In our economy right now, many families struggle to manage their finances from month to month. Others even have to face the fact that not only do they have lower income, they need to manage their poor credit too.
If you have poor credit, you’ll find that banks and other major financial institutions already close their door on you before you can even ask “can i borrow?” It doesn’t matter whether your poor credit was due to your own fault or a result of some circumstances that are beyond your control (such as identity theft).
Where would you run to when you need cash right away?
There are some lenders who will be willing to lend you money without the need for a credit check. Among the examples of these loans are the payday loans, title loans and personal loans.
Car title loans are considered secured loans. In this case, a lending company asks a collateral in the form of a car or vehicle title before giving out a loan to the borrower. Usually, the borrower still can use and keep his vehicle but there is already a lien on the car’s title. The lending company can seize the car in case the borrower defaults on his payment, then auction it to recover the amount that he lent to the debtor.
Lenders who do not require good credit (or gives a loan without credit check or security) usually charge higher interest rates. This is due to the fact that lending to persons with poor credit is riskier than lending to someone with good credit.