What are the Loan Options for Bad Credit?

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Do you have bad credit, but really need a loan? Here are some of your loan options for bad credit. Approximately 30 percent of Americans have either bad or poor credit. Do you fall into either of these categories? If your credit score is suboptimal, you know that it’s not always easy to get loans. It’s not impossible, though. There are quite a few loan options for bad credit out there if you know where to look and what to look for. 

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Here are some of the best ones you might want to consider.

Bad Credit Personal Loans
Many people don’t realize that there are personal loans out there designed specifically for those who have poor credit scores. In fact, a lot of these loans even come with guaranteed approval up to a certain loan amount. It’s important to note that these loans also often come with higher interest rates and fees. If you’re willing to accept these terms, though, you can often get the money you need by using them. Be sure to shop around and compare loans before choosing one to make sure you’re getting the best terms possible.

Secured Loans
Secured loans are secured by collateral. An example might be a home equity loan, which allows you to borrow against the equity in your home. These loans come with lower interest rates than many other types of loans, including bad credit loans. They do come with some different risks, though. For example, if you don’t repay your secured loan on time, the lender can repossess your collateral to make up for the money they’ve lost.

Title Loans
A title loan is another example of a secured loan. Title loans are secured against the title of your car. If you don’t repay the loan on time, the lender will repossess your car. These types of loans are short-term loans (you usually have about 30 days to repay them). In most cases, you also have to own your car outright in order to qualify for one.

Payday Loans
Payday loans are short-term, high-interest loans geared toward those who need to borrow small amounts of money (the average amount borrowed is $392). If you pay your payday loan back by its due date (usually 2-4 weeks from the time you borrow the money), the interest rates and fees aren’t terrible. If you delay your repayment, though, you can end up spending a lot more than is ideal. Should you decide to apply for a payday loan, be sure you read the fine print and have a plan to repay it on time.

As you can see, there are several different loan options for bad credit. If you need funding right away, these are all viable options to consider. Make sure you have a repayment plan in place, though. This will help you to bolster your credit so you can qualify for better loans in the future. It’ll also save you from causing your credit score to dip any lower. Do you want to learn more about personal finance and money management? If so, check out the Money section of our website today.

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Summary
Title
What are the Loan Options for Bad Credit?
Description
Do you have bad credit, but really need a loan?

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