According to badcredit.org, around 16% of Americans have bad credit, which is classed as an FICO score of between 300 and 599. A further 15.8% of Americans fall into what is known as a fair credit score, sitting between 580 and 699, making it a rough 28.4% of Americans with a credit score of less than 670.
Sadly, with the current state of the economy and people’s finances being stretched further than they’ve ever been, it’s estimated that many more people will see their credit scores impacted by the cost of living.
More than just a number on a chart, your credit score can significantly affect your life. A low credit score can be a significant obstacle in securing living accommodations, qualifying for certain job roles, advancing in a career, starting businesses, and more. And that’s not even considering the challenges of borrowing money.
People don’t just have bad credit scores due to not paying their bills on time or not wanting to repay money. It can be the result of numerous different lifestyle circumstances and challenges that can impact your credit score. This includes illnesses, changing jobs, housing complications, accidents, being made redundant, and so much more, and with all the will in the world, even the most conscientious of bill payers can find their credit score impacted by things out of their control.
If you need to find money fast or you need a loan for any reason, be it replacing a broken-down vehicle, applying for a home loan, getting emergency home repair, vehicle repair, or anything else, obtaining the credit that you need cannot only be harder but also more expensive with a bad or poor credit score. Those who have poor credit are often subject to higher interest rates, meaning they pay back more than people who are classed as having a good or excellent credit score.
But what are your options if you have bad credit and you need to take out a loan or get money quick? Let’s take a look at some of your options.
A vehicle title loan
A vehicle title loan is one that is taken out against the vehicle that you own. It can be your car or a motorcycle. Motorcycle title loans work by having your motorcycle assessed for its value. The loan company will then take possession of your motorcycle and exchange it for the loan, and you will receive your motorcycle back once the loan has been repaid in full. Car title loans, however, are a little bit of different, and you’re able to keep possession of your car while you’re paying off your loan. However, you must own your car outright, and you cannot apply for a title loan if you make car payments.
Payday or payday alternative loans
UK payday loans, as well as similar options elsewhere, are often available for borrowers who don’t usually qualify for a loan elsewhere. If you’re confident you can repay what you owe for a payday loan, you can get up to $500 as long as you can repay the loan within 10 to 14 days, depending on the lender’s criteria.
Payday loans can be a great way to cover emergency expenses if you’re willing to do the research beforehand on the terms and ensure they’re acceptable. If you can make sure you pay this loan off in full within 14 days, it can be the perfect option to get you what you need when you need it. A pay-day altrnative loan can secure you a loan of up to $2,000 with repayment terms spanning from one to twelve months. Typically, the APR is up to 28% and is often available to credit union members. So, if you’re not a credit union member, you may not qualify for this kind of payday loan.
Credit card cash advance
If you’re able to pay off your credit card balance quickly, you may be able to take a cash advance of 20 to 30% of the available credit limit on your credit card. This isn’t a great alternative for those who aren’t able to pay them when you get back in full. However, it can be a preferable option to taking out a payday loan if you are considering a payday loan and you have the same amount available on your credit cards. But you’re able to withdraw, it makes more sense to take a cash advance from your credit card and pay this back as soon as you can as this can often be a cheap alternative to payday loans.
Sell items
This option isn’t always a get-rich-quick scheme; however, if you need to supplement your income on a longer-term basis and you don’t need a larger lump sum cash injection right now, it’s a good idea to go through everything that you own and look for items that you no longer want or use and see what you can sell. It can be items such as jewelry, watches, designer clothing, shoes, or handbags, for example. Or it can be old devices or gaming systems that you no longer use, or anything you no longer want or have value.
The idea is to list your belongings on sites where you can sell directly to individuals or companies who will buy these items from you.
This can be a great idea for people who have built up collections over the years and have extensive memorabilia, such as sports trading cards, or pop culture collections, such as Funko Pops. Companies exist to buy collections from people who no longer want to or need them.
The value and amount you get depend on the size and type of your collection; you may be able to unlock massive amounts of money to help you out in a pinch. While selling to businesses in this capacity won’t fetch the same amount of money as selling on the open market, it can often be an easier way to keep the collection together and avoid having to sell each item individually.
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