A majority of people in the United States suffer as a consequence to having bad credit. They are limited in their choices of obtaining loans or any other financial aid they would need. Oftentimes these people fear that they will never reach financial freedom. It couldn’t be further away from the truth. There are several ways to get a loan without a good credit score and in this article I’ll show you which types of loans and help are available for the taking.
Payday Loans
Some of the different types of bad credit loans could include: payday loans, title loans, pawnbrokers, and also banks and other types of finance companies. Payday loans are short-term, unsecured loans with small amounts also referred to as cash advances. This type of loan relies on paychecks from the employer. They carry no higher risks than bank loans.
Title Loans
Many people do not realize that they have equity within their vehicle. A popular bad credit loan is a car title loan in California. This loan is available to applicants owning a car. The loan amount is based on the value of the owned car meaning you turn your car into money. This type of loan is also short-term but secured. The added benefit that after taking the car you still get to drive your car. The interest rates can vary but definitely higher than long-term bank loans. The repayment terms are negotiable but if you fail to repay the loan, the company has the right to possess your car.
Pawnbrokers
A pawnbroker, is similar to a title loan company in that they will take nay property you have as collateral. However, the big difference is that you won’t keep your property. For the time of the loan repayment, the company maintains your property. If you fail to repay the loan, the pawnbroker has the right to make your items available for sale.
Banks & Finance Companies
Banks and other financial institutions are always an option to lend you money. Bank loans would require a good credit score, but credit card companies are more flexible in their terms. These loans are long-term, secured and need employment and a somewhat good credit history. What they do own is the title of the lowest interest rates. These loan types are not fast and might require a longer period of time for application and approval.
These are some examples of bad credit loans in California that can help you out of a pickle. Once you found the most suitable loan type to your needs and obtained a bad credit loan you could be well on your way to having better credit and a better quality of life as a result.
