If you need cash quickly but don’t have a high credit score, direct lenders are an ideal solution. You can find them online or in store and receive your money the same day.
These lenders provide unsecured personal loans without the need for collateral, offering lower interest rates and more flexible lending terms than secured loans.
Debt consolidation
Are you struggling with high interest rates on credit cards and other unsecured debts? A debt consolidation loan may be the solution. These loans pool multiple unsecured debts into one payment, helping simplify finances and pay them off faster.
Debt consolidation can also reduce your overall debt load by helping to avoid late payment fees and adverse credit reporting. It simplifies budgeting by reducing monthly payments and making them more predictable.
A good credit score makes it simpler to qualify for a debt consolidation loan and receive the best rate. Unfortunately, if your score falls below 500, you may need to settle for a higher APR.
Prequalifying from multiple lenders is the best way to determine what kind of interest rates and loan amounts you can expect. Most online lenders provide this service, which is a soft credit check that won’t affect your credit score.
Home improvement
Home improvement projects can be an excellent way to spruce up your house and increase its value, but they may be difficult to finance if you have poor credit.
Fortunately, there are several financial options that can help you finance your home improvements without breaking the bank. One option is a personal loan – an unsecured loan without collateral requirements.
Another option is a home equity loan or HELOC, which lets you take out credit against the value of your home. These types of loans often have lower interest rates than personal loans and can be used for various home improvement projects.
Utilizing these loans responsibly is key for building a healthy credit score. Maintaining low total debt utilization, making all payments on time, and disputing any errors can all help boost your score.
Medical expenses
Medical expenses can put a major strain on your finances. Even if you have insurance, you may not be reimbursed for all out-of-pocket costs incurred.
To help offset these expenses, the IRS provides several tax benefits that will allow you to keep more of your hard-earned cash. Here are a few to take into account:
One of the best ways to reduce medical bills is by taking advantage of an HSA or high-deductible health plan. These allow you to set aside pretax funds for qualified expenses like premiums and deductibles.
One way to reduce your deductibles is by opting for out-of-network coverage when possible. This could save you hundreds or even thousands of dollars annually in copayments, deductibles and out-of-pocket expenses.
The IRS allows you to deduct a small portion of your medical and dental costs from your taxes, though the threshold has been reduced from previous years. To learn more about this tax break and other ways to save, read IRS Publication 502 — the official guide on claiming top-rated medical expenses on your taxes.
One-time expenses
Unsecured personal loans for people with bad credit offer funds to cover small expenses like one-time car repairs or past-due utilities. While these funds are generally not intended for major purchases, they can provide a much needed lifeline to borrowers who are having difficulty making ends meet.
The application process for an unsecured personal loan is usually straightforward and fast, though it could take up to a week before you receive your funds.
Another factor to consider is that unsecured personal loans typically carry higher interest rates than secured ones since lenders lack collateral to offset the risks involved with lending money.
In order to be approved for an unsecured personal loan, you must have good credit and sufficient income. Furthermore, your payment history plays a significant role in your FICO score as it accounts for 35% of it.