Sometimes, we all need to get fast money to cover unexpected expenses. Loans are a great way to get the cash you need to cover bills that just can’t wait. Unfortunately, many lenders only offer money to people with a high credit ranking.
So, what if you have bad credit? Are you out of luck? As it turns out, you can get a fast loan with bad credit, if you know where to look.
Types of Fast Loans for People with Bad Credit
There are actually several different kinds of loans available for people with less-than-perfect credit. They all offer slightly different terms. Let’s go over your options and the steps you’d need to take to get a fast loan:
Secured Loans
Secured loans require you to put something up as collateral. Many people put up a vehicle. This means that if you fail to repay the loan, your collateral could be sold to repay the funds.
Getting a Secured Loan
You can get secured loans online by applying at financial websites and offering collateral. Some secure loan companies also have brick-and-mortar businesses you can visit.
Personal Loans
There are some banks and credit unions that will offer you personal loans, even if you have bad credit. You are more likely to be able to get a personal loan if you’ve been a customer with the financial institution for a long time.
Getting a Personal Loan
Visit your local bank or credit union to set up a personal loan. The financial institution will likely check your credit and then bring you terms you can either agree to or decline.
Payday Loans
Payday loans offer you fast funds with a short repayment window. You must usually repay payday loans within a week or two, which does not give you a lot of time get the money you need to pay them off.
Getting a Payday Loan
Payday loans generally only require you to provide proof of income. You might also need to write the lender a check or allow them to access your bank account for repayment.
Auto Title Loans
Auto title loans resemble secured loans. Auto title loans also require collateral; in this case, the collateral is your car. You must generally repay these loans very quickly.
Getting an Auto Title Loan
You can get auto title loans online and without a credit check. You must provide collateral at the time of the loan.
Understanding Bad Credit Loans
Bad credit loans can allow you to get the cash you need even if your credit score isn’t perfect. You should be aware that many fast loans have high interest rates and short repayment periods. Compare the rates available to you at different sites to make sure you get the best deal before taking out a loan.
Getting a fast loan with bad credit is easier than ever with the internet and local financial institutions like credit unions. As long as you have collateral, or at least proof of a paycheck, you should be able to get the funds you need to handle your bills.
