It’s a frequent misconception that those with poor credit scores are not able to get a personal loan. Today, we want to help debunk some of these bad credit myths, and inform you how getting a personal loan is possible, even with a less than favorable credit score.
Myth #1: You Need a High Credit Score to Qualify for a Personal Loan
It’s widely believed that lenders reject all applicants with negative credit history, but that is not the case. While having a good credit score can help you get better rates, having a poor credit score does not inhibit the ability to get a personal loan. Most lenders look at much more than just the applicant’s credit score when deciding if they will grant the loan or not.
Myth #2: Loans can be Risky or Dangerous with Bad Credit
With bad credit loan companies, this could very well be true. If you’re lending from somewhere that’s not checking your credit score, that probably means they’re not offering a responsible loan. Basically, if they don’t care about your credit, they don’t care about you. At Total Loan Company that is not the case, we still do our homework. When applying we require your social security number, income information, banking information, as well as address and phone number.
Myth #3: You Need Collateral if You Have a Bad Credit Score
While secured loans do require collateral, unsecured personal loans do not. Most online personal loans are unsecured, which means the lender looks closely at credit score and income. While it may be more difficult for borrows with a bad credit score to get unsecured loans, it’s not impossible. At Total Loan Company we still consider applicants with lower credit scores because we recognize that bad things can happen unexpectedly.
Myth #4: Loan Repayment must be in One Lump Sum
It’s a common worry among borrowers that they will have to pay back their loan all at once. When applying for a loan, pay close attention to the repayment terms and conditions. Consider personal installment loans, with these consumer debt is repaid over time in regularly scheduled intervals. Learn more about installment loans with Total Loan Company here!
How We Can Help
As we’ve said before, at Total Loan Company we understand bad things can happen to people. We consider all applicants because we want to help people when others won’t. Even with bad credit, our short-term multi-pay loans are a perfect way to respond to unexpected emergencies such as car repairs, medical expenses, or travel. When you take a short-term loan with us, the interest rate on your loan will depend on several factors including the type of loan you get, and your credit history. Every loan from TLC has a fixed rate, which means your rate will not change for the entire term of your loan.
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