Types of Bad Credit Loans

You’re strapped for cash, there’s a leaking roof you need to fix, and your credit score isn’t as spotless as you would like it to be. Don’t worry, it’s not the end of the world for you. The words “loans for people with bad credit” have been tossed around countless times, and could be just the answer to your needs.

Loans for people with bad credit are essentially that – loans offered to those who are not eligible to apply for regular loans in banks because of their credit history. Check out these four types of loans for people with bad credit.

Payday loans

Payday loans are short-term loans for people with bad credit, and are called such because they should be paid within the next payday period (that is, two weeks to a month). They’re perfect if you’re short in cash and needs something to help you tide over till the next payday. Like most loans for people with bad credit, they’re relatively easy to secure and convenient but can rack up high interest rates and penalty fees.

Credit card loans

If you can’t apply for a regular loan from your bank, there’s also the option of taking out a “cash advance” from your credit card, which you will need to pay in your next billing period. The cash you can take out from your credit card may vary depending on your bank and credit limit, but should also be sufficient enough if you have some small emergency to pay for.

Auto title loans

If you have a car with a clean title, then this could be another loan option for you. The concept of auto title loans operates almost the same as regular bank loans where you put up a loan collateral, in this case, your car title. If you’re unable to pay the loan, your car goes to the lender.

Personal loans

Personal loans that you can get from family, friends or colleagues are perhaps the most convenient and pose the lowest risk among all types of loans for people with bad credit. You don’t have to worry about interest rates or delayed payments as long as you pay the loan in good faith.

Loans for people with bad credit abound, and you only need to find out the choices available to you, including those that best suit your needs, your lifestyle and your financial capacity to pay. Check out your options and find your best loan fit.