Can You Get A Personal Loan With Bad Credit?

If you have bad credit, you might be able to get a personal loan, instead of applying for a credit card or a payday loan. There are many service providers, such as AvantCredit, that can help you.

A personal loan can allow you to manage your stream of payments more easily. You will be able to pay in equal, predictable payments every month, which you can budget around. You might get a lower overall interest rate than if you apply for a credit card or payday loan.

Another major benefit of a personal loan with installments is that the lender is required to report the borrower’s payment history to credit reporting agencies. This may help you as the borrower to build a better credit rating. Your credit rating will only improve, however, if your payments are made on time.

If you’re shopping around for a personal loan, make sure that your lending service provider is required to send reports to credit bureaus. Also, make sure which credit bureaus they report to. That way, you’ll be able build better credit.

Payday Loans vs Instalment Personal Loans

Payday loans can be a good option if you need a loan for a shorter duration. However, they have a higher interest rate, and you often have to pay them back in a single lump sum payment. If you are unable to make this single payment, your credit score will be badly affected.

In contrast, an installment loan is paid back over the course of a number of months. Payments are spread out evenly over the full term of the loan. You can plan your other expenses and budgets around this monthly payment.

How To Get A Personal Loan With Bad Credit

Take control of your bad credit

If you take out a personal loan, the repayment schedule can help to prevent you from getting even worse credit. A personal loan has the same monthly payment each month, and you have a specific end date for all your repayments.  Prompt repayments every month will reflect well on your credit record.

On the other hand, if you use a credit card to make a purchase you need, credit card debt can hang over your head for a long time. Many people only make the minimum monthly payments. If you have a large credit card debt and are not paying it off fully every month, it’s worth consolidating it with a personal loan. That way, you’ll be able to make more manageable payments and stop endangering your credit record.

The structured nature of personal loan payments can help you to develop a budget and stick to it every month. Just remember that late or missing payments may adversely affect your credit score.

How to improve your credit score

  • Apply for an unsecured loan through AvantCredit or another provider, and get an instant decision.
  • If approved, you get your loan as soon as the next business day. Some banks make take slightly longer to transfer the funds.
  • Make sure you make timely repayments on your loan. This will help to improve your credit score.
  • Make sure the service provider sends notice of payments to some of the major credit bureaus which may improve your credit score.

Repairing your credit is important

When you are trying to get a loan to buy a car, or apply for a mortgage, your credit determines the loan rates you can receive. If you have a high credit score, you can save money over time by improving your chances of obtaining a lower rate.

This is the same with a loan through a lending service provider. Your credit score is a major factor in determining which kind of loan you receive.

As your credit improves, you may be eligible for lower rates on future loans through that service provider.

Personal Loan with AvantCredit

AvantCredit offers personal installment loans with terms that range from 12 to 72 months.

The amount of the loan you can qualify for may vary, based on the service provider’s credit determination.

You can receive money the same day as your loan is approved. Receiving money the same day will depend on whether your bank supports Faster Payments. If your bank does not support Faster Payments, the funds might be sent to your account a little after the time that the loan is approved.

While Avant can send money to your account within these given times, some banks take longer to deposit such funds to your account. If in doubt, contact your bank or the customer service team.

AvantCredit can help you with an affordable loan – while also improving your credit for future loans.