Can you get a personal loan with bad credit?
LOS ANGELES – October 6, 2021 – (Newswire.com)
iQuanti: If you don’t have a good credit score, you might be wondering if you can still get approved for a loan. Fortunately, many lenders offer loans to borrowers with poor credit. While you might not have all of the loan options available to you, you can still find some great loan options. Let’s take a closer look at how bad credit personal loans work and the different types available so that you can choose the right option for your needs.
How bad credits work
Low credit loans are designed for borrowers who have bad credit due to late payments, maxed out credit cards, or other financial problems. With these types of loans, lenders can always take your credit score into account and they also look at other factors when deciding whether to approve you for a loan. These factors may include income, employment history, or current debts.
Get a secured loan
If you are applying for a secured personal loan, you will need to provide an asset that you own as collateral, such as your car or house. Secured loans tend to be short term, so this is a good option if you are looking to repay the funds you have borrowed over a month or a few months. Since you are providing collateral to the lender, you usually don’t need a good credit rating to get approved.
Title loans are secured loans that allow you to use the title of your car as collateral to receive the loan. These loans can earn you 25% to 50% of the appraised value of your car. Many securities loans come with quick application processes, and you may be able to receive your funds the same day you apply or within 24 hours. You can continue to drive your car while you pay off the loan.
Another type of secured loan that does not require good credit is the pawnbroker loan. With loans from pawn shops, you can provide a valuable item that you own as collateral, such as a work of art or jewelry. The pawnshop will offer you funds worth a percentage of the item and hold them while you pay off the loan.
Get an unsecured loan
Unsecured loans are short term loans that can provide you with funds quickly and will not require you to use an asset as collateral. They can range from small loans to larger loans. While lenders may take your credit score into account when deciding to approve you, many will have less stringent credit requirements and consider your income, work history, and other factors.
Cash advances are a good unsecured loan option for borrowers with poor credit. These loans will give you a little extra cash to cover your expenses before your next payday, so the repayment terms are usually two to four weeks. Cash advances are generally fairly easy to obtain if you can provide proof of income.
You can also get approved for an installment loan if your credit is poor. These short term unsecured loans give you a lump sum of money that you will repay over a set period of time via fixed monthly payments or installments. Installment loans may be right for you if you want a larger amount of money that you can repay over a longer period of time.
The bottom line
If you have bad credit but need to borrow money, don’t worry. There are many secured and unsecured loan options offered by lenders who will approve you if your credit is low or fair. When looking for the right loan for you, be sure to do your research and compare lenders online. Choose a loan from a lender you can trust with terms that suit your situation.
Notice: The information provided in this article is for informational purposes only. Consult your financial advisor about your financial situation.
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Can You Get A Personal Loan With Bad Credit?