Bad Credit Loans in Mesa, AZ
Looking for a personal loan but facing a hard time due to your poor credit score?
We understand how hard it gets to get approved for a traditional loan without having an excellent credit score. Also, a credit score is not something that you can improve in a matter of days, you need to be financially disciplined for months to improve your credit score.
So what should you do in such a case? Well, you still have the option to apply for bad credit loans. These loans don’t demand hefty and usually have high approval rates than traditional loans.
What is A Bad Credit Score?
A bad credit score in general represents that you are a risky borrower and had previously defaulted on some loan payments. Lenders use your credit score to determine your credibility and the risk associated with lending you.
The majority of personal loan lenders use FICO and VantageScore to determine the credit score of any individual. Though the range of both FICO and VantageScore lies between 300-850, their process of distinguishing bad credit scores differs.
According to FICO, any score that is below 580 is considered bad, whereas, VantageScore considers scores of 500 and below as poor.
What is a Bad Credit Personal Loan?
Bad credit loans can be a lifesaver for people getting denied a traditional personal loan by banks or any financial institution. Doesn’t matter if you have a poor credit score or no credit history at all, you may still qualify for bad credit loans in Mesa, AZ.
Moreover, a bad credit loan is not a single entity and comprises different types of loans to choose from. You can choose any one of them based on your eligibility & present financial situation.
How to Apply for Bad Credit Personal Loans in Mesa, AZ?
Applying for bad credit loans in Mesa, AZ doesn’t come up with the unnecessary hassle. Just find a reliable lending partner that suits your requirements and apply online using these easy steps:
Provide Details
The very first step is to apply by filling out a simple online form, Providing a few essential details about your income, identity, and residence, and submitting the loan application.
Get Lending Decision
The information your submitted will then be analyzed by lenders to determine your loan eligibility. Post approval, you may receive an online agreement that includes information like the annual percentage rate, repayment schedule, and other crucial loan term.
Receive Loan Amount
Once you accept the loan agreement and forward it back to us, you are entitled to receive your loan amount directly into your bank account in a short time.
Requirements for Bad Credit Loans in Mesa, AZ
The reason why bad credit loans are so popular is due to their easy requirements. You may be entitled to get a loan by fulfilling the basic requirements which are mentioned below:
- Having an age of 18 years or older
- Must be a legal resident of Mesa, AZ
- Must have a regular source of income
- Must have a checking account to receive funds
Types of Bad Credit Loans in Mesa, AZ
Bad credit loans allow you to choose from a variety of loans according to your requirements. You can either choose secured or unsecured loans based on what suits best to your present situation. Some popular types of bad credit loans are as follows:
Payday Loan
Payday loans are popular among people who seek a very short-term loan(generally for two to four weeks). Payday loans are generally secured by your next paycheck and require you to submit an advance check or ACH authorization.
Installment Loan
Installment loans are a kind of unsecured personal loan that enables you to borrow money and pay it back in one or fixed monthly payments. Since these loans are unsecured, you don’t have to provide any collateral to get approved.
Auto Title Loan
Auto title loans are yet another secured personal loan that uses the car title as collateral for the loan. It can be an ultimate option to borrow money for those having a car in their name. Moreover, the online lenders won’t seize your car, and you are allowed to use it while repaying the loan.
Tips to Choose Bad Credit loans in Mesa, AZ
To determine which lender to choose you must shop around and analyze the best deal you can get. To help you in this process, we have mentioned a few points that you can consider while choosing a lender for bad credit loans:
Eligibility Requirements
It’s always better to check the requirement of any lender before applying for a loan. The majority of lenders provide these details on their website so make sure to go through it at least once.
Min. & Max. Amount
Since different lenders have different min and max loan amount limits, make sure to apply for the one that perfectly fits your financial needs.
Annual Percentage Rate (APR)
The annual percentage rate is different from the regular interest rate, as it comprises of interest rate along with origination fee and various other charges. Make sure you get a fixed APR rate that won’t vary with time.
Repayment Terms
Make your you are acquainted with the repayment process before you apply for bad credit loans. While some lenders don’t charge any pre-payment penalty, it still varies according to lenders.
Customer Support
You must choose the lender that provides exceptional customer support to their customers. Make sure to go through online reviews from other customers, it would give you a better idea of whether you should work with that lender or not.
How to Improve Your Credit Score?
Undoubtedly, a good credit score allows you to borrow money with ease and at better interest rates. But what are measures to be taken to improve credit scores? Below we have provided 5 effective steps that can boost your credit score.
- By Paying your Bills on Time
Since payment history holds a significant weightage (35%) of your credit score, it’s pivotal to make your payments on time. Even little slip-ups in payments can hurt your credit health by dragging down your credit score.
- Keep Credit Utilization as Low as Possible
Credit utilization is yet another factor that holds high weightage (30%) of your credit score. Experts advise keeping your credit utilization below 30% to maintain a healthy credit score. For instance, if you have a credit limit of $1000, you must keep the balance below $300.
- Don’t Close your Old Accounts
The length of your credit history also holds a significant weightage (15%) of your credit score. Therefore, make sure to never close your old accounts even after paying them back completely. The older your credit history is the higher your credit score will be and vice versa.
- Have a Mix of Loan Products
To improve credit score one factor is to keep a mix of credit cards & loans including auto loans, student loans, etc. Though it accounts for only 10% of your credit score managing a mix of loan products draws a better image in front of lenders.
- Make Limited Loan Inquiry
Making multiple credit inquiries in quick succession can hurt your credit score significantly. When you apply for a loan product, lenders run a hard credit check that tends to bring your credit score down.
Apply for Bad Credit Personal Loans Online
At Capital Bad Credit loans, we strive to assist you in getting speedy cash with minimal requirements. We offer personal loans at competitive interest rates and a flexible repayment schedule. So, don’t hold back yourself and apply for Mesa personal loans online today to cover unexpected bills.