Income-Based Loans

Irrespective of how well you plan your finances, there are times when your money doesn’t meet your needs. Unexpected things can occur, and your only hope is getting an income-based loan to push you until you get your next paycheck. If this is something that you are looking for, this post will fill you in on how CocoLoan can come to your rescue.

$2,500
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Understanding Income-Based Loans

An income-based loan is a loan you get based on your income. Most direct lenders will want to be sure that you can repay your loan comfortably. Even with bad credit, you can secure a loan with your income. The good thing about a loan based on your salary is that it’s approved within the same day or even in minutes.

You can use the funds to cover emergencies such as car repairs, home repairs, and medical bills. Once you get your paycheck, you can repay the loan depending on your agreement with your loan provider.

What Are the Pros and Cons of Loans Based on Income?

Knowing the pros and cons of an income-based loan can help you discern whether this loan is right for you.

Pros

  • Quick Funding: Lenders typically want to provide quick funding because they understand that you might be dealing with a tight situation. Therefore, funds can be credited to your bank account within the same day. Some lenders are fast and can approve and send your money in minutes.
  • A Chance to Improve Your Credit Score: Personal loans based on income are an excellent opportunity for you to improve your credit score. By making early and regular payments, your credit ratings will significantly improve. This happens because lenders report to credit bureaus.
  • Payday Loan Alternative: Payday loans can be costly, especially for individuals with bad credit scores. Taking an income-based loan can be a good alternative since they are normally offered with better repayment rates.

Cons

  • Can Affect Your Credit Score: When you fail to meet the regular payments for your income-based loan, this will affect your credit scores. It’s essential to ensure that you can afford the loan before taking it.
  • Higher Interest Rates: Lenders will impose higher interest rates to offer loans to people with bad credit based on salary. This makes these loans quite expensive for borrowers with poor credit ratings.
  • Cycle of Debt: Some predatory lenders will want to take advantage of the situation and offer you loans that could make it daunting to get out of debt. It’s always crucial to do your homework before working with any lender.

From What Type of Loans Can I Get Income-Based Loans?

Your income can be used to secure the following types of loans:

Personal Loan Based on Income

You can take a personal loan based on income even with bad credit. Personal loans can be used for various purposes. You’re not restricted from using the money borrowed to meet any pressing needs. If you’re working with a direct lender, you can also negotiate reasonable payment terms and rates that meet your needs.

Payday Loan Based on Income

A payday loan based on your income is also accessible. With a payday loan, the amount borrowed will be deducted from your next paycheck. Funding can be provided within the same day or the next business day. The problem here is that these loans usually have a high-interest rate.

Can I Get Income-Based Loans for Bad Credit?

Yes. You can get an income-based loan even with bad credit. As noted previously, lenders will consider your income and any existing debts when offering you a loan. They will still offer you quick funding if they find that you can comfortably repay your loan despite your bad credit.

The only issue is that getting a bad credit loan attracts higher interest rates. But on the bright side, you’ll be glad that you’ve managed to deal with any pressing financial needs. If your credit is bad, CocoLoan can get you connected with a large group of reputable lenders for bad credit.

How much would you like to borrow?

$2,500

How to Get Loans Based on Income Through CocoLoan?

To get started with CocoLoan, here’s what you need to do:

Step 1: Submit Your Details

First, fill out the online request form. Our lenders will want to know who they are dealing with and use the information you offer to evaluate your eligibility for a loan. Therefore, we strongly recommend that you submit the correct and up-to-date details.

Step 2: Compare Offers

Loan providers will quickly review your information. If your loan request is approved, multiple offers will come your way. Compare these quotes based on the lender’s reputation, interest rates, fees, and more.

Step 3: Get the Funds

Funds will be credited to your account after you sign the loan agreement form. It might take less than 24 hours for you to get your money. And some faster lenders can credit your account within minutes.

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Will Taking Income-Based Loans Build My Credit?

As noted previously, one of the main perks of an income-based loan is that it can help you build your credit if you pay it off on time. To do this, consider implementing the following tips:

Make Early Payments

Always strive to ensure your loan payments are made on time. Lenders will report your timely payments with consumer credit bureaus, increasing your credit score over time.

Get Another Line of Credit

It also helps to get another line of credit like credit cards, installment loans, mortgages, etc. All these have an impact on your credit score.

Taking a loan based on your income shouldn’t be perceived as bad, especially if you’re using the funds for emergencies. To improve your credit health, just focus on making early payments and keeping your lenders informed about any delays or inconveniences that might arise.

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Get a Loan Based on Your Income Today!

You can use your income to secure a loan if you receive a stable salary. CocoLoan can help you find reliable lenders who can offer you quick funding even with bad credit. Get started with us today!

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