You might already be familiar with Upstart as it is such a popular online lender now. The platform boasts of being powered by artificial intelligence. This AI makes loans and credit more accessible through technological power.
According to the platform, their rates are 10% lower than traditional lenders. It also accepts 26% more candidates, on average, thanks to their non-traditional data assessment.
- Qualify with no credit history or with a credit score of at least 600
- Evaluates non-traditional data, potentially increasing your chances of approval
- Can check your credit score without a credit check
- No prepayment penalty, so you can pay off the loan sooner
- Get loan funds as fast as 1-2 business days
- May qualify as unemployed as long as you have another consistent source of income
- You may face origination fees, equal to 0 to 8% of the total loan amount
- Co-signers are not an option
- No automatic payment discount
- Not available to residents of Iowa or West Virginia
5 things to consider when taking out a cash advance loan
When looking for the right cash advance loan. Keep the following in mind when focusing on your preferred online lender.
Some lenders require a minimum credit score or other approval markers. Most lenders require you to have a predictable and stable income. Are you eligible for a cash advance loan?
2. Terms and conditions
You will receive a loan agreement to read in its entirety before accepting. Not everyone reads these terms and conditions, but we certainly recommend that you do as it helps to ensure that you find the terms favorable and appropriate.
3. Interest rate
One of the most critical elements of a loan is the interest rate. Your APR, or Annual Percentage Rate, will determine how long and how much you will have to repay. Make sure you understand the interest rate you are signing up for. Also, check if it is a fixed interest rate or if it will change throughout your loan.
4. Other potential charges
What other fees, fines, and fees come with the loan? Are there origination fees, returned check fees? Find all the potential fees you can expect when you take out a loan.
5. A backup option
A backup can be money in savings or assets that you can sell. Not everyone has a backup option, but it’s nice to build over time. It’s also something good to keep in mind so you can stay on track with your loan.
How to Guarantee You’ll Be Approved for a Cash Advance Loan: 8 Steps
Getting a loan isn’t difficult, but it can still be more accessible. If you don’t have good credit or need a cash advance quickly, there is still hope. Follow these steps to make sure you can easily get a loan.
Check your credit score
First, see what you’re working with when it comes to your credit score, as this gives you an idea of the type of loan you’ll qualify for, to begin with. It also helps you see any discrepancies or debts that could make it harder to get approved for a loan.
Boost your score
If you can, take the time to try to increase your credit score. Especially if you discover that it is below ideal, even for bad loans, improving your score will certainly help you. Some platforms help you increase your credit score in a few simple steps, so try to educate yourself.
Determine your budget
It is recommended to examine your budget before looking at lenders. How much loan can you afford? Will you be able to make future payments confidently? Approval is not the only thing to worry about when it comes to loans. Being able to repay the loan on time is equally vital.
Evaluate different lenders
Compare and nuance! Don’t just search for one lender, search as many as you can. No two lenders have the same interest rate ranges or borrower requirements. If you don’t qualify with one, you will surely qualify with another. Better than putting all your eggs in one basket, make sure to compare lenders before you make the deal with any of them.
Pre-qualify for a loan
Prequalification is not the case for all lenders, but some offer the process. It often only takes a few minutes and does not require a full credit check. With the prequalification information, they can see what the chances are of you being approved.
If you are particularly unsure of your chances of approval, this may be a necessary step for you. At the very least, it can give you peace of mind that you’re using the right lender for your situation.
Refine your app
Maybe you’ll go with someone else on loan. Or, maybe you have a co-signer with a decent credit rating to support your request. In any case, specify all the details of your application. Cosigners, assets, and other ways to build your trust with the lender are great additions to mention.
Contact your lender
Communication is vital in almost every aspect of life, including loans. Discuss what you need to get a yes from your lender before submitting your application. Sometimes they can give you much-needed advice. They may even be able to get you a better deal by speaking with someone directly.
Apply and wait
Finally, it’s time to send in your complete application! Once you’ve applied, all that’s left to do is wait. Application approval may take a few days, so please be patient. Some lenders can decide in less than 24 hours; it depends on the lender.
To speed up the application process, make sure you have all your ducks in a row first. The necessary documents must be completed and sent. All necessary attachments, including W-2s, bank statements, social security numbers, etc., must be submitted.
Online Cash Advance FAQs
Do I have to do a credit check to take out a loan?
It is possible to receive a personal loan without a credit check. However, the majority of lenders will require one. If you find a lender who does not waive credit, they will consider other ways to repay the loan.
You may need to provide collateral, such as personal property, to secure the loan. Auto title lenders, payday loans, online lenders, and even pawnbrokers offer options without a credit check. Do your research to find what best suits your situation.
What is considered bad credit for loans?
Lenders generally have bad, fair, good and excellent ranges. Although the ranges vary, users with a FICO score below 580 are considered very low. For scores between 580 and 670, you are considered a subprime borrower.
Remember that it is not impossible to get a loan because your credit rating is low. The most important difference is the interest rate to anticipate. Basically, the lower your credit score, the higher the interest rate for a loan.
Are bad credit loans legit?
Yes, bad credit loans are legit. However, expect a potentially higher interest rate than a loan for fair or reasonable credit scores. Likewise, be sure to do your research and stick with an online bad credit loan you can trust. This is one of the reasons we created this guide in the first place!
Can you get a loan if you are unemployed?
It’s not the easiest to get loan approval if you’re unemployed, but it is possible. Not all lenders require proof of stable income, hence one of the many benefits of taking out a loan for bad credit.
Are bad loans risky?
Technically, any loan is risky. It is up to you, as the manager, to repay the loan in a timely manner. As long as you do this, there is no risk.
Whether unexpected costs arise or you’re ready to invest, you don’t have to turn to predatory lending to make it happen. By using the cash advance loans we mention, you can have confidence in your financial situation.
Getting a loan for bad credit is not impossible. With accurate knowledge and guidance, you can guarantee your approval for a loan. Remember to compare lenders to determine the lowest interest rate for your goals.