Myths About Applying for a Loan with Bad Credit

Posted by Andrew Monks on March 24th, 2016

There are so many myths surrounding the financial industry and especially when it come to applying for a loan with bad credit. Not everyone has managed to keep the perfect credit score, there are thousands of people who have found themselves in financial difficulty in the past, they have worked hard to improve their rating, but the past keeps chasing them and they cannot get out if it's vice.

You may be one of these thousands of people and while your bills are all paid up to date and you have a good handle on your finances now, what you did in the past keeps coming back to bite you. What do you do when you need financing, you apply for a loan with bad credit as does most other people. The problem is the myths surrounding these loans and you need to know that most of them are myths and are not fact.

The first myth is that you can't get a loan if you have a poor credit rating. This couldn't be further from the truth. Up to a few years ago, this was true, but these days with so many online lenders, you can easily secure the financing you need quickly and effectively by completing a simple online application and getting approval within minutes. The fact that you have a good or bad credit history will have absolutely no impact on your ability to secure the financing you need moving forward.

The next myth you are going to want to know is false is that you can only apply for a loan with bad credit if you have a poor credit history. Again not true. Anyone is welcome to apply for these loans, the fact they advertise they are bad credit loans just means that they do accept those with a tarnished credit history. Even if you have a good credit report, but you need an answer quickly, you can apply. The only benefit with a good credit history is that the interest rate you pay will be slightly less than someone applying with a bad credit history.

Another myth you may not be aware of is that everyone gets the same high interest rate. In some instances the lender may advertise a certain interest rate, but this does not mean that this is the rate you will pay, it is often an example. You will only know the interest rate you will be charged once your loan application has been accepted. Those with good credit will have a lower interest rate than someone with bad credit, but both will be given the same consideration and probably both will be approved, the only difference is how much the monthly repayments are.

One of the most common myths is that all clients are not treated the same when it comes to applying for a loan with bad credit. The fact is that all applicants are treated with the same respect. Yes there is times where one client may need to provide more information than the next or one client may pay a higher interest rate than the next, this is down to the lender and the information and products that they provide.

The final myth, which is completely untrue is that your bank is the best source for a loan. Since the economical recession a few years ago, banks are stricter than ever when it comes to providing a loan. This means that they are probably the last place you want to approach for finance. The online lenders provide easy online applications and fast approval times, so you know if you are getting the funding you need within minutes.

About Us: Willow Loans is a leading online company specializing in loans for people with bad credit. This well-established company works with a panel of reputable and respected lenders, helping clients get the finance they need. The company offers payday loans, personal loans and installment loans up to and over ,000 with a host of repayment options up to sixty months. Willow Loans believes in providing fast approval and deposit funds quickly and effectively. They offer the convenience of a quick and simple online application and already have thousands of happy customers throughout the country. To find out more, visit http://www.willowloans.com