When the economy is not incredibly strong, like it is now, people often find it difficult to get any type of credit, because they have built up a poor credit history. This doesn’t mean, however, that they are incapable of getting credit. The only way to do this, however, is to go through non-traditional lenders. These are the types that care slightly less about your financial history and may be willing to offer you some sort of finance. This is known as an installment loan direct lender. So what does all of this mean?
Applying for Short Term Installment Loans
If you want to be able to receive an installment loan, you will need to prove that you are employed. You have to demonstrate that you have a regular income, as this shows that you will also be able to pay your loan back. Similarly, you need to show that you have an active and valid bank account into which your salary is paid. If you meet these two basic requirements (as well as being over 18 and being a legal and permanent resident of this country), you should be able to successfully apply for this type of loan.
You know that you have bad credit, but you should look into just how bad that credit actually is. You can do this by looking up your credit score through the various credit reference agencies. The worse your score is, the harder it will be to be accepted for a loan and the higher your interest rate will be. However, no matter how bad your score is, so long as you meet the requirements above, solutions will be out there for you.
Unfortunately, these types of loans do have incredibly high interest rates. Some people feel this is unfair. After all, they already have poor credit and making it near impossible for them to pay their loan back will only make this credit worse. Unfortunately for you, however, lenders see it differently. Essentially, they expect that you will not pay the loan back. Hence, by charging a high interest rate, they are more likely to recoup the money they borrowed you.
One solution that you may look into, however, is a credit union. If you are a member of a credit union, they may be willing to offer you a loan and they do not charge high interest rates. However, the amounts that they are willing to borrow you are very low and it may take you quite some time to prove that you are worthy of more credit.
The best place to look into the options that are available to you is online. There are hundreds, if not thousands of websites directed specifically at loan products for people with bad credit. However, you need to be very careful to not be taken in by a fake broker, which is essentially a company that will take your money in order to look for a lender for you that they know they will never find.
