It can be difficult for someone with poor credit to get a traditional loan from a bank if you needed it in an emergency. But, there are still options for those with bad credit to get a loan. With bad credit, you may not be able to go to a bank to get a loan. But you should consider some of these other avenues to get a loan despite your bad credit.
Pawns shops used to be a very popular place for people to get loans for decades. It was a way for people to get a loan without having to go to a bank. And, pawn shops continue to be popular today. They offer a way to facilitate lending when a bank loan is not available.
Television shows have popularized selling items to a pawn shop, but many people do not realize that lending money on pawn is the primary business of a pawn shop. Patrons go into a pawn shop with an item of value to use as collateral. They leave those items at the pawn shop for a short period of time in exchange for a loan. Using a pawn shop can be a great way for borrowers to get access to money for a short period of time without having to go to a traditional bank.
A payday lender is another avenue for a loan for people with poor credit. With these lenders, you typically get cash after writing a check plus interest to the payday lender. On your payday, the lender cashes the check as repayment of the loan which includes an interest payment as well. A payday lender offers very short-term loans to individuals typically for a term of two weeks. The lender also offers many borrowers the ability to roll their loans over for another two week period for additional interest payment.
There are many lenders, banks, and online sites that offer personal loans with no collateral. These are signature loans that are only guaranteed by your signature, your word, and your credit score. These loans can be a little expensive if you have poor credit. But, they can be a loan that is available to you when other lenders are not.
Many banks, peer-to-peer lenders, and online lenders offer these types of loans. You simply fill out an online application, choose from the terms that are offered to you, and receive your money directly in your bank account.
It is not the end of the world to have bad credit when you need a loan. You’re not alone with having bad credit. Vast majorities of people have negative marks on their credit report. But, this does not mean that you will not be able to find a loan. There are many other avenues for you to explore to find the loan that is right for you and your family. Pawn shops, payday lenders, personal loans, and others are available to help you find a loan that is right for you.