3 bad credit loans to avoid at all costs
/EIN News/ — GLENDALE, Calif., Aug. 17, 2022 (GLOBE NEWSWIRE) — Getting bad credit loans is tough, especially in an emergency. And some lenders take advantage of this fact to extort more in terms of fees and interest, associated with a lesser loan amount. Thorough research is needed to weed out loans with high APRs and find ones with more acceptable terms. And RadCred, a reliable resource website, helps needy users understand which loans should be avoided and borrow money instantly online.
Getting a personal loan with a bad credit history is difficult, especially given the choices available to you. Because if the matter is not properly researched, borrowers’ credit ratings may further decline due to a cycle of debt. Some malicious lenders target those with bad credit and quickly pass on much-needed money to them, but these loans are often expensive. And when the going gets tough, many may feel the need to avail of these expensive loans, enticing them with worse interest. But before taking out an ill-advised loan, remember these 3 types of loans that should not be used even in an emergency.
- Short term loan– These are often small, short-term loans to be taken out to stay afloat until the next paycheck. And when same-day funds are needed, these loans are easy to obtain and may seem like a good option. But considering the interest, the extremely short period available for repayment as well as the low borrowing limit, these are not lucrative at all. Comparing the $15 fee on a $100 loan to the generic 8.73% interest rate on 24-month personal loans shows the real disadvantage of these short-term loans.
- Cash Advance Loans- Although these loans can be considered similar to payday loans, there are a few key differences. The good thing about cash advance loans is that people can get bad credit loans for a much higher amount than the usual payday loan. Coupled with this with the fact that repayment can be made in monthly installments, these loans seem like an excellent choice. But these are still much more expensive than normal personal loans. A cash advance loan can have an APR of 299% or more depending on the lender.
- Car title loans– When it seems impossible to get a loan for bad credit, most people often opt for these loans. But car title loans are often not the best choice for getting cash quickly. The amount is also variable, depending on the value of the borrower’s car, and some lenders can often have very short repayment terms. Not to mention that the interest rates on these loans are also high. But above all, if things go wrong, the borrower risks losing one of his greatest assets.
So, taking out a loan for emergencies with a bad credit score is a chore that can sometimes seem impossible. But with a steady mind and well-done research, the best possible option can be had. The most important part of applying for a bad credit loan is finding a reliable lender, and RadCred makes that possible.
RadCred is an easy-to-use resource platform where potential borrowers and potential lenders can connect. Their business is to provide a lender willing to provide a loan to those in need. And because local lenders are part of the network, borrowers find themselves in a safe space. Their bad credit loans are secured with industry standard encryption, are easy to get, and help people in difficult circumstances.
To learn more about RadCred, visit their website https://radcred.com/