How to Get a Loan With Bad Credit
Title Loans
Title loans are one of the most popular options for getting a loan with bad credit. Some people even consider these guaranteed bad credit loans. If one chooses this route, they’ll typically need to bring the title to their car or house and put that up for collateral. You can only get one that equals the value of your assets you put up for collateral but it’s typically less. They have high interest rates as well and some consider them risky, but they’re one of the top ways to get a fast loan with no credit score check.
Payday Loans
Payday loans are increasing in popularity as there are plenty of locations and websites to apply for them. These loans are for small amounts of money and they typically have a high interest rate. The only requirement to get one is to have a job and a checking account. They are made for those who can’t financially make it until their next paycheck and need what is essentially a paycheck advance. You just need to prove your employment and you can get approved despite a low credit score. These typically need to be paid back as soon as you receive your next payday.
Short Term Loans
While short term lenders do lend to individuals, many businesses choose this option if they’re denied a commercial loan. Newer businesses might not be able to get a good loan due to a bad or no credit score. This is why many choose short term lenders. Businesses use these loans to fulfil orders or pay contractors. While these are typically high in interest, that can be avoided if you pay them back quickly. For an individual, these loans sometimes require a credit check but many times you can still get approved. These loans are usually paid back in full within a few months.
Cash Advance
If you have an existing credit card and can’t seem to get a loan anywhere else, consider a cash advance. This is where you use your credit card to take out your maximum balance and use it like you would a loan. Even if you don’t have a credit card you can apply for a secured card, which requires you to put a security deposit down which you get back once you close the card with a zero balance. These cards are made for those with a bad FICO score and you can still sometimes use them for cash advances. You may need to put a large deposit down to expand your credit limit.
Debt Consolidation Loans
If you have bad credit from excessive credit card debt you should consider consolidating all of your debt into a loan. Not only will these loans help you pay off all credit card debt but they will also rebuild a damaged credit score. They are made for people with bad credit because it helps them rebuild credit. These loans are easy to get but you may need to give a lot more information during the approval process. Unlike other bad credit loans, this one doesn’t require you putting your title up for collateral or signing any sort of payday contract.
