If you need an unsecured $3000 loan for 6 months but you have bad credit, it can be boring to hear advice on improving your credit score before approaching the lenders. While the logic is sound, sometimes we have to pay a bit more financing fees because of the urgency behind our need to borrow money now. For example, even though the APR on unsecured loans for poor credit is higher, the effects are still minimized because we are only taking a 3000 dollar loan and paying back monthly via 6 smaller amounts. The short borrowing period and the small loan amount help to keep things within affordable limits.
So Where Can You Get The Cheapest Installment Loan Rates?Note that lenders are most concerned when you did not pay back previous loans on time or even default on the payments. Whenever a borrower defaults on a loan, it will cost the lender a lot of expenses to get their money back. That is why people with very bad credit may not be able to apply for personal loans. Even though many direct lenders for unsecured installment loans advertise they do not use a credit check, they still have ways to find out your credit history - for example, through the teletrack system.
Perhaps an advantage in getting installment loan quotes from lenders with no credit check is that they do not leave a record on your credit history. Normally, when you try applying for credit at banks and traditional lenders, each application for credit will appear on your credit report for 12 months. When you have more than 10 applications within 3 months consecutively, it is a tell tale sign of financial hardship such as loss of income or excessive debts. In such cases, it very not be easy to get instant approval unsecured loans.
Legitimate Lenders For Installment LoansHence, shopping for the lowest rate bad credit installment loans can backfire if you overdo it. It is better to get a few quotes from legitimate lenders with no credit check for unsecured loans. That is why you may as well use the time to improve your credit score rather than searching for a lender that can give you cheap installment loans even for bad credit.
That is the boring truth - if you want the lowest rate unsecured personal loans, you need a high credit score above 700. It is not difficult, just need some time which is not possible for those who needed a $3000 loan today. There are very easy ways to improve your credit score yourself, and there is no need to pay for expensive services to help you. Simply check your credit report for errors and contact the relevant credit agency to remove those errors. You can make use of the annual free credit report entitlement for all US citizens. Make sure you are not a victim of identity fraud, which is the number one cause of credit report mistakes - for example, someone used your SSN and identity to get a loan.