Bad Credit Loans

Need Money? Check Out These Options If You Have Less-Than-Perfect Credit

Getting a loan with a bad credit record can seem impossible. If you need money, these bad credit loan options can help you get back on your feet.

Lots of Americans have low credit scores, and a recent report showed that 53 percent of Americans had been turned down for a loan because of poor credit.

The good news is there are several bad credit loan options you might want to consider. If you need to get your hands on cash right away, keep reading.

Bad Credit Loans

What Is a “Bad” Credit Score?

Approximately one in eight Americans don’t know what their credit score is. If you’re part of this group and are having a hard time getting approved for loans, the first thing to do is get a copy of your credit report (you can access this for free at and find out where you stand.

Your credit score is a number that sums up your credit worthiness. It’s based on a lot of factors, including:

  • Your payment history
  • The amount of money you owe
  • The length of your credit history
  • Your credit mix
  • The number of new credit cards and accounts you’ve opened

Your credit score ranges from 300 to 850. What constitutes a bad or “poor” credit score varies based on different credit scoring models. In general, if you have a credit score that falls below 600, you’ll likely have a harder time qualifying for traditional loans.

Best Bad Credit Loan Options

You can still qualify for loans with bad credit, though. The following are some of the best bad credit loans and borrowing options. 

1. Personal Loans for Bad Credit

Some lenders offer personal loans specifically for those who have poor credit scores, as well as those who don’t have a credit score at all. Bad credit personal loans tend to come with higher-than-average interest rates and may have additional fees that other loans don’t have. Don’t let these facts scare you away, though.

If you need money right away, it can be worth it to take out a loan that has a higher interest rate, but only if you have a plan for how you’re going to repay it. If you pay the loan back on time, you might also boost your credit score. This, in turn, may increase your chances of being able to get approved for other loans in the future. 

2. Home Equity Loans

Another type of loan to consider is a home equity loan. This option is only available to those who are homeowners, so it’s not a viable choice for everyone. If you own a home, you can borrow against the equity you’ve accrued over time. 

Home equity loans can be easier to qualify for than some personal loans. The loan is secured against your house and as a result, lenders might be more willing to work with you.  

3. Title Loans

A title loan is a type of secured loan that uses your car title as collateral. Because you’re using your car as collateral, your credit score doesn’t have much of an impact on your ability to qualify for this type of loan. If you own your car outright, you have a good chance of being approved.

Keep in mind that title loans generally have short repayment periods. To ensure you pay off your loan and keep your car, it’s important to know how you’re going to pay back the loan on time. 

4. Payday Loans

Payday loans are short-term unsecured loans. The loan term usually lasts between 15 and 30 days, similar to that of a title loan, and the principal of the loan is generally a portion of your next paycheck.

These loans tend to come with higher-than-average interest rates, but they give you access to funds very quickly. The approval process for a payday loan is straightforward, and most people are able to get approved for them on the same day that they apply. A payday loan can be a good option if you’re in a jam and just need some money to tide you over until your next payday. 

5. No-Credit-Check Emergency Loans

Some lenders offer emergency loans without performing a credit check first. These types of loans for bad credit are similar to payday loans, but the interest rates might be a bit lower in some cases. They often have a relatively short repayment term, but they can be helpful if you have an emergency come up and need money right away. 

6. Lines of Credit

In addition, you might also want to consider a line of credit like those offered through Echo Credit. In some cases, it might be easier to get approved for a line of credit compared to a loan, making it a good option for those with less-than-perfect credit scores.

The good thing about a line of credit, too, is that, once you pay it off, you can continue to draw from it in the future. It’s different from a loan, where you receive a lump sum once and then have to pay it all back within a certain time frame.

You also don’t have to use an entire line of credit if you don’t need it. You can spend just what you need to cover an emergency and then pay that amount off when you can without having to go into more debt than is necessary.

Bad Credit Loans Bottom Line

There are plenty of bad credit loan options you can use to get through difficult times and access additional cash. If you’re still wary of taking out a loan, applying for a line of credit, such as Echo Credit, might be a better option.

Echo Credit is a line of credit that you can draw available funds from when you need it. It’s completely online, so you don’t have to worry about venturing out to a bank or credit union to apply or set up your account. You can do everything from the comfort of your own home.

Are you ready to give Echo Credit a try? If so, apply online to get started and click here to read more blog posts.

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