Table of Contents
- Good Credit vs Bad Credit
- What Happens when You Have Poor Credit History?
- Best Ways to Get Fast Cash with Poor Credit
- Best Place to Get Fast Loans with Bad Credit
- Requirements for the Best Place to Get a Loan with Bad Credit?
- Do Title Loans Report to Credit Bureaus?
- Get Accurate Billing Statements for a Title Loan
- How Do I Improve My Credit for a Loan?
- Is Getting the Highest Credit Score Possible a Myth?
Fast cash is so important to have when the unexpected occurs. Whether it is for an unexpected expense or simply to make ends meet, making sure to have cash when you need it, is a must.
However, getting fast cash with poor credit can be quite a conundrum for many who find themselves in this scenario. There are a few choices that may be available for those who have poor credit, but not all of them are choices that you may want to take. Many fast cash options can trap you in a cycle of debt, and impact your finances long-term.
If you have bad credit and are looking for a loan you are probably wondering where to go or what to do. There may be some lenders you can go to if you have bad credit versus others. However because bad credit history follows you to a lender it may be difficult to get a traditional loan. There may be an alternative type of loan for people who have a poor credit score, called a title loan.
Good Credit vs Bad Credit
Generally a good credit score is considered anything above 640, anything below 620 can be considered a bad credit score. Before you even think about getting a traditional loan, you should familiarize and inform yourself about your credit score means to lenders. By doing this you get a reasonable estimate of what you can expect from lenders in addition, you may be able to protect yourself.
What Happens when You Have Poor Credit History?
Well, at a lot of places that may mean either being denied a loan or finding a co-signer. You might find yourself in the same circumstance even after you try your best to repair your credit score. However there are places out there, along with certain types of loans that may make it easier to get the money you need even despite your credit score.
Best Ways to Get Fast Cash with Poor Credit
When the choices for fast cash are narrowed down, there are recommended options for individuals with poor credit. A thing to remember is that because you may have to improvise when you have bad credit, these routes may be far from perfect, but when done carefully and responsibly, can get the job done without turning your finances upside down.
The next two possibilities might sound a little too-obvious, and may have briefly crossed your mind already, but you may want to seriously consider them. This is especially true, if you don’t need hundreds of thousands of dollars (which most people don’t).
Here are a few ways of getting fast cash yourself:
- Pawn/Sell Your Items
Chances are that you have valuable stuff sitting around. If you do possess some valuable items and are willing to part with them, then simply selling your stuff may be a good option to consider.
Although it may take some time to find a buyer on your own, and there is always the risk of selling to a stranger.
A pawn shop on the other hand, can make funding for items available right away. Here, you may be able to outright sell your items or get a loan for a fraction of the value of your belongings. The pawn shop will keep the item(s) until you pay back your loan.
Sounds good so far, but here is where this option takes a turn. Pawn shop loans have pretty high interest rates (15% to 275%), and with their loan length averaging to about a month, these types of loans can lead people into a cycle of debt.
- Try and Monetize any Skills or Hobbies
Have some kind of skill or hobby that others may want to experience or see? Well now may be the time to try and turn that skill into cash. Whether it is art, gaming, technology, or sports, all these interests can be monetized.
Like selling your stuff, this may take some time. Additionally, it can be a fairly abstract idea to manifest, and so it may not be the most practical option for everyone.
Although attempting to solve the issue of fast cash yourself comes with flaws, a lot of people like solving problems themselves because they find it rewarding and empowering. Additionally, any debt acquired with a pawn shop is fairly low when compared to other choices out there.
- Turning to Family, Friends, or the Internet for Fast Cash with Poor Credit
This option requires careful maneuvering, honesty, and an open-mind in order to ask for help. Furthermore, depending on who is in your inner circle of friends and family, this option may not be available for everyone.
Asking for money can be difficult, especially if the person lending the money is not-so-enthusiastic about giving it out. But asking for cash can be one of the best ways to get fast relief, even more so when you have bad credit.
With family and friends, there is usually no interest involved, and chances are they may be more understanding and flexible with repayment—especially if they know your financial background. Lenders that are businesses/companies will generally not be as understanding as someone you know personally.
Other than asking for money, this option doesn’t sound too bad, right? Well although this option is strong, there are definitely some negatives with it.
One thing to consider is the possibility of straining a relationship with a family member or a friend. Even if you pay the loan back, depending on both of your temperaments, the fact that this exchange even happened can change the relationship dynamic.
A good idea to prevent this strain would be to make the borrowing process as official as possible. You can do this by establishing a contract which both parties sign and agree on.
- Fundraising on the Internet
For those who do not want to single out one family member or friend, fund-raising online can be a viable alternative. You could ask strangers and people in your social media circle for small donations until you reach your goal—but make it clear that the money will not be paid back.
Go-fund-me is a website that provides a platform for exactly this kind of service, and there are many other similar sites out there. Additionally, you can set up the date that you need the funding for—although this does not guarantee that you will receive the money in time. Fundraising can be a little risky when it is the sole route you are pursing in order to get your cash, but if you have time, give it a try.
