Bad Credit Loans in Killeen, TX
Whether it’s an unplanned trip, medical bills, home renovation, or any other unforeseen expense, sometimes we find ourselves in some urgent need of cash. In such urgency, getting a personal loan may seem like a legit option. However, if you have a bad credit score your loan products option might be very limited.
But to the courtesy of bad credit loans, you may still get a personal loan with poor credit history. But what exactly is a bad credit loan, how to apply, and what are the requirements for such loans?
In this article, we strive to clear any doubt that you may have about bad credit loans in Killeen, TX.
What is a Bad Credit Score?
If you ever applied for a loan or any other credit product, you might be well aware of what a credit score is & its pivotal role in getting approved. While a good credit score makes it easy, a bad credit score can be the biggest hurdle to getting approved for loan products.
According to Consumer Financial Protection Bureau (CFPB), FICO and VantageScore are among the widely considered credit scores. Though the range of both scores falls between 300-850, they have different measures to determine the range of credit scores.
A FICO considers a score of 580 or below as poor, on the other hand, a score of 500 or below is what VantageScore considers as poor.
What Are Bad Credit Loans?
Bad credit loans are nothing but personal loans that let you borrow money with a bad credit score or poor credit history. These are usually short-term loans that may approve within a short time & don’t require a myriad of documents.
If you are facing a hard time getting approved for a personal loan by any bank or storefront lender or other financial institutions, bad credit loans may help you. Bad credit loans in Killeen, TX are not a single entity and can further break down into various types of secured & unsecured loans.
Apply for Online Bad Credit Loans in Killeen, TX
Before you apply for a bad credit loan in Killeen, TX, make sure to find a reliable online lender like Capital Bad Credit Loans. With us, you can enjoy the comfort of applying right from your home and get reasonable loans in a quick time. All you need to do is follow the simple steps mentioned below:
Start your bad credit loan application by filling up a simple inquiry form on our online portal. Since your loan approval depends on the information you provide, do cross every information before pressing the submit button.
Get Lending Decision
Once we receive your application, we run a quick review before distributing it to our lending partners. If accepted, you may receive an approval email along with the loan contract documents. We insist on reading the loan contract carefully before signing it.
Receive Loan Amount
If you choose to sign the loan agreement, you may receive the loan amounts directly into your bank account within a short duration.
Requirements for Bad Credit Loans in Killeen, TX
Since bad credit loans are designed to help people looking for speedy cash, they don’t come up with a myriad of requirements. Killeen residents can apply for bad credit loans as long as they can fulfill the requirements mentioned below:
- Applicant must be of 18 years or older
- Must be a legal resident of Killeen, TX
- Must have a regular source of income (not necessarily a traditional job)
- Must have a valid email ID
- Must possess a savings account to receive the loan amount
Types of Bad Credit Loans
Bad credit loans come in various shapes and sizes and choosing any one of them should be completely dependent on your needs and your eligibility criteria. Some common types of bad credit loans are:
A payday loan is specifically designed for people who are looking to borrow money for a very short term (usually until your next paycheck). Since payday loans are a kind of secured personal loan you might have to submit an advance check to the lender.
An installment loan is a kind of unsecured personal loan that allows you to borrow money as a lump sum payment. Unlink payday loans, you have the liberty with installments loans to repay the loan in multiple fixed monthly payments.
Auto Title Loans
An auto or car title loan is a kind of personal loan that is secured by the title of your vehicle. These loans can be approved with ease if you have a car title in your name and can prove your ability to repay the loan.
Reasons for Getting Bad Credit Personal Loans
While there is no single specific reason for getting bad credit loans in Killeen, TX, below we have provided a few strong reasons to apply for bad credit loans.
To Consolidate Debt
Since with multiple payments come multiple interest rates, managing too many debts at a time can be troublesome. Missing out on any single payment can take a toll on your credit score.
You can use the bad credit loans to pay off all the existing debts and convert multiple EMIs into a single payment. Not only will it save interest amount but also brings peace of mind.
Improve Credit Score
Since bad credit loans are short-term loans, they can come in handy to improve your credit score. For instance, if you take a loan of $2000 for 6 months and repay it on time every month, you may see a big boost in your credit score.
Meet Emergency Financial Needs
When you are in urgent need of cash and can’t wait for weeks for approval, a bad credit loan would be the optimal choice. With a bad credit loan, you can expect to receive funds in a short duration that you can use for medical emergencies, credit card debt, or any other urgent need.
How can I Improve My Credit Score?
One major step in improving your credit score is understanding what comprises your credit score & what are the factors that actually affect it.
- Payment History (35%)
- Credit Utilization (30%)
- Length of Credit History (15%)
- Credit Mix (10%)
- Recent Inquiries (10%)
Some Tips To Improve Your Credit Score
Make Timely Payments
You can see significant improvement in your credit score once you start making your loan payments on time. To make sure you don’t miss out on any payment, you must set up auto-pay for all the monthly EMIs.
Keep Credit Utilisation Low
Experts advise keeping the credit utilization under 30% for a better credit score. If that seems impossible considering your current credit limit, you may ask your lender to increase your overall limit.
Don’t Close Old Loan Accounts
Since, online lenders like applicants with longer credit history, you must not close any account even after the loan amount is completely paid. The longer your credit history will be the better credit score you may have.
Make Limited Credit Inquiries
Applying for too many credit products in quick intervals can damage your credit score. The reason is that online lenders run a hard credit check every time you apply and that is bound to affect your credit score negatively.
Review Your Credit Report
Make sure to review your credit report once in a while to identify any potential errors. In case you find any incorrect information, you must raise the dispute to the concerned authorities.
Apply for Bad Credit Personal Loan Online
Capital Bad Credit Loans could be your one-stop solution for both secured or unsecured bad credit personal loans online. We offer reasonable loans to people struggling with a bad credit score to meet their financial needs. Moreover, our process is pretty quick, simple, & straightforward.