Your employment is your ticket to securing money during dire circumstances. The economy has changed over the last years and with this change comes the overhaul of how credit worth is gauged. Before, everything was based on credit history. So if your credit score isn’t too good, chances are you wouldn’t get your loans approved. But online lenders saw how unfair the old system was and hence, introduced a new lending system which does not care about the stains in your records. Under this new system, bad credit loans will be provided to all employees living and working in the United States.

But before you use one of these bad credit loans, here are a few things that you need to know first:

1. Bad credit loans help improve your score.

Bad credit loans are not only easy to avail of, they also help you re-establish your credit score. This is a major advantage that all those with tainted payment histories love to know. Remember that about 35% of your score will be based on your payment history. So if you choose your lender correctly, then your good payment history should be reported to credit bureaus. So if you pay up on time, then you should be on your way to getting your financial credibility up again.

2. You can actually save money on bad credit loans.

Despite the bad publicity that they have been getting because of their higher-than-usual APRs, bad credit loans can actually save you a lot of money. This is because such loans are usually paid back in a month. So the interest rate will just be good for a month. Whereas, regular bank loans are usually paid back in at least two years, which definitely means higher interest rates.

3. There are multiple lenders and you can watch them beat each other to win your business.

You have thousands of choices when it comes to lenders with whom you will establish business with. Hence, you can have lenders compete for your business and they do that by trying to lower their interest rates, slashing off some fees and bettering their services. Take note that savings of 3-5% would be really helpful especially when during these tough economic times.

4. Online bad credit loans grant you access to cash quickly.

Almost all online bad credit loans lenders can review your application and send you feedback within 24-48 hours. This super fast turn-around time is important especially if you really need the money soon. The bad credit loans application process is done online, via email, although in some cases, it may be done via phone, too.

However, be informed that there is a set maximum amount that you can borrow. The maximum amount may range anywhere from $2000 to $2500. The amount that you will be approved of will be taken from 30% of your salary. This is to make sure that you can pay back your bad credit loans on time and still have enough to spend for your living expenses.