Bad Credit Loans in
Learn more about bad credit loans in Maine. Get tips and suggestions on finding the right loan or financing option for your situation.
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:
- 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.
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.
Evaluate the loan amounts, terms, and restrictions that online lenders offer. Ensure that the terms of the lender you choose can work for you.
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:
- Submit your application first thing in the morning on a business day for higher chances of getting your funds the NEXT day.
- Prepare digital copies of documents that support your income and background for faster uploading when your lender asks for them.
- 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.
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!