If you have bad credit, you know just how much it can limit you and affect nearly every aspect of your life. While you may get along without credit cards and access to a bank loan, what do you do when life throws the unexpected at you? Whether your car has broken down, your paycheck was shorter than you expected or you have medical bills to pay, you need a source of emergency cash.
Here are some personal loan options you can use in Houston if you have bad credit, including pawn loans and Houston car title loans.
1. Peer-to-Peer Lending
Peer-to-peer lending has gained in popularity over the years, and it allows you to obtain a personal loan without going through a bank. Your credit will still matter, however, but it's usually an individual who makes the decision, not a huge institution or underwriter. If you have bad credit, expect to receive a much higher interest rate. It may also take some time to actually receive the money, so it's not a good option if you need the cash in the next few days.
2. Houston Car Title Loans
Car title loans in Houston are available regardless of your credit history, and lenders will not run your credit at all. Still, you must own your own vehicle to qualify, or have few payments remaining on an existing car loan. The loan amount will be based on the equity in your car, which is determined in part by its year, make, model, mileage and condition. If you need cash today, this is one of the better options because you can have the money in as little as one hour. Depending on the value of your car, you can receive up to $15,000.
Be aware, though, that car title loans in Houston are secured. This means the lender will hold the title to your car until your loan is paid off. If you default on the loan, you will probably lose your vehicle.
3. Payday Loans
On the surface, payday loans are a lot like car title loans. Houston payday lenders will not check your credit, and you can get the cash in less than one hour. One difference, though, is payday loans are for a much smaller amount on average, usually just $500 to $1,000, and they're due within two weeks. This is because they are not secured like title loans, and lenders do not have much recourse if you default. This may be a good option if you need a relatively small amount of money soon and you do not own a car.
4. Pawn Loans
Finally, Houston has dozens of pawn shops who will loan you money based on the value of some collateral. You can pawn nearly anything you own for fast cash, whether it's a television, collectibles, an antique belonging or something else entirely, and the pawn broker will hold your item until you return to pay back the loan plus interest. Pawn loans, like all loans for bad credit, come with high interest rates, and you also risk losing the item if you cannot pay your loan back on time.
