The next step is searching for the best lender for yourself. Once you have found the right lender, it is time to undergo a soft credit inquiry. A soft credit inquiry has no negative impact on your credit score.
The hard credit check is applicable only when you finalize an application or offer for a loan. You generally do not want to have your credit pulled too many times as that can have a negative effect on you overall credit score.
Read the terms and conditions of the offer carefully before signing it. Make sure that you are able to pay back the loan that you are borrowing.
Are Payday Loans A Bad Idea?
Did you know that you can get a payday loan regardless of your credit score? Although this is the case, we don’t recommend this option. Payday loans can be extremely expensive to pay back, and often come with unfavourable terms.
Payday loans may seem like a good idea. However, as you explore further, you will see that they are not a good option for you. This is because the annual percentage rate of interest is excessively high (up to 300% to 400%). Also, if you fail to pay according to the given schedule, you will have to pay extra charges and fees.
We strongly recommend looking at multiple lenders through MoneyMutual. Look and see which lender best suits your needs. Look to see what their interest rates and terms and conditions are. Do not go with a bad credit lender that offers you unfavourable terms. Rather, select a bad credit lender that will offer you terms and conditions that you are okay with.
If a lender promises you they won’t do a credit inquiry, or credit score does not matter for them, it is a payday loan they are offering because the legit lending platforms will not tell you this.
- Amounts are small
- The repayment schedule is short.
- APR is very high.
If you observe one or two of the variables above, there is a good chance that it is a payday loan.
Some Important Facts Regarding Emergency Loans
If this is your first time borrowing an emergency loan from a lender online, there are a few major things that we would like you to know about.
- There are no guarantees in life. That being said, when you apply for a bad credit loan, you are not guaranteed that you will get an approval for a bad credit loan. No platform gives a full and final guarantee for a loan. In fact, these websites have put on a disclaimer saying you might not find your lender on their site. This applies to you even if your credit score is favorable.
- An aspect that a lot of borrowers appreciate is that most of these online lenders do not run a hard inquiry on your credit report and let you go through all of the available options. This is probably the most important point here as you read this. It is so important because this does not and will not impact your credit score in a negative way.
- To get your emergency loan as quickly as possible, finish the paperwork immediately once you get the approval.
- Do you know the difference between are internet payday loans legal in Louisiana a secured and unsecured loan?. Although the secured loans have lower APRs, there is still one risk involved in them – losing your belongings if you fail to repay the loan since secured loans require collateral. In contrast, unsecured loans charge higher APRs but require no collateral. (If you did not understand this point, please read this again)