There are several different types of lenders that may be willing to offer you a loan with bad credit. The most common examples would be personal installment lenders, payday lenders, title lenders, and pawnshop lenders. But make sure to do your research before signing for one. Unfortunately, some lenders that offer bad credit loans are not the most reliable.
Having bad credit can make life quite difficult sometimes. Depending on how low your credit score is, you may be offered very high interest rates or unfavorable loan terms. And if your score is too low you may not even be able to get a loan at all. So then what do folks with low credit scores do if they have unexpected expenses pop up? Unfortunately, that’s a difficult question that many Americans face every day.
Needing cash in a hurry and having a low credit score is not a good combination. Luckily, there are still options out there for you even if you have bad credit. These options usually include personal installment loans, payday loans, title loans, and pawnshop loans. But how do these work?
Personal Installment Loans: These are often seen as a great option for low-credit borrowers in need. They offer more money than payday loans, and a much longer repayment period. This means, depending on your specific financial situation, you could be approved for the amount you need and pay it off with monthly payments over the course of several months or even a year or two.
Payday Loans: These are small-dollar, high-interest loans that borrowers take out for emergencies. They typically need to be repaid within two weeks, or by the borrower’s next payday. It can be tough to repay on time since the interest is high and the repayment period is short.
Title Loans: These are secured loans, meaning in order to get one you have to give the lender the title to your vehicle. They then provide you with a loan, and if you can’t repay the loan they can take your vehicle away and sell it to recover their money.