Where Can You Borrow Money with Bad Credit

How to Get a Personal Loan with Bad Credit

Where can I borrow money with bad credit right now? Money is one of the most used commodities by man. Without money scarcely will anyone survive, but there come moments in one’s life where the little they have is not enough to cater for their day to day activities. At those moments, loan or borrowing seems to be the only reasonable alternative.

But having bad credit can pose lots of problem in your quest to getting a loan for your business or for your use. Bad credit is a situation where you have lower than the required money for borrowing cash in the bank or from other sources. When this happens, you will find it hard to borrow money.

In this article, we would be discussing what bad credit means, and where you can borrow money even though you might be having bad credit. And at the end, you will understand how having a bad credit will no longer impact your chances of getting loan or borrowing anymore. So, I need a loan but I have bad credit where can I go?


When in need of quick money with a bad credit score, the first feasible option is your friends and family, they tend to trust you more than others and their terms will be flexible enough to help you borrow the needed fund at a better rate, sometimes without interest.

You need to first agree to their terms which in most cases will include how much they are ready to loan you, their repayment expectation and in few cases the interest attached to it. The terms agreed upon will ensure that your relationship is not strained because of the money you will be borrowing.

Your agreement should be made in writing for proper documentation to prevent conflict later in the future. In fact, it is very important to treat the term of the loan as one would treat bank loan.

  • Loan from Credit Union

A credit union is small local banks which are owned by several members of a community other than shareholders.  They might at times not even consider your credit score before borrowing your money. Their business model open way for lower fees, and no matter your credit level you will still have a high rate which may not be as high as those of large banks.

To benefit from their loan, you need to at first open an account with them to become an eligible member. Most also request you depositing a certain amount which is mostly not much as a starting fund in the account created.

After doing all this, you can then proceed to apply for their loan, but remember approval of your loan with bad credit warrant a special and higher interest rate which might be applicable in your case too.  Remember that they are taking a high risk by borrowing you the money owing to your bad credit score.

  • Visit a Peer to Peer Loan (Unsecured Personal Loan)

Starting from the year 2005, several companies have started a new way of borrowing people loan, they allow you to borrow from others using them as a means of communication. The advantage of this is that even with a bad credit score, you can still get someone to borrow you the needed fund.

Most of them allow you to name the amount needed and the purpose of the fund, this will help them to decide what the value of the interest will be. Example of website offering these services includes LendingClub, MoneyLend, LendingTree, eLoan etc.

All you need to do is create an account with them, and supply some information which must be correct for credit screening purpose.  You then proceed to request for the loan needed, you can make approval of your loan easier by showing evidence of the previous repayment either from them or from other sources. Then you patiently wait for a suitable offer.

  • Get a Secured Loan

(1). Home Equity Loan: You can use your properties to secure the needed loan in some extreme cases, a home equity loan is one way of doing that. This loan will be measured or taken out against the value of your properties especially house.

The equity in your house is the total worth of the house minus the amount owed in the mortgage. Most times, the rate of these loans tends to be low since the value is secured against your home. So even with a bad credit score, the banks are not scared of borrowing you some money.

But it can quickly turn from sweet to sour if you fail to pay at the right time, you might end up losing your house with nothing to help the situation out since it will be spelled clearly in the agreement form that you will be expected to sign.

(2). Automobile Title Loan: This type of loan, your car will be used as collateral for the loan to be applied for, it takes shorter time though less than 30 days and it often comes with a very high rate. You will need to drop a copy of your key, and some other documents. Remember failure to pay might result in forfeiting your car.


Clearly, several sources can help kill the idea that a bad credit score means no loan, in fact, there are several other options opened for you. Picking an appropriate source and sticking to the agreement will help you achieve this in no time and remember your bad history with the loan can hamper your chance of getting something better later.

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