You can get a loan with bad credit from several types of lenders and loan products designed for people with low credit scores. Here are some common options and places to consider:
Types of Loans for Bad Credit
- Personal Loans: Unsecured loans that do not require collateral but may have higher interest rates and stricter approval criteria if your credit is bad
- Secured Loans: Loans backed by collateral such as your home or car, which can increase approval chances but risk losing the asset if you default
- Guarantor Loans: A friend or relative guarantees repayment if you cannot pay, helping you qualify but potentially risking their credit
- Payday Loans: Short-term, high-interest loans that usually don’t require credit checks but can be very expensive and risky
Recommended Lenders for Bad Credit Loans
- Upstart: Accepts credit scores as low as 300, uses AI to consider factors beyond credit history, offers loans from $1,000 to $50,000 with quick funding, but has higher origination fees
- OneMain Financial: Offers loans from $1,500 to $20,000 with same-day funding possible, accepts credit scores as low as 500, and allows secured loans using your car as collateral
- MoneyMutual: A platform connecting borrowers with lenders offering emergency loans with no credit check, suitable for urgent needs but approval depends on individual lenders
How to Improve Your Chances
- Borrow smaller amounts to increase approval odds
- Consider applying with a co-borrower who has better credit
- Provide proof of income and employment to demonstrate repayment ability
- Use secured loans or guarantor loans if unsecured loans are denied
Eligibility Requirements (Typical)
- Be at least 18 years old
- Be a resident of the lending country (e.g., UK or US)
- Have a bank account
- Provide proof of income and residence
- No recent bankruptcies or delinquencies (varies by lender)
Important Considerations
- Interest rates for bad credit loans are generally higher, sometimes significantly so
- Avoid predatory lenders offering no credit check loans with exorbitant rates; these can trap you in debt cycles
- Use loan eligibility checkers that perform soft credit searches to avoid impacting your credit score
In summary, you can get a loan with bad credit through specialized personal loans, secured loans, guarantor loans, or payday loans from lenders like Upstart, OneMain Financial, or platforms like MoneyMutual. Carefully compare terms, interest rates, and eligibility requirements to find the best option for your situation
