Obtaining an equity loan with bad credit has never been easier in Southern California. Though millions of Californians now find themselves with bad credit ratings due unemployment, repossessed cars, foreclosed homes and other financial problems, there are still a variety of options to obtain an affordable equity loan.
Traditional lenders in the state may now be extremely reluctant to hand out loans for people with bad credit, but some modern lenders don’t even blink an eye to credit scores below 700, with many still offering no credit check loans. In fact, getting a loan with bad credit isn’t even just possible, it’s become relatively easy.
Southern California Equity Loan Options for Poor Credit Scores
1. Car Title Loans
One of the most reliable forms of equity loans for bad credit scores is the car title loan. Car title loans use the equity you have in your car to provide you with a short-term collateral loan. Title loans are extremely easy to qualify for, even if you have terrible credit, since many companies offer them without even requiring a credit check be run. Title loans are issued based on your ability to repay the loan.
One major benefit to taking advantage of car title loans is that they allow you to continue driving the vehicle you used as collateral while you’re making loan repayments, meaning that you won’t have to sacrifice access to your car. Not every title loans company offers this service, however, so it’s important to be choosy about who you contract with.
If you have a clear title to your vehicle and you live in Orange County, San Diego, Los Angeles or Riverside County, then call Car Capital Financial to get an affordable title loan in as little as 30 minutes. You can reach us toll-free at 1-888-500-9887.
2. Credit Cards
Credit cards allow you to make purchases without having to use any actual money by using your credit score as equity for a short term loan. People who have better credit scores are rewarded with lower interest rates and people who have worse credit scores are penalized and forced to pay higher interest on the funds that they borrow.
One thing to be aware of is that some credit card companies go out of their way to get their cards into the hands of Southern Californians with poor credit scores because they make more money on the higher interest rates. If you’ve got credit problems, but need to utilize a credit card, just be sure to be careful about how you use your card, and try to pay your card off each month just before interest starts accumulating.
Credit cards are a great form or equity loan for people with bad credit because they allow you to purchase things without having to offer up any collateral, but they can also be a serious problem since the credit card company won’t say “No” to further funds until you’ve reached your assigned limit. Many people have dug themselves into very deep financial holes by over leveraging themselves with a credit card. Learn from their mistakes!
3. Pawn Shops
A less effective bad credit equity loan option is to take some of your stuff down to the local pawn shop. Southern California is littered with pawn shops that will give you some money for your possessions, but who will also require that you return that money (with interest) within a short period of time (typically about 30 days), or they’ll take possession of whatever you pawned.
Pawning can serve as an effective option if you need an equity loan but have horrible credit, don’t have a vehicle with a clear title, and don’t have access to any other forms of lending, but it also comes with some obvious drawbacks. The biggest problem with pawning things is that you have to surrender possession of your things, so you can’t pawn anything that you really need.
Consider pawn shops an effective avenue for raising short term money only if you can pawn luxury items that aren’t essential to your daily life, things that you don’t want or need, or if you have absolutely no other way of raising money.
4. Cash Your Checks
Desperate times can sometimes call for desperate measures, such as going to a neighborhood loans center to get your next paycheck cashed in advance. These loans use your equity in having a job to turn your future paycheck into immediate cash, but just remember that there’s a huge cost associated with utilizing this type of funding.
Although a neighborhood loan center can get you the cash you need now, they will also be charging you significant interest on that loan. What’s more, many neighborhood loan centers require that you pay off your loan before you receive your next paycheck (good luck doing that!) and also penalize you for attempting to pay your loan off early with pre-payment penalties.
For these reasons, even though neighborhood loans are one of the easiest, most widely available types of equity loans for people with poor credit, we recommend staying well away from them unless you have an absolute and immediate need for emergency cash assistance.
What Should You Do?
As you can see, obtaining an equity loan in Southern California with bad credit is not as tough as it may initially seem. There are more than a few possibilities for gaining quick access to cash, but you should remember that some sources and methods are more trustworthy and reliable than others.
If you have bad credit, make sure to consider car title loans before trying one of the riskier alternative methods of raising money. To get the money you need in as little as 30 minutes, call Car Capital Financial now at 1-888-500-9887.