How to Get a Loan When You Have Horrible Credit

Corey —  July 19, 2015

Loans (from anyone) are always difficult to secure when you have a bad credit rating. You may think your only option is to carry on without a loan, but this is not the case. There are still options available to you, and we are going to show you a few of them.
Bad Credit Loan

Let’s say you want a credit card, but you have a history of financial problems. You will not get access to the best rates no matter how much you beg. There are credit cards designed specifically for people with bad credit, though. These credit cards have far lower limits and high interest rates, but they are designed for rebuilding your credit score. In the long-term, this can make it easier for you to secure loans with more favorable rates. In the short term you may just have no choice but apply for a bad credit loan.

Repair Your Credit Score

The easiest way to get a loan when you have horrible credit is to start repairing your credit score. The reality is many financial institutions are wary. They won’t lend to anyone who doesn’t have the right score. That is company policy and there are no extenuating circumstances.

Here are some clever tips to begin repairing your horrible credit score:

  • Consider refinancing. Have your loans compiled into one easily repayable sum.
  • Pay the most urgent loans off now, even if it means you have to extend the length of some of your other debts.
  • Negotiate with your lenders for debt forgiveness or a longer repayment process.

Repairing a credit score takes time, so do not expect it to happen overnight. You need to commit to a long-term financial plan. That is the only way you are going to secure loans like this.

Consider Payday Loans

If you really need the money now, payday loans are always an option. The interest rates are massive, but you can get a loan without any credit scores at all. They do not check them or consider them.

As already mentioned, the interest rates are absurd. A single missed repayment could land you in serious financial trouble. Before you take out one of these loans, ensure you can actually pay it off when the time comes.

Borrow from Family and Friends

An alternative if you can’t get a conventional loan and you’re unwilling to take the risk of a payday loan is to lend from family and friends. This is a risk because money can come between relationships.

If you do find someone willing to take this option, write down the terms of the loan and what’s expected of you. Again, make sure you have the means to pay off the loan at the appropriate rate before entering into any agreement.

Concentrate on Getting a Better Score

The issue of the loan is a short-term problem. You should always be looking into the future by concentrating on improving your credit score. A better credit score will give you access to improved rates, as well as making it easier to find financing in the first place.

Now has never been a better time to start practicing good financial habits.



Corey is currently pursuing a Master of Arts degree in religion. While he enjoys learning and writing about Christianity, another one of his new passions is writing about personal finances in order to help others make wise decisions with their money.