What happens if you need cash now but you don't have a solid credit history? Whether you have no credit history or poor credit history, you'll usually be denied for a loan from the bank. Instead, you'll have to consider some alternatives. These alternatives are often more expensive than traditional consumer loans, but they can save you money by giving you the cash you need fast.
Payday loans are guaranteed by income rather than credit. For a payday loan, you need to show your pay stub or deposits. The payday loan company will use this to calculate how much money they want to give you.
Often, the money is paid out immediately in cash or wired to your bank. When the loan is due, the money will be pulled from your bank account. It's called a payday loan because it's generally intended to carry you through to your next payday. Most loans will not last longer than two weeks or a month.
Cash Title Loans
If you own your own car, you may qualify for a cash title loan. A cash title loan is less expensive than a payday loan and usually gives you longer to pay it back. However, it does require that you own equity in your car. That means you can't owe a significant amount on your car loan.
With a cash title loan, you still can drive your car around. However, the loan company will file a lien so you can't sell your car until the loan is paid off. The company may also attempt to collect your car if you aren't able to pay the loan.
Pawn Shop Loans
If you have items of value, you may want to go to a pawn shop for a short-term loan. This does require that you have an item that the pawn shop can easily sell, such as jewelry or power tools and other equipment.
Often, you'll get a better value from the pawn shop by simply selling your items outright. However, if you have something high value, such as an item of jewelry, you may be able to get a significant loan for it.
Getting consumer loans without credit is hard, but it isn't impossible. You may need to explore multiple options before you find someone who will work with you, but there are companies that specialize in lending to those who have not yet established their credit history.