Bad Credit Loans
A Bad Credit Score Doesn’t Always Mean a Financial Dead End! There is a Simple Solution!
There was a time, when having bad credit meant that you would not be able to get a loan. Today, while banks have become stricter in their requirements for loan applications, there are more lenders on the market that understand that just because an applicant has bad credit, does not mean he will not repay his loan. It is now possible to find bad credit loans that are simple and straightforward, offering a solution to anyone whose credit score is poor.
Types of Bad Credit Loans
There are a number of lenders that offer bad credit loans and here we will look at two different types – secured and unsecured bad credit loans.
● Secured – Secured loans are loans that take security, generally in the form of property or assets. Car title loans are an example of bad credit secured loans. They use your car as security and the loan is based on the value of the car. As secured loans, car title loans are able to offer flexible requirements and conditions and this includes the fact that there is no credit check and the loans are available for applicants with good credit or bad credit. The terms you are offered on the loan will be the same whether you have good credit or bad credit and even though your car is the security for the loan, you will be able to keep it and keep driving it throughout the loan’s duration. You must have a car with title to be eligible for the loans.
● Unsecured – Unsecured loans are loans that are available with no security requirement. A common example of unsecured bad credit loans is payday loans. These loans are available with no security and they offer cash simply based on the size of your paycheck. Despite being unsecured loans, there is no credit check necessary and the loans can be available for good credit, bad credit or no credit applicants with the same terms and conditions. However, because they are unsecured and offer cash, they come with relatively high interest rates. You must be employed to be eligible for these loans as they are based on your paycheck.