Depending upon your personal circumstances, you may be able to get secured or unsecured terrible credit loans with no credit checks. There's no major difference in the cost of borrowing, but the provision of collateral means guaranteed approval for the applicant. This is because you are now assuming all the risk.
Types of Terrible Credit Loans with No Credit Scoring
- Pawn shop loans: Provided that you're able to offer collateral, such as gold or silver, you can get a poor credit rating loan from a pawnbroker. They hold onto the item until you've cleared the balance.
- Payday cash advance: Borrow $1,000 with no collateral or security from a payday loan lender. You'll normally need to be in full-time work, but some lend you money when you're out of work.
- Family loans: If a member of your family is in a better financial position, they may be prepared to lend you some cash to help you to get back on your feet.
- Doorstep lenders: UK customers may be able to get an unsecured doorstep cash loan. Once approved, your local agent will collect payments from you on a weekly basis.
- Credit card cash advance: If you have a charge card from the days when you had a good credit rating, you can make a withdraw for a percentage of your credit limit from an ATM.
- Car title loans: Those who've cleared a minimum of 75% of all outstanding car finance may be able to borrow money against the equity in their vehicle.
- Homeowner loans: If you can demonstrate affordability and have sufficient equity in your home, you may be able to get a secured loan against your home.
Peer-to-peer lenders, such as prosper.com, used to lend money to poor credit customers, but this changed following a law suit. You'll now need a minimum of a fair credit score to get approval.
Cost of No Credit Check Cash Loans for Really Bad Credit
Given that you've been rejected for credit elsewhere, lending money to you is clearly a risky decision, Let's face it, if a lender didn't think that you were highly likely to default on the agreement, they'd offer loans for really bad credit to you themselves. They don't want bad debt on their balance sheets.
We've established that lending you money is a risky proposition so you won't be completely shocked to discover that the APR you'll pay is going to be high. The majority of loans for bad credit ratings have a monthly interest rate of 20% to 25%, but rates do vary between lenders. Compare costs before you sign-up.
You'll also find that payday cash loans and bad credit auto title loans are sometimes restricted by state law. Controls range from maximum borrowing limits and interest rates to outright prohibition. You'll need to check the laws for the state you live in before borrowing money. Ethical lenders will make you aware.
When Should You Consider Cash Loans for Terrible Credit?
Getting a loan with a bad credit history is relatively easy, but you should only borrow money when you are certain that you're going to have the means to repay the debt. Remember that you're effectively spending tomorrow's money today so will have less money to get by in future months.
Avoid borrowing money for frivolous purchases. Terrible credit loans should only ever be seen as a way of dealing with a genuine financial emergency, such as paying your gas and electricity bill. Don't just take out a very bad credit loan and fritter the money away on non-essential purchases.