Interest Rate On Fresh Start Loans

Different Loan Type, Not Payday Loans Though many brokers may want you to believe so, this loan type does not resemble payday loans. Payday loans are emergency loans that have almost no requirements other than a proper income and therefore, charge a higher interest rate to compensate for the high risk involved in the transaction. Moreover, the repayment schedule is very short and the full loan amount plus interests is generally due by the next payday.

Fresh Start loans have longer repayment schedules and lower interest rates. The terms do vary according to the applicants qualifications and there is no fixed fee like there is with payday loans. This does not mean that these loans cannot be approved with bad credit. On the contrary, they are designed and tailored for those with bad credit or past bankruptcies to help them start over.

However, your credit score will still be an important variable if not for determining loan approval, for determining the loan conditions and clauses.