Need Money? 5 Options For People With Bad Credit

Posted on: 22 June 2016

If you have bad credit and need money, you may feel there are no options for you. There are ways you can borrow money even if you have bad credit. Here are five ways to borrow money:

1. Apply for a loan from a credit union

Credit unions are local banks rather than large, bank chains. Because of the personal nature of a small, local bank, you may be able to talk directly to a lender. You can explain your situation directly to a person who may have sympathy for you and approve your loan. With bad credit, the terms and interest rate will be higher than the same loan for someone with good credit.

2. Get a loan via peer-to-peer lending

It may be easier for you to get a loan via peer-to-peer lending websites like Lending Club. These websites connect you with everyday people who want to invest their money by loaning it. You simply fill out a loan application and make a good case about why you need the loan. Depending on your situation, you may even be able to get better terms and interest rates than you would from a bank.

3. Get a payday advance

With a payday advance, you can get a small loan even if you have bad or no credit. A payday loan has no structured payments or annual interest. You simply pay back the amount you borrowed plus a fee when your next paycheck comes. It's a simple way to get money for bills or groceries when you can't wait until payday. All you need to apply for a payday advance is a photo ID and pay stubs.

4. Get a title loan

A title loan is a secured loan in which your car is collateral. You get the loan and give the lender your car's title in return. Once you've paid back the loan plus interest, you get the title for your car back. Because the loan is secured, you can get better interest rates and there is no credit check required. An auto title loan is a convenient option if you have bad credit.

5. Apply for an online fast cash loan

Online fast cash loans are a good option for those with bad credit since lenders typically don't require a credit check. These loans only require you to fill out an application and provide proof of employment and income. They are different from payday loans since you can apply totally online, these loans have structured payments and interest rates, and they are reported on your credit.

If you have bad credit and you need money, these are ways you can get loans.