The Different Types Of Personal Loans For People With Bad Credit
If you have bad credit and need a loan there are tons of different places to get it from. Some banks have lowered their lending requirements due to the poor economy and are offering loans to those that don’t have stellar scores. However, there is another set of personal loans for people with bad credit that are almost always available. These have nothing to do with banks or credit unions. Instead, they use private lenders that don’t really care what your credit score is, they just want to make money from your loan. In this post we’ll cover the most common of these loans.
If you only need a small amount of money, just get a payday loan. These provide fast cash right into your bank account, no matter what your credit score is like. All they require is that you have a steady job and a checking account. Most lenders will allow you to borrow up to 25% of your gross income, which can be a lot or a little depending on what you do for a living.
Should you need more money, and have a car that is paid off, title loans are another choice. These will allow you to borrow up to 50% of the value of your car. If you have a nice car, this can be a substantial amount of money! The obvious downside to these loans is that they are secured, and should you not pay the loan back your car will be repossessed. Since these loans are much larger than payday loans, they give you a lot more time to repay them. Generally, you will make biweekly payments over the course of 3-6 months to get your loan repaid.
I’m sure that you already know that you’re going to pay a premium for loans that don’t check your credit score, and the two types discussed above are no different. If it’s the only way that you can get a loan, that’s a reality that you’re going to have to accept and live with.
It’s also important to remember that just because there are loans out there that you can qualify for doesn’t mean that you don’t have to work on getting your credit score back in shape. These loans are only short term solutions.
Related posts: