Posts tagged with "Where Can I Get a Loan With Bad Credit"

The Differences Between Unsecured Loans and Secured Loans

When you need money that goes beyond your normal income, a personal loan can be a great option.

There are many possible reasons as to why you may need money that exceeds your normal income. Maybe you’re first born is graduating from high school, and you want to make sure they start college off with a nice laptop. Or, maybe the situation is much more dire, like a flooded basement that requires emergency water removal and water damage repair. Whatever the reason though, there’s a strong possibility that you’ll be able to find the money you need with a personal loan. There are essentially two basic kinds of personal loans you could apply for — unsecured and secured — and today, Your Loan Depot will go over the main differences between the two.

What are secured and unsecured loans?

In many cases, when you apply for a loan, it’s for something specific, like a car or a home. But, with a personal loan, you can used the funds for almost anything, which makes them ideal if you’re facing a financial emergency of some sort. Secured loans are loans that are backed by collateral, like a savings account, the title of your car, etc.; whereas, unsecured loans are based on your ability to repay the loan, as well as your credit worthiness.

Now that you know that basics of what secured and unsecured loans are, it’s time to learn about a few of the main areas where they differ.

Lending Criteria

Though the lending criteria will be dependent on the financial institution you choose to go with, there are certain requirements that apply to most lenders. In order to qualify for an unsecured loan, you have to be able to prove that you can afford the payments and that you’re responsible enough to take care of the loan. This is largely based on your credit history, and in many cases, if you have a credit score lower than 680, lenders won’t approve you for an unsecured loan.

Secured loans, on the other hand, are much easier to qualify for. Thanks to the collateral that is put down, lenders are able to offer secured loans to a wider range of people than they would with unsecured loans. This makes it possible for companies to lend to people with no or bad credit.

Costs

The costs of a loan are largely due to the interest rates — though, you should also be aware of any applicable fees — and you should always consider the costs before applying for a personal loan. In terms of cost, secured loans are generally the most affordable options. The collateral you put down helps to shield the lender in case you default on your loan, which means that lenders can afford to lower their interest rates a bit for secure loans. If you’re looking at a short-term secured loan, like a title loan, keep in mind that you’ll probably have a higher than standard interest rate, but because these loans are paid off so quickly, you end up paying less in interest over the course of the loan.

What Happens if You Default?

If you were to default on a secured loan, then your lender has the right to seize your collateral, and they can do so without having to go to court first. However, most lenders will work with you to prevent you from defaulting on your loan. With an unsecured loan, defaulting could still cause you to end up having to give up some of your property, but before that can happen, your lender would be required to sue you and win a court judgement first.

When to Use it

Due to the requirement of a good credit score and solid credit history, unsecured loans are best for people with a strong credit score. Unsecured loans are great options if you’re looking to consolidate other debt, take on a major home improvement project or pay for your child’s tuition. Secured personal loans are best for people who may not have the best credit score or history, but need money in the short-term to cover expenses. Secure loans, like title loans, are ideal when you need quick cash for a financial hardship or emergency.

Find the bad credit loan you need with Your Loan Depot today.

Although unsecured loans are harder to qualify for and cost more than secured loans, they are much more common than secured loans. In fact, most banks don’t even offer secured loans. If you have bad credit — or no credit at all — and you need fast cash, don’t waste your time trying to get an unsecured loan through your bank or credit union. Instead, turn to Your Loan Depot in Mansfield. We offer title loans and payday loans, helping to bridge the gap between paychecks and cover financial emergencies. Stop by one of our many locations in Texas today to apply, or contact us to learn more.

What Hurts Your Credit Score?

What’s Considered A Bad Score?

If your score is under 670, you’re in the fair range. Most lenders and other business organizations consider a score below 580 to be very poor. While it’s very challenging to get a loan with a bad score, it’s not impossible.

And A Good Score?

Anything about 800 is considered exceptional, but only about 20% of Americans are in this category. Generally speaking, a good score lies between 670 and 739, while anything between 740 and 799 is considered a very good score.

The More Obvious Things People Do That Hurts Their Credit Score

Any time you miss a payment on a loan, your credit score takes a hit. Missing a credit card payment not only incurs late fees and high interest rates, it also lowers your credit score. If your credit card payment is late by more than 30 days, pay it as soon as you can. Be aware, though, that any late payments can stay on your record for up to seven years. The best thing you can do to maintain a healthy score is to always make your credit card and loan payments on time.

