Getting Cash Fast with Questionable Credit
Accidents happen. Whether it’s a hit and run or property damage from a storm, unexpected accidents can occur at any time, and it isn’t always covered by insurance. These ideals don’t even cover medical events like that broken arm that takes you to the emergency room on a Saturday evening or a sudden allergy attack, requiring hundreds of dollars for EpiPens. When you need cash fast, you’ll want to have all your facts about short-term and emergency loans, like those offered at the Personal Money Store.
To understand your loan options and eligibility, you’ll want to first start with credit.
Understanding your credit score
Credit Karma is a great free resource to check your credit score online, as well as educate yourself about how credit scores work. Your credit score is created by 3 different score-keeping bureaus — Equifax, Experian, and TransUnion — who keep a record of transactions that is calculated to show either your VantageScore or FICO score. While different scoring systems seem a little unfair, remember that this an advantage if you have a significantly higher score in one area than the others.
Your credit score is calculated with positive “points” for doing things like paying bills on time, having a long-term credit history, and having a low balance on your credit cards. You will get negative “points” for bills in collection, high credit card balances, and any small claims or other evidence of lack of payment. If you don’t use credit, you will not earn any points whatsoever, still leading to a low score.
Credit scores range from 300-850, but a “good” credit score generally begins at 600 or higher. Credit scores are used to determine your eligibility for loans, interest rate or borrowing range, and even used in the hiring process or in rental applications. While a low score will make the process more difficult, there are still plenty of options to obtain short-term cash while you work to improve this score.
Installment Loans
If you need a significant chunk of cash, perhaps $3,000 to $5,000, an installment loan might be for you. This type of loan is a great way to get enough cash to fix that car transmission while building your credit. Unlike a specific auto loan, your money will have more flexibility than if you went through a traditional bank, allowing you to add on that tank of gas and a bag of groceries at the same time.
Installment loans are available for people with both good and bad credit, although you might see different interest rates. Your ultimate loan amount and approval will also be based on your income. These loans are paid off over a period of months, understanding that setbacks can take time to recover from financially.
Payday Loans
Payday loans are just what they sound like — a loan to get you through until the next payday. These loans are designed as short-term cash assistance, usually based on your paycheck amount. Payday loans offer instant help on smaller amounts, usually less than $1,500. Most payday loans have a payback length of 30 days, same as a month-to-month paycheck, but some may offer extended terms.
Payday loans may not always have a positive impact the way an installment loan can, but it will certainly have a negative impact if you do not meet the terms and incur fees and collections. Make sure you understand the payment schedule for these quick cash solutions.
Don’t let bad credit stop you from getting emergency cash, as long as you know your options. With payday loans and installment loans, you can take care of the needed home or medical expenses without creating late payments on your other bills and further damaging your credit. Check online to find out your eligibility now!
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