Bad Credit Loans in South Carolina

South Carolina is well-known for its tourist attractions, beaches, and family-friendly fun. The state also boasts an affordable cost of living. A recent study showed that South Carolina has the 20th lowest cost of living in the United States.

With an annual GDP growth of 2.3%, South Carolina seems to have a strong economy. But still, 14.6% of the population lives in poverty. In addition, higher prices mean paychecks can’t always cover emergencies and other unexpected costs.

There are solutions if you are a South Carolina resident struggling with finances. Even with limited banking options or bad credit, you can still get a personal loan in South Carolina to cover unanticipated expenses like emergency car repairs and home improvements. Or you can use the funds to pay for a funeral or take that dream trip you’ve always envisioned.

If you live in South Carolina and need cash now, apply for a personal loan with Jora Credit. All you need to do is click here and take a few moments to fill out the application. Depending on when you apply, you could receive up to $4,000 within the same business banking day.*

Here are the quick loans available to you as a South Carolina resident:

• Personal Loans: These loans are money you borrow from a bank, credit union, or online lender. You repay a personal loan through fixed monthly payments, also known as installments. Use these funds for everything from home improvements to weddings to financial emergencies.
• Payday Loans: These are small loans with very short repayment periods. The goal is to pay back this loan by the time you receive your next paycheck. In South Carolina, the maximum allowable length of a payday loan is 31 days. Like other loan types, payday loans carry interest and lender fees, but you generally don’t need a credit check. Still, be aware that payday loans can come with higher interest rates.
• Title Loans: A title loan is another short-term financing option with higher interest rates. You can use a car, boat, or recreational vehicle to secure a title loan. But that means if you default, the lenders can seize the collateral used to back the loan. In South Carolina, lenders write title loans for 30 days or less, though rollovers are common. Additionally, $601 is the minimum amount most lenders offer on these loans. The reason? Lenders can’t charge high interest on loans less than $600. So these title loans, or “601 loans,” often bring high rates.

Other loan types include home equity lines of credit (HELOCs), which let you borrow money against your home’s equity. There are also cash advances and lines of credit.

Additionally, you can get a pawn loan in South Carolina. Through this method, you bring something of value—known as collateral—to the pawnbroker. You then receive cash based on the value of that collateral. In South Carolina, you have 60 days to repay the loan (and interest) to retrieve the collateral. If you don’t repay, the pawnbroker takes ownership of your property.

Generally speaking, the easiest types of loans to qualify for include payday, pawn shop, title, and other no-credit-check loans. If you’re not sure you’ll be approved for a loan, here are a few others to consider

• Secured personal loan: Some lenders offer secured loans to borrowers with spotty credit history. Lenders usually consider these loans to be “higher risk,” so they will require an asset as collateral in case you can’t pay back the loan. Because of this, these loans are usually easier to get than unsecured loans.
• Installment loan: An installment loan is any type of loan you repay in regular installments—usually biweekly or monthly. Some lenders, like Jora, offer installment loans to borrowers with bad credit.
• Payday alternative loans (PALs): PALs exist under the National Credit Union Administration (NCUA). They’re more regulated than payday loans and are available to credit union members. They range from $200 to $2,000 with a repayment term of 1-12 months.
• Friend and family loan: If you need quick cash, consider asking a loved one for a small cash loan. These do not require a credit check and usually do not come with interest or other fees. But make sure you can repay the loan, or borrowing from a friend or family member could lead to stress in your relationship.
• 401(k) loan: Some 401(k) plans have the option of taking out a 401(k) loan. This allows you to borrow a certain amount from your retirement account. You can use the funds for nearly anything. You could be penalized or taxed on the unpaid amount if you do not repay the loan.
• Peer-to-peer loan: A peer-to-peer (P2P) loan can be a good option for individuals with poor credit. That’s because private investors, not institutions, issue the loans. These private investors can set their own rates, terms, and requirements.
• Other no-credit-check loans: Financing options like payday, auto title, and emergency loans typically fall within this category because they do not require a credit check. If your credit score is stopping you from qualifying for a loan, one of these options might help. Be aware that some “no credit check” lenders have higher fees or are less reputable than others. To avoid this, consider a lender that checks your credit but also relies on other factors like income and debt-to- income ratio.

South Carolina’s loan requirements differ based on lender and loan type. Payday or title loans tend to have more relaxed requirements than installment loans, but these are only short-term financing methods.

