Bad Credit - Online

Bad Credit Online
Online bad credit loan

There is a wide variety of loans available online for people and businesses that have bad credit.

Many lenders are willing to loan money to people with bad credit because a credit record doesn’t reflect a person’s income. Many people with bad credit have good incomes because credit histories are based on a person’s history of making payments rather than income levels.

The main thing a person or business with bad credit will need to get an online bad credit loan is proof of income. The borrower will have to present a pay stub, bank statement or other documentation of income in order to get the loan. Those who can prove they have income can usually get a loan online even if they have bad credit.

Applying for a bad credit loan online

Most online lenders will have the borrower fill out a simple online application. The application is then submitted to the lender who reviews and approves or declines it. The advantage to this process is that a person can get a quick decision on a loan application. Some lenders may also require a person to send in documents by fax. It may also be possible to save money by e-mailing scanned images of documents with a loan application instead of faxing documents.

Some types of online bad credit loans

The most popular type of online loan made available to people with bad credit is a cash advance. A cash advance is an electronic transfer of money made directly to a person’s bank account. The advantage to cash advances is that the money is available very quickly usually within 24 hours. The disadvantage is that the money has to be paid back quickly.

Another kind of bad credit loan available to businesses with bad credit is a hard money loan. A hard money loan is a loan based purely on a person’s income or cash flow. The advantage to hard money loans is that they are fairly easy to get. The disadvantage is that hard money lenders usually only loan to business and charge high interest rates.

Secured loans online

A variety of secured loans are also available to people with bad credit online. In a secured loan the borrower has to put up something of value as collateral to secure the loan. The lender seizes the object of value if the loan is not paid off.

Persons who have equity in real estate might be able to get a loan secured by that equity or real estate. Businesses might be able to get a loan secured by their inventory or accounts receivable. There are also pawn loans secured by titles on boats, cars, motorcycles and other vehicles which maybe available online.