Small Bad Credit Loans

It is very easy for a person with bad credit to find a small loan by going online.

Many lenders are willing to loan small amounts of money to those with bad credit if they agree to pay higher fees and interest rates. One of the easiest places to find these lenders is on the web.
Simply typing the words small loans into a search engine can produce links to dozens of companies that make small loans.

The most difficult part of searching for a small loan online is deciding which loan to take.

What To Look For In a Small Loan

The things to look for in a small loan are the lowest fees and interest rates and the best terms that you can get. The internet allows you to do this because you get to compare loans from several different lenders at once.

You will have to pay a high interest rate with a small loan usually around 20% but this interest rate isn’t that high if you pay off the loan quickly. It may be possible to find a better interest rate by searching.

One thing to look closely at is the terms; always  pay close attention to any clause about fees. Many lenders charge high fees if you don’t pay the loan off quickly. A typical example of this is a 10% percent fee charged every two weeks on top of whatever interest charged. Instead you want flexible terms that allow you to extend the loan without paying a high fee.

Avoid Credit Checks

You should try to avoid loans that require a credit check when you’re looking for small loans. Running a credit check can cause your credit rating to drop. Several credit checks can lower your credit rating by a hundred points or more and make your bad credit worse.

Look for lenders that don’t require credit checks or ask if they can waive the credit check in your case.

Avoid Scams

There are a number of scams that target people looking for small loans online.

The most common scam is a lender that asks for a fee called an upfront or advance fee when you apply for a loan. Legitimate lenders add any fee required to the balance of the loan you repay. What usually happens is that the lender pockets the fee and doesn’t give you a loan. In many cases the person collecting the fee is not even a lender and there is no loan.

Never pay an advance fee to get a loan. If a lender asks for an advance fee look elsewhere.

Take Your Time

When you search for a loan online you should take your time and carefully examine offers from several lenders. Don’t take the first loan you find, look over several offers and accept the best offer.