Why Bad Credit Loans Can Be the Ideal Solution in Emergencies
Many people who are stuck in the middle of an emergency don’t know where to turn. Emergency medical bills, home or car repairs, temporary unemployment, and unexpected schooling costs can overturn the most well-planned budget. As a result, many individuals resort to bad credit loans in times of crisis. The problem here is that most lenders demand that the borrower has a steady income. In effect, the lender wants to be sure that the borrower will repay what they owe on time, thus reducing their risk.
Rapid Access to Cash
So how exactly do you get quick access to cash in an emergency? The good news is that some companies will provide emergency cash loans for unemployed people. Some will provide loans no matter how bad your credit is. The reassuring bottom line is that if you need an emergency loan for rent or any other reason, then it’s possible — but you’ll need to carry out a bit of research to make sure that the lender is trustworthy. Slick Cash Loan is one such company. We provide bad credit loans with quick approval and no hard credit check process. Above all, the loans are affordable.
What Exactly Counts as Bad Credit?
It’s usually tough for people who are unemployed and suffering from bad credit to secure a loan. A poor credit score can make it much more challenging to receive loan approvals, credit cards, line of credit products, and more. In addition, having a low credit score tells the lender that you haven’t done a brilliant job at keeping up with your payments in the past. So, what exactly is “bad credit”? Well, a few companies analyze your financial behavior and give you a three-digit score based on your past money management.
The most widespread credit-scoring system is called the FICO score. FICO stands for Fair, Isaac, and Company. It’s one of the established credit bureaus that track your financial activity. A FICO score below 580 is considered a bad score.
Options For The Unemployed
There are a few personal loans that you might qualify for if you’re unemployed and suffer from a low credit score. For example, you could apply for a payday loan, which is a type of unsecured loan. This means that you can get quick access to cash without offering any collateral. Instead, these loans are offered based simply on the borrower’s promise to repay the loan. Although some payday lenders may want to verify your income or check your credit history, Slick Cash Loan does not carry out any hard credit checks when you apply for payday loans.
What to Avoid (If You Can)
Another possibility is a title loan. A title loan is a secured loan that enables the borrower to offer the title to their vehicle as collateral. When you present your vehicle, the lender examines it and calculates its value. You’ll be offered a loan based on a fraction of the car’s value. The problem is that if you fail to repay, the lender is legally entitled to seize your vehicle and sell it to recoup the money. So title loans, like pawnshop loans, come with significant risk. We recommend exploring all other available options first.
The Drawbacks of Some Emergency Loans
Emergency loans come in many different forms. Usually, they are short-term, small-dollar loans that people need urgently. They promise fast approval and fast cash. However, just because a lender can give you money fast doesn’t mean that all lenders offer the same overall package.
The drawback is that many emergency loans come with excessively high interest rates, short repayment terms, and unreasonable loan conditions. Many lenders are predatory. You need to make sure you do your homework before applying. Another potential trap to be aware of is a process called ‘rollover.’
What Is Rollover?
Rollover is common practice with many bad credit loans. It is a means of extending your loan term, which often leads to more interest payments, more fees, and a nasty cycle of debt that’s difficult for the borrower to escape from.
This rollover practice is just one reason why loans for unemployed borrowers sometimes end up causing more damage than good. An emergency loan may help you in the short term, but it could bring you difficulties for years.
Some lenders make more money from the rollover than they do when a borrower settles on time! Thankfully, Slick Cash Loan stands out from the crowd here. We offer competitive rates and repayment plans, so you can tackle short-term financial emergencies without being penalized in the long run.
What Is Installment Credit?
Installment credit refers to a loan that is for a specified amount of money. The borrower agrees to make a fixed number of monthly payments, each at a dollar amount. Repayment terms for an installment credit loan range from months to years.
Experts generally agree that affordable loans should not charge an APR higher than 36%. Make sure you compare the monthly payment to your budget — you can use a personal loan calculator for this. If you have any doubts, then it’s a good idea to consider cheaper alternatives first.
Speed is of the Essence
Our quick cash loans have helped many people to access emergency funds at fair rates. It’s usually easy to qualify, and approvals are fast. If you’re looking to get cash loans approved no matter your employment status, look no further! People are often surprised to learn that with no credit check loans online, instant approval is possible. However, speed is at the heart of our operation, which is part of the reason why happy customers keep returning to Slick Cash Loan in times of need.