Getting into a fix while applying for a loan, especially when you have a bad credit history, can turn out to be pretty unimpressive. If you decide to contact a bank, surely you will be turned down when they look into your financial history.There might be some lenders who will be willing to lend you a loan. However, you need to provide them with a proof that you have sufficient balance for paying off your loans. If you are unable to do that then in all probability, that road too is blocked.
During emergencies, such situations turn out to be tenseful, specially if you are in dire need of cash to start a new business or maybe you need loan to fill up a college application. These things have a fixed deadline and can’t wait for you till the time you can gather up a loan. Let’s consider some other options which can help you get over the bad credit boundary:
Other Suitable Options To Get A Loan For Bad Credit History
Getting Hold of a Co-signer
A co-signer is one who agrees to sign a contract, promising to repay a loan incase you are not able to pay back the lender on time. This provides the lender, a sense of assurance that if you are unabe to pay, then he will be receiving payment from your partner.
This can sound like a good idea, specially that your credit rate could be lesser(by 10% to 15%), when you have a partner who turns out to be credit worthy. Nevertheless, the dark side is, you and your cosigner could be in trouble, if you are unable to get back with your payment. He/she has to repay even if he/she had not used your loan and if there is any late payment, then that means sabotaging both of your and your friend’s credit score and profile.
Borrowing From Your Peers
You can try borrowing from your peers. This can be a suitable and safer option but wait, surely your peers won’t excuse you, if you are unable to pay them the money back just like you have promised them to. That is a matter of your own reputation right?
Go To The Lending Sites
There are some sites that can find some stranger, willing to lend you a loan. However, if your credit is extremely bad, then these may not be a good option.
Making Use of Collaterals
Making use of collaterals mean you can put your property on lien and get a loan. If you are unable to pay back the loan on time, then the lender will secure your property to make up for the money lent to you. While putting up your house may seem like a dangerous thing, if you own a car, you can easily opt for title loans. Title loans can solve your problem as a bad credit title loan . But first, how much do you know about a bad credit loan?
Know What Is A Bad Credit Loan
These are a specialized kind of loan, which is offered to help out people with a poor credit history. All loans are emergency ones but title loan can be a true buster for beating out your obstacle. Such loans are great when you need to make some bigger purchase or for paying off some other debt. If you decide to use this loan for paying off some other kind of debt, then it can help you build an impression that you are responsible enough to handle your loans.
Though bad credit loan is great, a lot of people are worried about its interest rates. Well, what more do you expect other than getting a loan when your other options are close?
Why Title Loans Is A Suitable Option?
I am going to focus on title loans here, so firstly, loan title loan lending companies offer you a loan within a short period of time(you can get an instant loan within 24 hours). On the other hand, a traditionally bank loan will take days to pay you the loan. For providing such a quick service, an auto title loan company offers you an instant service and therefore it is logical when they charge you an interest rate of 25% to 75%.
Other Benefits? - Though you have to put you car on a lien, you get to drive your car and also how long would you like the loan for. If you are unable to pay back on time, you get to roll over your loan.
What Points To Keep In Mind While Applying For Title Loans?
While you can find ways to pay off your loans for car title with quicker strategies, you should be aware of some basic points when you walk into a car title loan company:
Check whether your lender is a legalized company. Do some research if necessary. The company must be into this business for some years atleast.
Check all your queries. There are some lenders who tend to take advantage on borrowers having a bad credit history. The rate, which title companies charge, will be based on an annual basis, i.e. APR. Beware of lenders charging a monthly rate. Ask them about what APR are they going to impose on your amount.
Ask about the time period and whether you can pay back before the time period. Normally, the loan will range over a period of 30 to 36 months. Inquire whether you can pay back before the tenure ends. Not every company agrees to this. You may be penalized for doing so.
Title loans can be the best solution when all the other favors turn out to be unfavorable. You don’t need any cosigner for this, nor you need to show your documents for this. Just your car. So, wipe off all the stress and apply for a bad credit title loan. Title loans always have their doors open for you when other doors remain closed.
Author Bio: Cayla Silverstone is a freelance and community blogger. She loves helping out business and society with her blogs. Her blogs contain some useful answers that help in sorting out people suffering under heavy debts. Her most popular blogs are the ones dealing with bad credit title loans as she provides tips and strategies about how to survive a bad credit history. She is a mother of two and is also a bad credit survivor. Author G+: https://plus.google.com/u/0/112087791526450962330