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Where can I get a bad credit loan? Well, that’s a great question. Of course, you want to avoid borrowing money but sometimes emergencies happen and you have no choice. The problem is that with a bad credit history it’s harder to borrow the money you need. If you’re in need of cash quick, you do have options.


Key Factors

  • 16% of Americans have very bad credit histories
  • You can use your payday loan for just about anything. Many use them for rent, credit card payments, utilities, mortgages, food, etc.
  • With a bad credit record, borrowers have fewer options and pay higher interest rates
  • Bad credit borrowers sometimes borrow from two or more lender-types to cover their expenses
  • Before you apply for a loan, it helps to check your credit score


Where to Get a Bad Credit Loan

As you probably already know, if you had a good credit history i.e. one where you have a proven track record of paying back your debt on time and in full, then you wouldn’t be asking – Where can I get a bad credit loan? Right?

But, you’re here because you have bad credit or want to know what you’d need to do if you had bad credit. Well, let’s talk about what you can do right now to get the money you need.

If you’ve approached your bank and they’ve turned you down for a loan then you could seek help from your parents, another relative, or a friend. Do consider the risk of potentially damaging a relationship if you borrow from a loved one. It can cause stress and strain especially if you’re slow to repay or unable to repay in the end.

Your other options include:

  • Trying a different bank
  • Online lenders or lender brokers
  • Payday lenders
  • Credit unions
  • Title lenders


Do All Lenders Need Different Information for My Bad Credit Loan?

Most lending groups, whether they’re online or traditional brick-and-mortar banks, will ask for approximately the same information from you. That goes for a bank, credit union, online lender, etc. The good news is that if you’ve already applied to your bank, you most likely have all the paperwork and information ready to go for your new application.

You will need to supply i.d., proof of income, job information (full-time or part-time), employment (self-employed vs employed by a company), whether you own or rent your home, and any other debt you’re currently carrying.


Try a Different Bank for Your Loan

It could be that your bank may not be set up for emergency loans or bad credit loans or they may have already reached their monthly loan quota. But, just because your bank said no, it’s possible another bank may be more willing to consider your bad credit application.


Bad Credit Online Lenders

More and more online lenders are appearing on the scene every day. Many offer bad credit personal loans or payday loans and as they’re online the application is too. You’ll find that it only takes a few minutes to fill out. Plus, sometimes you can get an onscreen decision instantly. With these, your money could reach your bank that day or within the next 24 hours.

One of your best options could be to find a reputable lender broker. Lender brokers do the hard work for you by instantly searching all offers and showing you the best for your situation. This means you don’t have to fill out lots and lots of applications.

When looking for a broker lender or online lender, choose one that uses a soft search method to check your credit history. This way they leave no footprint of their search on your record so your credit score will not be impacted.

For sure, the convenience and speed of going online are great benefits for emergency cash. But if you have bad credit their offerings may not be what you expected. First of all, interest rates will be higher for bad credit vs good credit. Plus, the lender may not offer you the same amount of cash that you’ve requested.

One or both of these can happen because a bad credit score tells them that you may be a high risk. They need to cover their potential loss by gathering more money from you upfront (i.e. higher interest rate). They may also throw in extra fees so make sure you read your contract carefully before signing.

Pros Cons
  • You don’t have to go anywhere – apply from anywhere using your phone or computer
  • Quick and simple application process with fast onscreen decision
  • Same or next-day cash in your bank
  • Higher interest rates than with ‘good credit’
  • Possible additional fees
  • The loan amount could be smaller than requested



Bank or Credit Union

If your bank will approve your loan, that’s great and you’re all set. On the flip side, you may not meet their minimum requirements and they could turn you down flat due to your bad credit history. Also, banks take longer to approve loans so you may lose weeks waiting to hear back. Then if you’re denied the loan, your financial emergency situation could have gotten worse.

You may have better luck with a credit union. They can be slightly more lenient than your bank plus they may offer better rates. Credit unions are member-focused so if you’re a member they are more inclined to help you out.

There’s a potential problem going this way. If you’re not a credit union member they may not be able to help you. Most credit unions support a particular group i.e. working for a particular company or organization. Still, it’s worth a check to see if you’re eligible for a credit union bad credit loan.

Pros Cons
  • If you have a relationship with your bank or credit union you may have a better chance of getting a loan with bad credit
  • Banks can take longer to approve your loan
  • They may have minimum requirements your bad credit does not meet
  • You’ll pay higher rates


Payday Loans

You can borrow anywhere from $300 to $15,000 depending on the lender and of course your income and credit history. Payday loans are meant to be short-term loans to cover costs that have cropped up, emergency, or otherwise. They’re called payday loans because oftentimes people pay them back when they receive their next paycheck.

Many payday lenders will consider bad credit loans. The thing about payday loans is that the interest rate can be very high even as high as 400 percent. While some lenders require a quick repayment, others may offer longer terms. Be cautious about going for the longer term because that means you’re going to be paying more interest over time. This can make it harder to repay your loan.

Figure out your needs and have a plan on how you will repay the loan before you take it out. If you cannot repay your loan this will damage your credit history and make it more difficult or, perhaps, even impossible to get loan approval in the future. At least until you repair or improve your credit score.

Pros Cons
  • Soft search checks do not leave a footprint
  • You could have your cash in hours or by the next day
  • Very high-interest rates
  • Possible additional fees
  • Sometimes short repayment period



Title Lenders

If you have bad credit, a title lender will usually lend you money with no credit check. They will do this because to get a title loan you must put up your car or another valuable asset as collateral. This type of loan is called a secured loan and is pretty easy to get as long as what you’re putting up as collateral is of sufficient value and you can show that you own it outright. Because the lender has your collateral, they generally offer lower interest rates than a payday loan.

You repay this type of loan in equal monthly installments. Beware: If you don’t make your repayments, your car or other collateral can be taken from you by the lender to cover the loan.

Pros Cons
  • Lower interest rates than payday loans
  • Even with bad credit they’re easy to get
  • You must put up collateral for approval
  • You could lose your collateral if you do not pay back your loan



Bottom Line:

You do have options with bad credit but you need to study them and decide what you can handle. Borrowing money can be a great short-term help but long term it can drag you down. Only borrow what you need, have a plan to repay it, and stick to it. This goes for any kind of loan whether it’s from family and friends, a bank, a credit union, or an online lender.


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