Loans for People with Bad Credit
Do you need cash now? When you are in a cash crunch, you may find it hard to get the loan you need when you have bad credit. However, there are loans for people with bad credit, as long as you have a verifiable residence and job. Keep in mind, these loans have higher interest rates and are designed to help you rebuild your credit. While the terms may not be as favorable as someone who has a credit score in the 800's, it can still be an option for those who need cash fast. Here are the best loans for those who are credit challenged.
Payday Loans - Cash Advances
One of the biggest ways to get money quick with bad credit is through a payday loan. A payday loan is an advance using your checking account until your next pay. There are companies that have physical establishments, as well as those that operate solely online. These loans are anywhere from one week to a month. The interest rates are a bit higher, averaging about $15 per $100. However, these loans are pretty easy to be approved for and do not cause any negative impact on the credit report. In fact, you do not have to have a credit check to even be approved for this type of loan. Keep in mind, you must have the money in your checking account to cover the funds of this transaction. If the funds are not available, they will attempt to withdrawal them anyway and create an overdraft situation. They can become addictive too. Many people get one loan to cover another and a vicious cycle emerges.
Though there are literally 100's of companies online that offer these types of loans, the best are places like North Cash, Rise, U Star Cash, and Check into Cash. Most of these places have rather small limits on the amount they will lend. For example, Rise Credit will lend up to $1,500 while North Cash will only give $1,000. It goes according to your income and you must have a utility bill, verifiable phone number, and references.
If cash advances are not your thing, then perhaps you should look into peer lending. It is one of the latest trends in lending and they do accept those with bad credit too. The great thing about peer-to-peer type lending is the fact that they do not have to use the stringent guidelines that the bank does. Since this is backed by investors or peers, they make the rules. The interest rates are usually lower than the banks and it is easier to obtain a loan. They give answers very quickly on who's approved and whose not. Lending Club is one of the biggest and best p2p companies. Their loans are made by Web-Bank and they will deal with people who have a credit score of at least 600. Though the banks may consider that score to be on the lower end, Lending Club will finance a loan with that score.
If you have an automobile that is paid off, you may consider a loan on your car's title. This type of loan is giving on the value of your car. The lender holds the title until the loan is paid in full. Think of it as a pawn shop for cars, except you still get to drive the car. They hold the title and the vehicle cannot be sold unless the lien against it is paid off. Once the loan value is paid, the title is returned to the owner. These loans are pretty straightforward and easy to get, you can apply for an online title loan with us in just a few seconds. In similar fashion to the cash advance, they want a verifiable residence and income. The amount each lender is willing to offer varies. However, the loan amount is based on the value of the car and usually up to 85 percent of that. If the car can stand good for the loan, most will give a decent amount.
Unsecured Credit Cards
When considering loans for people with bad credit, one way to get cash is by obtaining a credit card. There are 100's of companies that will give credit cards to people who have scores from 580 and above. Though you may have to wait 7-10 days for the new card to arrive, some say getting a credit card for quick cash is best. With so many lenders to choose from, it may be possible to get two cards. They usually do not screen their applicants as much as some of the other places, and they really only look at the credit score for the basis of their decision. Some of the best credit cards for those with bad credit are First Premiere Bank, Capital One, and Total Visa.
Secured Credit Cards
Okay, so it's not the quickest way to get a loan, but it is a way to rebuild your credit in the process. Bad credit loans are not always about instant gratification. Some cards start out as a secured card and then later allow you privileges. If your credit is really challenged, you may opt for a secured card. Companies like Capitol One's Secured Master Card can really help to establish credit.
We cannot mention loans for people with bad credit without mentioning online installment loans. While most people who are looking for bad credit loans would not even consider the fact that they can be approved for a traditional style loan, it is possible. Now, getting an installment loan is going to come with a lot more red tape and plenty of hoops to jump through, but it can be done. Additionally, it should be said that there are not as many lenders willing to loan money to people with no collateral. As long as you have a credit score around 580, you should be able to get something. Companies noted for having good records with bad credit borrowers are Avant, One Main, and Upstart.
Finding the Loan Best For You
Whether you want a credit card or a loan against your car, if you need money fast there is a way. Bad credit is something that is difficult to overcome, but there are plenty of lenders who cater to people who have a few blemishes on their report. As long as you have a score of at least 580, there is someone who will work with you to give you cash. If your score is less than 580, as long as you have a job, verifiable residence or some collateral, you still can get some assistance.