How to Get a Loan When You Have Bad Credit

credit applications

Believe it or not, you really can get a personal loan when you have bad credit. They key to this is in making choices as a borrower that are smart. This can even start you on the path to rebuilding your credit. It might seem to be more than a bit overwhelming, but with careful planning, you will be able to get the money you need while you repair your finances.

Understanding Credit Scores

Whether or not you will be eligible for any kind of loan, lenders will take a look at your credit score to determine if lending you the money will be a risk worth taking. The lower your credit score is, the more risk the lender has to take. This is why it can be so difficult to get a loan when you have bad credit.  If you want a better chance of getting a loan and you want good repayment terms and interest rates, you need to have a good credit score. If you have bad credit, and the time you need to repair it, it is worth trying to repair your credit before you try to get a loan.

Sometimes though, there is just no other way around it… you need cash and you need it now.

Personal Cash Loans

When you don’t need to borrow a ton of money, you might want to consider getting a personal cash loan from They are a company that offers alternatives to payday loans. You can get as much as $1,250. It is easy to qualify for a loan with them too. All you need is a social security number that is valid, a checking account that is active, and a job they can verify. The decisions are made quickly and you can have the money in your account as soon as 24 hours after the date of approval. Repayment terms are flexible too.

How to get Other Types of Loans

Having poor credit, bad credit, or no credit at all can be a massive stumbling block when it comes to getting a loan. This is because you can be looked at as a high risk who might default on the loan and leave the lender holding the bag. It is a fact that until you get your credit score up a bit, you will not be able to fit the typical lending guidelines that the more traditional financial institutions have got to follow.

  • Home Equity – If you have built up enough equity in your home, you might be able to get a tax deductible, low-interest line of credit that you will be able to spend on anything you like. The risk is that your home could be jeopardized if you default on the loan. This is one of the few options that you have regardless of your credit score.
  • Credit Unions are quite similar to a bank but they are actually owned by the members. These are non–profit style organizations that pass earnings along to the members in the form of fees that are lower and better customer service. You can check sites like for help locating a credit union near you. Give a few of them a call and ask about personal loans. Compare several of them to ensure that you get the best interest rate that you can get before you take that loan out.
  • P2P, or peer to peer loans, are something relatively new… having come on the scene as recently as 2005. This is an online platform where people can borrow straight from individuals as opposed to borrowing from an institution. This is growing in terms of popularity because of the streamlined process that is a win – win situation for borrowers who want to pay low-interest rates and for investors who want to earn high-interest rates.
  • Family and friends. This should always be a last resort because it can really put a strain on even the closest of relationships. Make sure that there is a repayment terms sort of contract drawn up and that everything is on the up and up. Include things like the amount that is borrowed, rate of interest, repayment terms, and any collateral that is used.

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