The thing about finances—whether going good or bad—is that money will impact other aspects of your life, including relationships with family and friends. When borrowing money from family or friends, you are creating a bridge, and so it is crucial that you uphold responsibility to take every precaution to ensure things start, progress, and end on a positive note.
- Getting a Cash Advance with Your Credit Card
The good old credit card, which can be used for all kinds of purchases, could in this case help you obtain fast cash. This is one of those options to consider when the options above have fallen through—simply because it could lead to an imbalance of your credit to debt ratio, which largely impacts your credit score health.
For those who do not have a credit card, there are all kinds of credit cards available for those with poor credit—though they are usually secured with an asset or deposit.
Cash advances from a credit card will work similarly to withdrawing money from a checking or savings account with your debit card. But in this instance, the money will be borrowed from the credit card company rather than one of your personal accounts.
There are a few things to look out for when using a credit card for a cash advance:
- The Amount That Can Be Withdrawn—Almost all credit cards will have a limit on the amount of cash that you can take out at one time, make sure to pay attention to that. And when the cash advance doesn’t fulfill all your lending needs, assess whether taking out a portion of that money is worth it.
- The Cash Advance Fee—There will almost always be a cash advance fee to look out for when withdrawing cash from a credit card. This will usually be about 5% to 10% of whatever amount is being withdrawn.
- Any Additional ATM Fees—Depending on both the credit card and the credit card lender, there may be some small fee for withdrawing your money, this can range from about $3 to $10—still something you might want to keep in mind.
If you have more than one credit card, and have decided to choose this route, ideally you will want to go with the card that fulfills your lending needs, has the lowest interest rate, and the lowest cash advance and ATM fee.
Sometimes, it may be hard to find a credit card that checks everything on this list. When you need to compromise, do so with all the factors other than the interest rate. As the pattern goes with most lending, the interest rate will be the most expensive cost associated with the cash advance, and is usually the factor that leads to a cycle of debt.
Best Place to Get Fast Loans with Bad Credit
When dealing with a sudden reduction of available credit, you might find you need a good way to get money fast. Here are some of the available options that are out there for when you need fast funding:
- Traditional loan – One place you may look for funding is with a traditional bank. Traditional loans are typically granted to borrowers with higher credit scores because most traditional lenders see that as a good way to off set their risk in lending out money. However, if you happen to be a victim of poor credit, or have newer credit, it is very likely that you will get denied for a traditional loan.
- Payday Loan –Payday loans are typically given out with the expectation that they will be paid back in full within a short period of time, usually by the next time the borrower gets paid—hence the name: payday loan. If you think you will need more than a week or so to pay back a payday loan, this option of funding probably isn’t for you.
- Signature loan – A signature loan is something you may want to consider if you have a credit score on the lower side. With a signature loan, the only thing securing the loan funding is the signature of the borrower, that’s why they are called “signature loans.” But, since there is no physical property used as collateral, signature loans usually come with very high interest rates, so the lender can offset their risk in some way. If you don’t want to deal with extremely high interest rates, a signature loan may not be the right option.
- Car Title Loans – Another form of funding is a car title loan. If you are looking for a form of funding with convenient rates, competitive terms, and high approval rates, a car title loan is probably the right choice for you!
The best place to get a loan with bad credit, is to not think about where you can go, as for most kinds of loans, credit plays a huge factor. Instead you should think about what kind of loan you can get. There is a type of loan that differs from traditional loans in terms of factoring in credit, called a title loan.
This can happen because the process of a title loan is completely different, it requires a vehicle. When taking out a title loan the borrower gives the lender their car title, and the amount given out on the loan is determined based on the value and condition of the vehicle (most places use Kelley Blue Book values). Here lies another advantage, because cars may be worth thousands or hundreds of thousands of dollars, and that value may translate into how much a borrower may get.
Getting a car title loan is a great way to get ahead. Here’s how you can benefit.
- High approval rate1
- Convenient terms
- Competitive rates
- Quality customer service
- Fast funding
Requirements for the Best Place to Get a Loan with Bad Credit?
When looking for fast and efficient funding to get out of a tough financial situation like a sudden reduction of available credit, car title loans could be the answer you are searching for1!
To begin the approval process, you will have to complete a brief information request. The entire initial information request should only take about 5 minutes to complete, and we will ask for some information such as:
- Full name
- Cell phone number (or number where we can best reach you)
- Date of birth
- Address, and if you rent or own at this address
- How long you have lived at your place of residence (in months/years)
- Year, make, model, style, and mileage of the vehicle
- Gross/other monthly income
- Social Security Number or Individual Taxpayer Identification Number
After you have completed the information request and upon approval, your car title loan agent will ask you for a few documents. They will ask for:
- Government issued photo id
- Proof of income
- Proof of residence
- Qualifying vehicle title (with your name on it)
- Several photos of the vehicle (from front, back and side angles)
After, we can draw up your car title loan contract for you to sign1. From there, you can pick up your money in the way that is most convenient for you. You can receive your money through:
- Direct deposit into your bank account or mobile wallet
- Getting a check in the mail
- Going to your nearest MoneyGram location in your neighborhood
You could be spending your money by this time tomorrow3! Click here to get started on your car title loan now!
