Introduction
Loans with favourable terms and conditions are usually provided to borrowers with good credit scores. People with low or average credit scores tend to get rejected or offered really high interest rates. However, there are a handful of options available in the market for people with low credit scores.
If you are in a tight spot and are looking for loans over the phone with no credit check then we have a few options that might suit your situation. Hundreds of online lenders offer good terms & conditions even if you have a low credit score. You will need to do a bit more research but the efforts will be worth it.
5 easy loans to get with bad credit scores
Here are 5 loans that you can get accepted for even with a bad credit score-
- Instalment loans
An instalment loan is a loan that has to be paid back over a fixed period of time, usually in equal payments, i.e., instalments. Instalment loans having a fixed monthly payment is an advantage because that allows you to fit the repayments into your budget. Instalment loans also allow for larger loan amounts & more manageable repayment terms. Qualifying for an instalment loan can be difficult, but many lenders are open to considering borrowers with bad credit. With instalment loans, you can get an unsecured, personal loan for big amounts.
- Payday loans
Payday loans are also unsecured but only offer small amounts of money and less time to repay them. Payday loans usually have high interest rates. Borrowers are required to repay these loans within two weeks, or at least by their next payday. The higher interest rates along with the short repayment period can make them difficult to repay in such a short time. If you need money quickly, consider payday loans carefully before you choose this kind of loan. They offer easy approval and are easier to find than other kinds of loans, but they can be damaging to your credit report in the long run.
- Car title loans
Car title loans are secured which means you’ll need collateral to get the loan approval. They are similar to an auto loan in the regard that the collateral would be your vehicle. This means that if you don’t repay the loan by the fixed due date, the lender can legally seize your car and sell it. These loans are risky if your vehicle is essential to your everyday life. Consider credit loans or other types of loans in an emergency to get cash quickly without the risk of losing your valuable assets.
- Pawn shop loans
Pawn shop loans are also secured loans but the collateral, in this case, could be any valuable item you own that the lender will accept. It could be electronics, jewellery, musical equipment, or any other valuable item. The lender gives you cash based on the value of the item, then you get your item back when you return the loan along with the interest. But if you can’t pay it back, the lender can keep your item and sell it. If you want to keep your valuable item, you have to return the entire repayment amount by the due date.
- Co-signer loans
If you have a bad credit score, you can opt for a co-signer loan if you have someone with a good credit score who’s willing to take the responsibility. In a co-signer loan, your loan application will be processed based on the other person’s credit score and history. If accepted, the loan amount would still be transferred to your account. In case you fail to make the repayments on time, your co-signer is legally bound to repay it on your behalf. If you default, your co-signer will need to repay the entire amount with interest. Hence, communicate properly before going with this option.
Conclusion
These are just some options you have at your disposal if you are trying to get a loan with a bad credit score. You will need to do a lot of research before settling on one option. Make sure you check out customer reviews for all lenders before deciding on the lender. Be sure to check out all lenders to get the best interest rates and repayment terms.