Types Of Bad Credit Loans

Posted by Jason Norman on April 22nd, 2023

When you have a poor credit history you might struggle to get regular loans from certain types of lenders. That is where bad credit loans Howell come in. These are specific loans for people in just that situation. Here are some examples.

Payday loan

Payday loans are a great short-term solution when you need quick money but they are expensive. This type of bad credit loans Manalapan should be just used as an emergency solution. If you can get the money any other way then do! Most do not check your credit history and how much you can get varies but usually around 00 is the limit. There are high fees for extensions and the repayment length is short but you can often get the money that day or the next.

Credit card cash advance

Another option taking out a cash advance against a credit card. You would only be able to take out money up to your limit amount and obviously, if you pay high interest on your credit cards it will cost you. It is best to use this option for emergencies but it is there if you have a credit card and your limit is high enough for the amount you need. You get the money straight away if you do.

Bank agreement

In some situations one option for bad credit loans Lakewood is to talk to your bank about qualifying for a short-term loan. If you have a good banking history with them they are more likely to say yes. What you need to qualify varies from one bank to another. There are also credit unions to try and they keep their interest rates to just 18 percent which is better than a lot of other options. While you get the money usually fairly quickly it might not be the same day and it is harder to qualify and you need to have a bank account. Sometimes for a minimum period.

Car title loan

If you are thinking of a car title loan as your option for bad credit loans Manalapan keep in mind the loan is a percent of the car’s value. If your car is valued at 00 then they would offer between 25 to 50 % of that so between $ 1250 to 00. There are some provisions though, you have to be the owner of the vehicle and you have to give the lender the title for the car until the loan is almost paid off. Most are short loans, between 15 to 30 days and amounts start at 0. They are quick and some do not need a credit check but you risk losing the car and you pay high-interest rates.

Pawn shop loan

A pawnshop loan is another short-term loan option, usually 30 days but sometimes longer. You get a percent of the value of the time, but it is their valuation. You could lose ownership of the item if you do not pay it back and the interest is high. It is a great option when you need quick money as you get it within an hour, sometimes even within 30 minutes of entering the shop.