The options for people with less?than-perfect credit are often limited. Establishing a healthy relationship with a lending company can be difficult, if you don?t know where to find a trustworthy lender. Armed with a bit of knowledge, however, even those with a bad credit score can secure a small dollar loan for their needs.
A credit score is one of the things that lenders like banks use to determine if they will provide a loan and how much money to offer. Credit scores are composed of a number of factors, but mainly include whether you have paid your bills on time, whether you have a history of any bankruptcies, and how much debt you have relative to your income. Once these are established and are in good condition, it is fairly easy for a person to obtain a loan.
Before strong credit is established, lenders must use different methods to evaluate whether to issue the loan or not. Lenders have a number of different methods and standards to issue loans. Some commercial banks require audited tax statements, verified paychecks, a complete credit history, and more. These banks may require paper copies of all your information and in person applications.
Alternatively, some online lenders provide a much more streamlined, efficient process that can be completed in only 20 minutes and much less documentation. Some lenders only need one pay stub and proof of identification for example, making it much easier to secure a loan. The size of the loan can range from $200 to $1,000, depending on what your situation necessitates.
The terms of your loan will also differ depending on what state you currently reside in, as each state has its own unique regulations regarding lending practices. Lenders are regulated based on the amount of interest they can charge, how they are permitted to market, the various fees they can charge, and the length of the loans they issue. Check your local state government regulations to get more information on these criteria.
MoneyKey is the leading online lender, as it follows all state regulations closely to ensure you receive a manageable and appropriate loan for your financial situation. Their representatives work closely with you to go over your loan terms, clarifying any points of confusion before you set pen to paper. With single-pay, flex-pay, and line of credit loans from MoneyKey.com now available, they?re a sure-fire way to gain financial security for a variety of circumstances.
The struggle to find a reliable source for loans even with your bad credit can be over. Locking into a short-term, small dollar loan that abides by your state?s regulations is the best way to get the cash you need when you need it. Whether you choose a line of credit, a single-pay or a flex-pay loan, online lenders can take the stress out of securing a loan.