The Simple Way to Get Small Loans for Bad Credit Borrowers
April 23, 2021 | Mason Roberts
It might seem impossible to receive financial aid when you have bad credit. However, there are loans made just for you! Take a look below to find out everything you need to know about small loans for bad credit borrowers including payday loans.
What is Bad Credit?
Bad credit is a term used to describe the financial environment of someone who has displayed poor money management in the past. Usually, having a bad credit score means you missed obligatory repayments like utility bills or rent.
Unfortunately, this deters traditional loan providers like banks and credit unions from lending you money because you are seen as riskier than those with good scores.
Should I Get Small Loans for Bad Credit?
Small loans for bad credit are made to be used in times of urgency. If any of the following fits your circumstances, a bad credit loan will work for you:
- You must travel unexpectedly and do not have the cash on hand to do so.
- You have unforeseen medical bills to pay.
- Your roof or another integral part of your home is damaged and needs repairing or replacing.
- Your car, motorcycle, or truck needs repairing or replacing.
Types of Small Loans for Bad Credit Borrowers
While there are many small loans for bad credit borrowers available, the five below are the best of the best.
1. A Title Loan
A car title loan is a short-term financial aid that uses the value of your vehicle to lend you up to $15,000 for emergencies. They are easy to apply for and don't come with any hard credit inquiries making it super simple for those with bad financial history.
All you have to do is start the application process online and supply the following items:
- Your vehicle for inspection
- Your driver's license or a different kind of state-issued photo ID
- Your lien-free vehicle title
- Your proof of income (this does not have to be from employment)
2. A Subprime Loan
A subprime loan tends to only apply when you are buying a car or other vehicle types. They are used as an alternative by car dealers when you don't qualify for a credit union or traditional bank loans due to bad credit.
If having a car is essential to your working and/or personal life, this is a great way to go. However, they are known for their high cost and long-term repayment periods which hikes up the price.
3. A Guarantor Loan
This is another option for bad credit borrowers. Here, you will need another person to sign the loan agreement with you (called a guarantor). This person is usually a very close friend or family member who agrees to stump up the loan repayments if you fail to do so.
The guarantor is the lender's safety net, reducing the risk and making it easier to hand out money.
4. A Home Equity Line of Credit
A HELOC gives you access to a stream of cash whenever you need it based on the value of your home. They usually have a draw period of around 10 years, after which, you must start to repay the amount you have used.
5. A Payday Loan
Payday loans were created to bridge the gap between your previous paycheck and your next one. They come with short terms and small borrowing amounts. By getting a payday loan you have a better chance of improving your financial climate and not causing extreme amounts of stress. Plus, payday loan lenders like us at Texas Car Title and Payday Loan Services Inc. have more flexibility to change the terms to suit our customers and their circumstances.
Luckily, it's fairly easy to obtain a payday loan. Just follow these steps:
- Go to our website by clicking this link — TexasCarTitleAndPaydayLoanServicesInc.com.
- Phone 1-800-227-4707 to get your application started or use the convenient request form on our website. We only ask for basic information so it shouldn't take longer than 5 minutes.
- If you filled in the form, you will receive a call from one of our friendly loan representatives in a few moments.
- After the phone call, head to your local Texas Car Title and Payday Loan Services Inc storefront with your most recent pay stub, driver's license (or another form of photo ID), and a blank check from your active checking account.
- Receive your money!
It really is that simple. All credit is welcome — good, bad, and even non-existent!
Get Your Payday Loan Today
Payday loans are an easy way to get small loans for bad credit. Give us a call today and you'll have the funds you need in no time!