With the current economic climate, it is usually the people who need loans and credit the most who have the toughest time securing them. This can be largely attributed to having a credit score lower than 700. If you have been denied credit in the past, it is not the end of the world; there are various borrowing options that can help alleviate your situation.
If you need money for an emergency situation, a car title loan can provide you with quick access to a small of money for a relatively short period of time. In order for you to secure such a loan, you will have to give the lender the title to your automobile, be it a car, truck, or motorcycle. The title must be clear, meaning that you are the owner of the vehicle and that there are no other lienholders on the vehicle. You will be required to pay a fee for the transaction and in most cases, car title loans must be repaid within 30 days. This is a good option for people with credit problems but own a car, truck, motorcycle, or RV.
One important thing to remember about title loans is that even though it may be easy to access, an auto title loan is usually expensive and the lender can take possession of your vehicle if you fail to repay it.
Bad Credit Personal Loans
If you have a bad credit score, then getting a personal loan for poor credit may be your only viable option. In spite of the fact that such loans are fairly easy to access, you will need to be very keen so as not to get caught in a revolving cycle of debt. This is because these types of loans come with higher interest rates, so it is important that any money you secure is used wisely. Some of the main advantages of these types of loans are that you can qualify even with bad credit and are easily preapproved. Again, if you have an urgent need for cash, then these loans require no credit are usually funded in just hours.
Pawn Shop Loans
There are various kinds of secured loans for bad credit, but in the case of pawn shop loans, you will have to offer up an item of value belonging to you to serve as collateral. The amount of money secured will largely depend on the worth of the item you hand in. The good thing is that anybody that has any type of valuable item, such as guns, jewelry, or tools, can get such a loan, regardless of whether you have a bad credit score or not. In most cases, the repayment period can be anywhere from the same day, a week, to a month. It mainly depends on your agreement with the pawn dealer.
Prepaid Credit Cards
When you apply for cash loans, be it online or in-store, you may be presented with the option of securing a prepaid credit card. If you are approved; the lender will transfer funds into your designated loan account, which you will then be able to access using your prepaid credit card. In case you require another loan in future, you will receive funds via the same card. Most prepaid credit cards have either MasterCard or Visa branding, which means you can look forward to purchasing items from a variety of stores.
In the Long Run
Even though you can still access credit for emergency circumstances using title loans, bad credit personal loans, pawn shop loans, prepaid credit cards, along with a few other types of loans for poor credit, it is always a good idea for you to start improve your credit score in order to get better access to finance. While it is good that people with credit issues do have options, with good credit you will find that your choices are more and the cost of loans is significantly lower.