Second Chance Loans

Is your credit score stopping you from getting a loan from the bank? Maybe you’ve managed to add some numbers to your credit score, but it still isn’t enough to get you a loan that works. Why not take out a second chance loan? You don’t need a good credit score to get one.

Want to borrow more than $5,000? Click here!

2nd Chance Payday Loans for Bad Credit From Direct Lenders

We all know how challenging it is to obtain a loan from traditional financial institutions. The long waits and exhausting interviews with bank staff would be the least of your worries when you find out your fair FICO score of 610 can’t get you the loan you so desire. Many would consider their first, second, or third rejection as normal.

But what happens when you never get approved after your umpteenth try?

You give up? Not at all. Instead, get online and take out a second chance loan. Second chance loans, as the name implies, are loans that provide bad credit borrowers a second chance at obtaining a sizable loan to cater to their finances.

How Do 2nd Chance Payday Loans Work?

Compared to the traditional ways of getting a loan, second chance loans are easy to get, have a high approval rate, and are usually disbursed a few hours after application. Direct lenders who offer second chance loans care less about their borrowers' credit scores. As such, they charge a significantly higher interest rate than would be available to borrowers with a higher credit score.

Don’t be too quick to throw in the towel, though, as there are many benefits you get to enjoy from taking out a second chance payday loan.

Asides from the high rate of approval accompanied with such loans, you don't need any form of security (collateral) to get your funds. Also, with a broker like CocoLoan doing the hard work for you, getting a lender who offers fair interest rates on such loans shouldn’t be a hassle at all.

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What’s Good About Second Chance Payday Loans From Direct Lenders?

With so much haze around getting a second chance loan, it’s only normal to wonder how getting one can affect your time and budget. Well, here are a few of the many advantages you stand to enjoy from taking out second chance loans from direct lenders. For starters;

You don’t need collateral to get your loan: A major upside of second chance loans is that you don’t need to tender an asset to secure your loan. Instead, second chance direct lenders check through your employment records to ensure you earn enough on your next paycheck to settle your debt.

A bad credit score doesn't matter much: As mentioned earlier, second chance loan lenders ARE NOT concerned with your credit score. They understand how hard it is to boost your credit score with the recent inflation. So, if you’re worried about history repeating itself, we got you covered.

Early payments help boost your credit score: Lenders appreciate bad credit borrowers who repay their loans early by reporting this positive activity to the credit bureau. In exchange for their commitment, their credit score gets boosted. It’s a win-win.

You have a higher chance of approval: Unlike traditional methods of acquiring a loan, you’re more likely to get your loan approved and disbursed with second chance payday loans.

Interest rates are fair: It’s okay to wonder why second chance loans come with such high-interest rates. This is how lenders impose the risk of disbursing a loan without doing deep dives into your credit report. To avoid borrowing from loan sharks who charge unreasonably high rates, we advise you to allow a broker like CocoLoan to get you a legit lender.

Same-day disbursal is feasible: Some lenders can process funding on the same day your application was approved, especially if you apply very early. Sometimes, it might take a little longer. However, most times, it doesn't exceed the following business day.

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What Are Types of Bad Credit Second Chance Loans?

Payday Loans (or Cash Advances)

A payday loan is considered a last resort loan option available for borrowers who’ve been rejected one time too many by other lenders. A second chance payday loan usually ranges from $100 to $5000 and is to be repaid in one down payment four weeks after taking one out.

As expected, bad credit second chance payday loan lenders don’t do credit-ruining checks into your credit report and would rather grant you your loan based on your good employment record.

Installment (or Personal) Loans

If you’re looking to borrow amounts higher than $5,000, getting a personal loan is the best option. Although interest rates are quite similar to that of payday loans, personal loans usually come with longer loan terms and are repaid in installments over the next couple of months or years. You need a stable job and the right documents to qualify for one.

Title Loans

A title loan allows you to take out large amounts using your vehicle title as collateral. Such loans are to be repaid in installments over the loan term. Failure to settle your debt would result in your vehicle being repossessed by your lender.

How Can I Apply for Second Chance Payday Loans for Bad Credit?

It’s as simple as it gets. To get started, find a reputable lender you can trust first. You can do this by searching online, asking third parties for reviews and advice about your ideal lender, or you could allow a broker like CocoLoan to get one for you.

Select the amount you wish to borrow and fill out a form asking for your details. Information like your full name, age, address, email id, social security number, employment information, bank account, the reason for taking such a loan, and a few more.

Once done with inputting everything, you’re to submit them to the admin and wait for offers from lenders in CocoLoan's network. When they come, carefully read through each one and tender your signature on the most favorable one for your type of loan. Then, you wait for a few hours till your account is credited.

How Does CocoLoan Compare

default imgWhy Trust CocoLoan?
How much can you get?$50 to $35,000Zero upfront charges
What are the loan terms?1 - 36 monthsEasy repayment
Are credit checks needed?YesMostly soft pulls
Are bad credit accepted?YesAll credit considered
How to apply?Totally onlineSimple and straightforward
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How to Raise Your Bad Credit Score After the Loan?

Contrary to popular belief, there are ways in which second chance bad credit loans can help build your credit score. A better credit score would mean better interest rates on loans and purchases and higher chances of approval on rentals and job applications. To raise your credit score:

Settle your debts early

Early repayments show commitment and responsibility on your end and mean that your lenders can count on you. If you’re able to repay your loan before your loan term elapses, your lender will report this positive behavior to the credit bureaus. This, in turn, drives your FICO up a few points.

Secure your credit card

If you didn’t know a secure credit card could help boost your credit score, well, now you know! With a secured credit card, you can set your spending limit to your preference.

Some creditors issue secured cards with a spending limit equal to the deposit amount. This means that if you deposit $500, your credit card will have a maximum spending limit of $500. Doing this not only encourages responsible spending but also makes repayments easier.

Check your credit report for errors

Although rare, credit reports do come with errors from time to time. This causes a ripple effect on your credit score, preventing your FICO score from getting that much-needed boost. To nip this issue in the bud, we advise you to access your credit report online for free and file a dispute with a credit bureau if you notice any mishaps.

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Get a Second Chance Payday Loan via CocoLoan Today!

If you're tired of getting your loans rejected by banks, we urge you to consider taking another path by getting a second chance payday loan. The benefits are appealing, and with a broker like CocoLoan, you rest assured of a good deal on your next application. Get started now!

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