If you have a bad credit history, you may wonder if getting loans with bad credit is possible. The good news is that you can still get loans even though you would need to put in some extra work. These short-term loan options are created to help consumers with bad credit access the funds they need quickly and efficiently.
Data from FICO shows that approximately a quarter of Americans have a bad credit score from different credit bureaus. This means they have credit scores ranging between 300 and 620. This can be risky because any score under 580 is considered subprime or bad.
Your credit score determines whether you can obtain a loan and, if you can, how much you’re likely to pay in interest. A low FICO rating tends to result in a higher APR for loans, making it hard to obtain a personal loan that suits your budget.
Fortunately, many lenders offer loans for bad credit, and most online loan options don’t even require a credit check. This can be an advantage to the credit invisible group. Furthermore, if you research well, you may find a loan with low rates, reasonable APR (Annual Percentage Rate), and an appropriate payoff amount that works for your income. To help you find the perfect solution for your loan situation, we’ve highlighted some of the best loans for bad credit you may want to consider.
Personal Installment Loans
Personal installment loans are unsecured loans for people with low credit scores. These loan options can provide higher loan amounts than some other quick cash alternatives. A personal installment loan allows you to borrow a sum of cash and repay it in monthly installments at a fixed interest rate over a specified time. The repayment period can take several months up to a few years.
Payday loans are great loan alternatives for borrowers with damaged credit. Most lenders of these loans don’t require credit checks when approving you for a loan. Reports from CNBC reveal that 11 percent of Americans have taken out a payday loan for bad credit. In fact, payday loans are a growing business in the United States, generating more than $9 billion in revenue.
Unlike most traditional loans, payday loans are easy to get and often don’t require any paperwork. To access these loans, borrowers only need to provide their legal ID, sufficient proof of income, active phone number, and bank account. No credit check is required.
Once you’re approved and receive your money, you will have to repay it within a few weeks or by your next paycheck. Payday loans come in different forms, including instant cash advances and 24-hour payday loans.
Car Title Loans
Car title loans are an example of a secured loan for bad credit. If you have a low credit score, this can be an excellent loan option as long as you own a car that you can use as collateral. This means that if you fail to pay your loan by the due date, the lender may take your car and sell it.
This makes car title loans risky, especially if your vehicle is essential to your everyday life. In addition, these loans can be quite costly because they have high rates, origination costs, and other charges. These loans for bad credit have a specific payment period, usually less than 30 days.
Personal Loans with a Co-Signer
An easy way to access a personal loan if you have a limited credit profile is to get a co-signer with a great credit score. A co-signer with an excellent score is your safety net which guarantees security for the lender by promising to pay should you default on your loan. This minimizes the risk for the lender, meaning they can be willing to extend a loan to you since they are assured of payments.
The most important benefit of this kind of arrangement is that it increases your chances of obtaining a loan with low rates and reasonable terms. You may also get a reduced origination fee, a better payoff amount, and a good APR with a co-signer.
Pawn Shop Loans
Pawn shop loans are another example of secured loans for bad credit. The collateral used in these loans may be any prized item you possess that the lender may accept. This could range from electronics to personal equipment and jewelry. A pawn shop lender lends you money based on the value of your collateral, and you get it back once you complete the loan and interest payments.
Get Loans for Bad Credit at Mypaydayloan.Com
Mypaydayloan.com offers several secured and unsecured loans for bad credit. If you want to take a loan with bad credit, don’t hesitate to visit their website to learn more about their financial products.
Disclaimer: This article contains sponsored marketing content. It is intended for promotional purposes and should not be considered as an endorsement or recommendation by our website. Readers are encouraged to conduct their own research and exercise their own judgment before making any decisions based on the information provided in this article.