Sixty percent of Americans don’t have extra money to cover emergency expenses. This is why many turn to lending companies when there is an unplanned expense. However, if they don’t meet the lender’s requirements, such as the minimum credit score or income, their loan application might get rejected.

People with bad credit ratings are those who have ignored their accounts, missed payment dues, and have been carrying large amounts of debt for years. But, what if you need money because of an emergency?

There are alternative loan options for you. Credit access businesses that offer these options aren’t strict when it comes to the credit history of their borrowers. In VIP Finance of Texas, for instance, we look at the value of the borrower’s car, not their credit history.

If your credit is holding you back from financing an emergency expense or your basic needs, here are loan options that don’t require high credit rating:

Auto Title Loans

As mentioned above, companies that offer auto title loans assess the value of your car, as it will serve as collateral, and not your credit score. Some companies accept loan applications from borrowers with credit ratings as low as 500.

Auto title loans are generally easy to process. Once you submit the application form and a few other requirements including proof that you own the car, the company can process your loan. These lenders accept different kinds of vehicles as collaterals, including trucks, cars, and motorcycles. Additionally, even if you take out this loan, you’re not required to surrender your car to the company. You can still use your vehicle while the loan is outstanding.

Personal Installment Loans

Lending companies that have personal installment loan programs allow you to repay your loan over some time. Generally, you can pay for six months, rather than in a lump-sum payment. As long as you have a steady income, you may be eligible for a personal installment loan.

State regulations govern the minimum and maximum amount of how much you can borrow and other fees. But, it’s the lending company that decides the amount of loan and loan term, after it evaluated your financial standing.

Payday Loans

This is perhaps one of the most controversial loan options for borrowers because of its short-term and high-interest rates. Because of this, it’s crucial that you borrow from a company that is accredited by the Better Business Bureau. Additionally, you should review the loan terms and conditions very carefully.

For responsible borrowers, though, payday loans could be the ideal option to get fast cash. Payday lenders only require that you are at least 18 years old with a monthly salary. Some companies allow online application for these loans.

Having a bad credit score, however, is not an excuse for you to default your loan. Doing this may backfire. For instance, if you don’t pay your auto title loan, your car may be repossessed. As a borrower, you should be responsible for your commitments. You can start by having a repayment strategy and sticking to your budget.

It’s also important that you transact only with a reputable lender. At VIP Finance of Texas, we can help you create a repayment plan that is right for both you and our company. Visit one of our locations for more information.