What is the difference between a bad credit loan, emergency loan, and payday loan ?
Having bad credit results in the inability to get a normal loan from a typical lender. If you find yourself in such an unfortunate situation, this article may be your best hope in a financial crisis. In this article we present reliable options for finding emergency loans on bad credit.
This article aims to shed more light on bad credit loan companies, ensuring you understand what they are, their purpose, and how to employ their services.
First, let’s quickly look at one of America’s best bad credit loan companies.
A SPECIAL MESSAGE FROM THE EDITOR: this article frequently uses “loan-lending .”Note that we do not mean that these websites will directly lend you money. Instead, they function to connect you with multiple lenders within their online network, allowing you to choose which lender to work with.
In our professional recommendation, MoneyMutual is a reliable option for individuals with bad credit. They’ve maintained a steady track record as one of the best emergency loan providers in America. Their reputation includes numerous positive reviews, quick response time, and delivery as advertised to Americans.
This section will outline some valid points to understand why MoneyMutual is worth the praise and what they do as a bad credit loan provider. These factors will present a case for why MoneyMutual ranks amongst the best bad credit loan lenders for desperate times.
It’s worth noting that using MoneyMutual grants you various benefits, including easy and quick loan applications, within 5 to 10 minutes. In addition, this efficient online loan marketplace dedicates resources to ensure you find an appropriate match for your lender, ensuring your loan receives quick approval.
With MoneyMutual, you can apply for various loans, including installment, payday, and even bad credit loans.
MoneyMutual Presents Multiple Options (Over 60 Lenders)
MoneyMutual offers you over 60 lenders alongside full disclosure to their requirements and conditions for easy and quick loan bad credit loan approval. Upon meeting terms like being up to the age of 18, earning a minimum of $800 monthly, and having a checking account, you may proceed to process an emergency loan.
Remember that additional requirements may appear as you request the bad credit loan; nevertheless, fulfilling these conditions guarantees to receive the emergency funds. Ultimately, MoneyMutual is the best option for acquiring emergency loans during dire times as they are fast with multiple ways to serve you.
It’s worth noting that several previous customers of MoneyMutual have given positive feedback about the service, with most of them pointing at the safety and security of the loan process. This factor is crucial for when you need emergency loans within a short period, thereby making the establishment worthwhile.
If you wonder whether you need any special equipment to access MoneyMutual’s service, note that an internet connection and a reliable computer will suffice. It’s a hassle-free way to acquire bad credit loans.
MoneyMutual Fees and Interest Rates
The Annual Percentage Rate (APR) for MoneyMutual ranges from 5.99 to 24.99%; however, the establishment demands no origination fee for bad credit loan applications. These factors are due to MoneyMutual’s role as an intermediary between the lenders and borrowers, with their jobs ending once you find the perfect loan company for your needs.
Another perk of using a middle man like MoneyMutual is negotiating directly with the lender once connected. Essentially, MoneyMutual plays no role in the loan value or process other than bridging the gap between you and the bad credit loan company.
As previously mentioned, loan companies possess individual requirements and conditions for qualifying for emergency funds, allowing for flexible negotiation. Essentially, the final amount issued can range from $5,000 to $35,000, depending on the negotiation and variables involved.
Also, note that interest rates vary depending on the lender, with percentages going from 200% to 1300%. However, being presented with over 60 lenders allows you to choose the best option for your emergency loan.
Loan Limits Imposed By MoneyMutual
As explained earlier, MoneyMutual functions as a middleman, connecting you to over 60 bad credit loan companies, often providing money ranging from $5,000 to $35,000. Despite this range, some cases allow loans to go as low as $300, allowing borrowers to request more realistically.
Remember that being an intermediary prevents MoneyMutual from controlling the bad credit loan’s terms and conditions. The entire loan-taking and its requirements depend on the lenders; however, this factor presents an advantage as you can directly negotiate with these financial institutions.
Ensure to read and understand every part of the loan document before signing up to prevent unfortunate situations with unfriendly policies and unrealistic procedures. Performing this action also lets you understand the rates and conditions attached to the emergency loan.
In addition to connecting you to over 60 different lenders, MoneyMutual offers three kinds of loans: bad credit loans, cash advances, and payday loans. While payday loans get the highest interest rates, acquiring them isn’t difficult as they have very low qualification criteria.
On the other hand, a cash advance permits taking a loan in cash other than that of your bank account, thereby presenting the option to pay back through installments or your next paycheck. Lastly, bad credit loans have the highest requirements alongside varying interest rates, depending on the lending company.
Ultimately, the flexibility, vast options, and quick loan processing make MoneyMutual an excellent option for emergency funds during tasking times. All you need to do is apply, meet the minimum requirements, and negotiate with the lender that best suits your needs.
Pros and Cons of MoneyMutual
Multiple loan types
Loan amount as little as $300
Larger loans up to $35,000
Currently, multiple options exist that aim to connect you with bad credit loan providers for emergency funds; however, there are several factors to consider when looking for such an establishment, and MoneyMutual satisfies these requirements
Below are sufficient reasons that make MoneyMutual a practical option for acquiring bad credit loans:
Due to MoneyMutual working with multiple lenders, the terms and conditions for acquiring an emergency loan are different. Essentially, each financial institution possesses different conditions, allowing you to flexibly pick a lender that suits your goal, presents real interest rates, and more.
When searching for the best option for taking out emergency loans, ensure to check reviews by previous users and their satisfaction levels. Fortunately, MoneyMutual satisfies this category as they have several years of positive feedback from borrowers. You can read about the personal experience of former users and understand the value this establishment provides.