No matter the loan, it's a good idea to know general information before applying. Here's what to know when applying for a South Carolina personal loan:

Your credit score depends on several factors. These can include your payment history, the amount you owe, and the average age of all open accounts. Most lenders who issue installment loans check your credit score.

Generally, the higher your credit score, the more likely you'll qualify for a lower interest rate loan. Payment terms might also be more favorable with a high credit score. With good credit, you could save up to thousands of dollars in interest payments.

One way to determine your credit score is to examine your credit report. You can get a FICO score from your credit card company or bank.

You can also request a free copy of your credit report from the three credit bureaus (Equifax, Experian, and Transunion). Review the report for any errors and let the reporting bureau know if there are mistakes. If you have low credit, you can work to increase it before applying for a loan.

An important aspect of getting a loan is knowing for sure you can repay it. To do this, review how much you pay monthly for food, housing expenses, credit cards, or other loans. Knowing you can repay a loan can help ensure you don’t end up in a debt cycle that’s hard to escape.

Many lenders examine your payments when deciding whether to accept your loan application. If you don’t have enough left over from monthly expenses, the lender might not approve your loan.

The average median household income in South Carolina is $58,234. This works out to approximately $4,852 a month. If, for example, you spend $4,000 a month on household expenses and loan repayments, this leaves you with $852. Ask yourself if this is enough for you to take on another loan payment. If the answer is no, hold off on applying for a loan.

Lenders might also check income and employment status and ask for certain documentation proving that you’re currently employed. These might include W2 forms, bank statements, or previous years’ tax returns.

And make sure you examine other income sources - side gigs, alimony, and child support all count as extra income.

You might decide to apply for a secured loan. If this is the case, you must provide collateral to improve your chances of qualifying. These assets of value can improve your odds of approval, but lenders can also seize the collateral if you fail to repay the loan.

If you have poor credit or don’t qualify on your own, a cosigner might be the way to go. Find a lender that accepts cosigners or joint loans. A cosigner with good credit or high income could improve your approval odds.

Most lenders list their typical loan rates, terms, and amounts where you can find them. If you can’t find this information, consider another lender. And remember that in some cases, you might have to apply to learn the exact rates.

A general rule of thumb is that short-term loans often have a higher APR (annual percentage rate), potentially making them a more expensive form of credit.

For example, payday loans need to be repaid by your next payday. Failure to pay off the entire loan could mean late fees or higher interest rates. Other loans, like those offered by Jora Credit, can be repaid in set amounts over several months. Both the APR and loan terms can determine your monthly payment amount and how much you’ll pay in interest. Use our online calculator for an idea of a loan’s monthly payments and the entire cost.

Many South Carolina lenders also examine the following:

• Debt-to-income ratio (DTI): This refers to your monthly debts divided by your monthly income. The percentage result is your DTI. If you earn $4,000 a month and your expenses are $3,000 a month, the DTI would be 3,000/4000 or 75%. Most lenders prefer to see a DTI no higher than 40% (excluding mortgage payments). If you’re DTI is higher than this, try to determine what expenses you can cut back on to lower your ratio.
• Loan fees: Many lenders might charge extra fees for their loans. These might include prepayment penalties or origination fees. A prepayment penalty arises when you pay your loan off before the end of its term. Meanwhile, origination fees occur at the start of the loan. Some lenders, like Jora, don’t charge these fees.
• Proof of identity/citizenship: This requires two or more forms of identification. These can include your government-issued driver’s license or state ID. Many lenders will only work with borrowers who are U.S. citizens or permanent residents. Be sure to have your social security card, passport, or birth certificate handy. And make sure that you submit copies, not originals.
• Your home address: Because many lenders won’t loan out of state, you must prove that you live in South Carolina. Show a rental letter, lease, mortgage, or utility bill to show proof of residence.
• Purpose of the loan: Some lenders offering installment loans want to know why you need the funds. Those offering bad credit loans might not need this information. But it's a good idea to prepare for this question.

Getting a loan in South Carolina is a straightforward process. The traditional method is through a bank or credit union. You either need to go in person or can apply online.

