Sometimes it might feel like the world is working against you when you struggle with your credit rating. However, no matter if you have good or bad credit, it is possible to find a personal loan that will help you work past a sudden unexpected expenses. When sudden unexpected expenses arise it is possible to obtain a loan whether you have good or bad credit. Before you decide to open a loan, it is a good idea to have a better understanding of what types of loans may be available and how they can help you.
What is the Difference between Secured and Unsecured Loans?
An unsecured loan is often offered by traditional banks and allows you to take out a loan without providing any collateral. Lenders take a look at factors like your income, your credit history, and current debt to determine your ability to pay back the cash. An unsecured loan may have a higher interest and you may be able to get a larger loan based on your credit history.
A secured loan allows you to receive cash in exchange for a lien on a valuable personal possession. For example, 1(800)Car-Title keeps your car title while you keep your car and pay back the loan. If you fail to pay back the loan, you would have to transfer ownership of the car to the lender. Certain secured loans may have lower interest and more flexible payment options.
Can I get a Loan if I have Bad Credit?
If you have had trouble handling your finances in the past, you might have a low credit score. If your score is below 680, you might need to work on improving it. But that doesn’t mean that you can’t get a personal loan. You may find an unsecured loan is out of the question, but if you own a house, car, boat or other valuables, you should be able to get a secured personal loan. If you fail to pay back a secured loan, it will be much more difficult to get a second one.
What Can I Pay For using my Secured Loan?
When you fill out the application for the best secure loan, you will be asked what the money will be used for. Loans are approved for a wide variety of uses including:
- Car repairs
- Emergency medical bills
- Home repairs
- Family celebrations like reunions or weddings
You cannot use the money for an illegal purpose. You should not be taking out a loan to cover regular monthly expenses like rent, utilities, or to pay another debt as you will continue to lower your credit rating and increase your debt.
If I have Good Credit, Why Should I get a Secured Loan?
If your credit rating does allow you to take out an unsecured loan, you might think you don’t need to opt for a secured loan. However, when you do your homework it may turn out that the payment plan and interest rate offered for the secured loan are lower than the unsecured option. Paying your financial obligations on time is how you earn a good credit score, and choosing the loan that works best with your budget will always be the right choice.
So, always take your time and compare rates and payment terms before signing the contract for your loan.
I Got a Car-Title Loan. Can I Keep using the Car?
If you decide that the best secured loan is one that uses your car title, like one from 1(800)Car-Title, than you might be worrying about your transportation. But you don’t need to. Your car remains in your name and you can keep using it while you pay back your loan. You will want to make sure that you keep up with the maintenance so that it keeps its value.
In the end, it’s all good news. No matter if you have good or bad credit, there is a personal loan product that can help you work through any financial difficulties you might be facing. Don’t hesitate to fill out a form and apply for a secured personal loan today.