Why Getting Loans for Poor Credit Is Easier Than You Think

June 2, 2021 | Daniel Dewitt

Girl seeking loans for poor credit

You read that right — obtaining loans for poor credit is way easier than you think. But before we discuss the type of bad credit loans available, it's important to understand exactly what is meant by "poor credit".

What Is Poor Credit?

There are certain differences in the way poor credit is determined by different credit bureaus. According to FICO Score table, (i.e., the credit scores lenders typically use) a bad credit score is below 670. But take a look at the ranges in the table below to find out more:

Credit Score (according to FICO) Credit Rating (according to FICO)
800-850 Exceptional
740-799 Very Good
670-739 Good
580-669 Fair
300-579 Poor

Some financial institutions use the VantageScore model instead. VantageScore was developed by the top three major credit bureaus TransUnion, Experian, and Equifax. Their definition of a poor credit score is slightly different from the FICO scoring system.

Credit Score (according to Vantage Score) Credit Rating (according to Vantage Score)
781-850 Excellent
661-780 Good
601-660 Fair
500-600 Poor
300-499 Very Poor

Besides being hard to get approved for a loan from a traditional bank, there are other roadblocks that come up when you have a low credit score, such as:

  • Difficulty when trying to get your rental application approved — Landlords usually conduct credit checks to ensure you are responsible with money and won't default on payments.
  • Security deposits — The lower your credit score is, the higher your security deposit will be in some places. That is because some landlords deem you risky and less likely to make payments than those with average to exceptional scores.
  • Trouble acquiring a new cellphone contract — Oftentimes, wireless providers will look at your credit before allowing you to become their customer.
  • Higher insurance rates— You will likely be required to pay more for your car insurance if you have a bad credit history.

Types of Loans for Poor Credit

While acquiring loans for poor credit is nearly impossible at a bank with poor credit, there are plenty of options for those who need money quickly but have a less-than-average financial history.

1. Personal Loans for Poor Credit

Personal loans for bad credit come with fixed costs. You repay the loan amount over a few years, versus a few months or even weeks when compared to other lending cases.

Generally, this loan type is unsecured meaning you won't have to put any of your belongings up as collateral. The best part is that there are no general rules on what you should spend the borrowed amount for.

2. Title Loans for Poor Credit

Title loans are a short-term financial solution that allows you to borrow a lump sum of money determined by the value of your vehicle (a car, truck, or van).

The list of required items is short: your vehicle for a quick inspection, your lien-free title in your name, and a photo identification card. All credit types are welcome.

3. Payday Loans for Poor Credit

Applying for payday loans online

Payday loans are a quick and easy short-term financial aid that has been designed to tide you over until your next paycheck. You can use this loan to pay the bills, unexpected medical bills, home repairs, and other emergencies.

The application process takes as little as 30 minutes and can be started from the comfort and privacy of your own home. And if you’re looking for payday loans in South Carolina, then Carolina Payday Loans, Inc. is exactly what you need. Just follow the step-by-step instructions to make it happen:

  1. Submit the quick cash online form. Make sure you input all your details correctly.
  2. Wait for one of our friendly loan representatives to get in touch with you over the phone. They will explain our payday loans process, answer any of your questions, and identify the documents you need to bring.
  3. After the phone call, head to your closest Carolina Payday Loans, Inc. location with your driver's license (or another form of government-issued ID), your most recent paystub, and a blank check from your checking account (make sure it's active!).
  4. When you arrive at the location, a loan associate will evaluate your documents to ensure you qualify for the required loan amount.
  5. Fill out some paperwork.
  6. Once you have finished the process, you will receive the money you need on the same day! And remember, this entire process can be finished in as little as 30 minutes.

The best part: all credit situations are welcome. You don't need to meet an income threshold, nor do you need to have a perfect credit score. You shouldn't be punished for past financial mistakes that may have not been your fault in the first place.

Get Started with a Payday Loan Today!

You can find loans for poor credit opportunities at Carolina Payday Loans, Inc. today. All you need is to fill out a short inquiry form on our website. We can't wait to help you get approved for payday loans online and receive your cash in as little as 30 minutes!