Bad Credit History – No Problems – You Can Get a Cash Loan for Short-Term

Are you having a bad credit history because you have not paid any of your previous loans, which you may have taken for buying a house, a car, machinery or anything else of value?

Have you been declared bankrupt?

If the answer to the above-mentioned questions is yes, and if you require a short-term instant cash loan to meet your most pressing needs at hand, then certainly it’s difficult for you to avail a short-term cash loan. Obviously, you won’t get an instant short-term cash loan from a bank or financial institution or any other institution if you’re having a bad credit history or have been declared bankrupt. So, where you should go to get the instant cash money that you so badly require for fulfilling responsibilities at hand. In such circumstances, the services of a car pawnbroker and moneylender come in handy.

How can a car pawnbroker and moneylender help to give you a short-term instant cash loan?

  1. Typically, a car pawnbroker and moneylender will not carry out any credit checks or background checks for approving the loan amount. They will also not ask for your bank statements or pay slips to approve the cash loan.
  2. You should possess any asset of value that you can deposit with the car pawnbroker and moneylender as a guarantee that you will return the loan money along with interest on the loan’s expiry. An asset of value could be anything such as a car, a boat, a motorcycle, a truck, machinery etc.
  3. You can opt between pay as you go or at the loan’s expiry. Once you fully pay back your loan amount along with its interest, your asset shall be returned unto you.

Is it possible to extend the loan’s repayment period?

Yes, it is possible! To extend the period of the loan, you need to visit your car pawnbroker and moneylender before the loan’s expiry date and request to extend the payment duration. Depending upon your specific situation and your commitment towards payment, your pawnshop may extend your payment duration by one month so that you can pay off the remaining loan amount, however, you may be required to pay the interest.

What will happen if I fail to pay the loan amount within the agreed timeline?

The car pawnbroker and moneylender will sell off your asset to receive the amount, which was loaned to you. It will sell the asset for a slightly higher rate so that the pawnbroker can also receive its interest and book some profit as well. In this way, the pawnbroker is able to remain in the business.

How to Apply For Bad Credit Car Loans?

It might seem difficult to avail your car loan if you have poor or bad credit ratings. People often apply for their car financing and end up with a rejected auto loan application, simply because they have not worked their loan application properly, or maybe applied for the wrong one. With the ongoing economic scenario, loan providers have started offering car loans with bad credit to individuals having low FICO scores and poor credit history. One needs to become eligible to avail the credit, and the following pointers can help you in working out your auto financing:

Specialized credit facilities for individuals having a bad credit history

All traditional loan providers need good credit ratings while providing their credit. In such cases, if the individual has bad or poor credit ratings, it is going to be almost impossible to receive the car financing from a local bank or credit lending organizations and car financing companies like Ford Motor Credit or Toyota Motor Credit. One has to opt for car loans designed specially for individuals having a bad credit history. Such individuals might face issues relating to bad financial conditions such as repossession, foreclosure, or even bankruptcy in the future. Moneylenders take these factors into consideration and work out the feasibility aspect for the borrower, so that the applicant finds it affordable and convenient to pay the monthly loan installment. Bad credit car loans are such programs.

Basic requirements for qualification

Applying for a bad credit car loan can be easy. The applicant has to fill up the application form and submit some documents required by the creditor. You need a valid car driver’s license, and some ID proof verifying your contact and residence details. In addition, it is also required to show your employment records. You need to earn a minimum of $2,000 every month to qualify for the program. The car insurance has to be worked out in the proper manner so that it includes the required coverage and benefits. The insurance will cost you a certain fee, which can be included along with the car price, or alternately can be paid independently of your car financing. Usually, the insurance cost is included within the financing options, however you need to check that out.

Apply online and save time

Many companies and loan providers offer online car loans which can be a great way to finance your car. All you need to do is go “online” and search the net for lenders dealing with bad credit ratings, and check out whether they provide car finance. To apply online, you have to fill up an online application form and provide your contact details. Generally, your personal information is protected and remains confidential, but it is worth checking out the lender’s website for any disclaimers and ascertain you get a free quote that is not binding. While buying car loan online, it is important to verify if the lender you have chosen is registered with the Better Business Bureau to prevent possible frauds.

Working out your car loan

It’s recommended you apply with more than one lenders. In fact, the more lenders you approach, more and better options you end up availing, and that can prove to be beneficial in the end. Once you get your free non-binding quote, you could the car loans calculator and determine the net interest you are likely to pay while redeeming your loan. It becomes easy to work out your budget, and what kind of monthly payments you can commit to. One needs to choose the lender that best suits your particular requirement.

No Credit Car Loans: Bad Credit, No Problem

If you are looking for a quick and easy car loan, a “no credit car loan” might be a good option. However, you need to know what you are getting yourself into with loans of this type.

No Credit Car Loans – the Background

The plain truth is that obtaining auto loans or any other kind of personal loan, for that matter, is not as simple as it used to be. Large commercial banks don’t want anything to do with personal loans, especially financing new cars. In most cases, people who buy a new car from a dealer wind up financing their loan through the dealership. The dealer will most likely tack additional charges onto the bottom line.

What a Buyer Might Face With No Credit Car Loans

If your credit score is less than perfect you understand that you are facing many restrictions on the type of financing you can realistically get. Lending is a high risk venture. Now more than ever. The lender evaluates your repayment history. Nobody wants to lend money to someone known for defaulting on loans. Those who do, charge more interest and apply more restrictions. More interest equals to more of the money being paid back before you default. How your credit score affects your work ethic is another story. But, it is true. Some employers will not hire you if your credit is bad.

Collateral

Collateral is a good bargaining tool. If you have enough collateral you can buy pretty much anything you want. But, if you have a poor credit history, there is a good chance you don’t have any collateral. A rock and a hard place. Just like when you were a kid. You can’t get a job without experience – you can’t get experience without a job! Likewise, just as the kind-hearted grocer gave you that first break, there are lenders willing to give you a break and help you re-establish your credit and obtain collateral.

Hazards of No Credit Car Loans

Beware of wolves wearing sheep clothing. There are lenders that prey on people with poor credit. They bank on the fact that you might not be all to credit savvy. They count on you not knowing the ins and outs of auto financing. You may be asked to pay astronomical interest in exchange for waiving credit check requirements. You could end up making payments for twenty years without ever actually paying one cent of the principal.

Similarly, you have the “title loan.” You put up your car as collateral and agree to pay back the loan in a very short time. Usually about a week. This is basically legalized loan sharking. If you borrow $200, you pay back in the neighborhood of 3-4 hundred. This may help you buy a second vehicle, but think about it – is a second vehicle really that important? Why not take the bus for a while, save up and buy your second or first vehicle without all the extra charges?

Always carefully read all of the fine print in any kind of financial deal. If a no credit car loan will benefit your financial situation without putting you out on the ledge, then go for it.