Can people with poor credit still get loans? This is a question that many are wondering, as about 15% of consumers have “poor” credit and another 15% have “fair” credit ratings. With about one-third of the population struggling to raise their credit, there are many people asking questions about how to borrow money while working with less-than-perfect credit scores.
Although poor credit can be a challenge when trying to access traditional unsecured loans, there are lending pathways for those who are still working on building a strong credit score. One option, which we will highlight today, is called asset lending. Instead of using your credit score as evidence you can pay back a loan, you can leverage a valuable asset to demonstrate your ability to pay back what you borrow and reduce the lender’s risk while doing so.
So, can people with poor credit still get loans? The answer is yes, but the method might not be what you expected. Today, our team at AMETA Finance Group is going to walk you through lending options for those who have poor credit. No matter your credit score, there are ways to borrow money. We are going to show you how.
How Does Your Credit Score Impact Borrowing?
Your credit score is essentially a numerical prediction of how likely you are to pay back a loan on time. You can think of it as a representation of how well you handle money. But unfortunately, a poor credit score makes a poor first impression with many lenders.
A credit score is a three-digit number that companies arrive at through a mathematical model. This model takes into account factors like:
- Your bill-paying history
- Applications for new credit (mortgages, credit cards, car loans, etc.)
- Current unpaid debt
- Credit usage (how much of your available credit you are using)
- The number of type of loan accounts that you have
- Foreclosure or bankruptcy history
- How long your credit accounts have been open
- And more.
Typically, credit scores range from 300 to 850. A poor credit score is generally considered as any score under 580, while a fair credit score is usually between 580 and 670. When you have fair or poor credit, you are at a disadvantage when it comes to being approved for a traditional personal loan. Most typical loan programs rely on your credit score to determine if you are a good candidate for a loan. If you have poor or fair credit, you may not be approved.
Even if you are approved for a loan with poor or fair credit, you will likely still be hit with measures that can feel punitive. For instance, your maximum loan amount may be capped far lower than you would see if you had a higher credit score. Even more often, you will receive significantly higher interest rates.
When you borrow money, it is imperative to look around for the lowest interest rates possible. Essentially, interest rates represent the cost of borrowing money. The average interest rate for a personal loan currently sits around 12.4%. However, those who have poor credit see average interest rates closer to 26% APR. That is a huge difference in terms of how much you will pay over time, even if it only seems like a few percentage points now.
How Do People End Up With Bad Credit Scores?
There are many reasons that people can have fair or poor credit scores, and some of them are not your fault. For instance, those with young credit history may not have had time to build the confidence of the credit system. Additionally, mistakes or financial issues even from years ago can still impact someone’s credit score. As such, it can be challenging to get over this hurdle.
Just because you have a poor credit score does not mean that you have no financial opportunities, though. Even with bad credit, you can access loans that work in your favor.
Can People With Poor Credit Still Get Loans?
Here is the good news: Even if you have poor credit, you can still get a loan! And better yet, you do not have to suffer the indignities of a credit check and the low loan caps and high interest rates that can feel like a slap on the wrist. You are probably wondering how.
Enter, asset loans. Asset loans are a type of secured lending strategy that provides a workaround for many of the common issues that those with poor credit face during the lending process. They are also called collateral loans.
Basically, an asset loan allows you to borrow against the value of a high-end asset: Think of items like real estate holdings, a sports car or boat title, fine art or antiques, or luxury watches and diamond jewelry. If you own one of these valuable possessions, you can borrow against its market price in order to score a loan without a credit check.
When you leverage one of your assets, lenders actually experience lower risk. This is because they have a clear pathway to recouping their losses should you default on the loan. Because of that, you can actually get even lower interest rates than those that someone with good credit would get on an unsecured loan (like most personal loans).
Seriously, you read that right. Remember the statistic we shared about the average interest rate for a personal loan sitting at about 12.4%. Well, here at AMETA Finance Group, we offer asset loans with competitive interest rates of just 4%, less than one-third of what you would pay for an unsecured personal loan even in the best-case scenario.
How to Get an Asset Loan With Bad Credit
With an asset loan from AMETA Finance Group, there is no credit check required. That means fewer administrative hoops to jump through and no chance of being penalized for your financial decisions in the past. At AMETA, we are focused on the future, and we want to help you make your future as bright as can be.
We specialize in asset loans against luxury watches and fine diamond jewelry. If you have a Rolex watch or an heirloom diamond necklace, you probably do not want to sell those assets off, even if money is tight. Often, these types of possessions hold a certain sentimental value in addition to their genuine monetary worth.
Borrowing against your watches and jewelry is a great way to make these assets work for you without having to sell them off and lose them forever. With an asset loan, you will be able to harness a percentage of the market price for your items, investing that money in whatever you need most at the moment.
People take out asset loans for all kinds of different reasons. Some savvy investors even use their loan to invest in new opportunities, making a return on the money that they borrowed. Others use loans to pay off a short-term purchase, pay down other debt, or celebrate a wedding or milestone birthday in style. In short, there are virtually countless different use cases for asset loans. All you need is a high-end watch or piece of fine diamond jewelry to open up doors.
Wondering how to get started? Even if you are not 100% ready to commit, consider getting a free appraisal to determine the worth of your luxury timepiece. You might be surprised by how much money you could access with a high-end watch or diamond jewelry loan. And the best part is, there is no credit check needed.
Change Your Financial Future With AMETA Finance Group
Our trusted team at AMETA Finance Group is your go-to destination when you are ready to borrow against your valuable watches and jewelry. We are here when you need us, whenever you are ready to make a change in your financial story.
Get started today by filling out this short form.
FAQs About Getting a Loan With Poor Credit
Can you get a loan with bad credit?
It is possible to get a loan with a bad credit score, but you might see higher interest rates. If you have bad credit, an asset loan can be a stronger option. This type of loan involves leveraging an asset (such as a luxury watch) and borrowing against the value of that item. For a secured loan, you may not need a credit check at all.
What loans can you get without a credit check?
Asset loans are one of the best options for getting a loan without a credit check. Instead of depending on changeable credit scoring to establish your likelihood of paying back a loan, asset lenders assess your worthiness based on your collateralized asset. You can borrow against the value of that asset with no credit check required. This is a great option if you have bad credit.
How do you borrow money without a credit check?
Borrowing money without a credit check requires exploring alternative lending options, such as collateral loans (also called asset loans). In this scenario, you can borrow against the value of an asset. This removes the need for a credit check, as you are demonstrating your ability to pay back the borrowed money through the asset that you have leveraged.
