What Loan Options are Available To Those With Bad Credit?
It can be very difficult to secure credit when you have a poor history or low credit score. Fortunately, there are some viable loan options available to those with bad credit.
1. Payday Loans
Payday Loans are short term solutions that are available to people regardless of their credit score. They are generally rather small and are designed to provide funds until your next payday. It is important to note that, due to the high fees associated with payday loans, it is usually more cost effective to look into other loan options.
2. Automobile Title Loans
Automobile Title Loans are loans that use the vehicle title as security. The terms of the loan and the interest rate are based on the type of car, its age and its condition. You can generally get access to the full value of your car, but you must be ready to surrender the title of your vehicle or the vehicle itself if you fail to repay the loan.
3. Peer-to-Peer Loans
Peer-to-Peer Loans are relatively new and tend to require a higher credit score than other options. They work by connecting borrowers to lenders and are usually available in smaller amounts.
4. Credit Card Cash Advances
Credit card cash advances are available from many major credit card companies and are designed for those with bad credit. They generally come with higher interest rates and fees than other loan options, so it’s important to be aware of the potential costs before taking one out.
5. Online Short-term Lenders
Many online short-term lenders offer personal loans to those with bad credit. These are often available in smaller amounts and can be a relatively quick and straightforward way to access funds.
6. Department Store Credit Cards
Many department stores offer their own store credit cards that are available to those with bad credit. These are generally easier to get approved for than traditional credit cards, but they tend to have high interest rates.
In conclusion, there are several loan options available to those with bad credit. It is important to research the different loan options to determine which one is best for you and your financial situation.
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