If you need money fast but don’t have a good credit score, you may be wondering if you can still get approved for a loan. Luckily, there are many lenders out there that will approve borrowers with poor or fair credit. From online title loans to cash advances, you can choose from a variety of loan options with more lenient requirements. Let’s dive deeper into how loans for borrowers with poor or fair credit work and some options that may be available to you.
How Do Loans for Borrowers with Poor or Fair Credit Work?
Loans for borrowers with poor or fair credit usually don’t come with strict credit checks. Instead, lenders will often consider other factors in addition to your credit score that may include your income, current debts, and employment history. Many loans for people with poor credit come with an easy application process and quick funding, so you may be able to receive the money the same day you apply or within 24 hours.
Types of Loans You Can Apply for with Poor or Fair Credit
Here are some loans that you may get approved for if you have poor or fair credit:
Title loans are short-term secured loans that let you use your car as collateral. With title loans, you may be able to receive funds worth up to 50% of your vehicle’s appraised value. If approved, the lender will hold onto your title and you can continue driving your car as you make loan repayments.
Since you’re using your car title as collateral to secure a title loan, you don’t need a good credit score. Just remember that if you don’t pay back the loan, the lender can repossess your car and sell it to recoup the loss. Make sure you can repay a title loan before applying.
With cash advances, or short-term, small dollar loans, you can receive funds to cover expenses before your next payday. These loans typically have repayment periods of two to four weeks, depending on when you get your next paycheck. Many cash advance lenders approve borrowers with a range of credit scores, so you can still get approved with poor or fair credit.
Installment loans can get you a lump sum of money that you can pay back in fixed monthly payments, or installments, over a set period of time. The repayment period for installment loans can range from a few months to a few years, depending on your lender and loan terms. Although lenders may check your credit score, they will also base their approval decision on other factors, like your income and debt.
Lines of Credit
A line of credit is a flexible loan that you can draw from whenever you need to cover expenses. Similar to a credit card, you can withdraw as much or as little as you’d like up to your set credit limit, and you’ll only pay interest on the amount you borrow. There are many lenders that will approve you for a line of credit if you have poor of fair credit.
The Bottom Line
If you’re looking for a loan but have poor or fair credit, you still have options. Cash advances, installment loans, title loans, and lines of credit are just a few types of loans you can still get approved for. Shop around and compare lenders to figure out which option is right for you so that you can get the funds you need.