Can I Get a Loan with Bad Credit?

November 25, 2018

When a person is looking for funding, they may be thinking about getting a loan. For those who have poor credit, a loan may seem like an impossible task. However, getting a loan with bad credit may be possible! This is because generally, there are two kinds of loans out there: secured and unsecured loans.

Secured loans are loans that have some type of asset for security—such as a house. An unsecured loan does not have an asset involved with the loan. For those with bad credit, a secured loan may work as long as they have an asset to offer in exchange for the loan. Here is more information on secured loans for those with bad credit.

How Can a Person with Bad Credit Get a Secured Loan?

Most people know that loan lenders check credit history and give funds based on a person’s credit score. A high score is more favorable because it gives lenders security and a sense of the potential borrower’s established financial habits. So, when thinking about obtaining a loan, some may be curious as to why a secured loan is available for those with bad credit, while an unsecured loan is not.

Secured loans can be given out to those with bad credit because, the involved asset is usually around the same amount given out—removing the need to weigh in a borrower’s credit.

The Characteristics of Loans for People with Bad Credit

There are a few important details to look at when getting a loan tailored for those with bad credit. Here are a few loan characteristics that exist for people with bad credit:

High Interest Rates

Despite the security of an asset, these loans will usually come with high interest rates. So as a borrower, it is extremely important to make sure that the loans is affordable.

An Asset

As mentioned above, these types of loans typically require an asset—usually this means a car’s title, a home, jewelry, etc. If the loan defaults, the lender does have the right to seize the asset.

The Loans are Short-Term (Usually)

Because of the high interest rates, these loans typically last a few months. So a borrower may want to consider that before taking out the loan.

Examples of Loans for Bad Credit

Here are a few kinds of loans that exist in the industry specifically for those with poor credit:

Auto Loans

Auto loans are commonly known as car title loans. They involve the borrower offering their car’s title as collateral against the loan. Once the loan is paid back in full, the lender removes themselves from the car title and the borrower owns it once again. The great thing about these loans is that—most times—a borrower can still drive their car.

Home Equity Loans

This is kind of loan is like a second mortgage. These are loans where a house is involved. Essentially, the value of a home will determine how much the lender will give the borrower. The borrower than repays the loan every month.

Payday Loans

These loans work with a borrower’s paycheck—hence the name payday loans. These usually align with a borrower’s payday, so they have a length of about two weeks. Payday loans are usually a small amount (compared to other loans). The idea is that a borrower needs money just until they get their next paycheck. The borrower is then expected to pay back the loan in full when they get paid.

It is important to know that not all states allow for every kind of loan. So before seeking funding, it is important do so some research about your specific state and city, and the type of loan you are looking for.

Where Can I Go to Get a Loan with Bad Credit?

When looking for a loan with bad credit, or really any other kind of loan, a potential borrower generally has two routes they can take:

Direct Lenders

These types of lenders give out the loans themselves. Usually they are banks, private companies, and credit unions. They usually operate in-person and have a standard repayment rate. For those who prefer in-person interaction, these lenders may be the way to go.

Indirect Lenders

These lenders do not give out loans themselves but instead work with a network of lenders throughout the country. Most of the time, they operate online or via phone—because of this they usually offer extended hours. For those who do not want to do research themselves, and do not mind online or over the phone interaction, indirect lenders may be a good option.

As the economy and financial situations change, the lending industry is also adapting to offer loans to those with low or unestablished credit. There are many funding options that borrowers with bad credit can choose from.

Whatever type of loan a person chooses, it is important that they know the characteristics that accompany loans for bad credit. Additionally, it is important to do some research on the specific kind of loan being taken out and the lender themselves.

DISCLAIMER:
The MaxCash website does not offer or provide loans, but rather, it offers a service. It should not be construed as a lending agent or broker. The site does not endorse any lenders and does not charge visitors any fees. The website owners do not evaluate potential lenders’ applications, nor do they approve or deny credit. The MaxCash website does gather applicants’ personal information and transmits it to lenders that are part of the site’s lending network. No one is required to make use of this website, nor are they under any obligation to begin contact with site operators or to attempt to secure a loan with any of the site’s lending partners. Transmission of your financial and personal information on the website in no way obligates lenders to offer you a loan or any other kind of credit product. Be aware that cash transfer times can vary, depending on the lender and the bank you use. It may be necessary to fax information under certain circumstances. All questions about loans, and any concerns you may have should be directed to your lender. These loans are intended as short-term financial solution to satisfy borrowers’ needs for immediate monetary relief. This is not intended to be part of a long-term financial plan for individuals. These services are not offered in all states. Potential borrows may undergo credit check if lenders choose to use any of the major credit reporting bureaus, including Equifax, Trans Union and Experian. They may also use other alternative sources to check credit ratings. Your request for a loan constitutes your agreement and acknowledgement that (A) your personal data may be shared with lenders and perhaps other third-party partners, and (B) lenders can acquire credit bureau reports that detail your credit history. Reports from major credit bureaus, such as Equifax, Experian and TransUnion may be obtained and used to evaluate your reliability as a borrower.

1Loan amounts by the lenders vary based on qualifications.

2Since we do not lend money directly we cannot offer you a solicitation for a loan. In all serviced states we WILL match you with a lender based on the information you provide on this website. We will not charge you for this service and our service is not available in all states. States that are serviced by this Web Site may change from time to time and without notice. Personal Unsecured Loans are not available in all states and all areas.

3Loans such as, Auto Title Loan companies typically do not have pre-payment penalties, but we cannot guarantee that every lender meets this standard. Small Business Loans typically do have pre-payment penalties and occasionally will use your car as collateral to secure the loan. Other types of loans may have pre-payment penalties as well.

4All lenders are responsible for their own interest rates and payment terms. Max Cash has no control over these rates or payments. Use of the work competitive or reasonable does not mean affordable and borrowers should use their own discretion when working directly with the lender.

5The amount of people who applied for a loan and we helped and those who received a loan is not the same. We cannot guarantee we will find a lender who will fund you. Just because you give us information on this web site, in no way do we guarantee you will be approved for a car title loan or any other type of loan. Not all lenders can provide loan amounts you may see on this web site because loan amounts are limited by state law and/or the lender. Some lenders may require you to use a GPS locator device on your car, active all the time, in the circumstance for an auto title loan. They may or may not pay for this or charge you for this. This is up to the lender and we have no control over this policy of the lender. Typically, larger loans or higher risk loans use a GPS.

In some circumstances faxing may be required. Use of your cell phone to receive updates is optional. Please review our privacy policy.

Loans such as Car Title Loans are expensive and you may have other ways to get funding that is less expensive. These types of loans are meant to provide you with short term financing to solve immediate cash needs and should not be considered a long-term solution. Residents of some states may not be eligible for a loan. Rejections for loans are not disclosed to our firm and you may want to contact the lender directly.

Signature and personal loans are only available in Georgia and Florida. Loan amounts differ at locations. Account approval requires satisfaction of all loan eligibility requirements, including a credit inquiry, and, if applicable, motor vehicle appraisal.

Car Title Loan lenders are usually licensed by the State in which you reside. You should consult directly with these regulatory agencies to make sure your lender is licensed and in compliance. These agencies are there to protect you and we advise making sure any lender you receive money from is fully licensed.

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