The reality is that we don’t always have as much money as need. We might need extra funds in order to take advantage of certain opportunities, like purchasing property or starting a new enterprise. We might need some emergency cash to get out of debt or pay off certain fees.

After all, nearly all Americans have some sort of debt they need to pay off. Sometimes bad credit financing is also necessary.

When the need for extra cash arises, where can one turn? Normally might one look to a traditional lender like a bank, but what if you have a bad credit score? Even if you’ve had a history of poor borrowing practices, there are still some bad credit financing options out there for you.

In fact, there are many options for bad credit loans out there. Read on and we’ll walk you through the different options you should be considering if you have bad credit and need money fast.

Why Is Bad Credit an Obstacle?

If this is your first time trying to apply for a loan with bad credit, you might be confused as to what all the fuss is about. Why is it so hard to secure a loan with bad credit? 

It’s because your credit score is what most money lenders look at to determine your degree of reliability.

If you have a bad credit score, it’s likely because of one of two reasons. You either have borrowed money and failed to pay it back on time in the past, or you’ve never taken a loan out at all.

In either instance, a poor credit score does not encourage money lenders to put a lot of confidence in your ability to pay them back. 

The fact of the matter is that most money-lenders are fairly risk-averse. No one wants to take a risk on someone who has a bad history or has no history at all. 

Your credit score is a three-digit number determined by companies such as FICO. Scores generally range somewhere between 300 and 850. Anything below 700 is considered less than stellar, and anything above is a fairly strong credit score.

If you’re like many Americans and don’t know your credit score, it’s a good idea to rectify that by checking with one of these companies.

There are many money lenders out there who simply won’t work with people with poor credit scores. However, there are lenders out there who will still work with people with poor credit. You just have to know where to look.

1. Car Title Loans

If you have poor credit, you may need to do something else to help increase a lender’s confidence in you. You want to find a way to help them mitigate the risk they take in giving you a loan.

A car title loan has that kind of mitigation built straight into the concept. These are short-term loans that use a person’s vehicle title as collateral to secure the loan.

That means if a person fails to pay back the money they owe, the lender has a right to seize the person’s vehicle. The ability to take this major asset gives lenders a lot more incentive to let people with poor credit borrow money.

These loans are also generally short-term, which means they may need to be paid back within a month or two’s time.

2. Payday Loans

If you only need to borrow a small amount of money you might want to look into getting a payday loan. These are loans that often fall under $500 in terms of value.

They get their name, however, because these loans are incredibly short-term. You are expected to pay back the money you owe by your next payday. The idea is that this loan is only to provide money in the intermedium before your next check.

These loans also tend to carry very high fees. You can pay a very large percentage extra if you need to secure a payday loan. However, the benefit of a payday loan is that most lenders won’t even look at someone’s credit score.

If you’re in a tight situation, a payday loan might be worth considering.

There are also payday alternative loans, which are available with some lenders. These work in much the same way as a traditional payday loan but with lower interest rates and better terms.

3. Personal Loans

There are a variety of lenders out there who might be open to granting personal loans to individuals with bad credit backgrounds. Many of these lenders can be found online.

Personal loans work in a very traditional format.

A currency amount is determined, and the borrowing individual has to pay back the money over a set window of time, with a particular interest rate put in place. A person can pay back the total in a pre-determined amount of payment installments as opposed to all at once.

There are many different online lenders who give out personal loans with different rates and repayment windows. Often, the interest rates these lenders will provide will be higher than what one would find at a bank or traditional lender.

These high-interest rates intend to protect the lender against taking on poor credit borrowers. It’s a good idea to shop around and see who might be able to provide the best rate and window for your given credit background.

Bad Credit Financing Options

If you’re in need of cash fast, you may want to consider some of the bad credit financing options listed above. It’s not easy to borrow money if you have a bad credit history, but it doesn’t have to be impossible either.

Need help determining the right loan for you? Give us a call anytime for assistance.

Categories: Loans


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