Bad credit scores close a lot of borrowing doors. While a bad credit score may be an outcome of various issues -from mismanagement of credit to errors and incomplete records, having a bad credit score as an individual translates to a huge difficulty in finding a low-cost loan product. Since a bad credit scores of individuals indicate high risk in lending funds to the individual, most lenders simple cannot or choose not to provide loans and those who do, expect high return for their high-risk transactions.
In this article, we share the loan options that are open for some or all bad credit score borrowers. Most believe that bad credit loans are offered by direct lenders only. While direct lenders like us at CashUSAToday are the most prominent and reliable source of funds, there may be other options that bad credit borrowers should be aware of, in the interest of transparency and sustainability of lending. So, let’s start with the list of options.
The Tricky One – Credit Card Based Loans
Credit Card based loans tend to the most affordable amongst the loan options available to a bad credit score holder. But, they’re a tricky option – one needs to have a credit card and available limit in it. Acquiring a new credit card having a bad credit score is something that’s currently not an option.
If you already have a credit card and have a significant available limit in it, taking a loan of an amount within that limit is likely to be an option open to you. These loans are not too expensive, but taking such a loan is likely to further impact your credit score. Hence, if you choose to take such a loan, do proceed with extra caution.
The One that Didn’t Trend as Expected – Lending Apps
When mobile device app-based lending came into being, people expected it to become a huge trend. They thought it would be as popular as other mobile apps. Many direct lenders invested in it. Some even entered the lending market to operate a business based on lending apps.
But, the expectations were far beyond what turned out to be the reality. The trend never caught its ground. Nonetheless, there are such options still in the market and some lenders do cater to bad credit borrowers. If you’d like to learn more about lending apps, search online on a search engine or an app store. You’ll find quite a few options. Not all options may be reliable or fair. So, make sure you read through reviews, feedback, and app ratings before downloading and using them.
The Forgotten One – Pawn Shop/Store based Direct Lenders
There was a time when the only workable choice available, was a store based direct lender. “Bad credit loan near me” was once a very searched phase online. But, such demand drove many lenders to extort bad credit borrowers. They received huge criticism. Once the more competitive online lending market caught on, borrowers seemed to have no turning back. The only fact still keeping store-based lenders still in existence is their physical presence, that is in some ways more reassuring to a few borrowers.
The One with Middlemen – Mortgage Brokers and Loan Matching Services
Mortgage brokers and loan matching services transact. The borrower applies for a loan and depending on the demand and profile of the borrower, the broker/matching service arranges services of a lender that is likely to fulfil the demand. If one deal doesn’t go through, alternates may be offered to the borrower.
This model is reliable if the broker/matching service is reliable. The added middleman is likely to add cost and time delay to the transaction. Nonetheless, some brokers and matching services have great track records. This has led to them having a strong customer base and continued growth.
The Most Preferred – Bad Credit Online Loans from Direct Lenders Only
The vast majority of borrowers with bad credit scores choose loans from online direct lenders. Many experienced borrowers choose the services of online direct lenders only. This is because bad credit borrowers tend to borrow loans during emergencies or to work on their credit scores. In either case, dealing with a trusted online direct lender like CashUSAToday brings benefits of convenience, speed, transparency, and higher reliability. There are no third-party costs and many other benefits.
Apply Online Now for a Loan for Bad Credit from a Trusted Direct Lender
If you’re looking for a trusted and renowned direct lender of bad credit loans, we at CashUSAToday are available 24×7 for your help. A simple online loan application form sends us all details that it needs for us to start working on serving you. Sending us your details through this form is safe and secure, and will cost you nothing. We also welcome you to get in touch with us for queries and any further information.