Then there are online-only lenders, like Jora Credit. These lenders have simple application processes. But before starting the process, ask yourself a few questions like the following:

• Why do I need this loan?: There are different reasons why you might need financial help. These can range from emergency funding to financing your dream vacation. Understanding a loan’s purpose can help you find the right type of financing.
• How much do I need?: It never pays to apply for more than what you need. Doing so is unnecessary. It means you’ll owe more. Also, be sure you can afford to repay the loan once you receive the funds.
• Can I afford to repay a loan on time?: Figure out your monthly expenses and then calculate estimated payments into your budget. If you find you don’t have enough to cover a loan, don’t apply for one. Even missing one payment could hurt your credit score and any chances of getting a future loan.
• Are there other options?: Maybe you could borrow from friends or family. Or a loved one might be willing to co-sign a loan with you. You could also qualify for other forms of financing.

Next, find a reputable lender licensed in South Carolina and check what they offer. Examine APRs, repayment, loan terms, and extra fees. And just note that Jora Credit doesn’t charge prepayment penalties or origination fees.

Also, make sure you fit the lender’s requirements. This might mean checking your credit score before applying. You also want to be sure that your income qualifies for the loan type.

Jora Credit’s loan application process is simple. If you have bad credit, here’s all you need to do to take out an installment loan:

• Create an online account and complete the online application. This step takes a few minutes. You only need to supply your name, social security number, home address, and birth date.
• Provide extra information. The information can include your checking account and bank routing number. It could also include identification like a state government-issued ID.
• Submit the application. Jora Credit normally provides a credit decision within minutes.
• If approved, accept the offer and receive funds. Apply before 10:30 a.m. central time, Monday through Friday, and you could receive your funds that same business banking day.*

Some lenders might perform a soft inquiry into your credit. This doesn’t affect your credit score, but it can give you an idea of your options, possible loan terms, and interest rates. Other lenders may only perform a hard credit inquiry, which could cause your score to drop by a few points.

There are two types of loans: secured and unsecured.

• Secured personal loan: Secured loans rely on collateral—like a car or a house—in exchange for money. Secured loans are generally easier to get. This is because you’re “backing” the loan with an asset of value. The downside is that if you default on the loan, the lender can seize your home or car, leaving you without a place to live or a method of transportation.
• Unsecured personal loan: Unsecured loans don’t need collateral. The lender relies on your credit instead. Even with bad credit, you could qualify for unsecured financing through online lenders like Jora Credit.

Both types of loans come with extra risk. Failure to pay on time could impact your credit score, and late payments could also generate late fees or interest charges. And with either loan, if you don’t pay at all, the lender could send your account to a collections agency.

Be sure to understand the risks before applying for any loan type, and make sure you can afford to repay the lender. That way, you can avoid long-term repercussions.

Your credit score ranges from 300 to 850 on the FICO scale, which 90% of major lenders use. The minimum credit score requirement depends on a few things, such as:

• Type of loan: Some loans, like payday or pawnshop loans, do not require a minimum credit score. If you’re trying to get another type of loan, like a personal loan, you may need fair credit or better—that is, 580+ credit on the FICO scoring model.
• Loan amount: With poor or fair credit, you might qualify for a smaller cash loan. But if you need a larger loan for things like debt consolidation, you may need good credit or better. This does depend on the lender, however.
• Lender type: Each lender can set their own lending requirements. Some traditional lenders—like major credit unions or banks—might have stricter credit score requirements than smaller financial institutions or online lenders.

Your credit score determines your financing options. It also impacts the available rates and terms available. If you have good credit, you’re more likely to have your application approved. You also have a better chance of getting a loan with a lower interest rate and better terms. A bad credit score can mean a higher APR and shorter loan terms. Here’s what makes up your credit score:

• Payment history (35%): This is the most significant part of your credit score and refers to your ability to pay your debts on time.
• Credit history (15%): Your credit history includes the average age of all your open credit accounts.
• Credit utilization (30%): Credit utilization means how much credit you’re using compared to your open accounts. Lenders generally like utilization of 15% or lower.
• Credit mix (10%): The different types of credit you have (installment or revolving) make up your credit mix.
• Credit inquiries (10%): These happen when a lender checks your credit report. Lenders will do this if you apply for a new account.

Other factors to consider are bankruptcies or foreclosures. These can stay on your credit report for years. Errors can also lower your credit score. Monitoring your credit reports can help you pinpoint and correct errors. These might include misspelled names, duplicate accounts, or incorrect missed payments.

Approximately 20% of consumers have a mistake on their credit reports. If you find an error, make sure you dispute it with the reporting credit bureau.