Looking for a loan can be stressful enough, but when you add bad credit into the mix—it can make things ten times harder. Most of the time, traditional lenders will immediately reject an application if the applicant has poor or no credit. But it’s important to know that there are other options.
Over the years, financial institutions and lenders have become more accommodating towards people of varying financial backgrounds, allowing people with all types of credit the opportunity to receive fast and efficient funding. If you have bad credit, or even no credit, and are looking for a loan, here are some options for you:
A pawn loan occurs when an item is pledged to a licensed pawnbroker in exchange for money. During a pawn loan, the item being pawned is kept in the possession of the pawnbroker during the terms of the loan. The pawnbroker also has the right to sell the item being pawned if the loan is not paid back within the agreed-upon term. The terms of pawn loans are typically 30 days in length. Note: the amount of money loaned during a pawn will almost always be significantly less than the actual value of the item being pawned. So, if you are looking for a substantial amount of money, a pawn loan might not be the best option.
Car Title Loans
A car title loan is a way to use your qualifying car title as collateral in exchange for a loan. One of the biggest benefits of title loans in San Diego is that funding can be quite considerable in some cases. It is possible to get a car title loan for thousands of dollars if you are eligible. The most important factors of getting approved for a car title loan are the equity of the vehicle and ability to repay the loan. Furthermore, car title loan terms can range from 12-48 months. So, if you are looking for a significant loan and want comfortable payback terms, a car title loan could be a viable option, especially in the circumstance of having credit on the lower side.
A payday loan is another type of loan option that could be available to those with poor credit. Payday loans come in many different forms, but they are typically a short-term loan, normally in the amount of $500 or less. In most cases, a payday loan is expected to be paid back in full on the date of the borrower’s next paycheck—hence the name payday loan. Although payday loans generally have a high approval rate, they also have a shorter payback period—making this a favorable option for those with bad or no credit looking for short-term funding that they can pay back quickly.
A personal loan is a type of unsecured loan that has no form of collateral besides the borrower’s signature and promise to repay the loan. Most of the time, a personal loan may be acquired through a bank or other type of traditional lender, which makes unsecured personal loans a more appealing option to some. However, a co-signer might be necessary with a personal loan since there is no property used as collateral to secure the loan.
Even if you have poor or no credit, it can still be possible to receive approval for a loan. In fact, successfully paying off these kinds of loans can even play a role in helping improve your overall score! Certain factors such as paying financial obligations on time, and the successful completion of a financial obligation will reflect positively on your credit. Therefore, you could very well see an improvement in your score over time.
Be sure to check out other articles at EasyFinance.com for more tips on how to save money and be financially savvy!