If you don’t have the best financial history, you may be wondering, “can I get a loan with bad credit”? The short answer is yes, and we’ll dive more into how.
At Lending Bear, we offer transparent, no-hassle loans to borrowers with all kinds of credit, including bad credit. In this guide, we’ll go over how a borrower with bad credit can still get a loan.
For some types of loans and with some lending companies, lenders will look at your credit history and only approve a loan for borrowers with good or excellent credit and income history.
Often, lenders offering home and vehicle loans require good credit and work history, although this isn’t always the case. They want to see that the borrower has a solid history of paying back loans and bills on time and consistently.
This lowers the risk lenders take when approving a loan, especially for larger amounts or over a long period, such as with a home mortgage or expensive vehicle.
If you have bad credit, you still have loan options. This includes title loans, pawn loans, and payday loans.
With a title loan, lenders often don’t require a credit history or extensive employment check. Instead, they accept a clear, lien-free vehicle title as collateral for the loan amount.
At Lending Bear, borrowers, even with bad credit, may qualify for a title loan of up to $10,000 with a vehicle in good condition.
You keep possession of your vehicle and the lender securely holds the title and a spare key until the loan is repaid. These loans are often short-term and not low-interest, so you’ll need to be mindful of that when obtaining a title loan.
Pawn loans, also called collateral loans, are often available to lenders with bad credit. With this type of loan, a borrower will bring in an ID and a valuable item when applying for the loan.
The item will be assessed and given a value amount, which will help determine how much the loan amount can be. With a pawn loan, the lender holds the collateral item in a secure location until the loan is repaid in full.
If a borrower does not repay the loan on time and in full, the lender can collect the item in exchange for the unpaid loan.
Payday loans are often available quickly and hassle-free to borrowers with bad credit. For this type of loan, the lender will verify your income and proof of employment.
The amount you can receive depends on your income and state laws. Typically these loan amounts max at around $500. These loans are short-term, not low-interest, and are intended to be paid back with your next paycheck, so keep this in mind when applying.
Not only can obtaining a loan help you out in a financial pinch, but if you repay your loans on time it can help build up your credit score.
Conversely, not repaying on time or defaulting on your loan can worsen your credit score, so make sure you have a viable repayment plan.
At Lending Bear, we offer several types of loans to lenders with bad credit. As a state-licensed direct lender with an A+ Better Business Bureau rating, our loan process is secure and transparent. If you’re wondering “can I get a loan with bad credit?”, then contact us today and see how we can help!