Another obvious thing people do that lowers their credit scores is sharing an account with someone who’s not handling their finances responsibly. Here’s an example: You just got married, and your name is added to your spouse’s credit cards. You find out the hard way that they regularly max out their cards, and sometimes, they miss their payments. Even though you haven’t misused the account, your spouse has, and since your name is now on the card, you also take a hit to your score.

Some Surprising Things That Lower Your Score

Some people are surprised to discover that their score has dropped after they’ve refinanced a home or car loan. Refinancing a student loan can also hurt your credit score. So can canceling a credit card, or having no credit history to show potential lenders.

Too Many Credit Cards

Yet another reason for lowering credit scores is applying for too many credit cards. Maybe you’ve done this yourself — you’ve received a number of attractive credit card offers in the mail, and you’ve decided to apply for them. Unfortunately, you’ve just hurt your credit score. Or perhaps you’re remodeling your home, and you’ve decided to apply for credit at the home improvement and furniture stores you’ve been shopping at. The problem with doing that, though, is that your score will drop, and lenders may wonder why you’re so desperate for credit. Spend wisely; if you have exceptional credit, applying for store credit won’t hurt you much, but if you’re teetering between fair and poor, you could be hurting your financial prospects without even realizing it.

Loans For People with Poor Credit

If you have bad credit, can you still get a loan in Texas? Yes, in most cases, you can. If you need to get a loan, even with bad credit, contact Your Loan Depot. We have offices in Corsicana, Stephenville, Mansfield, and several other Texas locations to serve you.

Are you asking yourself, “Where can I get a loan with bad credit?” If so, then look no further than Your Loan Depot. We work hard to get you the money you need now. Contact us today, and one of our friendly representatives will work diligently to help you get the loan amount you need. Don’t wait; reach out to our offices in Mansfield, Corsicana, Stephenville, or one of our other Texas locations, and start finding the best loans for bad credit, even while you’re working to improve your credit score.

Fill out our online application today. Your Loan Depot is here to help you.

6 Expert Tips For Rebuilding Your Credit

When you have bad credit, it can be hard to qualify for loans, rent or buy homes, or even get hired by a new employer. It also can be hard on your emotional health and negatively affect your relationships. If you find yourself asking, “Where can I get a loan with bad credit?”, we hope you’ll think of us. However, while you can qualify for a bad credit loan with us in Texas, we also want to help you improve your credit score and financial future. In our blog today, we will provide you with helpful tips and expert advice for when you’re trying to rebuild your credit.

Not sure what’s affecting your credit score in the first place or how your credit score works? Check out our blog post on what’s impacting that respected number.

1. Find out your credit score

First things first, right? You won’t be able to improve your credit report unless you first know what it is and what your goal is. Here’s what your number means:

  • 300-619: poor or bad credit score
  • 620-679: average credit score
  • 680-739: good credit score
  • 740-800: excellent credit score

Even if you’re in the average range, many lenders are wary and will either charge higher interest rates or not give you a loan. When you have an excellent credit score — as you can imagine — more opportunities will be available to you.

When you find out your credit score and check your credit report, see what specifically is affecting your credit score: Late payments? Missed payments? Your debt utilization ratio? Whatever it is, make that your focus.

You’re allowed to order a free report from each of the three credit bureaus in one year, so order one today to get started.

2. Catch up on payments

Your payment history is responsible for 35 percent of your credit score. In other words, being behind on payments is the biggest influencer on your credit score. You most likely can’t pay everything at once, but don’t worry — contact your creditors, work out a payment plan, and start paying what you can.

When you’re going through this process, you need to be ruthless. Pinch pennies wherever you can, make a plan of attack, and keep to it. When it seems overwhelming or ineffective, look at all you’ve paid over the last couple of months and envision how nice it will feel when you’re no longer in debt.

3. Pay bills on time

Even if you can’t pay the entire amount all at once, make sure you pay the minimum amount possible at the very least. This even includes non-credit bills such as utility or rent payments. These late payments can be reported to the three credit bureaus and negatively impact your payment history as well.

If you have a difficult time remembering to pay bills, set up automatic withdrawals or reminders so you don’t miss any payments.  

4. Chip away at your debt

This is similar to the last tip, and just as important if you want to get out of debt and really improve your bad credit score. Your credit utilization ratio comes in right behind your payment history in order of impact on credit score — 30 percent of your credit score is determined by your credit utilization. For example, let’s say you have a credit availability of $10,000. If you have used $8,000 of that, then your credit utilization is 80 percent.

Owing a large percentage of your available credit will count against you on your credit report. For this reason, you’ll want to pay down your remaining debt as quickly as possible. Have a garage sale, find a second job, cut back on expenses — whatever it takes!

