All you need to know about loans for bad credit

Posted on jan. 31 2022 By: Oneblinc 5 min. read

If you’re a person who’s constantly discouraged by your credit history and already gave up on the idea of using credit for achieving your life dreams, this post is for you. You should know there are still good options for you: loans for bad credit!

It is true that having a low credit score is an obstacle for most of our wishes. Without good credit, it may be difficult to buy a car, a house or get a loan for various purposes, among other things. 

Credit history is at the heart of our financial system. It is very important to know how to take good care of your finances and be in control of your credit history. In order to help you start rebuilding your financial plans, we’ll teach you everything you need to know about loans for bad credit. Let’s start!

What are bad credit loans

Bad credit loans are a special type of loan aimed for people with a low credit score or a bad credit history. These loans are offered by a number of financial institutions that establish easier application conditions.

Applicants for bad credit loans must have a low credit score, i.e., a credit score within the range of 300 to 669. However, you should know that having a low credit score gives you access only to loans with higher fees and higher interest rates. Thus, loans for bad credit should be used only under the right circumstances.

Types of bad credit loans

There are different types and categories of loans with bad credit. They’re adequate for different circumstances and different needs. It is very important for you to know more about the available options. We’ll comment about them in the following:

  • personal loans: these loans can be used for various purposes, such as mortgages and cars. There are two basic types of personal loans: secured and unsecured. The former requires collateral as a guarantee and offers better interest rates, the same does not apply to the latter;
  • payday loans: these are short-terms loans, usually used by people who need fast funds. The fees for payday loans are very high and the repayment is usually expected by your next salary;
  • cash advance loans: these are also short-terms loans, usually offered by credit card companies. This is a kind of quick loan for bad credit, for it uses your own credit card to borrow money. 
  • students loans for bad credit: this is a not very common option, but one everyone should know of its existence. If you need to borrow for some educational need, there are student loans that offer good terms and conditions;
  • bank agreement loans: some banks also offer short-term loans for people with bad credit. However, it is still required to have a good relationship with the bank. If you’re interested, you should check with your bank whether they offer this option;
  • home equity loans: these loans offer a good amount of money upfront, but require you to pay in fixed monthly installments. Home equity loans usually use your residence as a collateral. Therefore, you should be very careful when applying for these types of loans.

There are still other types of bad credit loans, such as loans for bad credit businesses, loans for emergencies, and other kinds of needs. If you’re going through some financial difficulty, get informed about your options.

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When to use a bad credit loan

Due to the high interest rates and different conditions of repayment, one must be very careful in applying for a bad credit loan. You should consider applying for a bad credit loan only in certain occasions, such as:

  • emergency situations;
  • education;
  • debt consolidation;
  • home repairments.

In all these situations, you’ll be using your loan as an investment into important aspects of your life or as a tool in helping you deal with difficult situations of life. This shows that loans for bad credit are very useful for our lives.

How to get a bad credit loan

Applying for bad credit loans is not a complex task (there are even loans for bad credit online). However, you have to be careful before taking the decision of applying for a loan. There are some tips that can help you through this process:

  1. Check your credit score and constantly take action to improve your credit history;
  2. Decide which category of bad credit loan is the most suitable for your needs;
  3. Make your search about which institution offers the best loans and the best repayments conditions;
  4. Check all the conditions for repayment and all requirements for eligibility;
  5. Be sure that you can repay all the debt;
  6. Start your loan application;
  7. Wait for the approval.

Another important point is to be cautious and suspicious of bad credit scams. Always remember to be well informed before taking any financial decision. Check the credentials, the clients, and everything you need about the institution of your choice. If you have doubts, look for a specialist.

Apply for your bad credit loan with OneBlinc!

Loans for bad credit are the best options for people with a low credit score. Applying for these loans may help you with emergencies, debt consolidation, education, home remodelling and other needs.

If you’re considering applying for a bad credit loan, the OneBlinc team can help you with choosing the best option according to your needs. You’ll be guided to take the best decisions for your financial health.

About us

Unexpected things happen more often than we would like them to. That’s why OneBlinc is here to help, whether you have an emergency or just need that extra cash to go through the end of the month. We believe in people, and we understand that everyone might need money someday, somehow.