When you have a sub-par credit score, borrowing money, among other things, becomes more difficult. Obtaining a loan with bad credit is not impossible, though. There are a few alternatives when you find yourself in a situation where you could use some extra cash.
Visit The Pawn Shop
If you have some items at home that you would consider valuable, you can take them to your local pawn shop and obtain a loan. Pawn brokers do not care about your credit score. They know you need a quick source of cash and that any loan they offer you is secured by the item that you pawn. If you default on the loan, the pawn shop will sell your item to recover its losses.
A Payday Loan
Payday loans, or cash advances as they are also known, are another easy way for those with poor credit to obtain a loan. You do need to have a job in order to be approved for a payday loan. You can visit a payday lender, fill out an application, and be approved within hours. You sign over a check to the lender in exchange for the loan. Payday loans are short-term, usually two weeks. If you do not pay back the loan with your next paycheck, the lender will cash your check.
A Car Title Loan
If you own a vehicle that has a clear title, you could obtain a car title loan. There are title loan companies out there like Embassy Car Title Loans of Florida that can process these loans very quickly. Credit is not an issue since the loan is secured by a car or truck. If you default on the loan, the lender can take possession of the vehicle and sell it to recover its losses. To obtain a car title loan, a person fills out an application first. The lender will ask for identification and proof of residency. The title must be verified and the vehicle is appraised for its value. All of this is usually completed within an hour, after which time the borrower receives his or her money.
Any of the three alternatives – a pawnbroker, a payday loan, or an auto title loan – are available to those who qualify regardless of their credit score and credit history. If you need cash quickly, any of the three methods mentioned above can provide you with the resources to get you through your financial situation.