Having bad credit can be a headache when you are in need of money, but it shouldn’t prevent you from access to the cash you need when you need it. There are ways you can get money when you have bad credit. You just need to know where to look and what to expect.
How to Get Money with Bad Credit
- Personal Loans
Aside from having to go through the risk and possible embarrassment of getting a personal loan through a bank, many people with bad credit can receive cash on the same day through online personal lenders willing to overlook bad credit. These companies generally look at other factors to consider in whether or not you are a good borrower. This is why you sometimes see loans for someone with bad credit and or no credit checks. Interest rates through crowd or peer-to-peer lenders typically range from a fixed 9.9% to a fixed 36%, and they are a much better alternative than obtaining money from riskier options such as payday lenders.
- Family Loans
When you are in a bind, family is often a good source for help even if you have bad credit. They are people you can trust, and can be far more understanding if they know your financial situation. Most importantly, you can typically receive a loan from a family member interest free and with flexible spending arrangements. All you need to do is possess the courage to ask and be honest to them about why you need the money.
- Secured Loans
A secured loan is any type of loan that uses your personal property as a form of collateral in order get the money you need. There are several different types and each carry with them their own risks and rewards. All you need to know is what they are and how you can benefit from them.
- Home Equity
If you are a home owner, borrowing against the accrued value of the property is a great way to get a loan if you have bad credit. These loans carry a low interest rate and give you the opportunity to pay if off over a longer period of time.
- Pawn Shop Loans
If you need a small amount of money, you can use a pawn broker as a lender. They offer customers small loans by allowing them to borrow against the value of a piece of personal property such as jewelry or an antique family heirloom. The risk here is that you must pay off the loan by the terms of the broker or lose the property altogether.
- Car Title Loans
This loan is the riskiest form of secured loan for you to use, because you must pay off the loan within thirty days from the time you receive you money. If you don’t you lose your car.
Secured loans should always be considered carefully when considering the collateral you are borrowing against.
- Using a Credit Union
Credit Unions are another resource for people with bad credit to consider when it comes to borrowing money. They are non-profit lending institutions and they tend to consider other factors in their lending process other than just your credit score. Just be aware that you may face a higher interest rate if you have bad credit. You must also be a member in order to receive a loan, so if you haven’t joined one yet, you might want to consider doing so to increase your accessibility to cash.
Getting access to cash when you have bad credit should not be an exercise of jumping through hoops. You need to know that there are resources out there for people like you. Don’t get discouraged.
