Fast Bad Credit Loan

In an emergency situation getting a loan fast can be the difference between catastrophe and survival for a family. Unfortunately many people with bad credit have a hard time getting a loan from conventional sources such as banks.

Fortunately there are many other kinds of lenders who do loan money to people with bad credit fast. These lenders charge higher interest and should only be relied on in emergency situations.

Cash Advance and Payday Lenders

One very fast source of loans that doesn’t require a credit check is cash advance and payday lenders. These entities lend small amounts of money with the expectation that the loans will be paid back quickly.

The way these loans work is that the borrower has a short period; usually one or two weeks to pay the loan off. If the loan is repaid quickly high interest rates and fees are charged on it.

These loans should only be used as last resort when no other loans are available.

Online Loans

There are a wide variety of fast loans available online. Most cash advance lenders and payday lenders make their products available online. Sometimes these loans can be applied for directly, other lenders will require that documentation be faxed in.

An advantage to online loans is that they don’t require the borrower to go to a sleazy store front in a bad neighborhood. A disadvantage that is not every lender operates in every state because the laws are often different in different states.

Pawn shop loans

A really great and flexible source of loans is pawn shops. Pawn shops make secured loans, secured loans are loans backed by a piece of collateral. If the loan is unpaid the pawn shop simply takes the item pawned to cover the cost of the loan.

Pawn shops will lend to people with bad credit because they have collateral for the loan. Pawn shops take a wide variety of items as collateral for loans including automobiles, firearms, jewelry, tools, musical instruments, electronics, collectible coins and silverware. A typical pawn shop usually takes possession of the item after a period of time set by law, usually 180 days.

A big advantage to pawn shops is that they loan actual cash rather put the money into a bank account. A disadvantage is that a person will have to have a bank account or use money orders or wire to pay many bills with cash from the pawn shop. Another advantage is that pawn shops can loan money almost instantly once an item’s value has been determined.

A drawback to pawn shops is that they limit what they take and often only loan limited amounts of money. Generally, a pawn shop will loan a person about half the value of the item. Another drawback is that a person may lose the item pawned if they can’ t repay the loan.

Auto Pawn

A variation on pawn that’s becoming increasingly popular is auto pawn. Auto pawn simply means that a pawnbroker takes a vehicle or the title to the vehicle as collateral for a loan.

The advantage to auto pawn is that it can be a quick source of cash. A disadvantage is that person may have to forgo use of their vehicle while it is at the pawn shop. An even bigger problem is that a person might lose the vehicle if they can’t repay the loan.