If you have bad credit, it can be hard to get a loan. However, there are many options available to you if you need money quickly. Whether you need cash to pay your mortgage on time this month or if you want money to buy a car, where can you find a lender willing to provide loans for bad credit risks?
Borrow Money From Yourself
Anyone who has a 401k has the ability to borrow from themselves with no questions asked. You can then repay the loan by putting the money back into your account within five years. The loan can be paid at a minimal interest rate that is calculated by taking the prime rate and adding one or two percent. Payments can be made quarterly to give you extra flexibility.
Go Online To Find Loans For Bad Credit
The Internet is full of bad credit lenders willing to work with people who have poor credit or a poor credit history. In most cases, there will be no credit check to get the loan. Additionally, the loan payments may not be reported to credit agencies. This means that you won’t risk hurting your credit even further if you can’t make a payment on time. If you don’t have a job, you may still be able to get a loan if you have income from sources such as a pension, disability payments or alimony.
Do You Have A Car Or House?
If you own a house or a car, you can use those assets to secure a low interest loan. Those who want to use their car as collateral for a loan can get a cash advance of up to 70 percent of the value of that car. Borrowers who are using their home as collateral will either cash out the equity in their home or take out a second mortgage to get the money needed to pay their debts.
Ask Your Employer For A Salary Advance
Your employer may be willing to give you a loan or an advance on your salary if you are in need of quick cash. The best reason to take a loan from an employer is that you can usually get good terms because you will secure the loan with future paychecks. Money can be deducted from your paycheck each pay period to pay back what you owe. If you take a cash advance, you won’t owe any interest on the debt because it is money already owed to you.
Anyone who is in need of cash or wants a loan to buy a car or consolidate debt can find a willing lender regardless of their credit status. While you may pay a slightly higher interest rate, using assets or future paychecks as collateral can reduce the risk that the lender faces and allow you to pay less interest than you otherwise would. Combined with favorable repayment terms, a loan from a 401k or borrowing against the value of your home can be great ways to get money fast.