A credit score is kind of like a reflection of your financial history and your habits. Your credit score takes things into account like, how often you pay your bills on time, how much you have in available credit, and much more. When you do not pay your loans or debt obligations on time, your score will decrease. Bad credit loan options are available if you need money, but it is important to improve your score regardless!
The more a person pays off debts on-time over a certain period, the more likely their credit will rise. If you have a high credit score, you will likely receive better loan terms! That includes interest rates, repayment terms, and more. If you’ve fallen victim to a poor credit score, you may have had trouble getting approval for loans in the past. If you are looking for bad credit loan options, you’ve come to the right place!
What is the Easiest Loan to Get With Horrible Credit?
Having bad credit will hold you back during many different loan applications. Typically, you won’t qualify for a HELOC, personal loan, or a traditional bank loan with bad credit. But that doesn’t mean you are out of options.
Some of the easiest loans to get with horrible credit include:
Peer-to-Peer Loans
These bad credit loan options are found on peer-to-peer lending platforms. They help prospective borrowers to get loan options from lenders that are not banks or other financial institutions, but rather individuals or businesses. P2P loans are not without disadvantages, however. They do come with origination fees and higher interest rates if you do not have a strong credit score.
Loans With a Cosigner
If you have bad credit, adding a cosigner to your loan can be an option. Adding another person to a loan can be beneficial if the cosigner has a good line of credit and is willing to handle the responsibility of the loan if it falls in their hands.
Payday Loans
A payday loan is a very short-term loan. When you take out a payday loan, you have no more than a few weeks long for that loan to be paid. It’s meant to last you in between paychecks, hence the name! These bad credit loan options are typically offered through payday lenders operating out of storefronts. However, many are now operating online. They work best for people who need cash quickly, which is why their application process could be completed in a few minutes or less.
Once the loan is approved, the funds are deposited into a verified account. But this is where the term payday loans get its name from. The lender will then typically require that you write a postdated check in payment of both the loan amount and the interest charged on it.
This means that your next paycheck is theirs for the taking because that is what is being used to pay off the loan. The rates are known to be high for payday loans and can be difficult to pay off.
Title Loans
Title Loans are a type of secured loan that can get you fast funding.1 The one essential thing that a borrower needs to know about auto title loans is that they require collateral, which is the title of your car. If you can keep up with monthly payments, title loans may be the right choice for you since they are known to be a competitive market that could offer some better rates out of most bad credit loan options.
Each loan has its pros and cons, so it’s important to make an informed choice!
How to Borrow $5,000 With Bad Credit
Payday loans tend to range from $50-$500 depending on your state of residence. If you need a bad credit loan for around $5,000, a title loan may be more your speed.1 5 Title loans are secured loans, and your loan amount is largely based on the value of your car. Other factors, such as your state of residence and the lender you work with, will also impact your loan amount.
Typically, you can get a percentage of your car’s value if you are eligible for a car title loan. Often, that percentage ranges from a quarter to half or more.
Can You Get Loans That Don’t Check Credit?
Some lenders do not check your credit, but there is a trade off. If they don’t verify your credit history, your loan amount is typically smaller than it would be if they do.1 Make sure to discuss your options with Max Cash Title Loans when you inquire about a bad credit title loan online or over the phone! Dial 855-561-5626 today to learn more.2 5
How Credit Scored are Scaled
People could have varying degrees of credit. However, those with what many would consider “bad credit” may find it difficult to receive certain loans. That’s because loans that don’t require collateral (also known as unsecured loans) are typically risky for lenders.
Lenders want to be sure that the person that gets an unsecured loan from them pays off the loan fully and won’t default from missing payments. The way that one could measure this “trust” for prospective borrowers is via a credit score.
One thing to keep in mind though is that “bad credit” can also be defined as a credit score that lenders do not favor based on how they measure scores. So even if one’s credit score is neutral or has not accrued debts or other loans in the first place, it could still be labeled as “bad credit” by these lenders. This can be frustrating, especially if you’re looking for something like a loan.
Fret not! That’s why things like secured loans (personal loans to be more specific) are made with the purpose to provide various individuals a loan that they may meet the requirements for.
With secured loans, things like checking if someone has bad credit would typically not be a major concern. That’s because these loans have collateral, something that “secures” the loan.
Because the collateral is what makes the trust between the borrower and lender for a secured loan, bad credit or any other kind of credit are totally acceptable when it comes to applying for a secured loan.
Do I Need to Have Good Credit to Get a Title Loan with the Help of Max Cash Title Loans?
While a credit check is often on you when determining your pre-approval status for a car title loan, lenders are more concerned with whether you have a source of steady income to repay the loan and your income.2 5
If your vehicle has a good amount of equity and you meet the requirements, good news! It is more likely that we will be able to find you a good title loan.5 We want our clients to be able to get the help they need when they need it, so that they may get back on the path to financial success.2 5 Holding someone back due to a low credit score would not be helpful to such a cause.
The only reason that your lender might check your credit is to see whether you have declared bankruptcy in the past, or to see if you are currently in active credit counseling. That said, the lenders we work with understand that your financial problems are why you may need a loan.
Why Car Title Loans are one of the Best Ways to Get a Loan with Bad Credit
With a car title loan, what is required to possibly receive one is in its name! With a car title loan, the vehicle’s title is required, and the car acts as collateral for the loan. Therefore, car title loans are secured against the innate value of the vehicle. In short, a percentage in the equity of a qualifying car may be received as funding from car title loans, with the lender acting as the lien holder. If someone keeps up with the payments of a car, they can freely drive the car as they please. Here are a few more pros to consider:
- By using a car to secure car title loans and reducing the risks to a lender, it is possible to get the financial funding someone may need, even if they have the bad credit label.
- With car title loans being incredibly popular, competitive rates between lenders could mean a chance for low interest rates.3 4
Other Pros to Bad Credit Title Loans
- Since most people have a car compared to an owned home, using car title loans tend to be a better choice for them!
- Perfect credit is not a qualification nor is it used to determine who gets approved for car title loans.
- Many lenders have switched to the digital age of technology and have streamlined their process by having inquiries and online forms through their website to make car title loans hassle-free in nature.
Although it may be one of the many bad credit loan options, we at Max Cash Title Loans believe that car title loans are a great way to get emergency funding, especially for those with unique credit that may not allow them to get any other loan! But with all the time and energy that comes from finding the right lender, where does somebody start? Start with us Call (855) 561-5626 for instant approval.1
Apply for Bad Credit Loans Online Today
Here at Max Cash Title Loans, consider us the guide and information database you could come to when needing help locating bad credit loans.5
Ready to get started? Fill out an online inquiry form that we have made available on our website.2 Once all the information has been specified, we do all the hard work and find the best deal on a car title loan!5
The best part? We don’t take a dime form anyone who comes to us for help. That’s right! We at Max Cash Title Loans want to put all the care and comfort that any friend or family member would deliver. That’s what makes our business feel transparent.
Call today or check out our online inquiry form to see how we may find the best places for someone with bad credit to receive car title loans!5