Bad Credit Loans in
Learn more about bad credit loans in Louisiana. Get tips and suggestions on finding the right loan or financing option for your situation.
Bad Credit Loans in Louisiana: What It Is and How to Apply
Your low credit score should not put you at a dead end when it comes to finding a solution for your financial emergency.
Allow us to guide you through what bad credit loans are and the options that you still have to get the money that you need.
What Is a Bad Credit Loan?
A bad credit loan is commonly a short-term loan whose processes are close to those of personal loans.
They are specially for borrowers with poor credit history, which traditional lenders generally avoid.
Bad credit loans are mostly high-interest loans since they are a special type.
Direct lenders design bad credit loans for their terms to fit the current financial capacity of the borrower. They give importance to other factors MORE THAN the credit score of the applicant.
How Do Bad Credit Loans Work?
Your credit score is only ONE factor that creditors consider in bad credit loans. The other factors they look into are income and your ability to repay the bad credit loan.
Creditors assess all these factors to come up with loan terms that are manageable for you and have the least risk for the creditors themselves.
It is easy to give low and favorable loan rates to a borrower with good credit history. On the other hand, creditors balance the risk of bad credit history with high loan rates.
Who Are Bad Credit Loans For?
Bad credit loans are for borrowers who cannot turn to traditional lenders, such as banks and employers.
It is possible that their savings are not enough, and they do not have access to credit cards or employer support. It can also be that these lenders have declined their prior loan applications.
Aside from benefiting borrowers with poor credit history, bad credit loans work to fund money quickly for those with pressing financial needs.
A bad credit loan is a chance for the borrower to improve his credit standing. Your lender will report a completely settled loan to credit bureaus, which determine credit scores.
What Are the Types of Online Bad Credit Loans in Louisiana?
You are not limited to the types of funding you can secure for your financial emergency, even with bad credit.
The following are the options that you have to borrow money:
1. Personal Loans/Installment Loans
A good deal of online loans is personal loans. They are typically short-term loans that are unsecured and do not require any collateral.
You pay the money you borrow within a set repayment period. Borrowers often opt for personal loans that are installment loans.
The loan term for installment loans ranges from 6 to 24 months. You repay the loan amount and its interest rate in bi-monthly or monthly payments of equal installments.
The interest rate of installment loans will depend on the length of your debt duration. More time will cost you a higher rate, while a shorter time will benefit you with a lower rate.
2. Payday Loans
Another type of bad credit short-term loan is a payday loan. Like personal loans, payday loans are unsecured and do not require collateral.
Payday loans are due as soon as your next payday, which comes within 14 to 31 days after you get your money.
However, the shorter term of payday loans DOES NOT equate to lower interest charges. They have high rates because lenders often overlook a poor credit history.
Another disadvantage is that the cash you can get may not be as much. They may only be a band-aid solution to your funding needs.
3. Auto Title Loans
You can convert the value of your vehicle to the emergency cash you need through auto loans.
Unlike the other bad credit loan options, they need your vehicle title as collateral. You can provide titles of vehicles, such as cars, motorcycles, trucks, boats, and the like.
Since the submitted collateral secures this debt, its rate may be lower than those of unsecured debts. For the same reason, you also risk losing ownership of your vehicle if you fail to repay the debt.
4. Tribal Loans
Some unregulated creditors will allow you to secure a payday loan with a rate that is MUCH HIGHER than the legal maximum.
They are very risky. It is better to try to borrow cash from other bad credit options before taking this one.
Are Bad Credit Loans Legal and Safe in Louisiana?
The State of Louisiana upholds lending laws that regulate bad credit debts and their direct lenders. The same laws apply to your bank and storefront lender to ensure the bad credit debts you secure are safe.
Regulations are in place to control loan amounts, interest rates, and other terms and conditions to protect YOU.
The law also requires your lender to fully disclose their terms and conditions to you before you sign their contract. Your lender should not mislead you with hidden charges when you borrow from them.
