Types of Bad Credit Loans

When you have bad credit, getting a loan can be a stressful process. Most places will not lend to you based on your credit rating, and it can be hard to know where to look. Worst of all is that continuously applying for loans and getting rejected can lower your credit rating even further. Stop the nasty cycle and consider other loan options that cater to people with poor credit. While some of these loans certainly have their drawbacks, if you are in a tight financial position, they may be a good option.

  • Doorstep: If you want a loan with excellent customer service and one that will fit your busy schedule, consider a doorstep loan. When you get a doorstep loan, you will be assigned a representative from the lender you chose. This representative will handle everything to do with your loan. They will deliver the money, collect payments, and talk to you about any issues you are having. They can even help you budget your money if you are having trouble getting your payments together. This type of service isn't always cheap though, so look around before settling on a lender.
  • Logbook: This is obviously our first choice, and for good reason. Logbook loans are perfect for anyone with bad credit, as there are not even any crecit checks involved. You simply must be the owner of a car and meet a few other simple eligibility requirements in order to get a logbook loan. The money is paid out quickly and the best part is that you get to keep driving your car while the loan is out.
  • Payday Loans: These short term loans give you a quick cash influx, but must be paid back on your next pay day. Because these loans are so short, they typically have higher interest rates. They should only be considered if you really need cash right away and know you will be able to pay it back when you get your next paycheck.
  • 12 Month: Similar to payday loans, these small amount loans are stretched out over the course of a year. This makes payments smaller and lower interest rates. While they sometimes lend to people with bad credit, they still perform a credit check. If you have really bad credit, they may require a guarantor in order to give you a loan.

Hopefully one of these options will work for you when trying to find a loan with bad credit. These loans are meant to be temporary while you build your credit back up. If you have bad credit, take a look at why it happened and try to fix those issues before applying for another loan from a bank. This will help you tremendously in the long run financially.