Bad credit can sneak up on you quite quickly if you are not watching your finances and the bills that are piling up. This is not good news if you are looking to get a loan at any time in the near future. Lenders check your credit score to determine if a loan to you will actually be paid back on schedule. If you are behind on bills, current loan payments, and falling prey to a credit card or two that has reached its limits, your chances of attaining a loan will be severely limited. So now you have to ask yourself how can I get a bad credit loan?
You Do Have Options
There are certain loans you can usually get even with bad credit. But you have to weigh the positives with the negatives as many times these loans can carry a high-interest rate, especially if you don’t pay them back quickly.
A person can usually get a payday loan as long as they have a steady job and old pay stubs detailing how much they get paid every week or so. Most of the time, the amount offered is not hugely substantial any may only climb up to $1,000. The bad news is that these have to be paid back fast and the interest rates can get out of control if you are not paying close attention.
Car Title Loans
Car title loans are a huge risk if you are not sure that you will be able to pay the loan back on time. You are placing your vehicle up as collateral, usually at about 30 to 40 percent of what it is actually worth, and if you fail to pay your loan back in time, your car will be taken from you as payment. If that happens, you have a whole new set of problems. Not only will you be short on funds, but you will no longer have a vehicle either.
Peer to Peer Lending
There are always investors out there looking to make some money and loaning money to people that need it can allow that investor to make some serious interest. After all, if the money is just sitting in the bank, they really aren’t making any serious interest at all. However, if you lend someone $5,000 at 20 percent interest with 30 days to pay it back, you can make $1,000 pretty quickly. Plus, if you go with peer to peer lending, their interest rates usually aren’t too out of control.