Applying for a Small Loan With a Low Credit RatingOct 15, 2020
It can be quite challenging to pay off debts, utility bills, and other urgent needs that require you to come up with a solution. If you’re short on cash, you could consider applying for a small loan.
Even with a bad credit score, you can still get the chance to become approved for a small loan so that you can cater to your emergencies right away. To understand small loans and bad credit ratings better, keep reading below.
What is a Small Loan?
A small loan is a form of money loan that is used to pay for emergency expenses, so your life won’t be put into chaos and possibly withhold you from continuing your daily routine. It is also called a short-term loan or cash loan and ranges between a few hundred dollars to thousands.
If you require the need to borrow just a small amount to pay off your dues, you can apply for a small loan to meet your deadlines on time. Small loans usually have short-term agreements and are often known to be more flexible because the borrower doesn’t have to give up their assets temporarily in exchange for money.
What is a Bad Credit Rating?
If you tend to borrow money from the bank or a lender, then you can expect to receive a credit rating. A credit rating is defined as the assessment of your creditworthiness as a borrower relating to your debts or financial duties.
The score you can receive can range from 1-1,200, with the higher number being the more significant rating. If your score reaches below 620, that only means your credit score is inadequate because it’s below the accepted average credit rating.
Many factors can impact how well your credit score becomes and will be determined by your lender. Usually, it involves your credit background, your address, how often you apply for loans, and even the number of court cases filed against you.
How to Apply for a Small Loan
Applying for a small loan with Hoopla Loans is easy and convenient because you only need to undergo a 4-stage application process to receive the money you need. All you have to do is fill out an online application, including your personal information, in under five minutes.
Once you submit your application form, a panel of lenders will review it and provide a grade for your application. If you’re approved, you will receive a message notifying you that you’ve been given a loan offer.
When you accept the offer, you can move forward to signing the contract and finalizing your loan deal. Once the lenders receive back the contract, they will send over the money to your bank account in a matter of minutes.
Applying for a Loan with a Bad Credit Rating
Despite having a bad credit score, it’s still possible to apply for a small loan. Since your credit can be personalized to suit your financial needs and help you pay off your bills and other dues, lenders can accommodate your monetary requests.
You just have to go through the same process of applying for a small loan and wait for the approval. People still have a chance to gain credit, even with the presence of a bad credit score. You can also receive significant interest rates and suitable repayment plans based on your circumstances.
It would help if you didn’t overthink your bad credit score because a lender’s decision will be based on your entire small loan application and not just a portion of it. There are money lenders who will always allow people the opportunity to turn your life around and accomplish your financial goals, mostly those that require your instant response. You can rely on professionals to assure you that there’s always hope to start fresh and acquire a clean slate.
Are you looking for a loan broker in South Africa to help you secure a small loan? Hoopla Loans is an online loan broker that offers loan applications, including payday loans, personal loans, and medium and long-term loans. We have flexible payment terms and competitive interest rates to meet your financial needs. Check out our website to apply for a loan today!