If you have bad credit, it can be incredibly frustrating to try to get a loan. Many traditional lenders will turn you away and even those who do give out loans charge high interest rates, making it impossible for you to ever pay back what you owe. So what are your options? Credit cards are great if you’re trying to build up your credit history or pay off old debt, but they might not be right for every situation. Luckily there are several other types of loans available if you need money fast!
Payday loans
If you need cash quickly, a payday loan may be the answer. A payday loan is a short-term loan that’s made to people who have bad credit and no other options for getting money. You can borrow up to $2,000 for up to 6 months at rates ranging from 300% APR or more (annual percentage rate).
The amount of money you borrow depends on how much income you make each month; if you’re paid biweekly or monthly, as most people are today with their employers paying them every two weeks instead of weekly like they did when I was growing up in the 1950s and 1960s.. The lender will ask for proof of employment such as pay stubs and bank statements showing deposits into your account over several months so they know how much money comes in each month before deciding whether or not they’ll give out the loan amount requested by their customer.
Title loans
Title loans are a type of secured loan, which means that you put up your car as collateral for the loan. If you don’t pay back the money on time, then your lender can take possession of and sell off your car.
Title loans are often used by people who have had their cars repossessed. This is because title loans allow them to get some cash quickly so that they can get back on their feet financially and start making payments again.
You might think that this sounds like an awful idea–why would anyone want to borrow money with such high interest rates and risk losing their vehicle if they don’t pay it back? Well, sometimes life happens and we find ourselves in situations where we need quick cash but aren’t able to get approved for traditional loans due to poor credit history or other factors (elderly parents who need help paying bills). In these cases, getting approved for a title loan may actually be better than nothing at all!
Installment loans
Installment loans are loans that are paid back over a period of time. These loans typically have lower interest rates than payday and title loans, but they also come with higher fees and longer repayment terms.
For example, if you take out an installment loan for $2,000 at 18% interest rate and make monthly payments over two years (24 months), your total cost will be $2,819 in principal plus interest–more than double what you borrowed! This shows why it’s important to shop around before borrowing money from one company or another: The best deal may not always be the most convenient one!
Store credit cards
Credit cards are a popular way to manage your money and avoid the hassle of carrying cash. But if you have bad credit, it’s likely that many banks will turn you down for a standard store credit card. Credit cards for people with bad credit often come with high interest rates and low credit limits–and some even require a security deposit or minimum payment in order to open an account.
Credit Card Options for Bad-Credit Consumers
If you find yourself in this situation, there are still ways that you can take advantage of the convenience provided by store-branded credit cards without paying exorbitant fees or suffering from sky-high interest rates. Here are some options:
There are many lenders who will give you a loan even if you have bad credit.
There are many lenders who will give you a loan even if you have bad credit. The lender might be more likely to give you a loan if you are employed and have been for several years, but there are still lenders that will consider giving loans to people with no income or employment history.
If your credit score is low because of late payments on bills, this doesn’t mean that it’s impossible for someone with bad credit to get approved for any type of loan. It just means that the interest rate on their loan will be higher than someone who has good credit scores and pays their bills on time every month (or at least most months).
We hope that you’ve found this article helpful. If you want to learn more about getting a loan with bad credit, check out our other articles on the subject!
