It can be hard to get a straight cash loan without having established credit. When lenders check your credit report and don’t see any positive credit history, they can’t be sure you’re capable of paying back the loan. Bad credit or collections make the situation even more difficult. If your credit score is under 650, applying for loans will only result in denial after denial and can even lower your credit score more.
Before we get to the three types of loans that you can get approved for easily with bad credit, let me teach you some quick tricks you can start working on today to improve your credit and increase your credit score. Check out my recent blog post if you’re new to credit repair, it’s a great introduction and properly titled Five Required Steps To Start Your Credit Repair Process. To get approved for loans you really need to understand how your FICO score is calculated, your FICO score is what lenders use to judge your credit worthiness. After years of experience going through the credit repair and score improvement process I’ve compiled the FICO Score Calculation Methods & Secrets which will help you understand how your score is actually calculated.
It will be very beneficial to start your credit repair process before you start applying for loans you may not get approved for. But let’s focus on the good stuff here…..
3 Types of Loans that Anyone Can Get Approved for Today:
1. Jewelry Store Loans
High profits in the jewelry industry allow them to be much more lenient with their approval process. Most big box jewelry stores in malls or other shopping centers will do anything to make a sale. With a nominal down payment you can walk out with a new a nice piece of jewelry and also a loan that help’s you build positive credit.
If you really need cash today, bring your jewelry to a pawn shop and get some instant cash. Obviously this is only recommended if you have cash coming in soon and have no other way to get cash today. Pawn shops only charge about 10% interest on the money they loan you. Once you pay it back you get your jewelry back. If you want to get the most cash possible make sure to buy gold with the highest weight and gold content (24k is the highest). Again, only do this in emergency times as your going to take a HUGE LOSS from what you paid to what you cash out.
2. Auto Loans
Car dealers are desperate to sell cars. With so much competition in the industry dealers are always working with lenders who will loan to people with bad credit. It makes sense, they hold the green slip to your car, so if you don’t pay, your car will be impounded. To make sure you get approved, go to a dealer who specializes in bad credit loans. To easily find car lots who specialize in bad credit just go to the city or part of town with the lowest income in your metro area. These dealers deal with bad and no credit situations all day and know the tricks to get you approved for an auto loan. They will need to verify you have income, so make sure to bring your latest two pay check stubs or other proof of income. Auto loans will also improve your credit as you make timely payments.
3. Loans Secured By Assets Owned By You
You can leverage the value of your house, car, or boat to get a loan today. Most cities and towns have lenders open seven days a week where you can bring in your asset and proof of ownership and walk out with a nice size loan. You still get to keep using your car or house while you pay back the loan. What they do is take the pink slip to your vehicle or place a lien on your home to make sure you repay the loan. Once you pay them back, you get the title back. Secured loans like this won’t improve your credit report or credit score, but can get you that needed cash today.
You should also check out my other blog post, Best Credit Building Cards For Bad Credit With Instant Approval, nearly everyone can be approved for the credit cards offers listed on that post and they are a great way to start establishing a positive credit history! Not all of them are secured cards either.
Whenever I come across other loan offers or specials for anyone with bad or no credit I will post them here on my blog. Or even better, if you get approved for a loan, write a comment below and let us know where you got it. Any non-spam comments will be approved and your advice will help others in the community get loans with bad credit.
Informative, will update comment after I find a car I want.
Will share, thanks for the post!!