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In life, most people will need to take out a loan at one point or another. This could be for your education, to purchase a home, or even to get a vehicle. However, sometimes, people just need some extra money for emergencies, large purchases, or unforeseen situations. In fact, stats show that over a third of Americans take out loans, which means tens of millions of people are borrowing money.
Lucky for these people, most cities are home to a ton of different lenders willing to work with a wide range of people. While getting a loan is generally simple, this isn’t always the case if you have bad credit or a patchy financial history. With that in mind, this article is going to look at a few ways to borrow money if you are not able to get a standard loan.
Get a Car Title Loan
If you own a vehicle, you should consider utilizing a car title loan to get the money you need. A car title loan is a loan in which a borrower will use their car title as collateral. Because your car is up as collateral, lenders will be more willing to work with individuals that have bad credit. This is because if the borrower defaults, the lender will take ownership of the collateral.
Not only is a car title loan easier to get than a standard loan, but they can also be more affordable and have lower interest rates. This all has to do with the lower amount of risk that the lender is exposed to. There are likely many lenders out there willing to provide car title loans in Long Beach or wherever you happen to live.
Get a Home Equity Loan
Another option to borrow some money if you can’t get a standard loan is to get a home equity loan. Of course, you need to own a home and have some equity in that home for this to be an option. A home equity loan uses the equity in your home as collateral for the loan, thus making you a less risky borrower for lenders.
These types of loans can often get you access to large amounts of money at great interest rates, depending on how much equity you have. As you could imagine, they are also incredibly easy to be approved for as long as there is equity in the home. However, it is important to know the risks associated with loans like this. You need to be sure not to default or you could end up losing your home.
Ask Friends and Family
If you don’t own a home or car, your options dwindle a bit. Sure, you can get a bad credit loan or utilize a credit card, but these can be expensive or have strict terms if your credit is bad. If they are your only option, they are worth it, but you should also consider asking friends and family members for a bit of money.
While it might be difficult to swallow your pride and ask for help, it can sometimes be the best way to go about doing things. It could save you a lot of money in the long term. Explain your situation, and you may be surprised at how helpful your friends and family can be. Of course, if you borrow money from friends or family, be sure to pay them back as soon as you can. It’s not worth it to ruin a friendship or relationship over a few hundred dollars.
Hopefully, this article has helped you learn about some additional borrowing options to try if you cannot get a standard loan.