Whether you are a salary earner or a business owner, at some point you may need a bailout but can you get a quick loan with bad credit?
A quick loan is a type of loan that is designed to be processed and approved quickly.
These loans are often offered online or through mobile apps, and they can be used for a variety of purposes, such as covering unexpected expenses, consolidating debt, or making a major purchase.
Quick loans typically have shorter repayment terms than traditional loans, and they may have higher interest rates.
Features of a Quick Loan
While Quick Loans may attract higher interest rates, they can be a good option for people who need money quickly and who have good credit.
Here are some of the key features of quick loans:
● Quick approval
Quick loans can be approved in as little as minutes, which can be helpful if you need money quickly.
● Small amounts
Lenders typically offer smaller amounts of money than traditional loans, such as $500 to $5,000.
● Online or mobile
Quick loans in Nigeria can be applied for and approved online or through mobile apps, which makes the process more convenient.
● High-interest rates
They are known to have higher interest rates than traditional loans, so it's important to compare rates before you apply.
● Short repayment terms
Quick loans typically have shorter repayment terms than traditional loans, such as 3 to 12 months.
How to Get a Quick Loan with Bad Credit
Getting a quick loan with bad credit can be challenging, but it's not impossible.
If you're considering a quick loan with bad credit, it's important to compare rates and terms from different lenders before you apply.
You should also make sure that you can afford the repayments before you commit to a loan.
Here are some other steps you can take to increase your chances of obtaining a loan:
● Assess your credit situation
Review your credit report to understand the factors contributing to your bad credit. Look for any errors or inaccuracies that you can dispute and correct.
Knowing your credit score will give you an idea of the loan options available to you.
● Explore alternative lenders
Traditional banks may be less likely to approve loans for individuals with bad credit. Consider alternative lenders such as online lenders, credit unions, or peer-to-peer lending platforms.
These lenders may have more flexible eligibility criteria and be more willing to work with borrowers with bad credit.
● Explore secured loans
Secured loans are backed by collateral, such as a vehicle or property. Because there is collateral involved, lenders may be more willing to approve your loan even with bad credit. However, keep in mind that if you default on the loan, you may risk losing the collateral.
● Consider payday or short-term loans
Payday loans are typically small, short-term loans that are meant to be repaid on your next payday. While they may come with high-interest rates, they often have less stringent credit requirements. Be cautious with payday loans, as they can lead to a cycle of debt if not managed properly.
● Improve your creditworthiness
Although you need a quick loan, taking steps to improve your creditworthiness can benefit you in the long run. Make consistent payments on your existing debts, and avoid applying for multiple loans or credit cards at once.
Over time, these actions can help rebuild your credit.
● Be cautious of predatory lenders
Some lenders specifically target individuals with bad credit and may charge exorbitant interest rates or fees. Be cautious of such predatory lenders and carefully review the terms and conditions before accepting any loan offer.
Remember to borrow only what you need and can comfortably repay.
It's important to be responsible with your loan and make timely payments to avoid further damage to your credit.
Top 5 Online Lenders for Quick Loans with Bad Credit
Before applying for a Quick Loan, it is crucial to conduct your own research and due diligence to find the most suitable options for your needs.
Here are five online lenders in Nigeria that are known to consider applicants with bad credit:
Renmoney is a financial institution that provides microfinance services such as loans, savings and deposit funds.
Renmoney’s Quick Loan is convenient and meets needs like paying rent, school fees, buying a new car, medical bills, etc. It employs a risk-based pricing model (2.6%-5.3% flat monthly).
Founded in 2016, KiaKia is a licensed non-banking financial technology company.
One of Nigeria’s pioneer digital lenders and also the leading peer-to-peer marketplace, KiaKia offers secured and unsecured loans and also participates in well-structured profit-sharing business transactions.
Kiakia provides quick loans, including loans for individuals with bad credit.
3. Page Financials
This is your one-stop-shop when you need urgent cash, extra income or any other financial services.
Page Financials’ Quick Loans fill that urgent need for cash to settle bills, take care of emergencies or grab an opportunity even with bad credit.
Loan amounts range from ₦200,000 to ₦5,000,000, and the interest rate is set at 5% monthly.
This is a mobile lending platform that provides instant loans to individuals in Nigeria, including those with bad credit.
QuickCheck Quick Loans can be obtained via a mobile app and approval is granted within minutes at a 10% monthly interest rate.
A service provided by MyCredit Investments Ltd, FairMoney is a licensed online lender, that provides instant loans and bill payments.
FairMoney offers instant loans to individuals, including those with bad credit. Loan amounts range from ₦1,500 to ₦500,000, and repayment terms can extend up to three months.
Remember to carefully review the terms, interest rates, fees, and repayment options provided by each lender.
Additionally, consider checking reviews and customer experiences to ensure the lender is reputable and trustworthy.
How to maintain good credit
Maintaining good credit is essential for your financial well-being. Here are some tips to help you maintain a good credit score:
● Pay your bills on time
Pay all your bills, loans, and utilities, on time. Late or missed payments can have a negative impact on your credit score.
Consider setting up automatic payments or calendar reminders to ensure you never miss a payment.
● Avoid applying for too much new credit
Applying for multiple loans within a short period can raise concerns for lenders.
Each application results in a hard inquiry on your credit report, which temporarily lowers your credit score.
● Maintain a mix of credit types
Having a mix of credit accounts, such as loans and mortgages, can demonstrate your ability to handle different types of credit responsibly.
However, don't open unnecessary accounts solely to increase your credit mix. Only open accounts you actually need and can manage effectively.
● Regularly review your credit reports
Obtain a free copy of your credit report. Every Nigerian is entitled to one free Credit report every year from any registered Nigerian Credit Bureau.
You can apply to get your free report from CRC Credit Bureau or from Credit Registry.
You can also get a free credit report from nairaCompare.
● Maintain long-term credit accounts
Keeping your oldest credit accounts open can positively impact your credit score.
Long-standing accounts with a positive payment history demonstrate stability and reliability.
● Manage your debt responsibly
Avoid carrying excessive debt and work towards paying down your balances.
Regularly review your budget and allocate funds towards debt repayment. Consider strategies such as the debt snowball or debt avalanche methods to systematically reduce your debt.
● Seek professional help when needed
If you're facing financial challenges or struggling with debt, don't hesitate to seek help from a credit counselling agency or financial advisor. They can provide guidance on budgeting, debt management, and improving your credit.
Maintaining good credit is a long-term commitment. Consistently practising responsible credit habits, staying organised, and monitoring your credit regularly can help you maintain a healthy credit score and financial stability.
Visit nairaCompare to know more about your creditworthiness and how you can improve it.