avail loan in spite of a bad credit rating.
Capped at $5000
If you can establish you received a hike in salary or have another source of income, some service providers guaranteed loans for bad credit. The service provider connects borrowers with bad credit to genuine lenders who provide a loan with low interest. The platform unites the lender and borrower at agreeable terms but does not get involved in the financial transaction process. It is a digital platform facilitating financial services instead of products. Through the platform, potential borrowers contact willing lenders for a short-term loans. The loan amount is capped at $5,000 for a short period; the process is simple. The loan is disbursed after a minimal credit check.
Apply for a low amount
If you have a low credit score, apply for a lower amount of loan, it can be approved easily as the risk element is low from the perspective of the lender. If you are able to prove your income is consistent and your job is secured, the probability of granting the loan is high. But the interest rate may be high if you establish your financial credibility in this fashion. Asking high amount loan with a poor credit score makes the lender jittery and apprehend you may default. When the amount is on the lower side, the lender feels comfortable and disburses the loan without much scrutiny.
Assistance is provided
The service provider assists you in the process, and you avail of the loan in spite of having a poor credit score. The process of filling out the online application form is straightforward; after approval, the amount is credited to your bank account within twenty-four hours. Most customers who have used guaranteed loans for bad credit service states the service is effective and easy. The platform is effective for persons with bad credit scores but asking for a loan. On occasions, the loan is approved, particularly if the amount is small without a credit check. If there is a co-applicant or guarantor, the process becomes easier.
