Bad Credit Secured Loans

By | September 24, 2009


Let’s say you need to borrow money fast, but your credit isn’t good –  there are very few places that you can get help.  You can get a bad credit secured loan, but if you don’t own a home or have some residence with equity you only have a few choices: either an unsecured or a secured personal loan. Typically a low-interest unsecured personal loan can be hard to get, but there are resources that grant higher-interest loans –  both secured and unsecured.  Your credit history will obviously come into play here and bad credit is where the challenge is at.  Here are a few ways to get a secured loan when you have bad credit:

Title loan companies – you can easily get a fast guaranteed loan on your car by simply putting a lien on your car. The title loan company basically holds your car title while you continue to use the car. Of course this only works if you own the car free and clear of any loans since that’s the only way you’ll have the title. Now the amount they give you will depend on the age, condition and type of car, but the loan will typically be more than about half of the vehicle’s value. Typically these loans are payable within 30 days and the interest rate can be as high as 25%, which is crazy. So if you’re willing to pay what equates to an annual percentage rate (APR) of 300%, then go for it. If you don’t pay the loan back, they can possibly take your car.

Pawn shops – this is a long standing form of company that is used to making short-term and low amount loans. All that you need to do is bring in your personal property such as a guitar, stereo, or other items of value.  Then one of the pawn brokers will appraise it on the spot and loan you some money against it. They usually keep the loan term at 30 days and fees tend to be high, but you’re guaranteed to get money. If you choose to not pay it back accidentally or on purpose, the pawn shop is permitted to display it and sell it.