4 Emergency Loans for Borrowers With Poor Credit
LOS ANGELES, December 29, 2021 (Newswire.com) - iQuanti: When you find yourself in an unexpected financial bind, whether you lost your job or have to pay a car repair bill, emergency loans can get you quick funding. But if you have poor credit, you may be wondering whether you can get approved for an emergency loan with no credit check.
It may be difficult to find lenders that offer emergency loans with no credit check. Luckily, there are many lenders that will consider factors in addition to your credit score when deciding whether to approve you, like your employment status, income level, and current debts. Here are some emergency loans for borrowers with poor credit:
1. Cash advances
Cash advances are short-term, small dollar loans that can get you quick funds to cover expenses before your next payday. You'll repay this type of loan when you get your next paycheck, typically in two to four weeks. Many lenders that offer cash advances may have lenient credit score requirements, so you can get approved if you have poor or fair credit.
With cash advances, you may need to prove a steady income along and provide proof of identity with a state ID or driver's license. Be prepared with that, some copies of recent paystubs, and any other necessary documents and information before applying.
The amount you can receive from a cash advance is dependent upon how much the borrower takes home each pay cycle. These loans must be paid back within a very short time, so loan amounts are typically just a few hundred dollars. Cash advances are a good option for quick cash, but make sure you can pay back this loan before applying so that you don't end up having to pay more in interest rates and fees.
2. Personal lines of credit
A line of credit is a flexible loan that can be obtained from a bank, financial institution, or online lender. It's a good option for emergencies where the amount needed may fluctuate, such as medical expenses or home repairs.
Many lenders that will consider factors in addition to your credit score like your income and employment history when deciding whether to approve you for a line of credit, so poor-credit borrowers may get approved.
The application process for lines of credit is simple. You can do it from the comfort of your own home and, if approved, you could receive funds in your account the same day you apply.
3. Title loans
Title loans are secured loans that let you use your car as collateral. To qualify for a title loan, you typically have to own a vehicle outright. After you apply for a title loan, the lender will appraise the vehicle and offer you a loan amount ranging from 25 to 50% of its value.
Since title loans are secured by collateral, it's easier for borrowers with poor or fair credit to get approved. Once you get approved for a title loan, you can keep driving your car as you repay the loan and the lender will hold onto the title. Just keep in mind that the lender can repossess the car if you default on the loan, so make sure you can pay it back before applying.
4. Pawn shop loans
Pawn shop loans are another secured loan option that allows you to use an item of value you own as collateral, like a piece of jewelry or artwork. With this type of loan, you can bring your item to a pawn shop, where they'll appraise it and offer you a percentage of that appraised value.
Since pawn shop loans are secured by your item of value, you can get this loan without needing a good credit score. Just remember that interest rates on pawn shop loans can be high, so keep this in mind before taking one out.
The bottom line
Having poor credit shouldn't stop you from getting an emergency loan when you need it most. Cash advances, personal lines of credit, title loans, and pawn shop loans are all options when you need cash right away. Do your research and compare lenders to choose the right option for your needs and situation.
Notice: Information provided in this article is for information purposes only. Consult your financial advisor about your financial circumstances.
Source: iQuanti, Inc.