Frequently ASked Questions - FAQ
Some individuals have bad credit and that do not quite understand what it is. This article is going to cover the most common questions that people have about bad credit and bad credit loans.
What is a Bad Credit Loan?
A bad credit loan is a type of loan available to someone with a poor credit record. In many cases, they have failed to pay back loans in the past or have a count of bankruptcy on their record.
How Much Can I Borrow?
It depends entirely on the lender and the laws of the state. Each application is scrutinized individually so it depends just how poor the borrower’s credit record is. The better the credit record the more money you can borrow.
Is There a Fee?
A bad credit loan normally carries a fee in the US. This is applicable to each loan and differs between lender and state. Some lenders, for example, charge no loan fees. It’s independent from the interest fee and applies regardless of the status of your credit record.
What are the Interest Rates?
Every application is placed under individual scrutiny. The outcome of this analysis determines the interest rates. If you have a particularly negative credit record you can expect to pay slightly higher interest rates. Those with better records get better interest rates. It also depends on the length of the loan and the amount borrowed. Speak to an adviser to get a better idea of the sort of interest rates you’re likely to get.
Do I Need Identification?
Yes, you need identification. In the US, you need your Social Security Number (SSN), a valid bank account, and proof you can make the repayments. Adequate proof can include a bank statement and a pay slip. Again, the level of identification differs between lenders.
Can I Repay Early?
Absolutely! There’s nothing to stop you from paying back the money early. Before paying back early, speak to a customer service agent and see if it’s the best option for you. In some cases, it’s best to simply let the loan take its natural course.
What if I Can’t Repay?
You can request a loan extension. The desire to grant a loan extension is entirely down to the lender. The extension will normally mean you have to pay back more overall, due to the interest fees. In the event you can’t pay the money back, even after an extension, the lender may take steps to settle the matter in court. This is a last resort and is only used when the borrower categorically has no chance of making the repayments and paying the loan back.