It was not too long ago that I was in need of some money. Finances were tight, and I just needed some cash to help me out for a couple of weeks. I knew I was going to need a loan, and so I started looking into my options. During this phase I noticed that there were a lot of options out there, but not all of them were good. In the end I found a loan option that worked for me, but I am afraid that other people will not be so fortunate. To try and help those people out, I thought it would be a good idea to go over my process and explain how I ultimately reached the conclusion that I did.
First, as any person who normally needs a loan will do, I turned to my bank. I went in and talked to one of the workers there, then spent another few hours filling out a bunch of forms. I left, and they told me I would hear back within a few days if my loan was approved. After going another couple of days without the money that I needed, I finally heard back. I was rejected because my credit score was too low. This was news to me, as I had no idea what my credit score was. With going to a bank no longer an option, I needed to find something else, and soon.
After the bank idea failed, I began looking into bad credit loan options. There are several out there, but I didn’t know much about them at first. There are payday loans, which are supposed to hold you over until your next paycheck. These sounded great in theory, but when I began looking at their interest rates, I was afraid I’d end up taking out another loan just to pay off the first one. Then there are guarantor loans, in which someone else, who has a good credit scores, essentially signs up for the loan in your place. I knew a couple of people who had decent credit scores, but I did not feel comfortable putting them in that position. If for some reason I couldn’t pay my loan back, I didn’t want that responsibility to fall to them.
Lastly, there was a logbook loan. With a logbook loan you can borrow against your vehicle, using it as collateral to secure the loan. This seemed perfect for me, since I was the owner of a vehicle, and I didn’t need to borrow that much money. I was a little concerned that I would not have a car for a while, but when I read that you get to continue driving your car, I was convinced. Since I used my vehicle as collateral, the interest rates were lower than some other types of bad credit loans. I quickly found a logbook loan lender, and I was able to complete the application in just a few hours. I thought I would have to wait a while to get the loan, but I was very surprised when they told me it would be in my bank account the next day. And they delivered. I had the loan that I needed, I didn’t have to get anyone else involved, and I didn’t have to settle for a loan with ridiculously high interest rates.
A logbook loan may not be right for everyone, but it was certainly right for me. If you are not sure what type of loan you should get, I recommend simply doing your research and seeing what your options are. There are plenty of places that will help people with bad credit scores, but not all of them are good for you. Just be sure you know what you are getting into before you sign anything and you should be okay. Hopefully this little story was able to help some of you figure out your own best path. Good luck!