Small Personal Loans That Are Still Options Even If You Have Really Bad Credit
September 2, 2021 | Emma Frost
If you have a low income or have recently endured circumstances that have made money tighter than usual, your credit score — and indeed your savings/bank account — will have taken quite a hit. Unfortunately, this impact may well leave you with little to no money to deal with any unforeseen circumstances, such as:
- Medical treatments and surgeries;
- Damage to your home from storms or other unexpected events;
- Urgent travel;
- Damage to your vehicle.
It might feel like an impossible situation to be free from. But small personal loans can save the day when used effectively. Yes, you can even get one without a near-perfect credit score! So, without further ado, here are a few types of small personal loans for bad credit that can help you out of not-so-great financial circumstances.
The Types Of Small Personal Loans For Bad Credit
1. HELOCs Or Home Equity Loans
If you have equity in your house, you could use a HELOC (home equity loans). Equity is the portion of your house that you own. This portion is what secures the loan.
Generally speaking, you can borrow up to 85% of the equity. It'll be paid out to you in a lump sum, allowing you to repay it over 5 to 30 years. If you don't have that much equity or only need up to $3,000, it's classed in the small personal loans category.
To find out the equity you have, subtract the outstanding mortgage balance from the value of your home. Here is an example of the calculation before moving on: Let’s say you owe $150,000 on your mortgage and your home is worth $250,000. Subtract $150,000 from $250,000 and you're left with $100,000. So, you would have $100,000 of equity.
2. Credit-Builder Loans
Credit builder loans are small personal loans that are taken out to aid you in your quest to build your credit. Anyone with bad credit scores should be looking to improve it, so this is a great loan for that.
These loans are offered by credit unions, CDFIs (Community Development Financial Institutions), and some online lenders. They're affordable and a safe way to build credit, especially if you are young.
3. Friend And Family Loans
Family loans are informal financial aids that you receive from your relatives or friends. When you don't qualify for a traditional loan, this method might be the best one.
Usually, your loved ones won't ask for interest, and you don't need a high credit score, making it a reliable option. However, be mindful that you don't take advantage of their generosity and only ask for what you need.
Related Content: How To Plan For A Financial Emergency
4. Title Loans
If you own a vehicle, you can receive Mississippi title loans to help. Depending on the value of your vehicle, you can borrow between $300 and $2,500. Before you decide if title loans are right for you, consider the two factors that determine your car's value:
- The national market value of the vehicle;
- The condition of your vehicle.
The condition can significantly impact the overall value. Ideally, you should bring your car to us in as good repair as possible. Otherwise, we might not be able to offer the total amount needed to fund your emergency.
The process starts with you filling out our online form for title loans. Once you do, we give you a call and you can head over to the nearest location to continue the process. If you are approved, you can get the money possibly on the same day.
5. Payday Loans
Our final small personal loans option is Mississippi payday loans online! They are short-term financial aids that you can receive from us with just a blank check from an active checking account in your name, your most recent pay stub, and a government-issued ID.
The process for payday loans takes around 30 minutes, and you'll get the money on the same day. Just fill out the online form and wait for us to give you a call. Then, just like our title loans, you can head on down with your items and find out if you’ve been approved. If you are, you can get the money possibly on the same day.
The good thing about our payday loans is you do not need to put up anything as collateral – unlike our title loans. You also do not need to have great credit to qualify.
Secure Your Small Personal Loans Today
Small personal loans are designed with you in mind. If you have emergency expenses you cannot handle alone, any of these small personal loans can help you out. Especially if you come to Mississippi Title Loans, Inc., you can look into our title loans or our payday loans. Come by to the nearest location or fill out our online form to get in contact with us and start the process for either loan, today.