Bad Credit Loans - Frequently Asked Questions
Is CreditSources.org a lender?
CreditSources.org is not a lender. CreditSources.org has a directory of lenders who will work with you, even if you have bad credit.
Is this a scam? How is this possible?
No, this is not a scam. Our lending partners and resources specialize in loans and services for borrowers with bad credit.
Can I apply for a loan online?
Yes. All of our lenders will allow you to apply for loans online. It is also possible to have money deposited into your checking account very quickly, in 1 business day.
I have bad credit. Can you really get me approved?
It does not matter what your credit situation is. Our bad credit loan sources directory can help you find a loan, credit card, and other financial services. We have helped thousands of people find loans and we can very likely help you as well.
Do I need to have a checking account to apply for a loan?
No. A checking account is not required, but an active checking account may be helpful (especially if you want to receive your funds through direct deposit).
Is home ownership required for me to get a loan?
No. Most of the loans available to our members do not require home ownership. In a small number of cases, or for larger loan amounts, owning a home or having collateral may be needed.
I live outside the United States. Can you help me find a loan?
At this time, our bad credit loan services directory only provides resources for residents of the United States; otherwise we would have provided a bad credit loan to Greece. We are constantly updating our directory with new lenders and resources for bad credit, so check back for updates often.
Is my personal information safe when I apply for loans?
Yes. Our lenders use SSL encryption technology to protect your personal information. You can apply for bad credit loans online knowing that your information is 100% safe and secure.
I am only 17 years old, can you help me get a loan?
No. Please check back when you are at least 18 years old.
Do you offer unlimited 24/7 email support?
Yes. However, due to the volume of support requests, please allow up to 48 hours for a response.
How can I contact CreditSources.org?
Please visit the customer support page.
Understanding Basic Financial Terms and Definitions
Adjustable Rate Mortgage - A mortgage that has an interest rate that can change based on a predetermined index.
Amortization - When a loan is repaid over time with consistent payments.
A loan amortization schedule shows you how much of the loan is being paid down with each payment, and how much of the payment is going toward interest.
Annual Percentage Rate (APR) - The yearly (annual) rate lenders use to calculate interest. APR is standard and used to compare loan options. Multiply your loan balance by the APR to determine the yearly charge, then divide by 12 to find out the monthly charge.
If the balance of your loan is $100 and your APR is 25%, you will be charged $2.08 in interest the first month. (100 x .25)/12 = $2.08
Bid - An offer made by a lender to get your business. It is good to get more than one bid to compare offers.
Collateral - Assets that a borrower uses to guarantee repayment of a loan. If the loan is not repaid, the lender can seize these assets.
If you have an auto loan, your car is considered the collateral. If you don’t pay, the bank can impound or repossess your car.
Credit Score - A number that reflects your credit history and your ability to repay debt responsibly.
Very good credit scores range between 700 and 850. Credit scores below 500 are considered poor credit scores.
Debt-to-Available-Credit Ratio - The amount of debt a person has compared to the amount of credit available to them. Lenders look at the debt-to-available-credit ratio to see if a borrower is responsible with their debt.
If you have one credit card with a $1,000 limit and you have a balance of $900, you have a high debt-to-available-credit ratio.
Debt-to-Income Ratio - The amount of income a person makes each month compared to the amount of debt payments they make each month. Lenders use this information to determine a borrower’s ability to pay back a loan.
If you make $1500 a month, but pay out $1450 in debt payments each month, you have a high debt-to-income ratio.
Down Payment - A percentage of a property’s purchase price that must be paid in cash, not financed with the loan.
If you want to buy a home worth $100,000 and the lender requires a 10% down payment, you must be able to pay the lender $10,000 in cash.
Equity - The difference between the market value of your home and the debt still owed on your home.
If your home is worth $150,000 and you still owe $125,000, you have $25,000 in equity.
Fixed Rate Mortgage - A mortgage that has an interest rate that will not change during the duration of the loan.
Foreclosure - A legal process that can begin when a person falls behind on their mortgage payments. The home may be sold or taken from the home owner to pay the debt owed.
Interest rate - The amount of money a lender charges a borrower to borrow debt. The interest rate is usually indicated as the annual percentage rate.
Mortgage - When property, usually a home, is used as collateral to ensure repayment of a debt.
Prepayment Penalty - A fee charged by some lenders if you pay off your loan early.
Refinancing - Taking out a new loan to pay off a current loan. Usually done to take advantage of lower interest rates.