CAUTION: Even with safety measures in place, there are still unauthorized sites. Watch out for misleading claims of guaranteed and instant approval or no credit check.
How to Apply for a Bad Credit Loan in Louisiana
Some lenders may require a few more documents or steps depending on the loan you choose, but the basic ones to secure a personal loan online are as follows:
To borrow money in Louisiana, you have to be a legal resident. You should be at least 18 years old at the time of your application. To prove this, you can provide documents like a valid State-issued ID and billing statements with your Louisiana address.
As promised, your bad credit will still qualify you to get a loan. The next thing lenders will look at will be your ability to pay back your loan.
The majority of creditors prefer a monthly income of at least $1,000. Your stable employment status or business earnings can support this. You can provide documents, such as your recent payslips, financial statements, and tax certificates.
Online creditors usually require your bank account details. They will deposit your approved funds and take your repayments here.
Step 1: Complete an Application Form
The first step that will take you to the RIGHT direct lender is filling out an application form.
You will have to fill in your personal details and the amount you wish to secure. You can choose to borrow any amount from $100 to $35,000.
Within the network of the best direct lenders in Louisiana, you can compare lenders to match with the details you have provided.
Step 2: Submit Documents
You have the FREE HAND to choose from the creditors that we present to you. You will finish the loan request application on the own website of your chosen lender.
The lender will perform a mandatory credit check and evaluate the rest of the personal details that you have submitted.
Your creditor may ask you to provide a few more documents to support your application before they give their approval.
Step 3: Get Your Funds
Together with the approval of your lender will be your loan agreement. Make sure that you understand its terms and conditions before you sign it.
Your creditor will deposit funds to your bank account, where they will take your payments from also.
Your lender will try to release your money to you within 24 hours or the next business day.
What Makes Bad Credit Loans in Louisiana So Great?
Many borrowers are now turning to bad credit loans for the following reasons:
- Fast Cash - They are the speedy solution you need to settle your urgent financial problem.
- Convenience - You do not have to physically visit a bank to process your loan. You can start your application, get your funds, and settle your loan without ever leaving your home.
- Multi-purpose - You are free to use the funds for whatever purpose, be it medical bills, credit card debt settlement, home repairs, school fees, or even just extra cash.
Things to Note When Applying for a Bad Credit Loan in Louisiana
Look into these 3 Rs when you make your choice among the options we present to you:
Sort out the personal loan providers whose credit score requirement is lower than your credit score. You have a higher chance of getting approval from these creditors.
Be mindful of creditors who only allow certain uses for their loan funds. It may warrant a breach of contract if your purpose is not aligned with theirs.
Make sure you can afford the payment terms of the online lenders you are considering applying with.
Compare loan rates, such as amounts, interest rates, and fees. A lower interest rate is always preferable.
Most lenders can release funds as soon as 24 hours. Ensure that your lender can meet the deadline of your funding needs.
Frequently Asked Questions
Can I Get a Loan With a 550 Credit Score?
Yes, you can.
Traditional creditors usually require a credit score of at least 580 or a FICO score of 650, so your chances may not be as high as those with a higher credit score, but you CAN still get a personal loan online with a 550 credit score.
What Loans Can a Person With Bad Credit Get?
You can secure online loans with a bad credit score. In Capital Bad Credit Loans, we can match your financial standing with many licensed creditors in our network.
These lenders have to perform a credit check because a personal loan is unsecured with no collateral. They will offer loans based more on your source of income.
Note that a lower credit score will cost you higher interest rates.
What Is the Easiest Loan to Get Approved For?
Though lenders cannot guarantee instant approval, the easiest you can get approved for is an installment loan.
Its repayment is divided into monthly installments that are easier to match with your monthly income.
We advise you to take on a small loan that you can easily afford for faster approval.
Fill out an application now, and let us connect you to the BEST direct lenders who may help you get through your financial situation.
Do NOT let your bad credit put you in a trap. You still have options to get the cash you need!