How to Get a Secured Personal Loan with Bad Credit

February 11, 2022 Off By Virgil Olson

How to Get a Secured Personal Loan with Bad Credit

  • Personal loans from a bank – Money is awarded from a bank directly to the borrower to be spent on general expenses. These usually take several weeks to approve and due to the lack of collateral involved, these are often much harder to obtain than secured loans.
  • Personal lines of credit – Borrowers are awarded credit, usually in the form of a credit card, which has a limit as well as certain conditions attached to it (like interest rates, minimum payments, payment schedules, etc.).
  • Student loans – The lender assigns a loan to the borrower that is then used to cover costs associated with pursuing a college degree, like rent, food, tuition fees and educational supplies. Borrowers can pay their student loans back over the course of many years’, but they cannot escape from paying them back by declaring bankruptcy.
  • Borrowers don’t have to risk collateral with unsecured loans, so if they can’t make loan payments, they may not have to give up any possessions (though they could be forced to declare bankruptcy).
  • Funds received via unsecured loans can often be spent on whatever the borrower wants, unlike secured loans that come with stipulations about what they’re being used for, like mortgages and car loans.
  • Unsecured loans usually require more time and paperwork than secured personal loans, which can be a disadvantage if the borrower is in urgent need of quick money.
  • An unsecured loan usually charges much higher interest rates, so more money is lost by borrowers who take out unsecured loans than by those who take out secured loans.

Fortunately, many lenders are still willing to provide low interest loans, even for individuals with poor credit scores. Some of them even offer secured personal loans with bad credit having no bearing at all on interest rates or loan conditions.

If you have credit problems, but need financial assistance, you should consider applying for a bad credit secured personal loan, shopping around to find one that provides you with the best interest rate, fastest access to cash, and most flexible repayment process.

Make sure to read the fine print so that you fully understand what you are agreeing to before signing any paperwork, however, because failing to fully comprehend your loan terms could cost you tens of thousands of dollars in the long run.

Car Title Loans

Car title loans are a form of secured personal loan using the borrowers car as collateral. A secured car title loan can provide you with a relatively large amount of cash and, oftentimes, within a matter of minutes.

However, using your car as collateral for a loan is only a good idea if you can find a lender who will allow you to retain possession of your vehicle while you are making loan payments, since it’s likely that you need your car to make a living.

The major benefits to receiving this type of loan is that they offer lower interest rates than other similar loans like other loans or credit card cash advances, and they typically do not require a credit check either. Title loans are issued based on your ability to repay the loan.

About Car Capital Financial

Car Capital Financial provides secured personal loans in the form of car title loans and other vehicle title loans. We have over 15 years of experience providing affordable loans to clients throughout Southern California, and our loans do not require you to leave your vehicle with us.

Our car title loans in San Diego, Los Angeles, Riverside and Orange County have helped countless individuals through difficult financial times, and our loan experts are ready to speak with you about your financial needs right now.