Do you need fast money but don’t have a credit score to get it ? Many wonder if they can even get a personal loan with a credit score of 520 or worse.

One would think that it is possible with all the advertisements that promise “bad credit personal loans, guaranteed approval, no credit check” and “direct installments for overdue installments”, but are they legitimate?

Here, we will get to the bottom of these “instant approval secured personal loans” deals and reveal our most recommended lenders for those who cannot be approved anywhere else.

Approval of the secured personal loan for bad credit

If you have bad credit and were turned down when applying for personal loans, you are not completely unlucky. You will come across lenders who have “secured personal loan for bad debt” offers.

While no offer is truly 100% guaranteed, many are pretty damn close. The difference between bad credit personal credit lenders and the rest is that bad lenders typically require collateral or have exorbitant fees and interest rates to cover their risk.

Where can you find these loans?

Auto title loans are short term loans, secured by the clear title of a vehicle. The lender will evaluate your vehicle and offer you a loan amount based on a percentage of the value of the car. For example, if your car is worth $ 2,000, it may require a 50% or $ 1,000 loan.

According to the Federal Trade Commission (  FTC  ), lenders often charge 25% interest per month, which equates to a 300% APR, in addition to commissions. Refund terms can vary from a single payment within 30 days to multiple payments in a few months.

If you lose a payment, the lender can take possession of your car. Mike Arman, who works in the loan sector, says: “If you are late and you lose your car, you not only lose your car (which is worth much more than the loan), you also lose your mobility, which means that now I can’t get to work to make money. ”

These loans are only legal in selected states and, in four out of five cases, they are not repaid on time. This leads to 20% of borrowers who lose their car and many others who renew their loan or borrow elsewhere. (  source  )

While most people with a valid auto title can qualify and are approaching instant approval, auto title loans are accompanied by risk. You may lose your car and can dig a deeper hole due to the high cost and short payback period.

The only time this can be worth it is if you need money immediately for an emergency or a solid investment, and you have a piece of money that arrives within the repayment period that will allow you to cover the costs in addition to your normal living expenses.

Read more about the pros and cons of auto title loans

Pawn shops

If you are unfamiliar, pawn shops are companies that offer loans in exchange for personal property. They don’t make credit checks. Simply enter the item you wish to use as collateral and the pawn shop will evaluate the resale potential.

The store will decide whether to offer a loan and, if so, how much the loan will be. You must be 18 years old and show proof of identity and, in some cases, they may ask for proof of ownership for an item.

Pawn loan loans usually have terms that last from one to two months. The costs include interest rates which are on average 10% per month, along with commissions for storage and insurance. If you don’t go back and pay more interest for your item within the allotted period, the pawnshop will own your item and be able to sell it.

Anyone over the age of 18 can bring an item into a pawn shop, but approval is absolutely not guaranteed because the pawn shop must agree to offer a loan for your specific item. However, it will not depend on your credit or financial profile.

While not being competitive with unsecured personal loans as far as costs are concerned, loans to pawn loans are often cheaper than payday or auto title loans. Plus, you don’t have to put your car on the front lines.

Payday loan lenders

Lastly, they are payday loan lenders. They will provide quick cash for people, sometimes without a credit check, as long as borrowers can prove that they have regular income from a job. Often you have to show paychecks to demonstrate regular income and then you have to repay the loan plus interest and commissions on your next payday.

The average repayment period is 14 days and the average interest rates range from 12.5% ​​to 33% which translates into an APR between 300% and 800%.

If it is not possible to repay the loan in full, it is often possible to apply it on an amount that adds additional interest and commissions. Many borrowers fall into this downward spiral of multiple loans with expensive costs piling up.

Are Payday Loans Bad?

While immediate approval can be obtained with proof of regular income, payday loans should be a last resort. They are known to be predators and cause most borrowers to end up in a worse position than when they started.

The best personal loans that almost guarantee instant approval

Now that you know the types of personal loans you can get with poor credit and the risks they present, here are the best lenders in this space.

FINOVA FINANCIAL

Finova Financial is our choice for the best auto securities lender. It offers equity credit lines that cost 50% less than the current national average and has an APR ceiling of 30%.

In addition, it offers loan terms longer than 12 months, giving borrowers more time to repay the money owed. If you pay the loan upfront, no prepayment is expected.

You also earn points when you pay on time, which can be used to postpone payments later without penalty. Finova reports to a credit bureau, which can help or harm your credit depending on how you manage the loan.

Easily apply online and get an answer right away.

CASH CHECK

Check Into Cash is one of the best known payday lenders and has over 900 physical outlets in 23 states in the United States. It provides online and online store loans, and also offers auto title loans.

Professionals say the company is widely accessible and provides quick access to cash. You can enter a shop with a qualifying income test and exit with the loan. It also offers longer term installment loans for online applicants who qualify.

The cons are that the fees are very high and the loan terms can be very short. Also, online, you need to go through a credit check which can be limiting for some candidates.

The company itself warns that its loans should only be used to meet immediate short-term liquidity needs. However, of all the creditors, this is one you can count on to be reliable and easy to access.

Find more details here.

LENDUP

LendUp is an exclusively online payday lender who earns an honorable mention among the rest. He calls himself a “socially responsible lender” and supports his tier system which allows repeat customers to benefit from lower rates and higher loan amounts as they establish a positive repayment history.

Professionals are the lender’s reports to the credit bureaus, so making your repayments can help build your credit score. Also, if you need to borrow repeatedly, you have an opportunity to earn better rates and terms.

The downside is that initially the cost will be just as high as any other payday lender. In addition, the application is exclusively online and includes a credit check, although the approval is more forgiving than standard personal loan lenders.

To learn more, please click here .

Personal loans for poor and fair credit

How to find the best lender

When we eradicate through auto title and payday dispensers, here are the key factors you should consider

AUTO TITLE LENDERS

Pay attention to the following:

• Loan amount: the  minimum and maximum amount that a lender will extend. Also, note the percentage of the value of your car offered by a lender.
• Vehicle Requirements  : Most lenders require a clear title and the vehicle is repaid. However, there may be other requirements.
• Interest  : the amount of interest that the lender will charge to borrow the money. It may be useful to consider it in terms of annual percentage (APR).
• Commissions  : the amount you will have to pay to borrow the money, in addition to the interest.
• Duration of the  loan  : the amount of time it takes to repay the loan (against single payment installment). A serious pitfall is choosing a loan with too short a repayment period.
• Non-payment options  : the procedure if it is not possible to repay the loan, for example how long it is necessary to make the payment before losing the car, the applicable commissions and the options for the roll-over.
• Eligibility requirements:  what is needed to qualify, e.g. full coverage insurance, credit check, proof of address, etc.
• Financing  time: the time it takes to get the money after approval.

To find the best auto title loan for you, be sure to compare multiple suppliers. Once you have some that seem the best, take the quotes to see which one can offer you the best offer.