Have you been labeled with the title of ‘bad credit’? Have you perhaps fallen on some difficult times in your past where you found it hard to keep up with your bills, and unfortunately ended up doing damage to your credit rating? Bad credit isn’t just an unfortunate label that is given to your credit rating; it can drastically impact a variety of financial aspects in your life, with the most obvious being your ability to borrow and access cash.
So, for those who have bad credit and are now wondering what their options are in terms of money sources, here are three that you can check out and pursue as viable options.
Look Into Lenders that Specialize in Bad Credit Loans
The first option is to look for lenders who specifically offer loans for individuals with bad credit. Because these don’t tend to be the mainstream lenders such as banks, they can be a little harder to find. It may be necessary to work with a broker to help you find a lender.
A couple of things to be aware of with these styles of lenders are that you will end up paying a higher interest rate since you are considered higher risk by lenders. Also, the repayment terms, meaning the length of the loan, may be relatively short.
Consider a Car Title Loan
As Riverside, OH – Fast Money Car Title Loans points out, another viable option for those with bad credit and in need of cash, a car title loan could be ideal. This style of loan allows you to borrow a percentage of your car’s value.
These are meant to be short-term loans, wherein you will pay them back in a relatively short turnaround time. This means you need to be able to handle the repayment schedule and ensure you’ll meet those payments on time.
The way this style of loan works is that upon approval, you’ll need to hand over the title of your car to the lender, but not to worry – you can still keep driving your car! You then have the specified amount of time to pay back the loan, and then the title is returned to you. The other good part about this style of loan is that they tend to feature a fast approval process of around 24 hours.
Borrow from a Friend or Family Member
They say money and friends don’t mix, but the reality is that sometimes you need cash fast and you don’t have many options. If you do end up borrowing from a friend or family member, the two of you can draw up a loan agreement, sign it, and then set up repayment terms to make it as official and structured as possible.
You Can Come Back from Bad Credit
It’s important to end this with the reminder that bad credit doesn’t have to be a lifetime title. There are ways you can work to repair and rebuild your credit so that this rating is nothing more than a bad memory, and you are able to open all kinds of financial doors for your future.