A bad credit loan is a type of cash advance offered to borrowers with poor, bad, or no credit score. There are a lot of bad credit loan types from online and in-store direct lenders, banks, credit unions, etc.
The main things you need to know about bad credit loans are:
Due to higher interest rates they generally tend to be more expensive than a usual cash advance.
They are riskier for both lender and borrower as can lead to late payments, or default and additional fees.
It’s harder to get approved for a bad credit loan by a bank or credit union. But most online lenders provide cash advance even to subprime borrowers.You can find out where you are in this gradation through your online bank account or credit card statement or applying for a free score online.
Bad credit seems a great idea when you’re in a desperate need of extra cash, but be careful to think of their consequences. Do your best to repay the loan or it may lead to even more debt in the long run.