Second chance payday loans are real trouble-savers when it comes to financial wrecks especially when you least expect them. They can help take care of some emergency bills that are almost due until you actually get your own funds or paychecks. They are slightly different from personal loans.
What are Second Chance Loans: Payday Loans or Personal Loans?
Second chance loans are those loans you seek for with a bad credit score due to rejections from lenders for not meeting minimum credit. Not all money lenders either traditional or online will give you a payday or personal loan if you have issues of bad credit.
Most lenders are like this because the loans are unsecured, and you can not be arrested if you do not repay your loan. So, they do not want to be in the same situation with your previous lenders. As a result, they will either only offer a small loan amount or deny your application entirely.
Where can I get a Second Chance Loan Online?
There are two broad types of second chance loans, and they are:
- Personal loans
- Second chance payday loans
Personal Loans
Second chance personal loans are unsecured loans you request for, to take care of some personal needs like rent, buying a gadget, auto repairs, furnishing the homes or to go on a vacation. Actually, the reasons are endless.
They are short-term loans, which means you have to repay them in a very limited time-frame. If you don’t pay on time, the rates or interest will only keeping on piling every repayment period missed.
In order to get this type of 2nd chance loan, you will need to find an online money lender that offers bad credit loans for personal loans.
The personal loans could be an auto loan, mortgage loan, device loan, etc. So, you have to look for good money lenders that offer them without bad credit discrimination. In addition to that, you must make your findings on the money lenders before doing business with them.
Alternatively, you can apply for 2nd chance personal loans through online money lending brokers. They will link you with their network of money lenders based on inputted information.
You should note that these suggestions are based on their partnership with the direct money lenders and not expert advice.
To confirm the credibility of the brokers and more importantly, the money lenders, check their reviews on Google. Alternatively, you can ask people who have been involved with them in the immediate past.
Payday Loans
2nd chance payday loans are unsecured loans you request for when you are in need of a quick financial bail-out. This could be an emergency spending that comes up when your paycheck is yet to come in.
Generally, payday loans or cash advance are collected with the aim of repaying with the next paycheck. Unlike personal loans, the rates are higher and could pile up if not paid on time.
You can use payday loans for anything you want, but never borrow more than your paycheck can pay. It could lead to unbearable debts.
Why you should consider applying for second chance payday loans
2nd chance cash advance are great in the ways they help you in terms of financial. Below are some reasons you should think about getting one.
Your Credit Score does not matter!
2nd chance loans are aimed at people with bad credit score, so these payday money lenders don’t consider it. This way, you do not need to worry about having your loan application denied.
Additionally, if you are able to maintain a good history with these loans, it will improve your credit score. This is quite easy due to the small size of the loan.
Get Loans Immediately
One thing about these loans is that they are readily available. Once your application is approved, the amount is disbursed into your specified bank account or wallet immediately. Absolutely no waiting period!
Plus, if it is approved on a business day, you will get same day. Thus, you will be able to use the money for the proposed purpose.
No Collateral Needed
Normal loans usually require some sort of collateral like a landed property that is worth at least the loan amount. This way, when you default or fail to honour your loan repayments, your property is seized or acquired by the lender.
On the other hand, payday loans are totally unsecured loans that require no collateral to secure. Thus, you do not lose any of your belongings if you fail to meet to payment deadlines.
Why you should avoid Second Chance Payday Loans Online
Everything with an advantage comes with at least one disadvantage. After all, nothing is really perfect!
Too High Rates
Trust me, the rates these lenders charge are way too high. Some lenders charge up to 50% monthly on cash advance.
The problem is that the loan amount are small and lenders want to make huge profit. Thus, they compound the interests if you default.
Consequently, you may end paying double of the loan amount as interest only. So it is totally unsafe unless you are capable of paying very fast.
Leads to Higher Debts
Little drops of water can make a pool and a series of pools can make an ocean. The high rates constitute to inability to pay up. This way, you may have to borrow another loan to pay up another. Before you know it, you will end up in a debt pool.
Tricky Online Money Lenders
There are so many online money lenders with no specific one to trust totally. And obviously, not all of them are honest and transparent in their terms and conditions.
Since their business is purely for profit, they do everything they can to earn the highest from you. Choose your broker and lender wisely.
