Where Can You Get a Small Loan if You Have Bad Credit?

Posted by Daniel Stewart on January 4th, 2021

Every once in a while, you might get into a situation where you need a small loan to cover some of your expenses. But what if you have bad credit? Will you be able to get a decent loan? Luckily, there are options out there for you. In this article, we’ll talk about some of the bad credit loans out there.

Secured and Unsecured Loans

These are the most common types of loans, and those with bad credit will likely benefit most from secured loans. Secured loans require you to have collateral, such as your car, in order to get good loan terms. Just make sure you make your payments, or your collateral is forfeited to the lender. Those with bad credit may still be able to get unsecured loans, but the interest rates will likely be very high, and they won’t be able to borrow as much.

Cash Advance

A cash advance is usually available from your credit card company, if you have a credit card. You may be able to borrow cash from your available credit line, but cash advances typically come with a higher interest rate than what is already dictated for your card. This might be a good option if you’re confident you can pay it back early.

Payday Loans

Payday loans don’t typically even have a credit check, but they usually only give out a small amount, and the interest rates tend to be extremely high. Also, repayment is typically due by the next time you get a paycheck. This is an option, but not a great one. This option should usually be saved for those who have exhausted all others.

Salary Advance

If you have a steady income from your job and a good relationship with your company, a salary advance may be your best option. When you ask for a salary advance, your employer essentially gives you a loan that is repaid through future paychecks. These repayments might be deducted in full from your next paycheck, or you might be able to negotiate terms where small amounts are taken out of every paycheck until full repayment. A salary advance is definitely the best option here if you have employer trust and you plan on staying at your job. Visit this website for getting a salary advance.

Author Resource:-

Daniel Stewart has been helping people with their money management and personal finance with over 15 years’ experience in business finance. You can find his thoughts at mind your money blog. If you need the best budgeting app, visit this website.