Local Credit Unions
People with bad credit scores often consider going to payday lenders when in need of financial loans. Most of them do not know a safer alternative to this, known as Payday Alternative Loan or PAL. These loans are available in two versions and are run by the NCUA. The first version of PAL is available for a maximum of $1000, and the second version is available for up to $2000.
Frequently Asked Questions (FAQs)
Generally, lenders use credit scores ranging between 300-850. However, if your Fair Isaac Corporation score is under 670, you will be considered a borrower with a reliable credit score. A FICO credit score of less than 580 is considered to be very low.
The borrowing party should never forget that applying for personal loans with a poor credit score can be very costly because of the high interest rates. You do not have much of a choice than to surrender to the lender’s terms of short repayment duration and small amounts of loan.
Q2. How much interest rate should a bad credit scorer expect?
As discussed in the previous question, FICO scores under 580 are considered bad credit scores. If you have a credit score less than that, be mentally prepared to face rejection as well as low pricing and high-interest rates. There is no confirmed rate of the APR, but you should be ready to expect something above 20%.
Q3. Where to get a no-credit-check-loan from?
No-credit-check loans are easily available from payday lenders and online lending platforms. These loans are super easy to qualify for, and almost everyone may seem eligible for them, but the interest rates that follow these loans are extremely high and have additional charges as well. So be careful while opting for them.
Q4. How can a person qualify for a no-credit-check-loan?
Generally, the sources who offer no-credit-check-loans run a background check when you apply for a loan. They check your monthly income, debt record, and level, plus your employment stability. Therefore, you must have stable employment with a low debt level as compared to your income level. Lenders get hold of such information via references, bank payday loans California accounts, and pay stubs, etc.
Q5. Are bad credit scorers eligible for no-credit-check loans?
Each one of the loans that we discussed above in this article is ticked for bad credit scores. But then some people borrow more than what they can repay. Although the lending sources ount of loan, you should be prepared to repay the amount considering your bad credit score. If you do not, that will create a financial mess for you in the future, and you will end up facing complications and consequences.
Q6. How fast can a person get a no-credit-check-loan?
It depends upon the amount. If you are asking for a small amount, you can get it within 24 hours to 42 hours minimum. But if you are demanding a large amount, it may take up to days or even weeks.
Q7. What is an unsecured personal loan?
You already know what a secured loan is. One in which you mortgage your assets worth the amount of the loan. In this type of loan, the borrower is at risk. On the contrary, unsecured loans do not require mortgaging any assets and bring the risk for the lender. This is why these loans are called unsecured loans.
However, bad credit scorers cannot quickly get away with non-repayment of loans, as it drops the credit score immensely, and the lender can take legal action against the borrower.