When you have bad credit due to financial difficulty, it can be hard to obtain a loan when you need one. There are a few options available, such as quick cash loans, online installment loans and even vehicle title loans. Few other options exist without a co-signer or substantial collateral. You can still obtain the funds you need, but this does come with higher interest and non-flexible terms.
Read the Terms
The terms of any loan agreement are always important. Depending on the type of bad credit loan that you are applying for, there may be administrative fees on top of interest rates. Non-payment can result in a loss of property, lien on your home or vehicle, or repossession of a vehicle if a title loan is taken out. Non-payment also leads to lawsuits, garnishments and other consequences. This information will always be in the terms of the loan agreement. Also note that loans for people with bad credit usually have different terms than those with good credit.
View the Repayment Plans
Some lenders have installment repayment plans available. These are typically for higher dollar online bad credit loans and vehicle title loans. The payments are broken up over a period of time with heavy interest rates. In essence, you generally end up paying double the amount borrowed.
Quick cash loans require one lump sum payment on your next pay date. This can become a cycle as you take another loan out to recoup the money paid back. This cycle will continue until it financially drains you even more from the high fees.
Inquire about Interest Fees
Interest rates vary by lender, and in most cases, can change without notice. Interest rates are often based upon your credit, but bad credit lenders typically do not obtain credit reports. These set interest rates are the same that everyone else pays that borrows from the lender. The assigned interest rates tend to vary from 18 to 24-percent on top of what you borrowed plus administrative fees.
When you need to obtain a loan and have bad credit, always consider your options. If you don’t mind paying interest over a period of time, consider an online personal loan or a car title loan. If you need a chattel mortgage loan, a company such as Positive Lending Solutions can help. The payments are more manageable, but it does take longer to pay these off unless you are able to pay the funds off sooner on your own. Regardless of your credit history, there are options to obtain the funds you need for emergencies, bills, rent/mortgage and car payments.