Well Heeled Blog » Save Money, Have Adventures, and Travel the World

Masthead header

How to Get a Bad Credit Loan FAST – Even When Your Credit Is Terrible

This post is sponsored.

People with terrible credit can still find a loan to cover unexpected expenses. Lenders have become more willing to extend loans to people with bad credit ratings. However, the individual can expect to pay more for the loan. The types of loans may differ for each individual depending on his or her financial situation. An individual who has filed for bankruptcy will not be offered the same type of loan as someone who has not filed bankruptcy. Therefore, the options differ according to the individual’s credit history.

Types of Loans Available for Individuals with Bad Credit

  • Unsecured personal loans are available with higher interest rates since these do not require any collateral to secure the loan.
  • Bad credit personal loans offer access to fast cash when it is needed. An individual can go to www.badcreditloans.com to apply for this type of loan.
  • A personal loan for a limited amount will usually be available to individuals with poor credit. Some institutions will not require a credit check for loans of small amounts, and the money will be available quickly.

Individuals with bad credit should borrow the lowest amount needed and pay back extra each month over the minimum payment to prevent paying more money in fees and interest. It is better for the individual to pay back the loan as quickly as possible.

Tips to Help Individuals with Terrible Credit Obtain Loans

  • Individuals should be aware of their credit scores. A credit report should be obtained and checked for accuracy by the individual before applying for a loan. The report will allow the individual to know if something has been misreported, which can affect their credit rating. Knowing the credit score can also help an individual know which type of loan will be best for him or her.
  • Before applying for a loan at an establishment, consider asking a family member or friend to extend a loan. This could save money on the high interest rates as well as the time it takes to apply and wait for approval from a lending institution. Just be sure to pay back the money to the family member or friend with interest, or the relationship could be damaged.
  • Individuals should check with their personal bank or credit union since these are two of the best places for individuals with bad credit to obtain personal loans. The personal bank is more willing to work with an individual who has money in their establishment since the bank is familiar with the individual’s banking standards. However, the bank does not have to loan the money just because an individual has an account with them, but many times the bank will be more lenient in their lending practices for these individuals. A credit union that is offered through a job will be more agreeable to loaning money to an employed worker since the credit union is guaranteed of having the money repaid. The money will usually be deducted from an employee’s paycheck.
  • Individuals can search online to find companies that offer credit to individuals with terrible credit. Make sure that the company is legitimate by checking them out before applying for the loan. Call the company and discuss the reason for needing the loan.
  • A great way to get a bad credit loan fast is with a payday loan. This type of loan will offer money fast for someone with an emergency, and there is no other option for obtaining the cash. These loans come with extremely high interest rates, and the loan will be due on payday. If an individual is not able to pay it back at that time, more interest will be added. This can become a problem since the debt is increasing. Eventually this could cause someone to be unable to pay back the loan.

Sometimes it becomes necessary to find extra money for an unexpected expense, but it is better to find a loan that is repayable to keep from getting more into debt. Terrible credit ratings mean that an individual will have fewer options of loans to choose from to get money fast, but there are some loans available if an individual is willing to pay the higher interest rates.

  • seedebtrun - I think about this often, since we are in debt…and I pretty much know exactly WHY! We got an interest-free loan…but only for 12 months. We assumed we'd be in a better financial place 12 months down the road…and ended up spending a bunch of fees when that extremely quick 12 months was up! We definitely should have asked a family member. I think about doing that today even. What if we just borrowed what we have left in debt, paid it off while not making a bank or credit card company richer, and all would be well? I'm just so proud and so is Jeff. I think it would be a good deal, but what if something else happens? What if we can't pay it off in the time frame we allotted? What if the family member from whom we borrowed fell into some financial troubles and needed to go into debt in order to keep us out? I just couldn't live with myself, so we are just going to trudge on ourselves and pay this off ASAP! I never want to feel this insecure about my financial future again…and I won't if I continue to be smart about it.
    -M ReplyCancel

  • Taylor Parker - My husband and I have been saving up for five years to buy a house. And it turns out that neither of us have any credit because neither of us have had credit cards or car payments before. Is there a way to boost your credit, quickly and efficiently? Is it worse to have bad credit or no credit at all? ReplyCancel

  • dianna - Ms. Taylor you and your husband can get a prepaid debit card from your bank with 500-1000 dollars on it and build your credit and buy small items and pay a monthly minium of $100.00 a month toward the purchases and than you can build within 6 months; That is my best advice and good luck to you.. ReplyCancel

  • John Robert Clements - I think you've got to be really careful when it comes to these kinds of loans as there is a reason that more reputable lenders do not lend to people with bad credit… it generally means you won't be able to pay the loan back and if this is the case with a bad credit loan you will end up in even more debt, it just turns into a vicious circle. ReplyCancel

  • SpotTheDog - There are some out there who have never accumulated any kind of debt whatsoever, who don’t use credit cards for purchases, and who just bank their earnings and keep track of their expenses. They believe that if the time comes when they will need a loan to make a large purchase (say, for a house or car) that financing institutions will gladly approve their application. But these are exactly the kind of people that don’t get approved. Seems like money is your enemy when you are its friend! Can you blame people for getting into such a bad situation in order to survive? ReplyCancel