If you don't know where to turn for bad credit loans, you're not alone. Thousands of people struggle with their finances month after month, weighted down by a credit rating that they don't know how to fix.
Bad credit loans can be found in several forms, however, and can occasionally be quite easy to come by.
Whether you only need a little money to tide you over until your next payday or you need a thousand or more, bad credit loans exist to meet your needs.
A cheque advance is probably the most common of the bad credit loans. These loans work by lending you money in exchange for a personal cheque that you make out for the loan amount plus a service charge.
You usually have around two weeks to pay back the loan, or until your next payday (whichever comes first.)
Should you not repay the loan or make payment arrangements at that time, the cheque advance lender can either cash the cheque or pursue other legal options.
Pawn shops and stores
Pawn shops and stores are another common form of bad credit loans. These stores allow you to bring personal property of value in and use it as collateral on a cash loan. the loan being an amount that's equal to or less than their estimated value of the item minus service charges and holding fees.
Most pawned items have one month to be claimed or renewed, and if they are not then late fees can be assessed and added to the amount that you owe.
After 90 days pass, most pawn shops will put unclaimed items on their shelves to sell in order to regain the money that they loaned to the original owner.
Yet another common form of bad credit loans are title loans. These loans work much like pawn shops, but differ in two major ways. the property used as collateral is the title for an automobile or truck, and the owner usually gets to keep the vehicle after they get the loan.
The lender gains a legal claim to the title (known as a lien), and should the borrower not repay the loan then they can repossess the vehicle to sell in order to regain their money.
Other forms of bad credit loans exist. some banks offer bad credit loans in exchange for some collateral of value, or as a remortgage of real estate.
Other finance companies and lenders offer some of these same types of loans, with a variety of interest rates and repayment terms.
While you may have to pay slightly more for these loans, they can be a definite assistance when you need the money.
You may freely reprint this article provided the following author's biography (including the live URL link) remains intact:
About the Author
John Mussi is the founder of Direct Online Loans who help homeowners find the best available loans via the www.directonlineloans.co.uk website.
Other Related Articles:
Employ Bridging Loans for short term financial gaps
Each one of us may face financial crisis in our life. I too have
faced. I always wanted to own a home with a big beautiful
garden. I had been looking for it for a long time and one day I
found it. However, there was one problem, I would say a...read more
How to Find a Low-Interest Debt Consolidation Loan
Debt consolidation loans help debtors lower their monthly bills
while paying off credit cards with high interest rates and debt,
adhering to an overall debt strategy. Many online counselors or
debt management services will offer to make your...read more