How to Get a Loan Even With Bad Credit

Sometimes you just need a little bit of extra help financially. Perhaps an emergency has come up and you don’t have the funds immediately to pay off the costs, or perhaps you need something to help you to pay for everyday life after losing a job. Getting a loan is generally a good choice in these situations. Of course, there’s one thing that often gets in the way when it comes to getting a loan: Your credit score. If you have a great credit score, then no problem! If, however, your credit score is poor, you may have a harder time trying to get the loan that you need. Thankfully all hope is not lost if you need a loan and you have poor credit. For instance, there are bad credit loans that are available online by CreditNinja. There are also a few other ways that you can get a loan on bad credit.

So, how do you get a loan even with bad credit? We’re here to give you all of the information that you need.


Consider Taking Steps to Improve Your Credit Score

It seems obvious, but we have to mention it. If you have some time to spare before you actually need the money, it’s always better to try to improve your credit score. Naturally, this logic doesn’t apply if you are looking for an emergency loan.

It doesn’t have to be rocket science to improve your credit score either. For instance, you can start by working on paying your bills in a timely manner. Make sure that late payments don’t negatively affect your credit score. Try to pay off the balances on your credit card. Ultimately the things that you need to do depend on why your credit score is poor, but these are some great starting points. If you aren’t sure what you need to do, check your credit report with the main credit bureaus to get a better idea.


Learn About the Types of Bad Credit Loans

The first thing that you should do is learn more about the kinds of loans that are available for you to use if you have a poor credit score. Your options are not going to be quite as vast as what you would get if you had a better credit score, but there are certainly options out there. The loans on offer include the following:

  • Secured Loans: This is the option that you are likely to find out there. Essentially, the lender will use collateral as assurance that the loan will eventually be paid off. For instance, this could be something like a car or a home. If you default then the item in question can end up being repossessed.
  • Guarantor Loans: If you have very poor credit, guarantor loans are generally a decent choice if you are limited on options. For these kinds of loans, you will need a friend or a family member that can provide the lender with reassurance that if you borrow and fail to pay back the amount, they will pay off the money remaining. The downside is that they tend to have incredibly high interest rates since there is extra risk involved.
  • Personal loans: These are essentially like your standard loans, but you may need to search a little harder for them since they are often hard to come by for people that have a poor credit rating. These loans will give you rather strict limits on the amount that you can borrow too. The loans tend to have high APRs since the lender may be worried that you will default, especially without a guarantor or collateral to back you up. As such, they can often cost a lot of money to have on a long term basis.

Things to Think About

Of course, before you decide on a certain kind of loan you first need to consider a few things first. A loan can be a pretty big financial decision and there are stakes that need to be thought about before jumping into an agreement.

For starters, consider whether the loan is going to be affordable for you in the long run. It is an unfortunate truth, but if you have a poor credit score then a loan is often going to cost you a lot more money meaning that it will take more time to pay it off. Not only that, but if you do end up defaulting then it can cost a lot of money. It can sometimes involve legal action and in dire situations, your belongings may even be repossessed. This shouldn’t be an issue if you are in control of all of your repayments, but it’s still something that you need to remember.

Also take some time to think about any limitations of the loan – how much can you borrow, and how much can you afford to pay back? Lenders will usually think about other things too, such as your equity in your home and your income – these are all things that will help lenders to determine whether you are safe to lend to.


Shop Around for Bad Credit Loans

Finally, it’s time to shop around to find a credit loan that works best for you. Remember to keep in mind the things that we have mentioned above – what are the interest rates, how much will it cost in the long run and is it feasible for you to pay it back? There are a lot of lenders out there, so make sure that you choose one that is reputable and offers a package that will work well for you.


It can seem like the end of the world when you have a bad credit score and you need to get a loan, but thankfully there are always options. While it is usually better to improve your credit score to get the best rates, bad credit loans can be a useful option when you need a little bit of extra help.