A $3,500 loan can help you pay off credit balances, buy a car, or accomplish another objective. However, you need to weigh your options before making the final decision.
Our personal loans may be issued at a lower interest rate than credit cards, making them more attractive. However, factors like personal financial status, the likely terms you can qualify for, and the ability to make the required monthly installments should be considered. Check what ASAP Finance has prepared for you.
What are the Options for Bad Credit?
We’ve wanted to create personalized services and help people cover expenses as soon as possible, regardless of their bad credit scores. Here are the options for poor credit borrowers:
Short-Term Loans
Short-term loans are funds expected to be repaid within two weeks to a year at most. Unlike long-term loans, which one has to repay within a few years, short-term loans are supposed to be for immediate needs. Their usage includes daily needs caused by cash flow gaps, emergency expenses, etc. Short-term loans include payday loans, emergency loans, and installment loans.
The sum that can be borrowed is traditionally smaller, usually between $100 - $5,000. Short-term loans have comparatively higher interest rates (up to 375%) because of the faster turnaround time and higher risk involved due to lending money to people with bad credit.
Personal Loans
Personal loans are a subcategory of unsecured loans offered by banks, credit unions, and online lenders. People usually take them to fund personal needs, such as healthcare costs, home repairs or modifications, or other large purchases.
Every personal loan is for a specific amount ($5,000 - $15,000 or more), and the borrower receives the money in one lump sum. The repayment is made in equal monthly installments. The common terms vary between 12 and 60 months.
These loans usually have a constant interest rate between 5.99% and 35.99%, which implies that the rate you are charged is the same for the whole term of the loan. This also ensures that you will pay a certain amount of money every month, making it easy to budget.
Car Title Loans
Auto title loans are secured loans in which the car's title is used as security. To qualify, the borrower only has to verify stable income and own the car or a certain equity in it. The title is used as a guarantee, but you are allowed to drive it.
The loan amount is usually determined as a percentage of the car's current market value, reaching a quarter to a half of it. Car title loans have relatively steep interest rates, which may go up to over 300% APR. These loans normally have shorter payment periods, usually 30 days, although some may allow longer periods.
If you are out of the option of repaying the loan, the lender has the right to regain the vehicle. This is a huge risk for the borrowers because they stand to lose their car.
Tribal Loans
Tribal loans are payday or installment loans given by Native American-owned lenders. They are usually provided online and are popularly marketed as they help credit-inaccessible borrowers get money quickly.
Because the lenders are located on tribal land, they are immune to most state lending rules since they are considered under native sovereignty. This enables them to charge even higher interest rates and fees than are legally permissible in the respective state.
These rates may surpass those of conventional payday loans. Repayment depends on the type of cash advance loan. It may be repaid on the borrower’s next payday or in long-term installments.
What is the Cost of a $3,500 Loan?
The costs of the $3,500 loan depend on your credit score and the repayment terms. To understand better the figures, consult the following table which contains the calculations for 35.99% APR (as for poor credit borrowers):
| Repayment period | Medium monthly payment (bad credit) |
| 6 months | $646.09 |
| 12 months | $351.62 |
| 24 months | $206.67 |
| 36 months | $160.31 |
How to Choose The Right Loan?
Selecting the right loan is challenging, and several important factors must be considered to pay it comfortably. Here are the steps to choose a suitable loan:
Assess Your Financial Situation
Ensure you have a copy of your credit reports. It determines your ability to be granted a loan and the interest rates you will be charged. Know your debt-to-income ratio to determine how much of your debts absorb your salary.
Determine Your Loan Needs
State the purpose of the loan needed (e.g., home purchase, car, personal expenses) as it defines the kind of loan. This will also help you decide how much you need to borrow.
Evaluate Different Loan Types
There are two types of loans: secured and unsecured. A secured loan has security (for instance, a home or car), while an unsecured loan doesn’t. Also, there are loans with different types of interests: variable and fixed. Variable rates often fluctuate over a certain period depending on market prices, while fixed rates aren’t affected by any market changes. The loan type you choose may affect your APR size and repayment flexibility.
Compare Loan Offers
Check the annual percentage rate (APR) among various lenders. The APR consists of both the interest rate and other charges, helping to present the full spectrum of the loan’s price.
