When you have poor credit, it can impact many different areas of your life. Bad credit can make it difficult to purchase property, open new credit cards, complete higher education, buy a new car, and invest in a more robust financial future. Sometimes, poor credit can seem like an endless cycle of struggling to come up with cash, taking on more debt, and getting buried in interest charges that keep on stacking up.

Now, it is time to break the cycle and get out of your bad credit rut. Today, we are going to spotlight a little-known lending tool that can enable even those with less-than-perfect credit to get their hands on low-interest loans with virtually no limits. Instead of crossing your fingers and hoping to get approved for yet another credit card, embrace a new chapter in your finances that will allow you to consolidate debt, invest in your future, and change your life for the better.

What Qualifies as Bad Credit?

Generally speaking, a bad credit score is anything below 600. Different credit scoring companies have different metrics and ranges for categorizing scores, but if you have a credit score under 600, you have likely experienced the numerous challenges that come alongside poor credit. There are many reasons that a person might have poor credit, ranging from the completely innocuous to the somewhat concerning. Here are just a few:

• Limited Credit History: Unfortunately, when you are just starting out, the lack of information about your creditworthiness can be a deterrent to lenders. Your credit score does not start out perfect and then fall. Instead, it starts low, and you must build it up.
• Bankruptcy: If you have filed for bankruptcy in the past, that amounts to a major blow to your credit. Lenders interpret filing for bankruptcy as a major risk when it comes to lending your further money.
• Too Much Credit Utilization: You have a certain amount of credit available to you, but the ideal credit utilization range is around just 30%. If you are using significantly more of your possible credit, lenders might think you are stretching yourself too thin.
• Late or Missed Payments: If you have a pattern of paying bills or credit card statements late, this is reflected in your credit score. Lenders are looking to work with candidates who they can trust to pay back their debt in a timely fashion.

While it might seem counterintuitive, carrying a lot of stable debt (such as student loans or a mortgage) normally does not tank your credit score. In fact, routinely making on-time payments to reduce these burdens can actually help your credit score. Successfully paying off other borrowed money, such as a credit card or personal loan, can also boost your credit score.

Borrowing Money With a Poor Credit Score

When you have poor credit, it impacts your eligibility for competitive personal loans. You may still be able to get a loan, but you will likely be slapped with high interest rates, unfavorable repayment terms, or very low caps on how much you get approved to borrow. To illustrate this point, consider how the average interest rate for personal loans fluctuates depending on your credit score. Each percentage represents the APR offered by online personal loan providers:

• Excellent credit (720+): 11.81%
• Good credit (690 – 719): 14.48%
• Fair credit (630 – 689): 17.93%
• Poor credit (below 629): 21.65%

The difference is shocking. With a credit score drop of less than 100 points, moving you from the “excellent” range to the “poor” range, you can expect to pay nearly twice the interest. Sometimes, percentages do not illustrate the gravity of this situation. To demonstrate just how much of a financial impact an additional 10% interest charge can make, imagine that you are borrowing $50,000 to finance a year of graduate school.

That said, do not be disheartened. Just because you have poor credit does not mean you must pay twice the going rate for a personal loan. It does, however, mean that you may need to get creative with how you go about borrowing money.

Personal Loans Available With No Credit Check

Here is the good news: There is a special type of personal loan available with no credit checks required. It is called an asset loan, or collateral loan, and it offers people with bad credit a renewed opportunity to invest in their financial future.

The issue with having bad credit is that lenders consider you a risky candidate for a loan, as they do not have evidence that you will repay the loan on time. The solution? Remove the risk for the lender, and unlock new possibilities! An asset loan does just that by securing the loan through high-value collateral. Here is how it works:

Basically, the borrower (that is you) leverages a valuable possession in order to cut down the risk for the lender. A common example is a luxury watch. The lender offers you a loan as a percentage of that item’s market value, and they hold onto the item until the loan is paid off in full. If you fail to pay back the loan, the lender can then resell your item in order to recoup their losses. Because the lender has a measure of security and does not risk losing so much money, the borrower sees a plethora of benefits: no credit checks, higher loan amounts, lower interest rates, and quick turnaround times, to name a few.

Remember that list of average personal loan interest rates that we shared earlier? Even borrowers with “excellent” credit scores were offered relatively high interest rates above 11%. Now, consider the interest rates available on asset loans. Here at AMETA Finance Group, we specialize in high-end watch and jewelry loans, and we offer low interest rates of just 4%.

Imagine the scenario we described earlier, in which Virginia and James both took out personal loans to cover graduate school. Even Virginia, who had an attractive 11.6% interest rate, ended up paying over $35,000 of interest on her $50,000 loan. If she had a 4% interest rate instead, she would pay just $10,747 in interest, less than one-third of what she would have spent. That is a tangible difference that illustrates just how many doors open when you opt for a lending option that lets you slash interest rates.

Why Take Out an Asset Loan?

Reimagine Your Financial Future With AMETA Finance Group

The moment that you take out a loan on your luxury watch with our team at AMETA Finance Group, you are turning the page starting a new chapter of financial wellness and success. Our high-value, low interest loans are available to anyone who owns brand-name watches… but that is not all we can help you with! We also offer elite jewelry loans for those who own GIA-certified diamonds, heirloom pieces, and other high-value items.

How do we do it? Our partnership with Manhattan’s elite jewelry and watch retailer Avi & Co. helps us make our appraisal process faster and more accurate than other lenders on the market. Whether you are looking to leverage a diamond ring or borrow against a vintage Rolex, AMETA Finance Group is the place to turn for reliable and reputable collateral loans.

Get started today! All you need to do is submit this short form to get a preliminary estimate of your collection’s value and discover endless possibilities.