Individuals with a bad credit rating and money problems regularly need a fast loan. However, they face restrictions when borrowing money from high street banks because of the risk of loan default. Whilst a homeowner can get a bad credit loan because of the provision of collateral, it can take many weeks to complete. Most fast loan requirements also tend to be for smaller sums so secured loans aren’t suitable.
Sources of Fast Loans
It remains possible to get a fast loan, such as a family loan, payday loan, pawnbroker loan or logbook loan. However, a bad credit rating means that the borrower represents a higher risk to the lender. This risk manifests itself in a higher borrowing cost, a requirement for the provision of collateral or even both.
Inexpensive Family Loans
Individuals that need a bad credit loan because of money problems can get money fast through a family loan. Unlike Payday loans, pawnbroker loans and logbook loans, most family loans won’t accrue interest or require the provision of collateral. They are a great way to get a fast loan because they don’t normally involve any legal formalities.
Pawnbroker Loans Help with Short Term Money Problems
The credit crunch has created something of a resurgence in business for pawnbrokers. Pawnbroker loans are based on the provision of collateral, such as a jewelry or electrical equipment. Most fast loans are for between £50 and £300. They typically charge customers £3-5 per £100 borrowed each month which is considerably cheaper than Payday loans and logbook loans.
Bad Credit Payday Loans
Perhaps the best known fast loan is the Payday loan. Due to the high rate of interest charged, these bad credit loans are only suitable for individuals with short-term money problems. With loans of up to £750 available, bad credit Payday loans typically charge £20-£25 per month on every £100 borrowed. Whilst a borrower will need to be in full-time employment, no credit check will be necessary.
Get Money Fast with a Logbook Loan
Payday loans and logbook loans charge borrowers with short term money problems a similar rate of interest. However, because this variety of fast loan requires the provision of collateral, it is possible to borrow larger amounts. Failure to keep-up with the repayments on a logbook loan will result in the car being sold at auction to pay-off the loan.
Individuals with money problems can get a fast loan, such as a logbook loan, family loan, pawnbroker loan or Payday loan. Due to having a bad credit rating and the absence of a credit check, the rate of interest charged reflects the risk of loan default posed to the lender.