Having bad credit or little credit history can be frustrating. This is especially true if you have a last-minute important expense you have to deal with. If you’re running out of options, don’t despair; there are now more options than ever for the average consumer to get credit, even if your situation is not the best. Some of these could even help you start rebuilding your credit and make things easier for you in the future. Here are some of the best emergency financing options for people with low credit, or bad credit.
Car Title Loans
If you own a car, then there are chances that you could get a car title loan. You either need to own the vehicle in full or own significant equity to be eligible. The only thing that will matter here in most cases is the value and condition of your vehicle, not your credit score.
Deals, interest rates, and regulations will also depend on where you live. Also, car title loans are not allowed everywhere in the country. However, if you happen to live in a state like Texas, you can find top car title loans Fresno TX strategies for your particular situation. You could either deal with a broker that will allow you to pick from the best providers available, or work directly with a lender if you wish.
The Bank of Mom and Dad
If you’ve already burned all bridges with your friends and family or had issues with borrowing money from them before, you can skip this one right now. However, if you have a good relationship with your mom and dad or anyone else close to you, they will be more than happy to help you if they can. Maybe you had a promising project that fell through and you don’t want to let the people around know that you’ve fallen onto hard times. Usually, though, your family will wish you had told them sooner.
The important thing here is to treat this like a real loan. You want a clear agreement and you want strict repayment rules. Also, make sure that it’s for something valid, not financing another one of your ambitious projects.
Payday Loans
Payday loans get a bad reputation, and part of it is warranted. However, if you know what you’re getting into, know how to use them, and use them correctly, then they could be a good option if you have no other choice and a steady long-standing source of income.
Note that payday loans don’t strictly need to be paid on your payday. These days, payday loans have become synonymous with installment loans that are guaranteed against your salary. This also means that you can find payday loans with much longer terms these days.
Retirement Account Loan
If you want to use your own money to finance yourself, you can also take out a loan from the money you have in your IRA or 401(k). One of the great things about this type of loan is that it will not affect your credit score and interest loans are usually very low.
However, you have to make sure that you repay within the agreed period or you might face penalties. You also have to make sure that you won’t be leaving your current job soon as it might be considered an early withdrawal.
Also, know that you shouldn’t be gambling on your future for a loan. This should only be used if you have explored all other options.
Consider Credit Unions
Credit unions might also be a good option. This is because they will look at factors beyond your credit score and at your entire financial picture to make a decision. These are usually community-oriented, so you need to have one in your area. Some will offer regular loans and others will offer payday types of loans, only with less predatory terms.
Try Your Bank
We know this might sound obvious, but a lot of people aren’t aware that you can have a much better credit score with your current institution than your credit report suggests. In some cases, you might have better chances if you have already purchased or own a financial product from them and used it responsibly.
How you stand with your bank can be much more of a determining factor when it comes to approval. So, if you think you’re on good terms with your bank, have a source of income, and think you have a chance, you can always give it a try.
These are all good options if you’ve already tried everything and your credit situation isn’t the best. Make sure that you consider all of them, and look into them in detail to ensure that you don’t end up with an unpleasant surprise.
