There are several reasons why you could be dealing with a bad credit score other than living beyond your means. Unpaid debts, bankruptcy, and emergency expenses are some of the reasons why your credit ratings is poor. With poor credit, it becomes extremely hard to secure a loan from the streamline lenders such as band and credit cards who offer low interest rates.
With a history of late repayments, your bad credit score will mean that you end up paying significantly higher interest rates for any amount of money that your borrow. On the other hand, when you have a low credit rating and in need of cash, there are numerous subprime options that are willing to help you. Instead of taking out a car equity loan where the care equity works as security, there are several other options available for persons with poor or no credit. Here are some of the available options:
Consumers do not recommend this loan option unless you have a stable income since the debt incurred have to pay off immediately. For you to qualify for a payday loan, the lender accepts post-dated check in the sum of the money loaned and the fee attributed to the loan. The lender you go for will deposit the loaned amount in the next pay period to cater for the debt owed.
The payday loans are short-term option meant for individuals who are have a steady source of income and thus able to ensure that the loaned amount is fully repaid in the next payday. The lender will charge steep rates usually coaxing you to roll over the loan that means that you end up further in debts.
Unsecured Personal loans
The unsecured personal loans requires no collateral and the borrow is not required to offer property or assets to the lending institution. These debts tend to be of high risk to the lender and as such, they attract very high interest rates, penalties and usually have rigid terms.
According to the terms of this loan, borrowers usually pay more in interests than the borrowed amount. These loans are highly discouraged especially if you are dealing with bad credit since they are likely to get you in anever-ending cycle of debts.
Secured car equity loans allow you to borrow cash and get it within a matter of hours. If you are dealing with bad credit, the log book Calculator loan is the best option where by the value of the car is used as collateral to secure the loan. Unlike unsecured loans, the car equity loan is of low risk to the lender and as such, they tend to have significantly low interest rates and better terms given the fact that the loan is secured. To qualify for the logbook loan, a number of requirements must be met. For instance, there should be no other open loan where the car is used as collateral.
Like Saving Advice? Subscribe!
Subscribe to get the latest Saving Advice content via email.