Dire situations require Emergency loans to appear speedily, which is a factor you need to consider when searching for a financial institution to provide monetary assistance. As expected, MoneyMutual excels in this category with its fast delivery of funds to borrowers that require them. Therefore, they are a worthwhile option for tasking times.
Regarding financial matters, transparency is essential for building trust as dishonest lenders may attach hidden fees alongside their services, making repayment more difficult. Additionally, they may include unrealistically high-interest rates that end with you struggling financially. Luckily, MoneyMutual provides you with the lender’s terms and conditions with no hidden factors with negative effects.
Can You Get An Emergency Loan If You Have A Bad Credit Score?
As previously mentioned, multiple options exist for acquiring emergency loans despite having bad credit; however, terms and conditions apply. The lenders will require specific documents from you alongside some additional factors.
The documents lenders typically ask for when processing your loan are proof of your earnings, and it consists of a payslip and copies of past tax return records. Two years, W-25, or 1099s.
If you don’t have a personal copy of such items, you can always visit the bank for an account statement or contact your company’s Human Resources department. If the HR doesn’t possess these papers, the bookkeeper or accountant may have them at your place of work.
Alongside proof of your earnings, lenders will also require evidence of your residential address and identity. These items often include a driver’s license, utility bill, or state identification card.
Consider explaining why you need the emergency loan to the lender during negotiations as it creates a picture in their mind to understand you better. Bringing additional documents is also encouraged to show what the funds will accomplish.
While borrowing, remember that lenders expect their money back and analyze your debt to income ratio to determine whether you can repay the loan.
In addition to the analyses, you will undergo a soft credit inquiry to determine your eligibility without negatively impacting your credit score, unlike a hard credit check. Nevertheless, read and understand the terms and conditions before signing up for a bad credit loan.
While seemingly impossible, it is possible to acquire a payday loan with a credit score; however, we do not recommend seizing the opportunity. Often, this loan type comes with multiple unfavorable conditions and is difficult to repay.
Payday loans also come with unrealistically high-interest rates that go from 300% to 400% and failing to meet these demands results in additional fees. These factors make looking through MoneyMutual for a better option a good choice for avoiding financial misfortune.
Inspect each lender and pick the establishment that meets your needs and capacity. Avoid lenders with unfavorable terms, and they present too many adverse effects.
Identifying A PayDay Loan
Since payday loans are an option to avoid, it’s best to equip yourself with information on identifying these types of opportunities.
First, payday loan lenders promise not to make a credit inquiry since it doesn’t matter. This factor is a massive red flag as a legitimate platform always performs this check. Other things to spot in a payday loan include:
Observing one or two of the variables above is a good chance to be a payday loan.
Understanding Emergency Loans
If this is your first time borrowing an emergency loan from a lender online, there are a few major things that we would like you to know about.
The major points are as follows:
You are not guaranteed to receive emergency funds from a bad credit loan lender despite offering this service. Furthermore, no financial institution gives any level of certainty even if your score is favorable, as multiple hindrances could occur.
Upon approval, finish your paperwork immediately to acquire your loan with little to no delays.
Different loan types exist with individual lenders, including secured and unsecured loans. The former involves receiving emergency funds with collateral that the bank can take if you refuse to pay. The latter requires no collateral but possesses higher APRs.
Frequently Asked Questions, We Get On MoneyMutual and Emergency Loans For People With Bad Credit Scores
Q1. What Does FICO Consider A Poor or Minimum Credit Score?
FICO considers a score that ranges from 600-660 as a fair score, with anything lower than this range is too poor for merit. Therefore, manage your expectations if you have low numbers tied to your account.
Q2. Can I Get A Big Loan If I Have A Bad Credit Score?
It is possible. Multiple lenders are willing to give up to $25,000 despite having a low credit score; however, this opportunity comes with high-interest rates. If you cannot pay back such high numbers, we recommend finding a cheaper option.
Consider cutting your cost or not borrowing beyond what you need. For example, if you desire $1,000, collect nothing beyond that amount. This is due to bad credit loans having a higher acceptance rate in small amounts.
Q3. What Is The Alternative to Interest-Based Loans?
Suppose you do not qualify for interest-based bad credit loans; in this case, only two options remain friends and family or asset liquidation. In other words, you either have to sell your property to get the money you need or ask your friends and family for support.
While executing these options, excuse caution as selling your assets or asking for help from friends and families can turn sour quickly.
Q4. Why is Online Lending Superior to Conventional Lending?
Unlike conventional lenders, online lending platforms allow you to apply at multiple platforms without leaving your home. As a result, you get exposed to many viable options with little to no hassle attached.
Also, online lenders report your loan performance to the credit bureau, thereby raising your credit score.
Q5. Best Online Lending Platform?
We recommend MoneyMutual as the number one lending platform in America.
Ultimately, online money lenders are a better option today as they dominate the industry than conventional options. There’s no need to visit an office, attend physical meetings, and receive endless investigations as everything occurs through the internet.
That’s why we recommend using MoneyMutual, as they help you find an emergency fund with little hassle despite having bad credit. Also, they pave the way for a better credit score by reporting your loan performance to the Credit Bureau.
Thank you for taking the time to read our in-depth review of MoneyMutual. If you require an emergency loan and are looking for a bad credit loan, consider using MoneyMutual. Also, don’t forget to leave a review if you have a great customer experience. We do not doubt that you will!