Bad Credit Loans in Maine: The Best Options & How to Apply

There can be times when financial needs are pressing, and you do not know who to turn to for loans.

Maine residents do not have to be limited with their choices, especially if a bad credit score is a worry.

We will guide you through finding bad credit loans and how to get hold of the RIGHT one for you in Maine!

What Is a Bad Credit Loan?

A bad credit loan works similarly to most personal loans. Bad credit relates to your credit score, which is your rating based on your payment history and financial situation.

Most direct lenders look at credit history as a basis for loan approval. It may seem like you cannot get a loan with bad credit, but we are here to tell you otherwise.

Who Are Bad Credit Loans For?

Lenders design bad credit loans for people in a tight financial emergency.

These people typically need access to borrow money for reasons like insufficient savings, no credit card, and unavailable wage advance privilege.

Banks and traditional lending institutions usually turn bad credit borrowers away because of their poor credit scores.

Unlike the traditional lender, a bad credit lender views bad credit loans as a CHANCE for the borrowers to improve their credit standing.

How Do Bad Credit Loans Work?

The three-digit number that is your credit score will translate to the terms of your loan.

• A high credit score will benefit you with low-interest rates and lenient terms.
• A low credit score can cause you to pay higher interest rates and face stricter terms.

Fortunately, direct lenders DO NOT look at only your credit score to allow you to get a loan with bad credit.

Bad credit lenders consider your ability to repay your debt OVER your poor credit history.

Your bad credit personal loan amount can range from $100 to $35,000 depending on your lender, loan type, and loan terms.

Are Bad Credit Loans Legal and Safe in Maine?

Any Maine personal loan online is subject to state supervision, just like any loan you can get from the bank or storefront lender.

The Department of Professional & Financial Regulation ensures that borrowing money will not cause you to be a victim of predatory lending that charges over-the-top interest rates.

Maine law requires lenders to give out a copy of all the terms and conditions of the loan before they ask the borrower to sign the online contract.

However, some lenders still illegally claim no credit check and instant approval. Ensure all the lenders in your network are legitimate and licensed to offer online loans!

TheBureau of Consumer Credit Protectioncan entertain reports and questions of Maine borrowers.

The Benefits of Bad Credit Loans in Maine

Maine bad credit loans can provide you with the emergency funds you need even if your credit score is lower than the usual bank requirement.

Bad credit loan proceeds can pay for MANY of your financial worries. You can use the money for medical bills, home or car repairs, credit card debt consolidation, school fees, and travel.

Online bad credit loans can save you from the paperwork and queuing that can be troublesome in processing traditional loans.

The Different Types of Online Bad Credit Loans in Maine

Your top-of-mind when it comes to loans may be the traditional lenders, but they may quickly turn you away with your bad credit history.

Thankfully, there are other online lenders issuing loans in Maine. The following are online loans you can look into that can accommodate your poor credit history.

1. Personal Loans/Installment Loans

An installment loan is a short-term loan whose loan terms range from 6 to 24 months. You repay your loan amount and interest in equal installments throughout your repayment schedule.

A shorter loan term equates to lower interest but higher monthly payments — a longer loan term results in higher interest but lower monthly dues.

Direct lenders approve installment loans by looking at your monthly income and assessing if you can meet your monthly dues.

2. Payday Loans

Payday loans are also short-term loans that you must pay as soon as you get your next paycheck.

A payday loan has a payment term of 14 to 31 days since it highly depends on your payday schedule.

Aside from its short duration, its loan amount may be limited and attached to a high-interest charge. Take on payday loans only if you are sure that you can afford them.

3. Car Title Loans

A car title loan is a secured credit that requires your vehicle title as collateral. It includes not only automobiles but also motorcycles, trucks, and RVs.

Auto loans are generally more affordable in terms of interest rates and fees, but you stand a chance of losing your vehicle to your lender if you default on your debt.

How to Apply for a Bad Credit Loan in Maine

Requirements and processes may slightly vary depending on your lender, but we describe the general application as follows:

Requirements:

• The minimum age requirement of all lenders is 18 years old.
• It would be best if you were a legal resident of Maine to secure loans. You should have a verifiable address where lenders can contact you.
• Most lenders prefer that you have a stable monthly income of at least $1,000 to repay your credit. This can be from sources like work, business, or other funding.
• A bank account in your name is highly preferred when you borrow money. This is where lenders can deposit your funds and take your repayments.

Step 1: Fill Out An Application Form

Complete an easy online web form to connect you to the best direct lenders who provide SAFE personal loans online.

You will not have to go from lender to lender and apply with as many lenders as possible.

Once you fill out your details on the form, you will be matched up with lenders that fit your information.

With only ONE form, you'll be connected to MANY lenders to land you that ONE right lender online.

Step 2: Submit Your Documents

Your potential lender will ask you to submit basic requirements to prove your background and income once you secure a pre-approval.

