3 Bad Credit Loans To Be Avoided At All Costs

·3 min read

GLENDALE, Calif., Aug. 17, 2022 (GLOBE NEWSWIRE) -- Bad credit loans are difficult to be obtained, especially in an emergency. And some lenders take advantage of this fact to extort more in terms of fees and interests, coupled with less loan amount. Thorough research is needed to weed out the loans with high APRs and find those with more acceptable terms. And RadCred, a trustworthy resource website helps users in need understand which loans should be avoided and borrow money instantly online.

Getting a personal loan with a bad credit history is difficult, especially considering the choices out there. Because if the matter is not well researched, borrowers’ credit scores may fall further down due to a cycle of debt. Some malicious lenders target those with bad credits and forward them the much-needed amount fast, but those loans are often expensive. And when the situation is tough, many may feel the need to avail these expensive loans, landing them with worse interests. But before taking out an ill-advised loan, remember about these 3 types of loans that should not be availed, even during an emergency.

  1. Short-Term Loans- These are often short-term, small loans to be taken out to stay afloat till the next paycheck. And when same-day funds are needed, these loans are easy to get 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 a $15 charge on a $100 loan to the generic interest rate of 8.73% on 24-month personal loans show the true disadvantage of these short-term loans.

  2. Cash Advance loans- While these loans may 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 of a much higher amount than the usual payday loan. Coupling that with the fact that the repayment can be done in monthly installments make these loans seem like a great choice. But these are still far more expensive than normal personal loans. A cash advance loan may have an APR of 299% or more depending on the lender.

  3. Car Title Loans- When getting a bad credit loan seems impossible, most people oft for these loans. But car title loans are often not the best choice to secure quick funds. The amount is variable as well, depending on the value of the borrower's car, and some lenders may often have very short repayment terms. Not to mention the interest rates on these loans are high as well. But most importantly, if things go awry, the borrower risks losing one of their biggest assets.

Thus, taking out a loan for emergencies with a bad credit score is a chore that may seem impossible at times. But with a steady mind and research well done, the best possible option can be secured. The most important part of applying for a bad credit loan is to search for a trustable lender, and RadCred makes that possible.

About RadCred:
RadCred is an easy to use resource platform where potential borrowers and potential lenders can connect. Their business deals with providing a lender willing to advance a loan to those in need. And as local lenders are a part of the network, the borrowers find themselves in a safe space. Their bad credit loans are secured with industry-standard encryption, are easily achieved, and help people with dire circumstances.

To know more about RadCred, visit their website https://radcred.com/
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Riya Tyagi