subject: An Introduction to Poor Credit Loans [print this page] Poor credit loans are offered by many online money lenders to individuals who are having trouble getting a loan approved from conventional sources. There are different requirements for this kind of loan. Some lenders would require that you have a job or at least some proof that you have income coming in. Others would require you to have collateral. Loans that require collateral are known as secured loans. Items that you can use as collateral include cars, houses, jewelry and anything that has a significant resale value.
The requirements to get poor credit loans are considerably easier to meet than those for traditional loans. The amount that you can borrow through these loans will depend on a lot of things. Most lenders will use your current income as a gauge. The terms are flexible. There are loans that should be paid back within 90 days while there are others that the borrower can pay years after. Again, the lender's decision will largely depend on your stature and your capacity to pay.
Convenience is one of the best features of poor credit loans. When your online application is approved, the lender will deposit the money directly to you bank account. Payment will also be automatically deducted from the bank account you enrolled in.
When it comes to interest, poor credit loans have higher rates than regular loans. Of course, the longer the term, the higher the interest rate. This is the trade-off that people will face when they apply for poor credit loans.
Poor credit loans are not only available for people with poor credit score. If you have good credit rating and you simply want to get quick cash without going through all the hassles of securing a regular loan, then you can also apply for these kinds of loans. Just be ready to pay the higher interest rate that comes with these loans.
Needless to say, it is easier to get approved with poor credit loans. As long as you can prove that you can make the monthly payment, you won't get rejected.
