Types of Loans with Bad Credit
The economy’s downturn has made big dents in many people’s credit, and it has made them afraid to apply for a loan when an unexpected crisis happens. Bad credit can mean a low credit score, and that could make getting a loan from a bank or a credit union difficult, at best. In fact, many people are finding themselves turned down for loans from banks and credit unions. Lenders who specialize in loans for people with poor credit may be able to help by offering different types of what are called “bad credit loans.” With responsible borrowing, you may be able to get the cash you need for your emergency situation. Here are a few of the different types of loans you may be able to qualify for if you have bad credit:
- Payday Loans: If you’re approved for a payday loan, lenders generally will expect you to repay the loan on your next payday, although terms on payday loans may vary depending on the lender. You may be able to qualify for a payday loan if you are 18 years of age or older, have a valid checking account and a regular source of income such as a job or retirement or disability income; however, other requirements may apply based on individual lender requirements.
- Installment Loan with Bad Credit: If you have bad credit due to the economy, you may still be able to qualify for an installment loan. Installment loans offer regular, often monthly, payments over a fixed period of time. If you’re approved for an installment loan when you have bad credit, be sure to read over the terms and conditions of your loan carefully, and don’t hesitate to ask your lender any questions you may have about the loan before accepting it.
- Pawn Shops and Car Title Lenders: Some people choose bad credit loans from pawn shops or car title lenders when an emergency occurs. In this scenario, you are asked to put up collateral in order to secure timely payments. One of the risks involved with these kinds of loans is the possible loss of your collateral if you fail to repay the loan as agreed.
- No Fax Bad Credit Loans: With no fax loans, you typically do not have to fax the lender documentation (such as a pay stub or a page from your checking account) as part of the application process.
“ You are not alone when it comes to your credit being damaged by the economy ”
If you are approved for a loan with bad credit, remember that you are not obligated to accept the loan if you disagree with the terms or feel you cannot pay the money back. Lenders vary, so some lenders may offer better terms and interest rates than others. There are many different types of bad credit loans online, so always read the terms and conditions of your loan offer carefully before accepting it.
You are not alone when it comes to your credit being damaged by the economy. Emergencies happen all the time, and if you’re afraid a bad credit score may impact your ability to get a loan, remember that you have various options to helping you get bad credit loans. If you’re looking for a lender, use Money Mutual to connect with a lender who could get you emergency funds quickly, safely, and securely.