Unexpected expenses happen, but some of those expenses are more costly than others. If your roof suddenly starts leaking during the rainy season, you could be looking at repairs of $10,000 or more.
Very few of us would be able to cover these costs out of pocket. As a result, there is a good chance a loan would be necessary.
If you find yourself in such a predicament, you might be wondering what your options are. The good news is that you have a few of them. Let’s take a look at a few of those options and what they offer.
Borrowing With Lending Networks
Before we dive into the specific sites we recommend for bad credit loans, it’s important to note that each of these sites is actually a lending network. That means that the sites below are not the ones lending money.
Instead, they partner with lenders to help connect them with potential borrowers like you. Why does that matter? The main reason is that these lending networks cannot tell you how much you’ll be able to borrow – or whether you will be approved at all.
All borrowers must meet basic eligibility requirements. Beyond that, it’s up to the lenders to decide whether they want to work with you.
CashUSA
Features & Benefits
- Flexible borrower requirements
- Loan request can be approved within minutes
- Money deposited as early as 1 business day
- All credit types accepted
CashUSA connects borrowers with lenders. Each application is sent to the lender most likely to lend to the borrower. Because it works with a variety of credit profiles, it is not only a poor credit loan broker.
Interest rates vary depending on the lender, so make sure you read through the terms for each emergency loan before you choose. Applying online only takes a few minutes, and funds are often available the next day.
BadCreditLoans.com
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Loan Amount$500 – $10,000
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Loan Term3 – 60 months
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APR5.99% – 35.99%
Features & Benefits
- No cost to check loan approval
- High approval rate despite credit history
- Funds available as soon as next business day
- Assisting people with bad credit since 1998
Bad Credit Loans is an online lender marketplace that allows you to connect with multiple lenders by filling out a single application. The service is 100% free.
Once you’re approved, your lender will provide you with the APR, loan fees, and other terms.
Read through the terms, compare all the offers you’ve received, and only accept the loan you’re most comfortable with. You are not obligated to accept the personal loan from any lenders that you are matched with.
PersonalLoans.com
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Loan Amount$1,000 – $35,000
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Loan Term3 to 72 months
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APRVaries
Features & Benefits
- Multiple loan types available
- Fast loan decision
- Funds deposited as soon as you accept an offer
- Nationwide availability
You can get a loan through PersonalLoans.com with credit scores as low as 600. Each lender in their network offers its own unique interest rates.
The quick and easy online application only takes minutes. You’ll have a decision within a business day of submission.
How to Get A Loan Despite Bad Credit
The truth is that it may be difficult to immediately find a lender who will approve you if you have poor credit. The best thing you can do is be sure your existing credit is not a red flag.
Do you have any payments that are past due? If you are behind on payments on your mortgage, car, credit cards, or any other outstanding loans, you should be sure to make those payments. Anything that is past due is sure to drag down your credit score.
Title Loans
If you need money right away and can’t wait until you are able to naturally raise your credit score, one option might be a title loan. With most loans, you borrow money with the assumption you will pay it back on time and in full.
If you have bad credit, though, you may not be able to convince the lender of your creditworthiness. This is when title loans can be useful. You provide collateral – say your car or truck – in exchange for a loan.
Because the creditor now has the title to something you own, they can choose to repossess it if you are unable to repay them. This might make them more willing to lend to you – but it also puts you at greater risk. You should be aware of that if you decide to pursue a title loan.
Home Equity Line of Credit (HELOC)
A home equity line of credit is similar to a title loan in some ways. The main difference is that you only borrow against what you own.
In other words, if your house is worth $250,000 and you have $40,000 worth of equity in it, you can’t borrow against the $250,000. But you can borrow against your $40,000 of equity.
These loans can be tempting because they can give you quick access to a large amount of cash. But, just like title loans, you must be sure you can pay them back. If you can’t repay your HELOC, you could risk foreclosure.
Finding A Cosigner
If you don’t want to risk your vehicle, another option is to find someone with good or excellent credit who is willing to cosign on a loan with you. This could be a family member or a close friend.
In this case, the lender might be willing to approve you for a better loan due to the cosigner’s good credit. But keep in mind this strategy is not without risk, either.
That person is also putting their credit on the line, meaning their credit will be damaged if you default. And because the cosigner could be a friend or a family member, you could also damage your relationship with them.
Thus, you should proceed with caution here, too.
Quickly Get Access to the Money You Need
The lending networks above can potentially set you up with a personal loan as soon as the next business day. The process is quick and (hopefully) painless. All you have to do is fill out a quick form and find out what your options are.
If none of those lenders will approve you, though, you have a tougher decision to make. The best thing to do, especially if you have bad credit, it to make payments on time and in full. This will help raise your credit score and improve your loan options.
If you need a loan right away, there are other things you can consider, such as a title loan or a HELOC. However, these loans are risky and should only be considered if you are comfortable with that risk.
Whatever option you choose, remember that the best thing you can do is make payments on existing credit to help raise your credit score.
