There are a variety of lenders offering fair credit loans. This type of loan is designed to help applicants who have had a bad credit history. However, these loans are more risky than conventional loans, so you may need to pay a higher interest rate or additional fees. These loans can be used for unexpected emergencies, but they should be used carefully. If you have a bad credit history, you will need to use this type of loan wisely.
You should be prepared to provide basic personal information in order to get an instant decision. This includes your name, address, social security number, and repayment plan. Lenders also need to know your income source. Once you have submitted an application, the lender will review your information and determine if you are eligible for a loan. Most lenders require between 1 and 7 business days to make a decision.
After the lender has approved your application, you will be asked to sign a contract electronically. The lender will then transfer the loan funds to your bank account. It is best to find out more about a lender before applying. Make sure that you are aware of any hidden costs or fees before you sign a contract.
Another option is to consider a credit card with a 0% intro APR. These cards can be helpful for people who are worried about making payments. Those with a good credit score can benefit from a 0% intro APR, but those with a bad credit score may not qualify.
While a credit card can be a great way to get cash on short notice, they are not a long-term solution for your debt. Fair credit loans, however, are available, and can be a good choice for those who are in need of money.
Many online lenders offer instant approvals. Some even offer the prequalification feature, which allows you to check rates and loan limits before you apply. For example, LightStream by SunTrust Bank advertises same-day funding. In addition, Avant offers personal loans for people with poor credit. This company uses Artificial Intelligence (AI) to automate the loan approval process.
Depending on the lender, you may need to pay an origination fee. This fee can be a flat fee or a percentage of the loan amount. Other lenders will waive this fee. Additionally, some lenders will require you to pay a prepayment penalty if you pay the loan off early.
Getting a personal loan with a low credit score is possible, but it’s a riskier option. The interest rate can be high, and you can also face a prepayment penalty if you pay off the loan early. Credit unions are usually more lenient, and are less likely to charge an origination fee. Also, some credit unions offer longer terms than other lenders, so you can keep your monthly payments lower.
There are other factors to consider when selecting a fair credit loan, including the total amount you want to borrow, the interest rate, and fees. Your credit score and other income factors can make a difference as well.