When you find yourself in a cash crunch and your credit will only get you into an embarrassing situation when you go to your bank for a loan, you should know that an unsecured loan, or a loan based on your credit history, is not your only alternative. If you have ever been to a pawn shop you at least understand the concept of a secured loan. Secured loans are loans that, instead of relying on your credit, allow you to use something of equal or greater value to obtain your loan.
Other than pawn shops the most commonly obtained loans are car title loans. Title loans, known as logbook loans in the United Kingdom, are given based on the value of your car if it is less than 10 years old, and this figure can be found in Kelly´s Blue Book. One of the main reasons for the huge popularity of these title loans is that they are so easy to get. If you own the car and it is in good running condition with no liens, you will likely be approved and will have your money within 24 hours. Some companies require you to have a verifiable source of income and in all cases you must have a bank account but other than this it is nearly a pre approved loan.
If you have bad credit you can use these loans to consolidate your debts and increase your credit score. When you pay off your other creditors you turn them into credit sources, both of which will increase your score and each time you make a payment you will get a point on your score. So with these loans you can get an immediate increase of your credit and then incremental increases as you make a single payment each month, probably at lower interest rates.
No comments yet.