Bad Credit Loans in Peoria, AZ
When the hard time hits us financially, it’s common to feel anxious and worried to all of us. The situation becomes severe when you couldn’t apply for a traditional personal loan due to a poor credit score.
So, does that mean you won’t be able to get any personal loan?
Certainly NO!
There are a wide variety of personal loans for Peoria residents known as bad credit loans, that you may still apply for. These loans are different from traditional personal loans, have competitive interest rates & don’t require many days to approve.
What is a Bad Credit Score?
According to the Consumer Financial Protection Bureau (CFPB), a credit score depicts the credit worthiness of any individual. Moreover, FICO and VantageScore are among the widely considered credit scores for any credit or loan products.
Though credit scores for both FICO and VantageScore range from 300-850, their criteria for bad credit differ a bit. While a score of less than 580 is considered poor according to FICO, a credit score between 500-600 is considered bad in terms of VantageScore.
Factors that determine your credit score?
Consumer reporting agencies follow different models to calculate your credit score, however, they all use your credit report to determine your overall credit score.
Credit bureaus use the following information to determine your score:
- Payment History (35%)
- Credit Utilization (30%)
- Account History (15%)
- Recent Inquiries (10%)
- Credit Mix (10%)
What Are Bad Credit Loans?
Getting approved for traditional loans with banks, credit unions, & other financial institutions becomes tough when you have a low credit score. That’s exactly where Bad credit loans come in handy. They are a kind of personal loan that you can apply for if you are struggling with a bad credit score or poor credit history.
Bad credit loans come in different shapes and sizes and can take the form of both secured and unsecured loans. There exist a few types of bad credit loans that you can apply for based on your present financial condition and requirements. Moreover, you get competitive interest rates and a flexible repayment schedule.
Process of Applying for Bad Credit Loans
One good aspect of bad credit loans in Peoria, AZ is they are simple and straightforward in nature. You don’t have to go through a long & monotonous process in order to apply for these loans. Just follow the easy steps mentioned below to apply for Capital Bad Credit Loans:
Apply Online
The first step is to fill out an easy loan request form—all you need to fill in is some basic personal, professional, and financial information.
Lending Decision
Once you submit the loan application form, we carefully review all the information to check your eligibility for the loan. Post approval, you will receive a confirmation email from us along with loan agreement papers.
We advise our customers to go through online agreement papers carefully before signing them as it contains information like annual percentage rate, repayment schedule, and any other loan term.
Get Your Money
Your loan application is almost done once both steps mentioned above are completed. Now you can just sit and relax as your money will get transferred into your bank account in a very short time.
Requirements for a Bad Credit Loans
As we mentioned above, bad credit loans in Peoria, AZ don’t come with hefty requirements. Submitting a few documents can get you approved in a very short duration. The list of documents required for bad credit loans in Peoria, AZ includes:
- Must be 18 years or older
- A checking account
- Employment or any verifiable income proof
- Must be a legal resident of Peoria, AZ
Types of Bad Credit Loans
There are multiple types of loans when you seek a bad credit loan. You can apply for the following bad credit loans based on your requirement and your present financial situation.
Secured Bad Credit Loans
Secured bad credit loans require you to submit collateral for the loan approval, which includes car title loans. Since these loans are secured by collateral, online lenders have the right to keep possession of the collateral if you default on the loan.
Unsecured Bad Credit Loans
Unlike secured loans, an unsecured bad credit loan doesn’t require you to provide any collateral. These loans are completely based on your current financial situation and ability to repay the loan.
Installment Loans
Installment loans can be a good option for people with a poor credit score. Through an installment loan, you can avail yourself of a lump sum of money that can be repaid in one single payment or fixed monthly payments over months or years.
Payday Loans
Payday loans are a kind of bad credit loan that allows you to borrow money in exchange for your next paycheck. A Payday loan is a kind of short-term loan that depends on your financial statements & can be availed quickly without any fuss.
Reasons to Get a Bad Credit Loan
There exist multiple reasons to avail of a bad credit loan. These loans come in handy whether you are facing a hard time getting a loan from a traditional lender, keeping up with medical expenses, or any other urgent need. Regardless of the reasons, bad credit loans can be a vital tool to meet your urgent requirements and get back on your feet.
Some major reasons why people in Peoria, AZ use their bad credit loan amounts for:
Consolidate Debt
One major reason why people seek a bad credit loan is to consolidate all their existing debts. This means you pay all the small debt with other lenders using the bad credit loan amount, in order to keep your owned amount limited to a single legal lender.
It can be an excellent way to reduce the number of payments and interest rates associated with each of them.
Access to Emergency Cash
When you are in dire need of money, bad credit loans can be your ultimate savior. Due to their easy and fast processing, you are bound to receive funds quickly & directly into your bank account.
Build Credit Score
Bad credit loans not only help you to get loans with poor credit scores but also to build a strong credit history, thereby improving your credit score or bad credit history. You just need to make sure to pay back the loan amount before the due date.
Ways to Improve Bad Credit Score
A Bad credit score can be an obstacle to getting reasonable loans. However, there are ways that can help you in improving your credit score. Improve your credit score using the ways mentioned below:
Review Your Credit Reports
The first step to improving your credit score is to review your credit report and identify any error and dispute it with the concerned authorities. Disputing errors in your credit record can help you boost your credit score quickly.
Make Timely Payments
Since payment history accounts for the majority of your credit score, make sure to pay all of your monthly installments and bills on time. One easy way is to set up autopay for recurring bills/ payments, just make sure to keep enough funds in your account.
Keep Check on Credit Usage
Credit utilization rate is the second most crucial factor that defines your credit score. According to experts, keeping your credit utilization rate below 30% of your credit amount may prevent your credit score from falling down.
Limit Credit Inquiries/ Requests
Applying for too many credit products in quick succession can have a negative impact on your overall credit score. Be assured to apply for credit products once in a while and only when it’s highly essential.
Avoid Closing Old Loan Accounts
Since “credit history length” accounts for 15% of your credit score, therefore, it’s advisable to never close your accounts even when you completely paid off the debts. The longer your credit history will be the better it’s in terms of your credit health.
Get Bad Credit Personal Loan Online In Peoria, AZ
Looking for an easy, quick, and reasonable loan for extra cash? With Capital Bad Credit loans you have the liberty to apply online and get pre-approved in no time. Just visit our online portal, fill in a few details and you are all set to receive loan amount into your bank account.
So, don’t hold back. Apply for online bad credit loans today!