Applying for a loan is generally divided into three stages. The first stage involves preliminary application where you specify the amount required explaining the need for your loan and the supporting documents. For the screening of your application, you are required to undergo a credit assessment. The Assessment checks your previous loans, the installments paid and default in payment. Based on these parameters, your credit score is generated. If your credit score is poor, banks refrain from providing you any money. This is when you can apply for ‘poor credit loans’, a loan which is independent of your credit score.
How does it work?
Poor credit loans work in similar fashion to conventional loans. A conventional loan is disbursed into your account after checking your credit score. Your loan is approved only if your credit score is strong. In the case of poor credit loans, your loan is approved even without your credit rating is strong. You have to fill out an initial application with the intent of taking the loan. This application is then checked for discrepancies and loan is instantly approved. Some loan providers may instantly credit the amount within 60 minutes of your loan being approved.
After the loan is disbursed, an amount is decided upon as your monthly installment which is debited directly from your account.