As you look at easy, no hassle loans for people with bad credit, you need to make sure you carefully consider each and every one of your options.  While there are times they can be very appealing, especially if you have a very low credit score, there might be some alternatives you should consider before you sign the dotted line.  In this article, I’d like to share some of the options you’ll have as some of the alternatives you might not have considered in the past. 

Alternative #1 – Pawn Shops – Borrow Money and Sell Items Fast

Selling at Pawn Shops:  When you sell items at pawn shops, you cannot expect to get full value.  If you have an items that’s worth $5,000, for example, you might only get $2,500 or $3,000 when you sell it to them.  If you need money fast, it’s a good option.  If you have time to wait, you can likely do better by selling it to a private party.  That’s the tradeoff – it’s either quick money, or waiting and hoping you can get a little bit more. 

Borrowing Money at Pawn Shops:  Many people don’t realize they can get a collateral loan from a pawn shop.  At many of them, the bulk of their earnings are from borrowing funds.  You put up the item as collateral, rather than selling it, and you can get it back if you pay off the principal, plus any accrued interest on the loan.  You will probably not get any additional money for your item, but you will have a chance to get it back.  The length will vary from shop to shop, so check and see what everyone is offering before you make any decisions.

Alternative #2 – Borrowing From Friends and Family Members

While not perfect, even if you have very bad credit, you might be able to get a no hassle, low interest personal loan from friends or family members.  Keep in mind that you should still offer to pay interest, just as you would from a bank, and that you might alienate your friends if you fail to pay the money back in a timely fashion.  If you enter into something like this, it’s a very good idea to type up a contract for the lender and the borrower

Alternative #3 – Raising Capital to Avoid High Risk Loans

Sometimes people have all they need and just don’t realize it.  If you have items you could sell, it’s a good way to avoid taking out an easy, no hassle loan, which will generally incur higher rates of interest.  Take out an ad, assuming you have a little time before you need the money, and see what happens.  While you won’t get instant online approval, you might avoid another expensive interest borrowing situation, especially if you have bad credit.

Alternative #4 – Self Employed Worker – IRS Loans (sort of)

This isn’t really a loan in the traditional sense, but if you pay into taxes quarterly, you can skip a payment and only be charged 3% interest.  Obviously, you will need to make up the funds at tax time, but you will have access to whatever your quarterly payment was.  By way of example, my quarterly payments are just over $3,000, so I could not send in a payment and pay just 3%in interest.  With a few forms, you’re there.  Keep in mind the IRS isn’t exactly the place you want to skip paying, so be sure you can raise the funds when it’s tax day.  When you look at easy, no hassle loans for people with bad credit, this could be a good option to consider.

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