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Applying does NOT affect your FICO® credit score!

LOANS FOR CREDIT SCORES UNDER 500

Generally, a credit score holds a special place as far as your financial profile is concerned. Although you may not be conscious of it, this is a major determinant of financial decisions in your life especially when you need to take a loan.

While low credit scores can limit the options you have when trying to get a loan, there are still options available for people with less than ideal credit scores. To make the deal better, most online lenders will only conduct a soft credit check that won’t make your credit scores get worse. To make sure you are getting the perfect deal, get a loan through Nation 21 just like other satisfied customers like you.

Applying does NOT affect

your FICO® credit score!


Check a loan approval without putting your credit scores on the line

Contrary to popular opinion, low credit scores are not always a representation of irresponsible credit history. Among other things, it could be caused by brief credit history. As such, if you have a low credit score but your profile is clean, it’s easier to access credit than an individual with a higher credit score but they have several delinquencies.

However, if your credit score is low, you should seek loans from lenders that only conduct soft credit scores to ensure the credit scores don’t get lower.

Other than looking at your credit scores, lenders will check your overall financial profile before making a lending decision. This means that a lender will scrutinize how you have handled money in the past to see if you have the required ability to service the loan.

While there are lenders on the market today who claim to offer loans without conducting a credit check, you should be very careful with such deals. Here are some of the things you should avoid.

  • Stay away from any lender who has no interest in your credit history
  • Avoid lenders with tendencies to pressure you into making a borrowing decision
  • Avoid lenders that ask for any advance fees
  • Avoid any lender who isn’t authorized to offer services in your state

Loans for credit scores under 500: Payday loans option

When you are looking for loans for credit scores under 500, it’s easy to turn to a payday loan for quick relief. Normally, a lender will give you the money needed and you are expected to pay on your next payday. You only need proof of a stable income and give the lender a post-dated check that covers the principal amount as well as the interest.

Applying does NOT affect

your FICO® credit score!

While this can be a good option when you are strapped for cash, it can be costly for people with bad credit scores. Basically, you can end up paying around 400% APR compared to credit cards which come with APR of 30%. To make the matters worse, the fees only become bigger if you are not in the apposition to pay back the whole amount. As such, it’s easy to get trapped in a cycle of debt.

Unless you don’t have any other way out, you’d rather keep off payday loans until you are certain you can handle the payment.


Personal loans

If you are thinking about personal loans for credit scores under 500, getting one from a credit union may be a better option. Basically, these institutions offer better terms to borrowers with low credit scores. When you have difficulties getting a personal loan, you can also try getting approved for a line of credit or an installment loan.

Getting the loan from a bank may be quite difficult given the state of your credit score. But if you can manage to get a loan with a local bank, it comes with lower interest rates. However, you have to endure a lengthy application and approval process.

You can also take a cash advance from one of your credit cards assuming you haven’t maxed out your options. Nevertheless, it’s important to note that this option comes with higher charges. Normally, the credit card provider will apply a service charge of about 3% as well as a 29% interest charge on the total balance.


Rebuild your credit scores

Even when you have secured a loan, it’s important to focus on building your credit scores. Good credit scores can help you get better loan terms as well as qualify for other financial services. You can turn to non-profit credit counselors to help you mend your credit scores.

Besides providing personal counseling, they can reach out to your current creditors and renegotiate your loans to get you better terms. But before diving in, try to ensure that the agency you want to work with having the capacity to help you.

Find a bad credit loan online

When you are searching for loans for credit scores under 500 online, it can be daunting to sift through thousands of online lenders in a bid to identify the most appropriate lender. This is where Nation 21 comes in to save the day.

Through our service, you can quickly get the most appropriate loan depending on your financial status. If you don’t know where to begin your search, we have your back to ensure your search is smooth and successful.

Applying does NOT affect

your FICO® credit score!


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