How to Borrow Money Fast for People Who Have Less Than Great Credit

Everyone finds themselves short of cash at one point or another. Those with good credit often have a wealth of options for borrowing money quickly.

On the other hand, borrowers with poor credit will have less to choose from. Still, they have some opportunities for borrowing money fast.

Ways to Borrow Money Fast if you have Bad or Poor Credit

Use a Credit Card

If a borrower already has a credit card, the fastest way to borrow money would simply be to use that credit card. The interest rate will be quite high if the borrower doesn't pay it off in time, but using a credit card is better than not having any options.

Get a Paycheck Advance

A paycheck advance (sometimes called a payroll advance) is a form of unsecured loan that allows an employer to provide an employee with some of their paycheck ahead of time. In doing so, the employee can cover urgent expenses that can't wait until their next payday.

A paycheck advance can work well for people with solid income yet poor credit.

For people whose employers don't offer paycheck advances, it's possible to find lenders that will offer paycheck advance loans for bad credit.

Pawn Loans

People often have extra stuff that might be valuable lying around the house. Borrowers can bring valuable items into a pawnshop to get a pawn loan. Pawn loans don't require an application or a credit check — the borrower simply gets the item appraised by the pawnbroker, and the pawnbroker then extends them a loan.

Borrowers typically have 30 days to pay back the loan. Failure to pay allows the pawnshop to seize the item as collateral. The borrower doesn't owe any extra fees or take credit damage.

Offer Collateral

Borrowers with bad credit going for a traditional loan might not be approved for unsecured offerings. However, they can offer the lender collateral as a compromise. Collateral reassures the lender that they can recover some of the lost cash (should the borrower default) and demonstrates the borrower's commitment to paying back the loan.

Borrowers can also boost their approval chances by bringing on a cosigner. That way, they have access to better rates and terms with traditional loans.

When going this route, borrowers should opt for online loans, as they tend to approve and fund borrowers faster than banks and other lenders.

How To Improve Credit With a Fast Loan

Borrowers with poor credit can use their fast loan as an opportunity to improve their credit if their lender reports to the credit bureaus.

With that in mind, perhaps the most effective way of boosting one's credit score is to make every payment on time. Making on-time payments over the long-term will gradually raise the borrower's credit score.

Additionally, borrowers shouldn't take out too much debt. In general, keeping debt levels low will help to improve credit scores.

Notice: Information provided in this article is for informational purposes only. Consult your financial advisor about your financial circumstances.

There are a wide variety of loan products available in the marketplace, so your choice of lending products should match your financial needs. Small-dollar loans used over a long period of time can be expensive.

Source: iQuanti, Inc.


Categories: Personal and Family Finances

Tags: Bad Credit, Financial Solutions, Loans, Personal Finance