Need A Loan And Have Poor Credit? Find Out How You Can Get Cash Quickly
Posted on: 4 March 2016
There are many reasons why you may unexpectedly need money quickly. Your car may have broken down, your refrigerator may have stopped working, or your checking account may be about to go negative, which can result in hefty fees. If you have good credit, you may have a credit card or the ability to get a loan to easily pay for these unexpected expenses. However, if you have poor credit, getting money isn't so easy. Fortunately, there are still a few options available to you that can help you get the cash you need quickly. Here are three different ways you can get a loan quickly with poor credit.
A Payday Loan
If you have a checking account and a steady form of income, you may be able to get a payday loan. A payday loan looks at your income, rather than your credit, when determining whether you can get loan. When you take out a payday loan, the payment for the loan is typically due on the day you are paid, which is why it is called a payday loan. Traditionally, you would postdate a check for that date and the loan company would deposit and cash your loan payment on your paydays. However, these days, many companies simply pull the money directly out of your checking account on the payment due date. When you are taking out a payday loan, always ask how payment is made. For more information on payday loans, check out a site like http://www.getezmoney.com.
A Title Loan
A title loan is a form of a collateral loan. You are putting up the title to your car, motorcycle or boat in exchange for cash. The amount you are able to get varies based on how much your item is worth, rather than your credit score. In order to take out this type of loan, you must be the titled owner of the item you are trying to take a loan out on and own the item free and clear. If you have another loan on the car or boat, you will not be able to take a loan out against it. It is important to note that if you fail to make your payments with this type of loan, your vehicle can be repossessed and sold. This is how the lender is able to recoup their expenses for the loan if you don't pay, and ultimately, why your credit score doesn't factor in. They have a way to get their money back. Once your loan is paid in full, you will receive the title to your item back again.
Pawning Valuable Items
The last way you can get a loan quickly when you have poor credit is to pawn your valuable items. This may include jewelry and electronics. When you pawn your items, the pawn shop will loan you a certain amount of money, based on the value of your items. In exchange for this loan, they will hold on to your items. When you pay the loan back in full, they will release the items back to you again. If you do not pay the loan back, they retain ownership of the items and will sell them. It is important to note that a pawn shop will also buy your items directly from you, so if you have items that you know you don't want, and you need money, you may consider selling, rather than taking a loan. However, if you want the items back, be sure to specify that you are asking for a loan, rather than selling the item.
If you have poor credit and an emergency occurs, you may wonder how you are going to come up with money. Luckily, lenders realize that not everyone has good credit. Because of this, there are different types of loans that are available, even if you have poor credit. However, because you are a risk to the lender, they typically require you to put up some form of collateral to secure the loan, such as a car title, valuable items or a post-dated check. This helps them recover their money if you don't pay the loan as agreed upon.
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