The recession (that the powers that be have said is over) has deeply affected the ability to borrow of just about everyone. While some consumers with good credit histories have been able to reel in loans with the usual good terms and interest rates, folks that have mediocre or really dismal credit scores have a lot of trouble getting loans from banks and other traditional lenders, even when they ask for far less than $5,000. All that said, there are nontraditional venues where bad-credit borrowers can get cash, sometimes up to $5,000, in the form of an unsecured personal loan.
The Friendly Loan Option
A friendly loan — that coming from friends or family members — can be an expedient solution for those with less than stellar credit rating. Family member or friends will not run a credit check or charge sky-rocket rates that some bad credit lenders would. Also, repayment terms can be pretty flexible. Before you accept such a loan, make sure that the whole deal is written down and signed by all parties involved so there is no future dispute that could lead to bad blood among friends or family. It would also behoove you to offer at least a little interest.
The Company Loan Option
Any number of factors could preclude you from requesting a loan from a friend or family member. Consider approaching your boss or your company for an unsecured personal loan. Many employers will happily assist if you are in good standing. Often, large companies offer subsidies or loans for their employees as part of motivation or loyalty plans. Even if you have not heard of such a thing, it would behoove you to ask. Additionally, your employer or company is not likely to charge exorbitant interest rates. Many company loans offer very convenient terms and conditions. You may even be assured of a loan by the fact that the company can take payments straight from your paycheck.
The Cash Advance Loan Option
If the above options have not panned out for whatever reason, consider getting a payday or cash advance loan. Banks and other traditional institutions are not the only ones offering loans in the finance markets of today. These specialize in offering loans to folks with blotchy credit histories. Many of these operate online and will be able to give you offers within minutes. This makes shopping for these types of loans very easy. And you should shop since rates and terms vary widely. Do not take the first offer. Often, the whole process can be handled online, even the deposit of your cash into your bank account.
The Collateral Loan Option
When all else fails, consider using the services of a pawn shop. To obtain a loan from these lenders, you must have some collateral of some financial worth that you can offer as security on the loan. This can be jewelry, electronics, or the silver tea service Aunt Nellie gave you. Once the shop appraises the value of the property, you can get cash on the spot. Once the repayment date comes, you take cash to the shop and retrieve your property. If you do not repay or extend the agreement, the pawnshop can sell the item to cover the loan.
Remember, just because you have lousy credit, getting a loan is never impossible. You just have to look around. Focusing your search online is a wise move.