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Since the median home price in Mississippi is $157,828, you could buy nearly five homes in the Magnolia State for the cost of one California home with the same square footage. Also, Mississippi’s cost of living index of 83.3 on average is much lower than California’s 134.50 cost of living index.
However, there are valid reasons why many Californians aren’t migrating to Mississippi. The World Population Review rates Mississippi as the most financially stressed state, primarily due to high unemployment, low wages, and an unfriendly business environment. These conditions may explain why Mississippians have the lowest average credit score in the U.S. at 680.
Since many Mississippians often run short on cash, emergency expenses can be tough to handle. That's why bad credit loans may be a popular borrowing option for Mississippians coping with cash shortfalls. This guide will cover the key details about bad credit loans, the application process, and eligibility requirements.
If you presently need fast cash for any reason, apply with Jora.
What Are Bad Credit Loans?
Bad credit loans are personal loans for consumers with poor to fair credit. On a FICO scale, poor to fair credit scores range from 300 to 660. If your credit score is within this range, you may have difficulty qualifying for other types of personal loans. Many traditional lenders only consider lending to borrowers with a 670 FICO credit score or above.
Since most bad credit loan lenders don’t focus on credit scores as much as traditional lenders, their loans are typically easier to get. Many skip credit checks and consider borrowers with bankruptcies or other severe items on their credit reports. Also, other direct lenders, like Jora, consider your credit score along with other factors, like income.
Unlike traditional loans, bad credit loans usually offer express approval and funding times. Another benefit of bad credit loans is you can use the money you receive for any purpose, including the following.
- Roof repairs
- Utility bills
- Tax fines
- Auto repairs
- Plumbing expenses
Most bad credit lenders don’t report your loan payment history to the three major credit bureaus. As a result, these types of loans will likely not positively or negatively affect your credit unless you fail to pay and the lender hands your loan over to a collection agency.
However, a few bad credit loan lenders - typically installment loan lenders like Jora - do report payments to credit bureaus. That means you can use the loan to boost your credit score over time with regular, on-time payments. Just make sure the monthly payment is manageable since late payments or defaults can lower your credit.
Mississippi allows you to use various bad credit loans, including direct online installment loans. Before choosing one, you can compare different repayment terms, requirements, and fees. To help you narrow the options, here are four types of bad credit loans in Mississippi for borrowing fast cash.
Most payday loan lenders offer easy approval and quick funding, often on the same day. Since they usually don’t require credit checks, bad credit usually won’t affect approval. All you typically need to qualify for are the following:
- A valid government-issued ID to prove your age and identity
- A utility bill or rent receipt to confirm your Mississippi address
- A document to verify your source of income
- An active bank account
- A postdated check in the amount of the money borrowed plus fees and interest (or approval for them to remove the payment from your bank account)
Although payday loans provide fast funds to people with bad credit, the maximum amount you can get in Mississippi is $500. Other conditions include a short two-to-four-week repayment period and a restriction on getting a second payday loan before paying off the first one.
Title loans are secure personal loans that quickly lend you money for urgent needs like car repairs or family emergencies, even if you have bad credit. However, you must use your vehicle as collateral.
The general requirements for a title loan are usually the same as those for a payday loan. In addition, you must provide the original vehicle title indicating sole ownership, the current registration, proof of insurance, and a copy of the vehicle’s keys.
You can expect a loan of about 25% to 50% of your auto’s current market value. If you don’t repay your payday loan within 15-30 days, the lender can repossess your vehicle.
Cash advances are short-term personal loans made against your future income or earnings. For this reason, most cash advances are unsecured and seldom require credit checks. Besides payday loans, several variations of cash advances are available, including payroll cash advances.
Some employers offer their workers a cash advance on their next paycheck. However, your employer may require you to be a full-time employee or achieve other requirements to qualify. Also, if you have a good relationship with your employer, you could ask for an informal cash advance arrangement for emergencies.
Payroll cash advances are usually part of employee benefits, so they typically don’t come with fees. However, since you’re borrowing from your next paycheck, you could make keeping up with your bills and other financial obligations even tougher.
Fortunately, you can take out bad credit installment loans in Mississippi. These personal loans are available through banks and credit unions. But if you prefer the convenience of online loans for bad credit, some quick online direct lenders, like Jora, offer bad credit installment loans.
After you get approval on an installment loan, the lender will give you the total amount in a lump-sum payment you can use for any purpose. Your loan agreement will indicate when to begin making fixed payments on the loan.
Although the loan terms and amount vary from lender to lender, they are often more manageable than other types of bad credit loans. For example, Jora’s bad credit installment loans have repayment terms of up to 2 years and a maximum loan amount of $1,600 for new customers and $2,000 for returned customers.
The bad credit loan application process in Mississippi can be fast and convenient, especially if you choose an online direct lender like Jora. For example, suppose you are applying for a Jora bad credit installment loan. In that case, here are the steps you would take.
- Organize your information. Ensure you have the correct information to prove your identity, income, residency, and employment. Also, if you prefer to have your funds deposited directly into your checking account, the lender will need your bank information.
- Complete the application: It only takes a few minutes to complete the Jora online loan application.
- Wait for the credit decision. This part only takes a few minutes with Jora. However, the other lenders may take a few days to give you a decision on your application.
- Review and accept the loan agreement. After you review and sign the agreement, the funds can appear in your bank account as soon as the same business banking day.* Then, you can start using the money any way you like.