Direct installment loan lenders only approve home equity loans that have bad credit. The borrower must prove his income to make a case for the loan. If the lender determines the borrower’s income is sufficient, he can give them the cash advance.
Do I need to have a high income to get a loan?
Lenders are focused on homeowners who have good credit and are able to prove their income. They do not approve any advance if the borrowers’ income is low. A home equity loan that is approved is the one that has a lower interest rate. That means less money and more debt.
Direct installment loan lenders only focus on bad credit homeowners who are unable to show proof of their income. That means a bad credit rate will be higher.
Lenders know what is required from the applicant and they want to ensure they get it. The reason why they only approve loans with a higher interest rate is because they do not want to take on the risk of default.
There are many ways for a borrower to try to get a loan approved without proving income. But a lender knows that the only way to get approval is by having the applicant to prove their income.
Why bad credit borrowers have much more interest rate to pay?
Banks and other lenders do not like the high rate of interest they must pay to the borrower on these loans. It makes the loan very expensive for them.
It is much easier for borrowers to get a loan approved when they prove their income and have a good credit rating. But the loan payments are much more expensive than a loan that has no proof of income.
Bad credit borrowers will have to pay a much higher interest rate. This will make it harder for them to make the payments. But bad credit borrowers should still apply for a loan as it is a last resort for a person to make emergency financial needs. Any short-term debt should be considered carefully before an application is submitted.
If the application is carefully considered, any bad credit borrower can still get a loan that has a higher interest rate. The main thing is to get the loan approved.
It can be a matter of hours or a few days before the application gets approved or rejected by direct installment loan lenders only. The decision will be based on the applicant’s ability to pay the loan.
Why some borrowers had an exception?
Some companies offer loans that are approved for bad credit borrowers even with a low credit score. In these cases the lender may offer a lower interest rate, a longer grace period or a lower rate of interest on the closing costs.