3 Month Loans for Bad Credit
Having bad credit can be a nightmare for people wanting to access funds. Are you one among those having a bad credit history? Need access to credit? What do you do if you do not have a good credit score and need urgent cash to tide over a crisis? What's the best deal you can get in a situation like this?
For starters, what you require to know is that short-term finance, like 3 months' loans are generally sanctioned at a higher interest rate. If you require 3 months' loan, and have bad credit, a good alternative option would be to apply to online lenders who would be willing to lend to you.
The digital finance arena is experiencing a boom, mainly due to people looking for unconventional sources of credit. Banks are generally strict about lending to customers with bad credit and sometimes have a tedious application process and can sometimes take long to process your loan application – especially if you have a troublesome credit history. This has created a demand for unconventional lenders in India.
There are several digital finance companies as well as peer-to-peer lending companies providing short term credit like 3 months' loans to individuals and businesses alike. But you need to be very careful about who you approach, so that you are not fleeced by high interest charges and hidden fees. You need to be constantly beware of online loan sharks.
Advantages: The advantage of applying to a digital finance company is that you are not required to go through a long application process and wait indefinitely for approval. Sometimes, loans are disbursed in as short as 2 hours following approval of your application. The application process is quick and can be done entirely online.
Disadvantages: The main downside to applying for 3 months' loan with bad credit is the interest rate. You will be charged interest on a daily basis sometimes starting from a minimum of 1% per day.
Another disadvantage is the loan amount. Since this is short-term finance, you might be given a smaller loan amount.
You could also try applying for a gold loan, if you are in urgent requirement of cash. Gold loans can also be disbursed the same day and do not require an excellent credit history, since your gold is held as collateral by the lender. You will be offered a longer tenure, but at least, you can avail of a better interest rate and a larger loan amount (depends on the amount of gold you pledge).
Having bad credit is generally bad news for individuals and businesses wanting to access credit. It makes the whole process much harder. It is advisable to raise your credit score to healthy number, so that you can become loan eligible and avail of the best offers and interest rates.