Evaluate Additional Fees
Check the origination fees that the lender charges when arranging the loan. Also, look for prepayment penalties for cash assets that can be credited to a loan. Don’t forget about the late payment fees, which are charges for delayed payment. Sometimes a borrower may have to pay mandatory application charges, whether the application was granted or rejected.
Read the Service Agreement
Review the number of years or months you have to repay the loan and the amount of the monthly installments. Is it possible to have the payment time chopped or put on hold, or can you take out a new loan to pay off the current balance?
How to Get a $3,500 Loan?
To get a $3,500 loan, you can follow these steps:
Determine Your Loan Type. Determine the kind of loan you want to apply for and take out. Some common options are personal, payday, and credit union lending.
Check Your Credit Score. The credit score determines the standards of qualification as well as the interest rates. You can use any free online tools that provide free copies of credit reports or contact the credit bureaus from which your score will be pulled.
Gather Documentation. The common documents required are an ID card, Social Security Number, or Alien registration number, pay stubs, tax returns, etc. Other details, including your employment history and current outstanding balances, may also be important.
Prequalify. Some lenders offer pre-qualification options without affecting your credit score, so you can see some of the loan offers you could be presented with. This makes it easy to compare options and settle for the right one.
Apply for the Loan. Once you have chosen a lender, you should follow through with the application process. This might require an online form or a visit to the branch. Provide accurate information in both cases to avoid unnecessary time wastage.
Wait for Approval. Depending on the lender, the approval process can take a few minutes to a few days. If approved, make sure the loan terms are clear and only accept the loan offer after reading all its components properly.
Receive Funds. Normally, once the loan is approved and the offer is accepted, the cash is electronically transferred to the borrower’s bank account. It may take from a few hours to a few days.
To improve your chances of getting approved for a $3,500 loan, consider the following tips:
- Improve your credit score by paying bills on time and reducing outstanding debt.
- Increase your income by getting a second job or starting freelance work.
- Provide collateral or co-signer with a better credit history and show you can make timely payments.
- Show your financial stability by providing a consistent employment and/or residential history record.
How to Repay Your Loan On Time?
To repay the loan on time and cover all your debts, check the tips from ASAP Finance’s experts:
Create a Budget
All cash inflows and expenses should be outlined to determine how much out of the income amount is available for the payments on a loan. Loans should always be given priority when preparing a budget to avoid late payments.
Set Up Automatic Payments
You can add such an option to your bank account, and automatic withdrawals will occur monthly on the set date. In some cases, you can also get an interest rate discount for setting up an auto pay. If you consider the manual method of payment, then use calendar reminders or applications.
Make Extra Payments When Possible
Pay more than the minimum since it helps pay off the principal early and cuts the interest. You can use bonuses, tax refunds, or other occasional money to pay more.
Communicate with Your Lender
You must communicate with your creditor if you think payments will become a big issue for you. This way, you may be granted some time off, receive a change of payback schedule, or be offered some other measure.
Easy Loan Application through ASAP Finance
Getting an online loan through ASAP Finance is usually straightforward and quick. There are just four basic steps to follow:
- Provide the personal information and submit the loan application.
- Sign the loan agreement if your request is approved.
- Get funded within one business day.
Eligibility Criteria to Meet
Here are the key things we look at when reviewing a loan application:
- Age: at least 18 years old;
- Income: $1,000 per month minimum;
- Bank account: having an active checking account in your name;
- Personal details: physical and email address.
FAQ
01
Can I get a $3,500 loan with no credit check with ASAP Finance?
Yes. We don’t perform hard credit checks that could affect your FICO score.
02
What are the figures for poor credit scores?
The poor credit score ranges between 300 and 579.
03
What is the monthly payment on a $3,500 loan?
The monthly payment on a $3,500 loan depends on your interest rate and repayment schedule. For example, if you borrow 3,500 dollars with a 24-month term and 35.99% APR, your monthly payment will be $206.6.
04
Can I get a $3,500 loan for debt consolidation?
Yes, you can use the loan funds to consolidate your debt if the lender doesn’t affirm otherwise.
05
When to rely on a loan?
People rely on loans only when they try all the available options, and they don’t work. It's also important to make sure you can afford the monthly payments.
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