If you are applying for a loan with bad credit You may have to satisfy certain requirements and validate certain documents. Lenders have different rules, as Bridge Payday notes.
In general, you must have to meet the following requirements when applying for a low credit loan:
- You must be at the age of 18
- The state in which you have selected for the loan application
- You must have a valid and active email address or telephone number
- Show proof of an account in a bank that has been open for at least one month.
- Are you not currently a person in a bankruptcy proceeding or plan to file bankruptcy relief
Some lenders with bad credit also require proof of a continuous source of income that is recurring such as self-employment, employment pension funds, disability payment, or any other source of income. You are generally eligible for a loan with bad credit provided you earn more than $1000 per month coming from any source.
Certain lenders require the use of a valid Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) and other lenders do not.
What is the cost of a bad Credit loan cost?
The cost of lending to bad credit varies significantly between lenders. As per the Consumer Financial Protection Bureau, it is typically $15 to get a $100 loan from payday lenders. This is a rate of 391 percent for a loan of two weeks.
However, it is not true that the majority of bad credit lending institutions operate just like payday lenders. A lot of bad credit lenders offer loans to individuals of different credit scores – they just offer higher rates to those who have poor credit scores. They still charge less like a loan for payday and you can get cash fast.
What is the maximum amount I can borrow through a Bad Credit A Loan?
You could take out a loan of $300-$1,500 even with a poor credit score, subject to the lending rules for your specific state.
If you do get an individual loan, then you could be able to get more. Some online lenders will let you take out loans of $5,000 to $15,000, even when you have a low credit score.