PR Log - Jan 09, 2013 - You might believe that getting personal loans with bad credit is next to impossible. Fortunately there is almost always a business that will work with you no matter how bad your credit score might be. The only major downside is that the majority of these businesses are going to insist upon charging you very high interest rates. But this is understandable because you would be considered a high-risk customer.
If you need to get a personal loan, here are some options at your disposal if your credit score is less than perfect:
Title Loan Do you own your own vehicle outright? If you do and you have the title in your possession, you can easily get a title loan. There are many title loan businesses that don't bother to check your credit score at all. They will simply ask for the title to your car and give you a certain amount of money based off of what your car is worth. The car acts as the collateral for the loan.
Payday Loan Another popular option for getting personal loans with bad credit are payday loans. You can qualify for one of these if you can prove that you have a job and also a bank account. You will not need to worry about your credit score. The business offering the payday loan will simply verify your employment and bank account and offer you money based on what you make per week. Your bank account will be deducted the amount that you borrowed plus interest on your next payday.
Pawn Shop Similar to a title loan, a pawn shop will loan you money if you allow them to hold some of your valuable possessions. Some things pawn shops will take as collateral include guns, jewelry and electronics. The shop will determine the value of your items and give you a certain amount of money based on that. Again, credit is not an issue. You simply make payments on your pawned items, plus interest. If you fail to pay, the pawn shop isn't out any money because they get to keep your items and resell them.
Get a Cosigner If you would like to get personal loans with bad credit through a traditional bank, you may be able to do so if you can get a friend or family member to cosign with you. A cosigner is a person who will agree to pay off a note at the bank if you fail to pay it yourself. The person you choose as a cosigner will need to have a good credit score in order for the bank to approve him or her.
Many of these options for getting personal loans with bad credit may seem less than desirable. But if you put in an effort to make all your payments on time and actually pay off the personal loans you currently have out, you will see your credit score begin to recover. In time you'll be able to avoid the high interest rates that go along with the above options and secure low-interest loans.