Basic requirements may include a valid State-issued ID with your photo and signature, proofs of income like paystubs and income statements, and a few references.

Step 3: Sign the Agreement

Read the terms and conditions of your chosen direct lender. Please make sure you fully understand everything your contract contains before you seal it with your signature.

This will mean your commitment to your credit and its repayment. It is binding under the lending laws of Maine.

Step 4: Get Your Money

You can receive your funds within 24 hours through the bank account you enrolled with your lender.

Ensure that the same bank account is funded during your repayment schedule to avoid further credit score deductions.

Things to Consider Before Applying for a Bad Credit Loan in Maine

You will face various loan options as you search for personal loan providers, so we recommend you look into these factors before committing to one.

Credit Score Requirement

Look for a lender with a low credit score requirement. You will have better chances of getting approved if the credit requirement is lower than your credit score.

Loan Rates

This is how much you will have to pay for your debt. Make sure you can afford the interest rate and fees your lender will charge. There must be no hidden fees for your personal loan.

Loan Terms

Evaluate the loan amounts, terms, and restrictions that online lenders offer. Ensure that the terms of the lender you choose can work for you.

Funding Time

Going through the application process of a lender is pointless if their lending services cannot meet the deadline of your funds. A shorter funding time is more desirable.

Frequently Asked Questions

Can I Get a Loan With a 550 Credit Score?

It is possible.

Even if banks usually require a FICO score of at least 650, you can get funding with a lower credit score.

Your options may be limited with higher costs, but low credit scores do not mean all hope is gone.

What Kind of Loan Has No Credit Check?

In your search for bad credit loans, you may notice lenders that offer loans with no credit check, but this is misleading and illegal under Maine state lending laws.

The laws require licensed lenders to perform a credit check on their applicants, but your bad credit will not automatically disqualify you.

Credit unions can be less stringent regarding credit scores but have limited resources.

You may look into tribal loans that are NOT regulated by the law. You can borrow a payday loan, but it will cost you an interest rate outside the lawful cap. They are very expensive and risky.

How Can I Get a Fast Approval?

The swiftness of your application will depend on your lender and requirements, but we have the following tips to help you speed things up:

1. Submit your application first thing in the morning on a business day for higher chances of getting your funds the NEXT day.
2. Prepare digital copies of documents that support your income and background for faster uploading when your lender asks for them.
3. Apply for a small loan that you are sure you can repay. Build on your credit score from this to soon attract better loan products.

Conclusion

Apply NOW and allow us to connect you to the potential lenders you have to get the emergency funds you need in a matter of seconds.

Your application does not mean your immediate commitment to the lenders that we offer you.

We will show you the OPTIONS you have so that you can choose better!

Bad Credit Loans in Massachusetts: A Complete Guide [2022]

Do you need emergency cash to pay off a credit card debt or catch up on the bills? If you're struggling with bad credit scores, you've come to the right place!

Many online lenders in Massachusetts are willing to offer you bad credit loans for your fast money needs.

These loans are convenient, safe, and legal. You start by filling out an easy online web form. Plus, if you take on a small loan and repay it on time, you can slowly rebuild your credit score!

Keep reading, and we'll show you how you can borrow money with bad credit loans in Massachusetts.

What Is a Bad Credit Loan?

A FICO score of 579 and below would be considered bad credit already. But it is not as bad as you think!

Having bad credit doesn't mean you cannot borrow money at all. You have different borrowing options, often with higher costs than those available to people with good credit.

A bad credit loan is a borrowing offered to borrowers with poor credit history. A payday or personal loan is the most common bad credit loan applied.

You can apply for bad credit loans through online lenders. The good news is that they've been increasing in number in Massachusetts, so you're sure to find a perfect fit!

You don't have to travel to a bank or storefront lender to complete a lot of paperwork and receive proceeds after a few days.

You transact over the internet and can already get your cash on the next business day.

How Do Bad Credit Loans Work?

The first thing all the lenders consider is borrowers' credit scores. If you have bad credit, you can opt for small payday loans to be paid after your next payday or personal loans to be paid in equal installments over a few months.

Other factors like employment and an active checking account will also be considered when determining personal loan amounts, terms, and loan approval.

These will depend on the direct lenders' assessment. But given that these are online loans, the application and approval process is much faster than applying at a bank or credit union.

Are Bad Credit Loans Legal and Safe in Massachusetts?

Massachusetts state lending laws are complied with when applying for an online installment loan with a lender. It is no different than if you were to apply at the bank.

Loan rates are also regulated and capped for the sake of borrowers.

For their protection, direct lenders may also conduct a credit check and require a bank account to determine a borrower's verifiable income.

If a lender promises instant approval, that is a cause for caution. Approvals may be quick for online loans, but they are not instant, as certain information needs to be assessed first.

By law, lenders must provide a digital copy of all terms and conditions before you can sign the online contract.

