When you need cash urgently and can't depend on your credit history to obtain a loan, one option you can consider are car equity loans. You need to remember, however that if you have bad credit, you should always expect to pay more in interest for any money you borrow, due to your history of late payments.
Types of Bad Credit Loans in Los Angeles
There are several different types of bad-credit loans available on the market, and each one has its advantages and disadvantages. The three main bad-credit loan types include:
- Payday advances
To get a payday advance, you need to issue a post-dated check, for the borrowed amount plus a lending fee, to the lender. The lender will deposit the check is during the next pay period to cover the debt owed. Payday advances work only for short-term loans by those who have a steady job and can ensure repayment of the debt in their next pay period. These are only recommended if you have a steady income to rely on and require emergency cash, because the debt you incur must be paid off immediately.
- Unsecured personal loans
Unsecured personal loans are very risky for the lenders, so you can typically expect exorbitant interest rates, high fees and penalties and rigid terms. Over the life of these loan agreements, you will often end up paying more in interest than you borrowed in the beginning. For these reasons, these loans are not recommended for borrowers with bad credit.
- Secured loans
Secured loans, such as car equity loans, give you the opportunity to get cash fast. When compared to unsecured credit, these loans have relatively low interest rates because they carry lower risk for the lender. Because your car equity serves as collateral, the lender's investment is secured and they can give you a better deal.
Wilshire Consumer Credit offers car equity loans in Los Angeles. Their flexible term options and confidentiality make this lender competitive. Contact them through the secure online form here to find out whether you qualify.
An equity loan loan is probably the best way to get quick cash if you have bad credit. Apply now and get approved in just a few minutes!