Unsecured Online Personal Loans for Bad Credit – Instant Approval upto $50,000

Can online personal loans for bad credit  rescue you out of a messy financial situation? Things can feel pretty overwhelming when you have a heap of unpaid bills to take care of with little to no money in hand. Living paycheck to paycheck is far from easy, and you might often run out of money long before your next paycheck. Seeking help from banks may not yield favorable results if you have poor credit ratings. Traditional lending institutions always judge the creditworthiness of applicants based on their credit report. If your FICO score does not match their standards, you will not get the loan.

Unsecured Personal Loans from Trusted Direct Lenders – LendingSumo

Sending loan applications and facing rejections time and again can take a toll on you. The situation can look pretty grim and you may feel like you will never get the funds you so desperately need. However, that is not entirely true. Thanks to lending platforms such as LendingSumo, you have a fair chance of getting Personal loans online from direct lenders at decent interest rates from established direct lenders upto $50,000. These loans also come with flexible repayment terms. That means you can break down the payment into several small installments. Repaying a unsecured personal loans for bad credit this way not only helps you to make timely payments, but it can also improve your credit ratings over time.

Second Chance personal Loans for Bad Credit upto $50,000

When you apply for second chance personal loans for bad credit, you already know that your credit rating does not play much of a role here. Unlike traditional lenders, legitimate online loan lender offer bad credit personal loans without collateral that are specifically designed for people with poor credit ratings. Such alternative lenders do not expect applicants to have an impeccable credit history. However, they require you to have a stable job and consistent income so that you can repay the second chance loan on time. Since bad credit 2nd chance personal loan from direct lenders come without any collateral or security deposit, lenders put the highest priority on your repayment capability. As long as you are confident about paying off the sum with interest within the tenure, you are likely to receive the loan.

Who should go for Personal Loans for Poor credit from LendingSumo?

Let’s face it, life becomes much easier when you have enough money to fulfill your obligations and save up for the future. We all want to lead a comfortable life and provide for our family. However, very few can actually realize this goal. As per the Federal Reserve, about half of the American population does not even have $500 in savings to address an emergency expense and nearly 76 million individuals have financial problems. Your financial reality may also be far from ideal, and there can be a number of reasons behind it. You are not alone in this, though. Take a look at the following stats to know where you stand:

Now, you may relate to some or all of these situations. No matter why you are struggling now, you do not have to live like this forever. You may resort to reliable personal loans no credit check direct lender to tide over the current difficulties and then work towards building your credit to qualify for better financial schemes in the future. If you want to get out of the paycheck to paycheck cycle, you would have to increase your income and savings. However, rebuilding your finances will take time. It certainly will not be as easy as flipping on a switch. Staying persistent and sticking to the plan will surely get you closer to your ultimate goal. You can begin your journey with the help of LendingSumo.

Payday loans vs. installment loans – assessing the core differences

When looking for quick no collateral or unsecured personal loans for bad credit, you may wonder whether you should go for a payday loan instead of an installment loan. While it is smart to consider other options, you should always weigh the different aspects of the loan product before making up your mind. Your decision should ultimately depend on your needs and which option will fulfill them the best. You need to ask yourself whether you need a small or a large loan, how you plan to use the money and what would be the best payment plan. You need to consider both your current financial status and future prospects when evaluating the loan products.

Here, we are going to compare payday and installment loans based on some factors to give you a better idea of what each of them entails.

Payday loans:

Payday loans are short-term financing vehicles that are ideal for covering immediate expenses. You can borrow anywhere from $100 to $1000 as a second chance payday loan, and the loan term usually lasts for two weeks. You need to repay the loan in full when you get your next paycheck. These loans are specifically geared towards people with poor credit scores. 2nd chance Personal loans usually have steep interest rates, but the exact amount will depend on your lender and location.

Installment loans:

Unlike payday loans, installment loans for bad credit are mid to long-term loans that allow you to borrow up to $5000. These loans usually have a longer tenure of over 6 months. These loans are available to borrowers of both good and bad credit ratings. Though installment loans typically have lower interest rates than payday loans, bad credit borrowers may have to deal with high rates. The most notable feature of installment loans is that you can repay your loan in small installments every month till your tenure gets over.

The borrowers:

Each loan attracts a specific group of borrowers. Though people from different walks of life opt for payday loans, it is usually people with poor credit scores that rely on these loans for the flexible eligibility criteria. Installment loans, on the other hand, do not have a typical target audience. Anyone regardless of their credit scores or financial status can go for installment loans. Here are some of the notable features of the borrowers of each loan.

Payday Loan Borrowers

Installment Loan Borrowers

  • Have poor credit ratings or no credit at all
  • Low-income individuals
  • Lack a bank account (when they apply at check-cashing stores)
  • Need an instant loan of a small amount to tide over urgent financial difficulties
  • Can have bad or good credit ratings (both are welcome depending on the lender)
  • Look for larger sums to pay off over a longer term
  • Can choose between secured and unsecured bad credit loans guaranteed approval

 

Loan terms and amounts:

As discussed above, payday loans and installment loans differ in more ways than one. The most notable differences may be in the loan amount and payment terms. Let’s take a look:

Payday Loans

Installment Loans

  • Maximum amounts and loan terms are decided by state laws and regulations
  • Borrowers can typically obtain anywhere from $100 to $1000
  • Loan tenure may range from 7 to 60 days
  • The amount and terms vary largely depending on lenders. Some lenders may allow you to borrow as much as $100,000 depending on your needs and eligibility
  • Loan tenure may range from 6 to 60 months

 

Cost:

Cost is one of the crucial factors that determine what loan product you should choose for your needs. Let’s look at how payday loans differ from installment loans when it comes to the overall cost.

Payday Loans

Installment Loans

  • Payday loans are infamous for being too costly. The APR for these loans can sometimes be as high as 100%. However, the interest rates may also depend on the lender and the state where you live. Also, since payday loans have a small tenure, you may not accrue a large sum in interest.
  • If you fail to repay the loan on time, it may lead to a rollover or refinancing where you need to take out a new loan to pay off the previous one. This new loan will also cost higher interest and charges, and it might push you into a debt trap.
The cost of installment loans can vary greatly. Your credit score will determine how much you have pay in interest. People with decent credit ratings may get affordable rates, whereas bad credit borrowers may have to bear steep interest rates. Some lenders may also let you get an estimate on the overall cost before you even apply for the loan. Doing this will not affect your credit score.

 

Why choose LendingSumo for online personal loans for bad credit?

If you are seriously thinking about borrowing small unsecured personal loans for bad credit, LendingSumo will be an appropriate choice for you. Unlike many alternative lenders and lending companies, we work with direct lenders only. That allows us to provide you with the best unsecured personal loans maximum amount at affordable rates. We have helped individuals from all financial backgrounds to cope with emergencies by offering the help they need. Our second chance loans from direct lenders ensure that you will get the loan. Banks and other traditional lenders will make you wait for days and weeks before giving you a decision. However, LendingSumo is known for its fast response time and same day approval schemes. So, tell us your needs and apply for a bad credit loan today!