In general, borrowing if you have bad credit is a bad idea. Also, financial institutions are unlikely to give it to you. On the other hand, if you are in debt and apply for a loan, you will affect your reputation as a responsible person, since you give the idea that you ask for money when you cannot pay it.
Who lends you money if you have bad credit?
There are financial institutions that make loans without a bureau, that is to say: they do not check your history in the credit bureau or in the credit circle and they do not necessarily ask you to have a guarantee; but the loan conditions are not the best. In general, they loan you little money and with very high interest.
How are loans without bureau and without collateral?
Loans that do not ask you to prove an endorsement, guarantee or a good credit history are known as immediate, urgent, express or fast loans See Moni365.
The good thing about these loans is that if you are a good payer, they can give you a wider range of payment conditions, which are better.
What are the risks of immediate loans?
In addition to the high interest paid for these urgent loans, there is a risk that you will run into some fraud. Remember: if they offer you a lot of money with conditions that are too easy, there could be a trap hidden.
In order not to pay double or even triple the immediate loan you requested, it is very important to compare all the interests of each of the financial companies that provide this type of service.
Never give your data if you do not confirm that it is a reliable financial; If there is something as important as money, it is your personal data.
In which cases is it advisable to request an urgent loan?
If you have a real emergency and cannot find a family member or friend who can lend you money, immediate loans are an option to solve problems; but try to pay them off as soon as possible to avoid paying too high interest.
Paying your credit on time quickly will also help you create a better record, at least with the company that lends you, which could ensure that, in another emergency, they will lend you more money with better conditions.
Some recommendations to avoid problems with your immediate loan even before requesting it, are the following:
- Research your current situation at the credit bureau. Once you are clear, put together an action plan in which you consider your debts, upcoming income, ideal payment dates and amounts that you will designate for the payment of said debts.
- Reduce the amount of unnecessary expenses, and allocate that money to pay off your debt little by little.
- Control the debts you already have. Before applying for new credit cards or loans, reduce your debt or balance to 25% of your limit.
- Do not apply for several cards or credits in a short period, as it will affect your credit history.
In conclusion: Find out more on loans if you have a bad credit history is not such a good idea, because that means that you have debts and a bad ability to pay. On the other hand, if you will use the money for a party or some non-emergency expense, avoid it at all costs.
If the loan is to solve an emergency, for example medical, and you can’t find anyone else to help you, ask for it; but try to pay it as soon as possible so you don’t close another door.