Loans for People with Bad Credit From LoanNow – Easier, Faster, and Better
If your credit is damaged and you are facing a financial shortfall, you are probably well aware that your options are limited. Many banks refuse to approve personal loans for people with bad credit. As a result, you may resort to pawn shops, payday loans or other undesirable lending resources. But many people who are turned down by banks could actually be eligible for loans with LoanNow. Why not let LoanNow show you an alternative to payday loans in meeting your financial needs?
The reasoning banks use in refusing to approve loans for people with bad credit is that such potential borrowers are not creditworthy. But what does creditworthy actually mean? According to banks, creditworthy individuals are less likely to default on their financial obligations. One aspect of creditworthiness is the ability to demonstrate that they have the material means to handle their everyday financial obligations while repaying a bank loan. Another aspect of creditworthiness is a history of responsible handling of credit. Potential borrowers who present both of these elements are more likely to be approved for bank loans than others.
Collateral and Co-Signers for People with Bad Credit
Borrowers who are not able to demonstrate creditworthiness may still be able to obtain bank loans – if they can present alternate assurances to lenders that their loans will be repaid. Many loans for people with bad credit are approved only because borrowers provided collateral, creditworthy co-signers or both. If the primary borrowers default on their loans, collateral can be seized or co-signers can be compelled to assume payment of the loan. It’s interesting to note that pawn shops make no-questions-asked loans on precisely this basis – holding borrowers’ property in their own possession and returning it only upon repayment in full, with interest.
Payday Loans Carry High Interest Rates and Short Repayment Periods
Payday lenders are unusual in that they routinely provide loans for people with bad credit without demanding co-signers or collateral. How and why do they manage to do this? The answer lies in the name: payday loans. Many such loans are advertised with slogans like “your paycheck is your credit!” which is almost literally true.
Payday lenders approve their loans based on borrowers’ ability to demonstrate that they have a steady source of income. Repayment periods for payday loans are set to correspond with borrowers’ paychecks, with repayments often made by automatic bank withdrawals or by depositing post-dated checks provided by borrowers.
Such loans almost always carry very high interest rates in addition to their short repayment periods. Lenders justify these predatory lending practices by citing the need to protect themselves from default by borrowers, many of whom have admittedly sketchy financial profiles.
The LoanNow Difference
Many people with bad credit who turn to payday loans could actually qualify for approval by LoanNow. That’s because we look beyond credit reports and FICO scores to evaluate borrowers’ entire financial profiles. For borrowers who had past credit problems due to unavoidable circumstances, LoanNow provides an alternative to high interest payday loans. Why not experience the LoanNow difference for yourself!