If you are in the cash, a payday loan could be exactly what you need to be able to pay your bills. Many people who need money quickly overlook the payday loan option because they don’t understand how they work. Or they don’t think they can qualify for one of these loans because they have a less than impressive credit score.
However, the truth is that you can find payday loans even if you have a very low credit score of under 600 or even 550. There are several types of payday loans to choose from including secured loans, unsecured loans and auto title loans.
Secured loans are where you have put up some sort of collateral
Something of monetary value that the lender could easily sell if you don’t repay the principal loan. Since this type of loan is secured, it means that you can expect to pay slightly lower interest rates. Also, your credit score won’t be much of a factor with these loans, since the fact that you put down collateral helps to reduce the lender’s risk in the deal.
On the other hand, do not require that you offer any collateral to the lender. This is a good thing if you don’t want to put something of value for a possible sale through the lender later. However, the disadvantage is that you have to pay a higher interest rate on your borrowed money.
An auto title loan, meanwhile, is very similar to a secured loan. In fact, it is a form of secured loan. With an auto title loan, you use the value of your car as loan collateral. With this type of loan, you risk losing your car. And the interest rates can be pretty high.
If you can, your best bet is to go among these 3 options with an unsecured loan. Surprisingly, even if you have a bad credit score, you should be able to find a bad credit lender that will give you the money you need.
The trick to doing this is this: you don’t want to just go through the front door of an old payday loan lender and ask for a loan. Rather, you will want to do your homework first. Find a notepad and pen. Then start looking for payday loan lenders that have a point to directly with people who have low credit (FICO) earnings. Take good notes so you know who to call and who offers you the best deals.
You see, bad credit payday loan lenders are not nearly as hung on your credit score as most lenders are. While most lenders run away screaming at the sight of a FICO score below 550, a bad credit payday loan lender will automatically see that as a challenge to try to hit or hit. By using them directly, you will be moving their wheels, aiming to find a way to get them approved.