When you have bad credit, securing a loan for any purpose is a challenge. The more inquiries you have into your credit report, the harder it will be to obtain the loan. It is ideal to try and clear up a few small accounts on your credit report before applying for a loan to aid your chances of approval. There are a few other options discussed below to help you get the funds you need quickly.
Work with Vehicle Title Loan Companies
An installment loan that can be used for any purpose to consider is a vehicle title loan. These are installment loans that are given based upon the value of your car but are paid off over time in small payments. The interest rates for these loans are typically higher given the situation. The amount that you can borrow is based upon the value of your vehicle. The lender keeps the car title in their possession until the loan is paid in full, failure to make repayment results in the repossession of your vehicle.
Consider an Online Loan
Many online loans do not require that you have any kind of credit, which make them perfect for people with bad credit. The amount that you can borrow is based upon your income. These loans do have high interest rates and high administrative fees. These quick cash loans are to be repaid with only one payment on your next payday. You must have a valid checking account with paper checks available, plus references and proof of income.
Consider a Pawn Shop Loan
A pawn shop may be able to offer you a loan on valuable items. The interest paid here is much less than that paid through a vehicle title loan or payday loan. The amount is likely to be far less than the aforementioned options above, but it is easier to repay a pawn shop loan than a payday or title loan. The loan given is solely based upon the resale value of the items, not what you think they are worth sentimentally or from the initial purchase price.
Even with bad credit, you still have ways to obtain cash for a personal loan. Of course, it is going to cost a bit more in interest and fees, but with no other options available, these are something to consider. Make sure that your personal budget can handle the repayment schedule so that it does not become a cycle of taking out loans just to get by.