Bad Credit Loans For Emergencies

If you need $300 or $500 for an emergency, we can help you get approved for loans with bad credit or credit scores under 560. We compare rates and terms from more than 30 lenders to help you get approved – and there is no impact to your credit score.

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What Are Bad Credit Loans?

Bad credit loans are products specifically designed to help those with below average credit scores, often altering the loan terms, rates or use of collateral to help them borrow money such as $500, $1,000 or $5,000.

With around 20% of Americans classed as having bad credit, one cannot avoid the need for emergency cash and there are a number of lenders across the US who can offer specific products for their needs.

Between unsecured loans products from payday lenders, private lenders, banks, credit cards and credit unions and more collateral-based products such as title car loans, cosigners and home equity loans, there are a number of ways to borrow money with bad credit.

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Pros

Get access to funds even if you have been denied elsewhere
Get flexible repayment terms, over 12, 24 or 36 months
Borrow money to pay for an emergency
Choose between unsecured and secured products
Applying will not impact your credit score

Cons

Bad credit loans often come with high interest rates – payday loans range from 200% to 400% APR
Failing to repay could negatively impact your credit score
Penalties apply for missed repayments
If using collateral such as your car, this could be repossessed
If using a cosigner, it can be awkward if you cannot repay

How Can I Get a Loan With Very Bad Credit?

There are a number of direct lenders that we have partnered with at Ready Payday Loans who are willing to consider those looking for loans with bad credit. In fact, this is the main basis of their business and they have built their business models accordingly.

As a starting point, it helps if you are over 18 years and have a regular income and job so that at least you have access to future funds to repay your loan back. If you are applying for a loan and do not have any income coming in, this will be much more difficult to be approved.

You may be eligible for an unsecured bad credit loan if you have a stable job or a have a moderately fair credit score – so you could be eligible for a personal loan or payday loan and this means that you will not need to use anything valuable such as your car, home or the help of a cosigner.

However, if you have a very bad credit score, you may have to consider options such as using your car for a title loan, asking a friend or relative to be a cosigner or using a home equity loan (if you have money in your house) in order to get access to cash.

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What is The Criteria?

Have a regular income and employment – some lenders require a minimum of $500 per month as an income
Are over 18 years of age
Have a valid bank account to receive payments
Have a US cell phone and email address
Can afford monthly repayments
May require collateral such as a car
May require someone to be your cosigner

Who Can Offer Me a Loan For Bad Credit?

Payday loans – This is a popular type of bad credit loan, which offers loans ranging from $50 to $2,500 for emergency purposes. You receive the loan in one lump sum and pay in full on your next payday from work, or after 3 or 6 months. The approval rates are high, but so are the interest rates. In states like Texas and Florida, the APRs can exceed 200% APR.

Installment loans – This falls under personal loans and payday loans and allows you to borrow similar amounts of $500 or $3,000 but extended over several months or years to help you spread repayment.

Credit unions – If you have a credit union that you belong to and have developed a good relationship with them over the years, they may be able to offer you a more bespoke bad credit loan.

Banks – Traditional banks can offer bad credit loans but often have very strict criteria. However, if you have your checking account and credit cards with this bank, you could check your eligibility for a personal loan too.

Title loans – This is where you use your car as collateral and can borrow around 20% to 30% of its current value, depending on its age and condition. The interest rates are high (around 125% to 300% APR), but not as high as payday loans and just note that your car could be at risk of foreclosure if you do not maintain payments.

Cosigner loans – With the help of a friend or relative, you could get them to ‘cosign’ your loan agreement and this adds extra legitimacy and credibility to your application. You can borrow large amounts, even $5,000 or $10,000 but your friend could be liable for payments if you do not keep up, so managing the payments and your relationship is key.

Home equity loans – If you own a home or have inherited one, you can release money from this depending on the size and condition of the property and how much equity you have in it. This comes with risks and potentially losing part of your property, so be sure to do your homework before proceeding.

What Are The Risks?

As with any loan, there is always the risk that you are unable to repay your loan and this can incur late fees, penalties and a negative impact to your credit score. If you are earning an income from your job and you lose your job during the loan term, there is always this risk that you will not be able to repay your loan.

If you are in regular contact with your lender and explain your circumstances they can often be a lot more flexible, offering longer term pay arrangements and freezing any penalties and extra charges.

