Bad Credit Personal Loans

Bad Credit Personal Loans

Bad credit can put you in a tricky situation, especially where your financial matters are involved. Even when the bad credit rating was not your fault, it can be quite an impediment, especially if there comes a time when you need access to bad credit personal loans. Most traditional lenders will not look at you too kindly when they see that you have a blemished borrowing record. Thankfully, not everybody believes that you should be punished forever for financial missteps you have committed several years ago.

At MagicLoan, we are committed to helping credit-challenged customers get access to bad credit personal loans. As a lender-finding service, we can help you get paired with lenders that can meet your personal loan needs while at the same time look beyond the past state of your credit score.

Giving borrowers another chance to find that personal loan

Our lender partners are considered specialist lenders who have focused their services on offering a variety of short term loans options to people whose credit records may not be as spotless as traditional lenders would prefer. These are the people who are likely going to be turned down by most banks and old-school lenders as their credit scores classify them as high-risk borrowers. Our lender partners at MagicLoan understand this very well and are more than happy to give credit-challenged borrowers the chance to get approved for bad credit personal loans. While they are still going to carry out credit enquiries to fulfill responsible lending regulations, what they will focus more on is your means to repay them should the debt get approved. 

Why sign up for bad credit personal loans

Unsecured loans

These cash loans will not require borrowers to put up a valuable asset to serve as security for the loan. This is ideal for people who are not comfortable with presenting a loan collateral as well as those who do not have any asset valuable enough to be used as such. 

Higher chances of approval

The lenders we have partnered with at MagicLoan are known for their specialist financing services especially when it comes to bad credit personal loans. This means that they are happy to give credit-challenged consumers the chance to secure bad credit bad credit personal loans by looking beyond what their credit records say. These lenders are more interested in a borrower’s present capacity to afford the loan to decide whether they should give them the thumbs up or not. 

No restrictions on how to use the loan funds

As bad credit personal loans, lenders are not going to put any pressure on the borrowers to only use the funds for specific purposes alone. Instead, they can use the cash for whatever expenses they need to cover, be it urgent or planned ones. The only thing they will be most concerned about is that you can get the repayments done on time every time. 

Easy repayment setup

Repaying your bad credit personal loan is made easier too. To ensure that you will not forget to make your repayments on time, a direct debit can be set up where the lender will just automatically deduct the amount you must pay on your repayment date. All you need to do on your end is to make sure that there will be enough funds on your account on that day to ensure that the transaction goes through.

Get matched with the right lender

After you submit a loan application to us, our loan experts will get to work and review your details to decide which of our lender partners can assist you best.  Thanks to new technology, this process does not take a long time to complete and will usually only take no more than an hour. However, if you do end up sending us a loan application beyond our regular working schedule, then you may have to wait until the next business day to get an outcome. 

Interest rates for bad credit personal loans

Due to the high-risk nature of bad credit personal loans, they tend to come with higher interest rates. For instance, most lenders offering this type of financing may charge up to 30% per annum. However, this is typically reserved for really extreme cases. In reality, there are a number that may affect the risk factor of your borrowing and your personal circumstances might lead to you getting slapped with significantly lower interest rates. 

Loanable amounts

Typically, personal loans are available in figures over $2000 but will usually not go over $10000-$12000. How much a lender is going to approve you for, however, will be highly dependent on the present state of your finances. Do remember that while there is a good chance that you could get approved for an amount that is much higher than what you expected, it is best to keep your borrowing minimal. Remember, the higher the loan amount, the higher the fees and charges that will be attached to it. Stick to what you can conveniently afford. 

Improving your chances

If you want to up your chances of getting approved, you may choose to name a guarantor when applying for bad credit personal loans. This means that the person named as guarantor will take on the responsibility of paying off the loan in the event that you will default on your financial obligations. However, lenders do not really require this. After all, you will get assessed based on your capacity to repay the debt. However, having a guarantor does help if you wish to borrow a more substantial amount as their presence significantly reduces that the lender gets exposed to for lending funds to you. 

Debt consolidation options

Bad credit personal loans can be a way for borrowers to better manage their debts. People who are having a hard time keeping up with the repayments for their multiple debts can choose to take out a single loan that will pay off all of their existing debts, so they are left with a single small loan that carries one term and one interest rate. When done right, this can be an opportunity for borrowers to not only get their finances straightened out but also save a considerable sum, especially if they can secure a loan that offers a sufficiently lower interest rate compared to how much they used to have to pay for their multiple debts.