Even when you have bad credit, there are ways to obtain the funds that you need. For most of these options you do need a steady job and a valid checking account. The interest rates on these types of loans are typically higher due to the increased risk the lender is taking to extend the loan to you. Even with infractions on your credit report it is possible to get a loan.
Bad Credit Loan
Some lenders offer loans with those that have bad credit. Keep in mind that you will likely need some type of collateral whether it is a home or vehicle, and a co-signer. Finding a co-signer may be difficult since that person would be responsible for making the installment payments if you defaulted.
With bad credit loans, the interest rates are far higher, some as much as 24-percent. This is a hefty amount to have to pay in addition to the loaned funds for making mistakes with previous creditors.
With a stable job and a valid checking account you may qualify for a payday advance. These loans are based solely on the amount that you make. The lender can only give you what you can feasibly afford to pay back.
With this type of loan you must repay the amount lent plus all of the interest and fees upon your next payday. There is only one payment. Being late on this payment can result in the check you left with the lender being deposited into your account. It can also lead to additional fees and even a lawsuit against you.
Auto Title Loan
An auto title loan is another option for those with bad credit. This is an installment loan type of situation but again, has high interest rates. When you visit a facility your vehicle is appraised. An offer is given to you as far as how much can be lent based upon that appraised value.
With this type of loan you must surrender your title to the lender until the loan is paid in full. The title must be free and clear. The vehicle must be paid off. If you fail to make your payments, the loan company does have the right to repossess the vehicle and sell it at an auction or privately in an attempt to recover the lost funds.
If you have items of value in your home such as gold jewelry, electronics, power tools or music equipment you may be able to visit the local pawn shop. When you pawn something it is a loan based upon what the pawn broker can get out of the item if you do not repay the loan. This will be roughly half of its current retail value.
Pawn shops do buy items as well, in which case you are likely to get a little more for the item because the pawn broker can immediately sell the item after it clears stolen property listings. In this article you can find some extra tips about pawn stores here.
Sell Items via Yard Sale or Online Posting
Most areas have for sale groups on social media and most consumers have access to Craigslist. These two platforms are ideal when you have an item to sell and need to do so quickly to obtain funds. In order to get the price you really want in this situation, start the price a little high and list it as “or best offer”.
These options are available to those with bad credit. There are stipulations and restrictions when it comes to obtaining loans, however, when you are desperate and have no other option; you find a way to sacrifice other things to make the payments.