- Proof of employment (pay slips usually work)
- Past tax returns (last 2 years‘ tax returns will do)
- State ID or driving license (to prove your identity)
- Utility bills (to prove your place of residence)
- Your bank account information (in which you’ll receive the loan)
In order to strengthen your application, you should also prepare a personal statement on a Microsoft Word document. A personal statement isn’t required, but it’ll increase your chances of getting a loan.
In general, your personal statement should contain the reason why you’re taking an emergency loan with bad credit. You should clearly explain your personal circumstances (as much as you’re comfortable) and the reasons you need emergency cash.
The reason is that these services receive a lot of requests for emergency loans. You have to tell them, through your personal statement, that you’re going through a once-in-a-lifetime emergency and it’s not a regular occurrence. The statement humanizes you to the other side, sets you apart from people who have less-than-pure intentions, and will also be helpful if you need an extension in the future due to unforeseen circumstances.
5. How Much Money Will I Be Able to Borrow?
There are two factors that determine how much you’ll be able to borrow. First, every service has a ceiling; for example, MoneyMutual won’t let you borrow more than $5,000 dollars at a time. On the other hand, Personal Loans can help you find a personal loan of as much as $35,000.
The other factor that determines the amount you’ll be able to borrow is the amount of money you earn monthly. Let’s say your income is $2,000/month; with that income, you’ll generally be able to borrow more than someone who earns $1,500/month.
Your previous debt also figures into your ability to borrow. If you have significant debt that’s already exceeding your monthly earnings and your ability to pay, you won’t be able to borrow huge amounts. You can calculate your DTI (debt to income) ratio by adding all your existing debts and dividing them by your monthly income. The lower your DTI, the higher the amount payday lenders will be willing to give you.
6. Are There Any Methods to Improve My Credit Score?
Yes, there are several methods you can use to improve your credit. For simplicity’s sake, we’ll divide these methods into two categories: doing it yourself and getting professional help with your credit.
Which one should you pick? Well, considering that getting professional help would actually cost you money and you’re already in need of money right now, you should almost always go for the former before you try the latter. Some personal methods include getting a credit card and making timely payments every month, getting a family member to help you with your credit through co-ownership of their credit card, paying your utility bills on time, and more.
If you do get professional help, make sure that you watch out for people who guarantee to fix your credit score. This is a common scam and these people will also ask for payment upfront. The truth is that nobody can guarantee to fix your credit score.
Needing an emergency loan with a bad credit score is a nightmare scenario. While it’s a difficult situation, it’s not an impossible one and you do have a few options. The problem is that some of those options are fraudulent and it’s hard to tell the legit ones from the fraudulent ones.
Today, we featured four of the best online lending services available to people who have low credit scores, and out of these four, we prefer MoneyMutual as the overall best platform for emergency loans. We made sure that these are actually the best out there by using them ourselves, as well as reading thousands of customer reviews. We hope you find our thorough review helpful. We wish you the best of luck.
Best for short-term emergency loans: Because of its large network of lenders and variety of loan types, MoneyMutual has become one of the best places to find short-term emergency loans on easy terms. You can borrow anywhere between $100 to $5,000.
Highly popular and trustworthy: Since CashUSA offers convenient and quick personal loans of up to $10,000 regardless of a bad credit score and with as little as proof of income and US nationality, it’s no surprise that the service is one of the most widely-used portals for borrowing short-term emergency loans. We read customer feedback on various platforms, while also taking expert opinion into consideration, and CashUSA turned out to be one of the most trusted loan services online.
- Reputation and Reliability: Flexibility is great, but we also had to make sure that the lending service isn’t fraudulent. To keep you safe, we used strict metrics to measure a service’s reputation and reliability.
Watch Out for Scam Artists
Every service will have slightly different requirements when it comes to documentation. But as a general rule you should scan these documents and have their digital copies ready to upload: