Is It Possible to Get Fast with Bad Credit?
Financial emergencies can happen to anyone. If you’re facing a financial crisis, you may need quick cash to cover your expenses. Thankfully, many loan options available could aid you in this situation. However, if your credit is not up to par, you need to find a loan type that works for borrowers with bad credit.
Typically, borrowers with a bad credit score often apply for these loans:
- Payday Loans
- Credit Card Cash Advances
- Car Title Loans
While these bad credit loan options could help you get fast cash, not all loans are created equal. For example, some loans have better loan terms than others! Many loan options apt for bad credit can often put you into a cycle of debt and hurt your financial stability in the long run. Choosing the right bad credit loan is the most important factor to consider when struggling with a financial emergency!
Read below to learn more about the previously mentioned loans before deciding which one is convenient for you.
Which Loans Could Help Me Get Quick Cash with Bad Credit?
Even if you have a bad credit score, it shouldn’t stop you from accessing the emergency funds you need. While your fast cash choices may be small, you have resources available to assist you! Take each option and consider which could work best for your financial situation.
A poor credit loan type popular amongst borrowers is a payday loan. These loans are often short-term, so they will only last a borrower between paydays. You can anticipate a loan term to last anywhere from two weeks to thirty days. Payday loans do not often require a credit check and can be a quick way to get money in an emergency.
While payday loans are a part of your bad credit loan options, there are a few potential drawbacks to consider:
- The Loan Amount: Generally, payday lenders will only give you a loan amount of $500 or less. If you’re in a financial emergency, that may not be enough!
- The Fees: Most payday loans will charge you a fee for using their services. Typically, this loan origination fee looks like $10-$15 for every $100 you borrow.
- The Interest Rates: Although payday loans could be simple to get, they could come with high-interest rates that are difficult to repay. Before you know it, you could end up with more debt than in the past!
Credit Card Cash Advance
You can use a credit card for many purchases. With a credit card cash advance, you’ll be able to turn your available credit line into funding! If your loan options have been exhausted, you can turn to your credit card.
However, just like payday loans, there are some things to look out for when choosing this loan:
- The Fees: Often, there will be an ATM or credit card provider fee for choosing a cash advance from your credit card.
- The Amount: Since you’re using a credit card, you can only withdraw from your available credit line. But if you do that, it can increase your credit utilization, which can harm your credit score.
- The Interest Rates: Like any purchase with your credit card, you will need to repay the cash advance you take out from your credit with interest. If your credit card has a high-interest rate, it might be challenging to pay back.
Auto Title Loans
Another loan option to consider if you have bad credit is a title loan! Unlike other loan types, you can secure a car title loan through collateral, which will be the title to your vehicle.
Using collateral for a title loan can allow you to access cash from your car’s value instead of just your credit history! The more your vehicle is worth and the higher your income, the more you could borrow through an auto title loan. Since you secure title loans through collateral, your credit score is not the most important part of the approval process. As long as you have a paid-off or close to paid-off car in your name, it could be simple to qualify for a title loan! In addition, depending on your title loan lender, you could deal with competitive interest rates and receive cash in no time!
Apply for Fast Cash with Bad Credit Through a Title Loan
Although a title loan could be the best option, you could still compare it to other loans before deciding. Educating yourself further on each loan type is essential to determine which one fits your needs. Once you research each loan, you could go for the one that works better for you!