Getting a short-term loan is something that millions of people need to do each year, but millions more wonder if there is a way to get a short-term loan with poor credit. Most lenders will require a credit check of some sort, which can disqualify many borrowers, so for those with poor credit or limited credit history, other options might be available.
You can get a short-term loan with poor credit. In fact, for most people, there are multiple options that you might find useful to get the cash you need, quickly. Depending on where you live, you may have access to options such as payday loans, pawn loans, installment loans, and title loans.
Below are the four most popular options for those with poor credit to get personal loans of up to $10,000 with same-day application approval.
Pawn loans are one type of short-term personal loan. Not only do they not require any credit check, but they don’t require any formal application process, either. A pawn loan is a loan made to you, with personal property put up as collateral to secure the loan. The loan amount will depend on the value of the collateral property, but all you need to do is bring the property to a licensed pawn broker and they will give you a loan offer. If you take the loan, you’ll have a period in which you can pay the loan off, and if you default, they are then permitted to sell your property to recoup their funds.
Payday loans are loans that are made with the guarantee of a consumer’s check and are an incredibly common way to get cash fast. To get a payday loan, you simply fill out the application and provide some personal information, then upon approval, you provide a post-dated check to the lender. This check will include the amount to be paid back, including fees, costs, and interest. If you do the loan online, then the funds are distributed directly to your checking account.
Payday loans are not installment loans, they are paid off in a single lump sum payment. Reputable lenders will allow a little extra time to repay if the borrower is having problems paying in full.
Installment loans are loans where the lender provides a lump sum to the borrower, who then makes payments at regular intervals to pay off the loan. Installment loans can be used for fixing a car, an unexpected bill or any number of emergencies. Installment loans will commonly be limited to $1,500 and that will depend on the borrower’s ability to repay.
Title loans are loans made to an individual, using their vehicle title as collateral to secure the loan. They can often be obtained for up to $10,000, and they generally require the vehicle to be owned by the borrower, or for the borrower to have sufficient equity in it. If the borrower defaults, the lender has the legal right to take possession of the vehicle and sell it to recover the loan funds.
Being strapped for cash can be a source of considerable frustration and anxiety. If you find yourself in need of a short-term loan with poor credit, working with a trusted short-term lender like Lending Bear can make all the difference.