But if you do not inform the lender of any financial changes and ignore any communication with the lender, you could find yourself receiving excessive calls, letters and even a court order if the fees are very overdue.

How Do I Avoid Scams?

When applying for loans, you are always at risk of scams and there are certain things to look out for and that you should approach with caution.

When a loan is advertized as 100% guaranteed – this should not be the case. Your loan application should always undergo some checks to ensure that you can afford repayments.
The lender or company asks for payment upfront – this should not be the case. You should receive your full loan in one lump sum when approved. A legitimate lender will never ask you for payment upfront to ‘release the funds’ or similar.
Look for hints and clues – Loan offers will be emailed to you and a loan agreement will be sent to you to be verified. You should be cautious if you see emails coming from hotmail or Gmail accounts and there should be a number available on every website that you should be able to call and speak to someone.
Check reviews online – A typical scam will usually attract the interest and feedback of unhappy customers. Be sure to check social media, Trustpilot, forums and general Google results to see what other customers are saying.

Can I Get a Bad Credit Loan With Guaranteed Approval?

Whilst you might be looking for a bad credit loan with guaranteed approval, this may not always be possible.

At Ready Payday Loans, we will match your loan request with the lender who is most likely to approve you, based on your personal credit score and criteria. However, the actual completion and funding of the loan is never fully guaranteed. Your application will always be subject to employment, income and credit checks – and there is no such thing as a guaranteed loan.

Why Use Ready Payday Loans?

We are a completely free service that connects you with lenders who can approve you and your credit score. We work with more than 30 lenders and always assess the partners we work with based on being legitimate, offering affordable rates and having a positive customer satisfaction.

Applying for a loan with Ready Payday Loans will not impact your credit score and you have no obligation to proceed.

We are delighted to offer an application form which is completed in less than 5 minutes and you will receive an instant decision on the screen. If you wish to proceed, you will be given a clear loan agreement online which you can sign electronically and subject to further checks, you can receive your loan usually within 1 to 24 hours.

FAQs

What is the Lowest Credit Score That a Lender Will Accept?

A lot of payday lenders are willing to offer loans with credit scores of 560, 530 and 500, whilst taking into account other factors such as age, residential status (homeowners are preferred), size of the loan and type of employment.

You can still get a bad credit loan with a low credit score, but you may require the help of a cosigner or the use of collateral to get you over the line.

What Are My Options When I Have Been Denied a Loan?

In practice, you can keep trying with different lenders and products until you are approved, but note that making too many applications in a short space of time can create a lot of search footprints and look negatively to future creditors.

You can ask the reason why you were declined and some lenders will give you an answer. You may find that building up your credit score could be a good option, or using some alternative products such as credit builder cards or borrowing from family and friends could be viable options.

What Are The Alternatives To Bad Credit Loans?

Borrowing money from family and friends is usually the best option if you need money for an emergency. Your loved ones will always typically want to help and being able to borrow interest free and without employment checks can be useful, often very loose payment terms too. Just be sure to manage expectations in terms of repayment to avoid any conflict between close friends and family members.

There are some very alternative products for people with bad credit that might be useful such as using credit builder credit cards to borrow $300 or $500 and if you pay back on time, it will help increase your credit score. Equally, if you have a specific purchase from a particular store, you can use catalog credit cards, however, these command a monthly membership fee.

How Quickly Can I Receive My Money?

Unsecured and personal loans for amounts such as $200 and $500 can often be approved and funded on the same day, or even just a few hours. This can vary if it is a weekend and it may just be moved until the following Monday.

For more secured products that require cosigners and collateral, this could take an extra few days of checks, but getting funded in 2-3 days is very possible.

What Is The Easiest Loan To Get Approved For When You Have Bad Credit?

Payday loans have very high acceptance rates, especially if you are employed with a regular income. But note that these come with some of the highest interest rates around. In states where payday loans are legal, the rates can be 200%, 400% or even 600% APR and come with penalties if not repaid on time.

Can I Get a Loan if I am Unemployed?

No, you typically need to be employed to get approved for a loan of any type. Some lenders will make considerations if you have any other income coming in such as a pension, savings, rental income or welfare. Some lenders will accept you on the basis of using collateral, but having a way to repay is always essential.