Check if the borrowing amount, interest rate, repayment schedule, renewal and extension policies, and other terms are agreeable. Double-check for any hidden fees too.

What Are the Types of Online Bad Credit Loans in Massachusetts?

Check out these online bad credit loans you can apply for your immediate cash needs:

Personal Loan

These are installment loans that last for only several months. The loan amount plus interest and fees will be paid in monthly payments.

But do keep in mind that the longer your loan term is, the higher the chances you pay more interest.

You can use personal loans online or through banks and federal credit unions. However, online lenders are easier to work with. You can apply in the comforts of your home!

Payday Loan

These short-term loans require a lumpsum payment of the full amount after a term of about 14 to 30 days. That is usually the next payday.

These high-interest loans with short repayment periods are difficult to manage compared to installment loans. As much as possible, avoid these predatory loans unless you are perfectly certain you can pay on time.

Title Loan

Car title loans or auto loans are borrowings you can take by putting your clear vehicle title as collateral. You get cash while you continue driving your car.

The loan amount is determined based on the equity left on your car. You can borrow cash up to 25% to 50% of your car's value.

Depending on the online lender, interest rates, repayment terms, and other conditions can be negotiated. But if you cannot pay successfully, you risk losing your car!

Tribal Loans

Tribal loan lenders operate outside federal and state law. You may be able to borrow money beyond the capped APR.

This is not the safest borrowing available. But if it is your last option, ensure you fully understand the risks and the full cost before committing.

How to Apply for a Bad Credit Loan in Massachusetts

It is easy to apply for lending services online. Even though you can apply with a low credit score, there are still a few eligibility requirements to comply with.

Requirements:

• Government-issued ID - must contain your name and birthday, confirming that you are at least 18 years of age, the legal age to apply for borrowing in Massachusetts.
• Bank Account Details - where the proceeds will be deposited and repayments will be taken.
• Proof of Employment or Income - you should at least earn $1000 per month from employment or other income sources.
• Proof of Address - you must be a resident of Massachusetts and be contacted through an active phone number or e-mail.

Step 1: Submit Your Information

The loan application online is pretty straightforward. First, choose the amount you wish to borrow, then fill out a simple online form. 

After submitting your application, wait to be connected to direct lenders.

Step 2: Sign Your Loan Contract

Once you have negotiated with a direct lender, read your loan agreement to check if everything looks good, then sign the contract.

Step 3: Get Your Cash

Upon approving your loan request, wait for your money to be directly deposited into your bank account for the next business day.

Step 4: Repay Your Loan

Most personal loans come in installments, so include these in your monthly budget.

Repaying your loan on time is crucial so you won't incur penalties or need to take another loan, adding up to the total cost of the original loan. This makes it more difficult to get out of debt.

Who Are Bad Credit Loans For?

Bad credit loans like payday or personal loans appeal to those with money concerns that their current source of income cannot meet.

Other factors like lack of savings, inability to qualify for credit cards, wage advance policies, and poor credit history make someone opt for a personal loan online instead.

Apart from that, people experiencing a financial emergency also prefer bad credit loans over bank loans because of their capacity to deposit funds quickly.

The Benefits of Massachusetts Bad Credit Loans

Despite higher interests and shorter repayment terms, a bad credit loan also has its fair share of advantages:

• Access to reputable lenders 
• Competitive rates and flexible loan terms
• Convenient application
• Fewer requirements
• Quick approvals
• Considers a bad credit score

Things to Keep in Mind When Applying for a Bad Credit Loan in Massachusetts

We share with you some tips when applying for loans with bad credit in Massachusetts:

• Apply early in the morning on a work week to receive your loan proceeds early the following day.
• Prepare copies of your bank statements to verify your income and personal details. All you have to do is upload and send them to your lender online.
• Take note of your repayment schedules. They will automatically be deducted from your bank account. Make sure they transact successfully to avoid penalties.
• Repay your loan on time to build up a better credit score. These lenders regularly report to credit bureaus, updating your credit score.

Frequently Asked Questions

Can I Get a Loan With a 550 Credit Score?

Many lenders still offer loans even to those with a 550 credit score. However, you will incur higher interest rates than those with better credit.

If you think about it, 550 is just 30 points away from getting a fair credit rating. If you can improve your credit score, you have greater chances of getting better deals.

Are Payday Loans the Easiest to Qualify For?

Lenders will still conduct a soft credit check, even for those with bad credit. However, a payday loan is easy to qualify for because these were designed to meet emergency financing needs.

After a credit check, receiving a below 600 credit score will still qualify you for short-term unsecured loans.

However, the interest rate on these fast cash loans can be exorbitantly high. Make sure you can manage. No one wants to see you deep in debt!

Conclusion

There are a ton of loan products out there. We know you can find the best direct lenders to cater to your financial needs, even with bad credit.

Having a bad credit history is not so bad at all! But we must say, it is still worth improving.