Financial emergencies can happen to anyone. When the unexpected occurs, you need a loan that is fast and streamlined. If your credit is not up to par, however, you need to find the bad credit loan options that are available to you.
Typically, bad credit loan options are often:
- Title Loans
- Payday Loans
- Credit Card Cash Advances
While all of these bad credit loan options can help you get cash, not all loans are created equal. Some loans have better loan terms than others! Many loan options that are made for bad credit can often put you into a cycle of debt and hurt your financial stability in the long run. Choosing the right bad credit loan is the most important factor to consider when you’re facing a financial emergency!
What is Good Credit versus Bad Credit?
A credit score was created by financial institutions to determine your worthiness as a borrower. Your financial decisions will affect your credit report, which turns into your credit history. Most traditional loan lenders will require a borrower to have good credit to approve them for a loan. These loans can include mortgage loans, auto loans, or even unsecured personal loans. Before applying for a traditional loan for fast cash, consider where your credit will stand.
Typically, a good credit score is anything above 640. Anything below 620 is considered bad credit, and you may not be eligible for an unsecured loan. A good credit history is proof that you are a responsible borrower that will pay back your debt on time. When a lender is considering you for a loan, they are assuming most of the risk to lend to you. This risk is why interest rates were created. The less of a risk you are to lend to, the lower your interest rates will be and the more money you will save. Interest rates are simply the cost of borrowing money. The less of a risk you are to lend to, the less you will have to pay for borrowing it!
What Happens With a Loan When You Have a Bad Credit History?
If you do not have a good credit history you will likely not receive low interest rates, and you may not even be approved for a loan. Some borrowers with bad credit will choose to co-sign with a family member or friend that has a good credit history.
If that is not a realistic situation to consider, then your best bet is to look for your bad credit loan options that are available.
What Bad Credit Loan Options are Available to Me?
Even if you have bad credit, it shouldn’t stop you from accessing the financial help you need. While your fast cash choices may be narrowed down, you do have resources available to you in an emergency! Take each option and consider the pros and cons for your personal financial situation.
Credit Card Cash Advance
A credit card can be used for many different kinds of purchases. With a credit card cash advance, you’ll be able to turn your available credit line into cash! If all of your other cash loan options have been exhausted, you can turn to your credit card.
There are a few things to look out for when choosing this method as a bad credit loan option:
- The Interest Rates: Like any purchase with your credit card, the cash advance you take out from your available credit will need to be paid back with interest. If your credit card has a high interest rate, it may be difficult to pay back.
- The Amount: You will only be able to withdraw your available credit line. This also increases your credit utilization, which can hurt your credit score.
- The Fees: Often, there will be an ATM fee or credit card provider fee for choosing a cash advance from your credit card.
While a credit card cash advance can be a way to get fast cash in an emergency, be mindful of your other options first! A high interest rate from your credit card could hurt your financial situation more than it could help.
Another bad credit loan option that is popular is a payday loan. These loans are meant to last a borrower in between paydays, so they are often short-term loans. You can expect a loan term to last anywhere from 2 weeks to 30 days. Payday loans do not often require a credit check and they can be a fast way to get cash in an emergency.
While payday loans are a part of your bad credit loan options, there are a few potential drawbacks to consider:
- The Loan Amount: There are laws in some states that cap what your loan amount can be through a payday loan. Typically, you’ll be able to take out anywhere from $50-$500. If you’re in a financial emergency, this may not be enough!
- The Fees: Most payday loans will charge you a fee for using their services. Generally, this loan origination fee looks like $10-$15 dollars for every $100 you borrow through the lender.
- The Interest Rates: Payday loans are notorious for being easy to get. But they also come with exorbitantly high interest rates that are difficult to pay back. There are better loan options to consider!
Another loan option to consider if you have bad credit is a title loan! Title loans were made to be bad credit loan options. Unlike other types of bad credit options, a title loan is secured through collateral.
The collateral will be the title to your car. Using collateral for a loan allows you to borrow cash from your vehicle’s value instead of just your credit history! The more your car is worth and the higher your income, the more you can potentially borrow through a title loan.1 Since title loans are secured through collateral, your credit history is not the most important part of the approval process. As long as you have a paid-off or close to paid off vehicle in your name, it’s easy to qualify for a title loan!
For loan options like ChoiceCash Title Loans, the interest rates are competitive. This keeps your loan payment affordable for your wallet in the long run! If you qualify for a ChoiceCash Title Loan, you could get your cash in as little as one business day.1 If you’re facing a financial emergency, a title loan can be your best bet!
You can expect even more benefits with a title loan, like:
- Fast Funding
- Convenient Loan Terms
- And Quality Customer Service!
Ways to Get Fast Cash If You Have Bad Credit
If you have bad credit, you may be considering all of your cash options, including non-lending ones. While you may not have to consider alternative options, you do have possibilities!
Here are some non-lending ways to get fast cash:
- Sell Your Unwanted Items: If you have a local pawn shop nearby, it’s time to make use of your unwanted household items. Believe it or not, kitchen appliances can be valuable! Any valuable items could be traded for fast cash. If a pawn shop is not an option, you could consider selling your items online through Facebook Marketplace or even OfferUp.
- Get a Side Job: The weekends can be a great time to make some extra money. Local restaurants, grocery stores and even book shops may be willing to hire you part time to make extra cash!
- Ask Friends or Family: While this option may not be ideal, it is a quick way to get cash if you are facing a financial emergency with bad credit. Keep in mind, money can complicate relationships and change them!
What are the Requirements for a Title Loan?
If you have bad credit and you need fast cash, you may take whatever option is available to you. Keep in mind, if you need a loan that can be streamlined and affordable, a title loan could be the perfect solution.
Even the requirements are easy to meet! You can expect to need to meet these requirements before applying for a title loan:
- You Must be At Least 18 Years of Age
- Your Car’s Title Needs to Be in Your Name
- The Vehicle Must Have Value
- You Must Provide Proof of Income or Alternative Income
When it comes to bad credit loan options, don’t settle for just whatever is available! You can find out if you qualify for a title loan in just a few minutes online. If you are approved, your cash could be available to you in just 24 hours.1
Where Can I Apply for a Title Loan Online?
Applying for a bad credit loan shouldn’t be a hassle. With ChoiceCash Title Loans, it isn’t! The approval process has been streamlined to help borrowers with bad credit in a financial crisis.1
You can expect a quick, three-step approval process with ChoiceCash Title Loans:
- Fill out a Loan Inquiry Online or Over the Phone
- Send in a Few Documents to Verify Your Information
- Get Approved and Get Your Cash!1
Some bad credit loan options can be beneficial for you! Find out if you qualify for a ChoiceCash Title Loan today by visiting the website, or by calling a representative at 855-914-2945. It can take just a few minutes to find out if you can get the help you need!1