Personal loans are considered as a godsend by all those who have had to face sudden emergency expenditures. Expenses like a large tax bill or even a car repair bill can take away your peace of mind. In such situations personal loans are a good option for some fast and hassle-free cash. Personal loans are unsecured ones and so the lender does not ask for a collateral submission, making it easy for many individuals to apply for the advance. If you are wondering if the lenders lend the amount based on one’s credit history, then quit worrying. Most lenders give loans even if you have had the misfortune of having a bad credit record.
Interested to knowing if you are eligible for the loan? Before we go ahead with determining your eligibility, let us first understand the nature of personal loans.
Nature Of Personal Loans
• Unlike a car or a home loan, a personal loan is an unsecured loan. This means that the borrower does not require putting any collateral as security.
• These loan amounts are also referred to as cash advances or payday loans. The amount is ideally supposed to be paid back within 30 days of getting it. In case the borrower is not able to pay back the loan, then he is granted a roll over (extension of the due date) at a higher interest rate.
• The amount offered by the lender cannot exceed $1500. This amount also depends on the income of the borrower.
There are a few requisites that have to be fulfilled by the borrower in order to be eligible for the loan. These are:
1. Age: The borrower should be not less than 18 years of age.
2. Income: He should have a minimum monthly income of at least $1500 per month.
3. Residence: He should be a citizen of the state he is applying from and should also be residing in the same residence for at least the past 3 months.
4. Other requirements: Other than the above, the borrower has to furnish his savings account bank details as well as provide a post dated check of the loan amount.
Personal Loans For Bad Credit Holders
Now that you are well aware of the requirements that have to be fulfilled in order to be eligible for the loan, it is important to understand whether your bad credit history would affect your loan approval or not.
In order to determine your eligibility for bad credit loans, you would first have to fill out an application. This application would request for your name, Social Security number, income proof and other financial information. Once you submit the application, the loan officer would determine your credit worthiness.
The good part with most personal loans is that they do not conduct a credit check on the borrower. So even if you have an extremely poor credit record, have declared bankruptcy in the past or have ruinous car loan records, you might still be eligible for the loan.
Making Your Bad Credit Loan Application More Appealing
Only a loan officer can assist you in making your loan application more appealing. He would encourage you to borrow a smaller amount so that you can make the payment over a long span of time. This would increase your chances of getting the loan and your monthly payments would also be considerably reduced.
Also ensure that you have a steady income when you apply for the loan. A steady income helps when it comes to getting bad credit personal loan grants. If you have changed several jobs in the past few years, be prepared for the rejection of your loan application.