Home Finance The Beginners Guide To How Bad Credit Loans Work

The Beginners Guide To How Bad Credit Loans Work

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Understanding your credit score and how you can better it is a huge part of managing your finances. But with some of us not able to save as much as we would like at the end of every month, a financial emergency could be too much to handle when the budget is already tight towards the end of the month. But what if there was a way you could get financial aid with a poor credit score. To help you get exactly that, we will be providing you with insight into how bad credit loans work. 

Loan Types You Can Gain With Poor Credit

When looking at the different kind of loans that are available for bad credit, there are several options available to you. Each of these provides you with the quick financial aid that you need to ensure that you have the loan type that you need for the financial situation that you find yourself in. 

Short Term Payday Loans 

One of the loan types that you can choose from when struggling with poor credit is a short term payday loan as this can provide you with the funds that you need in a few working days. These can be applied for online with ease with credit score checks beforehand. Though you can be accepted with a poor credit score, it recommended that you keep your credit score as clean as possible beforehand.

Unsecured Bad Credit Loans & Secured Bad Credit Loans

In addition to a short term payday loan, there are both secure and unsecured loans that can aid you in gaining access to emergency funding if you need it. With easy applications online and a result within just a few days, you can have the emergency funding that you need to help yourself out of a financial difficulty that you are experiencing at this time with a higher acceptance rate for those with poor credit scores.

The Difference Between Hard And Soft Inquiries 

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In addition to understanding the loan types that are available to you, it is important t know the difference between both hard and soft enquires when it comes to applying for loans. When you are reviewing your own credit score, this is a soft inquiry that will not appear on your credit score. This type of inquiry will not show up on your credit score and will not negatively affect your credit score in any way. However, a hard inquiry is slightly different. 

A hard inquiry occurs when a lender that you have contacted checks your credit score. This type of inquiry will remain on your credit report for a total of 2 years and can be seen by anyone that checks your report. Too many of these hard, inquires can harm your credit score, therefore it is important to monitor this and prevent too many inquiries being made. 

With this in mind, there are several ways that you can still gain access to emergency finance of any kind even with a poor credit score.

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