A good thing to know about these loans is that you get to keep and drive your car while you pay back the loan. Title loans have a great advantage for people with lower credit scores, and may be a better alternative for many versus a traditional loan.
Do Title Loans Report to Credit Bureaus?
Yes. After your loan is paid in full, we make a positive report to the credit bureaus. We want to help you improve your credit score by sharing positive payment information.
When you can make on time payments throughout the repayment period, we provide a positive update to the credit bureaus. Our loan solutions are customized to fit your lifestyle and needs. If you think that you will be late or miss a payment, contact us as soon as possible so we can make alternate arrangements. Our team of experts will work with you to come up with the best solution regardless of the situation you are in.
Get Accurate Billing Statements for a Title Loan
The process is made simple through advanced billing technology. Our team provides customers with current balance and payment history online. No need to waste time in line waiting for paperwork balance or detailed payment history. We can share valuable information with you easily.
Stay on top of your payments and account details by accessing these important features online:
- Billing information
- Payment History
- Payment methods
- Important messages
- Basic account information
In case you experience any problems with the billing statements on a car title loan don’t hesitate to reach out to us online or over the phone. Our team of experts will be able to help and answer any questions about credit bureaus and reporting process.
How Do I Improve My Credit for a Loan?
If you are still thinking about looking into any type of loan and have bad credit there are a few ways you may be able to improve your Credit. Be aware that improving credit does take time. Take action, and keep it steady and consistent over a period of time.
Here are our best tips to improving credit score:
- Check Credit Reports
First, individuals should pull their credit report (this can be done for free once per year) and verify that the information is correct. A low credit score could be due to errors on your report. If a mistake is found, call one of the three credit bureaus to have the error resolved.
- Make Consistent Payments
To improve a credit score, make sure all payments are being made – on loans, credit cards, and mortgages – on time. Consistently paying bills will show that the borrower is capable of managing their money well, and as a result, their credit score will go up.
- Don’t Carry High Balances
If someone is in the habit of using up all of their available credit each month, they should stop! Even if they have the cash available to pay off their high balance, utilizing every last bit of credit an individual has is bad for their credit score. People’s score improves when they have plenty of credit, but not using it all up.
- Pay Off Debt
If a borrower has any balances that they’re carrying from month to month or are in debt, it’s important to make a plan to pay off what is owed and remain debt-free once that’s achieved. Having debt will drag down a person’s credit score (plus, it’s not good for finances in general!).
Credit controls so much of our financial agency and ultimately our freedom to grow. Whether it’s you wanting to own your very first car, travelling to an exotic destination or you’re taking the leap of buying your first home, a loan can help you with all of that. For most loans your credit score determines whether or not you may be approved.
Having bad credit may make getting access to extra funds very difficult. When looking for a traditional loan many people with bad credit may be discouraged since the process focuses so heavily on your credit history. However there is an alternative to a traditional loan, called a title loan. A title loan uses the variables of your income, your vehicle value and your ability to repay the loan instead of focusing on your credit score.
Because of this it can become a great alternative form of funds for people with a lower credit score. If you still are looking to improve your credit score there are practical steps you can take. Handling credit can be a process but it can be done with small steps. When looking for a loan with bad credit it helps greatly to be informed of what those score numbers mean for yourself and other businesses you may encounter.
Is Getting the Highest Credit Score Possible a Myth?
When looking at their credit rating, people may be wondering whether or not they could increase their credit score to the highest score possible. In the financial world, a credit score of 850 is the highest credit score possible—and only about 1% of Americans have that rating. For many people, reaching 850 may be a goal that they have for themselves or for their household. Getting the highest credit score of 850 may be possible, but it is extremely difficult to obtain—not to mention unnecessary. There are many reasons for this—from the way that credit scores are built to the factors that impact them.
The Myth of a Perfect Credit Score: Helping You Get the Most from Lenders
When it comes to lenders that check credit—having a credit score of 850 is not necessary for eligibility. In fact, most lenders consider a credit score of 760 or higher perfect. This means that having the perfect credit score will get you similar interest rates to having a very high score. In addition, lenders don’t market their products for the top 1% of credit scores. So, having a perfect credit score is actually not super beneficial in the lending world.
The Myth of Having Complete Control of Credit Score
Although there are actions a person can take to improve their credit score, the truth is that there are things that cannot be changed and factors that cannot be controlled. An example of this would be the age of an account and the diversity of the types of credit that a person has. Getting a perfect credit score takes a lot of time and requires a person to reach certain financial goals in their life.
When it comes to having the highest credit score—it is possible to achieve but it can be very difficult. There are a few easy things that any person can do to improve their credit score. Additionally, there are a few myths that exist in the credit world surrounding the perfect credit score of 850. It can be helpful to know about these myths and how they impact lending.