Borrowing With Bad Credit: How To Get Cash Fast

Past financial mistakes can make it difficult to get the cash you need through traditional lenders in an emergency. This is because these lenders typically rely on your credit score to determine whether or not to approve your application for funding. The good news is, while you may not be able to qualify for a personal loan through your local bank, it is still possible for you to get the cash you need quickly. This is because there are several different types of lenders that cater specifically to individuals who need cash now but have less than perfect credit. Below you will learn more about these lenders so that you can choose the funding source that is best suited to your particular needs.

Pawnshop Loans

Pawnshops offer individuals the ability to get the money they need within a matter of minutes. Best of all, there is no need to provide proof of income or submit to a credit check in order to obtain these funds. Instead, you will simply need a photo ID and some collateral, such as jewelry or electronics.

When visiting a local pawnshop, you will be offered the ability to borrow against the value of your collateral. If you are able to repay the loan according to the terms of your agreement, this collateral is returned to you. However, if you fail to repay the loan, this collateral is forfeited and you are no longer responsible for repaying the original loan.

Due to the minimal qualifying requirements associated with these short term loans, pawnshop loans are often ideally suited for individuals who are currently without regular income.

Title Loans

Title loans work by allowing you to borrow against the value of your vehicle. In order to qualify for one of these loans, you will need to own your vehicle free and clear, be over the age of 18, have a valid checking account, and be able to provide proof of current income.

When applying for an auto title loan, you will be given the opportunity to borrow a certain percentage of your vehicle's total value. During the time that the loan is active, you will retain possession of your vehicle and be required to make regular loan payments. If you fail to repay the loan on time, your vehicle will be seized and sold in order to cover the debt.

Cash Advances

Cash advances work by allowing you to obtain an advance on your next paycheck. Rather than requiring collateral, these short term loans will rely on your current income when approving or declining your application for funding.

In order to qualify for a cash advance you will need to be over the age of 18, have a valid checking account, and be able to show proof of recurring income. Typically, these loans can be obtained within a matter of minutes and will need to be paid in full on your next payday. Due to the short term nature of these loans, cash advances are best suited for individuals who require a relatively small amount of funding to deal with an unexpected bill or temporary reduction in income.