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Loan Options for Those With Bad Credit

Having less than perfect credit can sometimes make it seem like a struggle to get the money you need, but these days it's a boat more and more people are in. The good news is that there are plenty of options out there so that borrowers with bad credit can get the cash they're looking for, often with no credit check whatsoever.

What Are Bad Credit Loans

In the broadest terms, bad credit loans are loans are loans that you're able to secure either to help repair bad credit or otherwise that won't be impacted by bad credit. Like other loans, bad credit loans fall into two categories: secured and unsecured.

Secured loans are loans that use some sort of collateral as a means of security so that the lender has a secondary means to recoup their investment. Loans such as title loans and home equity loans are secured, since they use collateral such as your car title or your home.

Unsecured loans are those that don't have collateral, like a personal or payday loan. To help ensure the integrity of their investment, lenders working in unsecured bad credit loans often make their loan repayment periods shorter or their interest rates and affiliated fees higher since there are fewer means for them to regain losses on defaulted loans.

Loans such as title loans, payday loans, and even some home equity loans don't require a credit check either because they have security, or because they're tied to a short timeframe, cash-advance style form of lending.

These types of loans give lenders tangible forms of security that don't come with some standard loans, so they don't feel the pressure to look into your financial history to evaluate the risk of a certain borrower - they know you've got something invested in the loan, too.

This, in turn, enables lenders to approve borrowers without a credit check, and often lets them get money to borrowers faster, too, sometimes in as little as 24 hours.

Types of Bad Credit Loans

So you know about secured and unsecured bad credit loans, but what exactly are your loan options?

Well, when it comes to secured loans, you have a few options:

  1. Home equity loan
  2. Car title loan
  3. Pawn

Home equity loans simply use the value of your home as collateral. They're often for larger amounts, and are dependent upon the borrower owning rather than renting their residence. Home equity loans often come with the option of installment repayment, meaning borrowers can pay down over a fixed period.

Car title loans work a bit like home equity loans. They use a car's ownership papers as collateral for the loan, and generally get borrower between a few hundred and several thousand dollars. They can be set up according to the borrowers' needs, meaning that borrowers may be able to get a short-term repayment plan or an installment-based plan, depending upon their needs.

Title loans also come with the benefit of allowing the borrower to maintain possession of their vehicle throughout the life of the loan. Upon full repayment of the loan, the title is then returned to the borrower quickly and easily.

Pawns, while secured with valuables, are an unreliable means of lending wherein the borrower uses an item of value as collateral for an often small and very short-term loan. If the loan is not repaid within the set timeframe, generally between a month and 90 days, the collateral is sold to regain losses in lending, often for as great or greater a profit to the lender than the loan was worth.

Unsecure loans include options such as:

  1. Personal loans
  2. Payday loans
  3. Peer lending circles

Personal loans are exactly what they sound like - loans made to the borrower on a personal and discretionary basis. These often come with modified terms or elevated rates, but offer a quick source of discretionary credit.

Payday loans are, in essence, a form of personal loan that requires upfront payment. Payday loans are discretionary personal loans that have borrowers turn in a check for the value of the loan plus fees upfront. Since the check is post-dated, it's not considered a form of security but it does give lenders the chance to regain their full investment fast.

Peer lending circles are a credit-building form of loan that operates on a peer to peer basis wherein a certain number of people all share a loan, and take turns receiving the balance while all paying down the principal. Lending circle loans are generally small, and were founded more on the basis of restoring credit than functioning as immediate or usable loan credit.

How to Receive a Bad Credit Loan

Getting a bad credit loan can be a quick process. Title Loans Florida, for example, helps borrowers find a car title loan in a matter of minutes by letting them apply online, get an instant pre-approval decision, and work with a lending team over the phone to compare terms and build a workable loan.

The borrower gets the opportunity to customize their title loan terms based on their need, and create an installment-based repayment plan that fits their ability and schedule. Then, all the borrower has to do is choose from one of hundreds of convenient Florida locations to drop off their title and pick up their cash.

When the borrower drops off their title, their car will get a quick inspection, and they'll be able to finish up some of the written requirements and verification that come with any loan. Then they'll receive their loan money, with many borrowers completing the process in as little as 24 hours.

Once the loan is paid in full, borrowers can pick up their titles again without any extra stress.

So if you have bad credit, there's no need to worry. Even with a bankruptcy on file, there are loans out there that can get you the cash you need. Apply online for a Florida car title loan or bad credit loan today to get started getting your cash.

We offer car title loans in Florida, as well as the following metro areas: