If you have a difficult time applying for a loan because you have bad credit, don’t give up! Getting a loan with bad credit is possible. You just need to know the right places to look, who to ask, and what you can offer to get a loan.
A credit score below 670 is considered a bad credit score. If you have a 670 or below, you might want to consider increasing your credit score. You can fix your credit yourself or look into hiring a credit repair company.
By increasing your credit score you can approved for better credit cards, get lower interest rates, get approved for larger loans and so much more. The benefits of having a good to excellent score can open so many doors for you.
If you need a loan as soon as possible and can’t wait to improve your credit score, there are options for you.
Credit unions are similar to banks except that they are a not-for-profit institution meaning that they exist to serve their members rather than make a profit. Credit unions can offer lower loan rates, reduced fees, and better savings rates. That’s why if you have bad credit, credit unions are a great place to start when trying to get a loan.
To work with a credit union you must become a member which usually has a fee. However, the small fee is usually worth it, especially if you have bad credit.
Credit unions are located in every community so they can be easy to access in your area. Look up what credit unions are close by to you and see what they can offer.
There are also some large credit unions that you can join.
Navy Federal Credit Union has been around since 1933. To become a member, you or a family member must have been in the armed forces, Department of Defense, or National Guard. You do need to open a credit or savings account with them upon enrollment.
You can get a personal loan up to $50,000, home improvement loans with no collateral needed, a debt consolidation loan up to $50,000 with affordable monthly payments, and secured loans if you have bad credit that can be secured by your savings account or certificate.
Alliant Credit Union is an award-winning credit union and has more ATMs than Chase and Bank of America combined. You can become a member in 1 of 5 ways, be an employee of a qualifying company, have a family member that is a current Alliant member, live or work in Chicago, or if none of these apply to you can become a member through their Foster Care to Success program.
You can get a personal loan up to $50,000, no collateral is needed and you can get the funds quickly. However, their loan approval is based on the payment method, creditworthiness, and ability to repay.
Ask Someone You Know
This might be a little uncomfortable for some people to do but sometimes the people you know are the best sources of getting a loan.
You can ask friends, family members, aquantances, business partners, whoever you think that has extra funds and know who you are might be able to loan you money.
This is a great option if you have bad credit as they only go off your relationship and their ability to trust you and your character. So if you are on a good terms with friends or family members this is a great place to start. Just make sure that you can pay them back so you don’t ruin that relationship.
Another way you can get a loan or some extra money is with a credit card. There are hundreds of credit cards to apply for and they all offer different benefits. However, if you have bad credit that limits the number of credit cards you can get approved for as most credit cards require you to have good or excellent credit.
There are several cards you can apply for that are guaranteed approval, don’t check your credit, and are easy to get if you have bad credit.
Related: The Best Credit Cards For Bad Credit
Is it possible to get a loan with bad credit?
Yes, it is possible to get a loan with bad credit as long as the lender you are working with doesn’t require good credit to be approved. Your credit score will always be an important factor when your applying for any loan but lenders will also consider your income, collateral, and debts.
Related: Best Loans For Bad Credit
Which Loan company is best for bad credit?
One of the best companies for loans if you have bad credit is any local credit union or One Main Financial.
One Main Financial has been around for over 100 years, branches nationwide and they pride themselves in looking at more than your traditional credit score. They want to help you find a financial solution that works for you.
Loan decisions will be based on your income, expenses, credit history and collateral. And you can get approved for a loan up to $20,000.
Related: Best Loan Companies For Bad Credit
Where can I borrow $2,000 with bad credit?
You can borrow $2,000 with bad credit in a few different ways. First, you want to make sure you can pay back the $2,000. Anyone who lends you the money will want reassurance that you can pay back this investment. Credit unions are a great place to look if you are looking for bigger loans. The credit unions we listed above have loans available up to $50,000.
Do you have bad credit, no credit or want to learn how to become a credit expert?
Check out our credit repair training and learn:
- What your actual credit score is
- How to get a copy of your free credit report
- How to get your credit back on track today
- Travel for Free, Fly First Class & Earn Money
Credit Repair Blueprints Final Thoughts:
As long as you have a good plan in place, are smart with your money and are a trustworthy person, you can get a loan with bad credit. You may pay higher interest in the beginning but as you begin to make your payments on time and repair your credit you can reduce the annual percentage rate in time. You don’t have to let bad credit get in your way of your goals, begin to repair your credit now!