In general, taking out a loan if you have bad credit is a bad idea. It is also unlikely that financial institutions will give it to you. On the other hand, if you are in debt and request a loan, you will affect your reputation as a responsible person, since you give the idea that you ask for money when you cannot pay it.
Who will lend you money if you have bad credit?
There are financial institutions that make loans without a bureau, that is to say: they do not check your history in the credit bureau or in the credit circle and they do not ask you to have an endorsement necessarily; but the loan conditions are not the best. In general, they loan you little money and with very high interest.
How are loans without bureau and without collateral?
Loans that do not ask you to prove an endorsement, guarantee or a good credit history are known as immediate, urgent, express or fast loans.
They can give you from $ 1,000 to $ 10,000, in terms of up to 90 days; But keep in mind that the sooner you pay, the credit will cost you less.
The good thing about these loans is that if you are a good payer, they can give you a wider range of payment conditions, which are better.
What are the risks of immediate loans?
In addition to the high interest paid for these urgent loans, there is a risk that you will run into fraud. Remember: if they offer you a lot of money with too easy conditions, there could be a trap hidden.
In order not to pay double or even triple the immediate loan you requested, it is very important to compare all the interests of each of the financial companies that provide this type of service.
Never give your data if you do not confirm that it is a reliable financial; If there is something as important as money, it is your personal data.
In which cases is it advisable to request an urgent loan?
If you have a real emergency and cannot find a family member or friend who can lend you money, immediate loans are an option to solve problems; but try to pay them off as soon as possible to avoid paying too high interest.
Paying your credit on time quickly will also help you create a better record, at least with the company that lends you, which could ensure that, in another emergency, they will lend you more money with better conditions.
Some recommendations to avoid problems with your immediate loan even before requesting it, are the following:
In conclusion: asking for a loan if you have a bad credit history is not such a good idea, because that means you have debt and a bad ability to pay. On the other hand, if you will use the money for a party or some non-emergency expense, avoid it at all costs.