5. Avoid closing or opening credit card accounts

The age of your credit account is responsible for about 15 percent of your credit score. While you’re trying to improve your score, avoid altering the age of accounts whenever possible. If you have to close one because of how late you are on payments, then there’s no way to avoid it. However, keep all the same credit accounts whenever it’s in your control.

6. Be patient

Just as you most likely didn’t get yourself into this situation in one day, you won’t be able to get out of this situation in just one day either. It could take 60-90 days (or longer) before you even start to see your credit score improve, and depending on how much debt you have it could be years before you see the credit score of your dreams.

As you follow all of these tips though and practice good financial habits, you can be confident that you’ll one day see a credit score above 700. And even if it takes years before you get there, at least you’ll save thousands of dollars in interest in the process.

If you’re not quite there yet, then that’s OK. When you need a loan but have bad credit, Your Loan Depot can still help. We have some of the best loans for bad credit in Rosenberg, Tomball, Mansfield, Humble, Conroe, and our other Texas locations. We’re happy to provide loans for people with poor credit and help them get back on their feet again. When a financial emergency hits, your credit score won’t wait for you. Let us help — get a loan with bad credit today!

What Are the Factors Affecting Your Credit Score?

Needing a loan already means you’re in a tight financial situation, but when you have bad credit the situation can seem even more intense and restricting. At Your Loan Depot in Texas, we still approve loans for people with poor credit. If you need a bad credit loan, feel free to contact us to see what we can do.

Have you ever been curious about how your credit score is determined though? If you know exactly what’s contributing to your bad credit, then you can know what changes to make to improve it.

FICO® Scores are always determined and calculated by negative and positive information in your credit report. Most people know that a late payment will negatively impact their credit scores, but FICO actually outlines exactly what factors affect its calculations.

Payment History: 35 Percent

You guessed it: that late payment (or two or three…) carries a lot of weight with your credit score. Any lender you go to for a loan wants to see that you paid past bills and credits on time.

If you’ve messed up a lot of payment dates, though, the good news is that credit scores will notice if you establish or reestablish a good track record of making payments on time. So if the last time you missed a payment deadline was a year or two ago, FICO will notice and won’t damage your score as much as if you missed last month’s payment date.

Because of how much weight is given to your payment history, the best thing you can do to initially improve your credit score is make your payments on time — even if you’re just paying the minimum amount due.

Amounts Owed: 30 Percent

If you owe a lot on your credit card or previous loan, that doesn’t mean you’re automatically going to have a hard time getting a payday loan in Texas. However, if you’ve used a large percentage of your credit limit, it can indicate to your potential lender that you’re more likely than another person to make late payments or fail to pay altogether.

The total balance on your last statement is the amount that your credit report takes into consideration.

Length Of Credit History: 15 Percent

We see a big drop in the weight of this item and the previous factor. Different aspects will be considered with the length of your credit history:

  • How long you’ve had your credit accounts
    • The age of your oldest account
    • The age of your newest account
    • The average age of all of your accounts
  • How long you’ve had specific accounts
  • How long it has been since you used certain accounts

Longer credit histories generally improve your credit score because it shows your patterns, payments, and reliability over a longer amount of time. However, if your credit account is new but the rest of the factors are OK, then your credit report will most likely be fine.

Credit Mix: 10 Percent

How many different credit accounts do you have? Credit scores look into this. They’ll consider your credit cards, installment loans, mortgage loans, and even your retail accounts.

Having very few or very many credit accounts won’t be a huge determiner in your credit score, and you definitely don’t want to open credit accounts that you won’t use. This factor is generally of most use when there’s not much other information on which to base a score.

New Credit: 10 Percent

This factor is similar to the length of your credit history. If you open several new credit accounts in a short time, your credit score may be at risk (especially if you don’t have a long credit history from other credit accounts).

To protect yourself from this in the future, be careful with how many new accounts you have at once. You score won’t drop drastically if you apply for new credit, but it’s more likely to drop more if you open several new accounts rapidly.

These percentages aren’t quite as cut and dry as is listed here, but it’s a good starting area. A category’s importance can vary per person, especially if you don’t have a long credit history.

At Your Loan Depot, we offer some of the best loans for bad credit. If you find yourself asking “Where can I get a loan with bad credit?”, then we hope you’ll think of us. We offer title loans and payday loans to help you get back on your feet, and we’re in ten locations throughout Texas. Now that you know how credit scores are determined, you can better work to improve yours.