The uncertainty that the pandemic has brought along, has created a slump in personal savings. People are running out of their personal funds, and mostly to pay for the essentials.

According to a report, there has been a substantial increase in applications for short-term personal loans.

Lenders quote “a majority of the population has a bad credit history. Evidently, this makes it difficult for them to borrow a loan the conventional way.”

Nevertheless, short-term installment loans for bad credit solve this problem. Though they come with, usually, a higher interest rate, there are still many benefits they offer over the conventional lending system.

Pro-tip: You should try direct lenders for guaranteed installment loans for bad credit for quick and hassle-free loan approval.

For instance, these loans are quick and easy to apply for, along with, instant loan disbursal facilities.

So, how do you apply for a short-term installment loan?

Keep reading to learn more.

Search for Money Lenders

Of course, the very first step to getting a short-term personal loan with bad credit would be to search for your options. A rather convenient way to explore is accessing an online money lending network.

Typically, these online money lending networks can help you connect with a myriad of private lenders within moments. As a result, you can save a lot of time going through each lenders’ website.

That being said, you can still physically visit a personal money lender. You can either search for them online or ask your friends and relatives for references. Besides, contacting someone you can trust is very important since money matters are complex and can turn upside down if not paid due attention.

Fill up the Necessary Details

Saying that there are absolutely no credit checks would be misleading. Obviously, every lender would like to ensure if their investment could bring them returns or not.

Usually, private lenders consider only the income and expenses to ensure your credibility. To put this into perspective, the lender would ask for your bank statement.

The lender would then scrutinize your expenses against your income and make an offer. The brighter side is, your financial status does not reflect your credit history. In other words, if you’ve had a bad credit history, the chances are- your loan would be approved.

When applying for a short-term loan with a private lender, make sure you carry out a thorough check on them as well. For example, you wouldn’t want to borrow from a defaulter or a lender who has a bad reputation.

Compare Lending Options For Best Deals

Once you’ve shared your personal details with the lender, they’ll likely make you offers. Notably, they won’t make you a single offer. To put this into perspective, they’ll either offer you a range of repayment models or a loan amount choice.

The benefit of applying through a lending network, however, is you get to choose from a pool of loan options.

Let’s say a single lender lets you borrow up to $100,000 and offer you a repayment tenure of up to 1 year. It would mean you can optimize your repayment to fit into your monthly budget.

The same would vary if you get similar options from 10 lenders, for instance. You can choose a lender that offers you better tenure, a higher amount, and all of that at a lower interest rate.

Of course, it would mean you’ll have more flexibility in managing your personal finances.

Apply Through Paperless Procedure

A rather convenient option would be to apply for a personal loan online. Applying for a loan online would eliminate any hasty paperwork and reduce chances for errors.

In fact, online money lending networks have this particular benefit over conventional banks. While it might take up to an entire day to apply for a loan through a conventional lending system, it would take only 2 minutes when you apply for it online.

The procedure is as easy as opening a Facebook account. As already mentioned, the lenders would not need much information. All that they need is your account details and your banking statement.

You can easily upload scanned copies of these documents. And voila! It’s done.

Wait for Approval

Once you’re done with the application process, the next step would be waiting for approval. As already mentioned, the lender would probably go through your financial statements before making you an offer.

The process for approval can take up to 24 hours. But, that depends solely on your credentials.

For example, if you have a good financial history, the chances are your loan would be approved within minutes. On the contrary, if you have a poor credit history, the lenders would scrutinize further.

In most cases, the approval is granted on the same day of the application.

Receive Money Directly in your Account

After receiving the approval for your application, your loan would be credited to your account.

It is noteworthy that your loan may not be approved as per your application. For instance, you may apply for $50,000 but your approval might only be up to $40,000.

Nevertheless, post-approval, the loan disbursal does not take much time. In most cases, the amount is credited to the beneficiary’s bank account as soon as the approval is made.

Unlike conventional bank loans where application, approval, and disbursal may take weeks, online lending options are undoubtedly convenient.

By now, you must have a clear idea about installment loans, and how you can apply for them. However, you’d also need to take certain precautions when applying for these loans, particularly, if you’re applying online.

First of all, make sure that you check your lender’s credibility before applying. Digital space can be equally dangerous, as it can be convenient for many. Approaching a trustworthy and reputed lender can protect your personal information from getting into the wrong hands.

Besides, when applying for a loan, make sure you do not exploit your credit line. It is rather beneficial to borrow responsibly than to mourn over mingled personal finances, later.