How to Get Second Chance Loans for Bad Credit
May 17, 2021 | Mason Roberts
Just because you've had bad luck financially doesn't mean you don't deserve a second chance. As a matter of fact, there are lenders who specialize in giving you more options when it comes to borrowing money. They're called second chance loans for bad credit, and they may be your ticket out of trouble. So, here's what you need to know ASAP.
What Are Second Chance Loans for Bad Credit?
Second chance loans for bad credit use alternative forms of collateral to avoid using your credit report as a point of reference. That means they're not concerned with your creditworthiness as much as they're concerned with you fulfilling the main requirements of the contract. Most of the time that involves pawning your vehicle title or trading your paycheck for upfront cash.
Best of all, these types of loans require very little paperwork and can be completed from start to finish within just a few hours. Your income doesn't need to be high either. As long as you can agree to repay the loan on the lender's terms, you can get the needed cash in as little as 30 minutes.
NOTE: You must also be at least 18 years old to qualify for second chance loans for bad credit.
Which Second Chance Loans for Bad Credit Are the Best?
There are two primary types of second chance loans for people with bad credit. Look at the details of each, then compare the pros and cons to determine which one is right for you:
1. Title Pawn
A title pawn uses your vehicle ownership documents as collateral for up to $15,000 in immediate cash. The terms are written based on the value of your car, not the numbers on your credit score.
FACT: You don't need to prove a regular income to qualify for this type of financing.
PRO: You can continue driving your vehicle as usual as long as the loan remains in good standing.
CON: The condition of your car affects the final offer from the lender. Clean it up for maximum value.
2. Payday Loan
A payday loan uses your income paycheck as collateral for up to $500 in fast funds. The terms are written based on your average income, not on how high your credit scores happen to be. Plus, you can use alternative means of income, such as social security check, pension, alimony, or unemployment benefits.
FACT: You don't need any other form of collateral to get approved for this kind of loan.
PRO: You can also get Alabama online payday loans if you choose Alabama Title Loans, Inc. to be your loan provider.
CON: You may need more than $500 to solve your problems. So, in some cases, a title loan may be the better option if you need more money.
Be sure to carefully consider your choices before signing any contracts anywhere for any amount of money. Remember, once you sign your name on the dotted line, you're liable for the amount owed.
DID YOU KNOW: Lenders like Alabama Title Loans, Inc. also consider applicants without any credit history whatsoever.
How to Get a Title Pawn or Payday Loan in Alabama
Unlike traditional bank loans which require mountains of paperwork and still take forever to get you approved, second chance loans for bad credit use a process that's short and straightforward. Whether you've decided on a title pawn or a payday loan doesn't matter. It starts and ends the same way as long as you meet the basic requirements. So, let’s consider how to get the process started.
1. Submit the Online Form
Find the short intake form on our website and fill it out to get started or call the office directly. Either way, you'll get a chance to speak to one of our loan specialists who will explain how the process works, answer any questions you might have, and schedule an appointment with an associate. For this meeting, you can also choose the location that comfortable for you.
2. Gather the Required Items and Bring Them to the Meeting
The agent will request the following items to approve you for Alabama title pawns:
- Your driver's license or photo ID
- The car for inspection
- The lien-free title to it
And the agent will ask for this stuff if you opt for payday loans:
- Your driver's license or photo ID
- Your social security card
- Your last pay stub
- A blank check from an active account in your name
- The last 30-day statement from that account
3. Get Your Approval and Cash
If everything is in order, and you’re satisfied with the amount offered, sign a couple of documents and get your cash – in as little as 30 minutes.
Second chance loans for bad credit aren't as difficult or time-consuming as you thought they were. So, skip the banks and get the cash you need without all the red tape. To get the process started, just fill out the short inquiry form on our website – and we’ll get in touch with you within minutes to help you get approved!