Can I get a short term loan with bad credit?
- Written by Q&A Team
- Category: Personal Loans
- Published: May 28 2013
As their title implies, these types of loans are good for short periods of time. If you have bad credit, a lender considers you to have a greater chance of not making the loan payments, and must charge you a higher rate of interest to compensate for the extra risk of making the loan. Don't get scared off just yet! Paying a high rate of interest can be acceptable for a SHORT period of time -- if you really need the money.
Short Term Loans for Bad Credit are Convenient
People have immediate cash needs all the time, no matter what type of credit they have. Having quick access to much needed cash can prove to be very convenient, if not necessary. A common benefit of short term loans for bad credit is the ability to receive cash within a day (sometimes within a couple of hours).
Bad Credit Short Term Loans Require Few Questions
Lenders that offer these types of loan programs typically do not ask too many questions why you want the loan, they only care about your ability/willingness to repay it. This type of anonymity is important to many people, and contributes to the overall popularity of these types of loan programs.
Bad Credit Short Term Loan Collateral
There may be a finance company in your neighborhood that offers bad credit personal loans. Bad credit personal loans typically don't require any collateral - you can borrow money based on your promise of repayment. In some areas you may also have access to payday loans, which also don't require collateral -- just proof of employment.
There are also companies that offer title loans. With this type of loan, you will need to pledge the title to your car as collateral for the loan. If you don't want to pledge your car as collateral, you can bring other items of value to a local pawn shop to use as collateral for a loan.
Bad Credit Short Term Loan Credit Line
If you want the ability to borrow money, pay it off, and borrow money again, you may want to consider a credit card for people with bad credit. If you can save some money and keep a balance in your checking account, you can use a debit card, or a prepaid/secured credit card.