Micro-loans can be very useful when you are in a more difficult financial situation and need money quickly. For someone with a bad credit score, it is very difficult to find a lender. Fortunately, micro-loans are a great option for people who have bad credit ratings but need cash fast.
The majority of these loans do not require verification of credit history
As a result, you will be eligible for this credit even if you have a bad credit rating. However, you will not be able to borrow between $ 100 and $ 1500, depending on the circumstances. If you qualify, you will receive your money within one hour.
Also, these lenders will ask you to have a bank account and this account accepts wire transfers. As a result, the creditor can deposit directly into your bank account. Also, this allows the creditor to withdraw the money you owe him once the time comes.
In addition, these creditors will ask you to have at least a part-time job. This serves as a guarantee and tells them that their loan will be repaid.
When applying for a micro-loan, if the creditor has doubts, he may ask you for additional information such as bank statements and pay stubs. This could, however, lengthen the approval process by a few days.
However, this type of creditors will charge you a fee for the loan they offer you
That’s how they make money. Depending on the creditor with whom you do business, these fees vary between $ 10 and $ 35 per $ 100 borrowed. Be sure to check the amounts of these fees before applying for a micro loan. If, for example, the fees are too high, we suggest you see other creditors.
Micro-loans are a solution when you have an urgent need for money and your credit rating is poor. The fees you will pay to a micro-loan creditor are also higher than the bank charges. However, if your credit score does not allow you to have a bank loan, this is an advantageous option because the banks would not offer a loan to someone with a bad credit score. (click here to learn more about the benefits of a good credit score or click here if you have too many micro loans).