Bad Credit Loans For Emergencies

 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.

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?

Direct Lenders for Bad Credit Loans

At Ready Payday Loans, we work with direct lenders who specialize in offering loans to people with bad credit. This is the core of their business, and they’ve built their models around supporting individuals in this situation.

Requirements for Loan Approval

To improve your chances of approval, ensure you’re over 18 and have a stable income. Having access to future funds for repayment can increase your chances of approval. Without income, securing a loan becomes much harder.

Unsecured Loan Options

If you have a stable job or a moderately fair credit score, you might qualify for an unsecured loan. This allows you to borrow money without risking valuable assets like your car, or home, or requiring a cosigner.

Options for Very Bad Credit

If your credit score is very low, consider secured loans. You might need to use your car for a title loan or ask a friend or family member to cosign. If you have equity in your home, you could explore a home equity loan as well.

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

Payday loans are a popular option for bad credit borrowers, offering amounts from $50 to $2,500 for emergencies. You receive the loan in a lump sum and repay it in full on your next payday or within 3 to 6 months. Approval rates are high, but so are the interest rates. In states like Texas and Florida, the APRs can exceed 200%.

Installment Loans

Installment loans fall under both personal and payday loans. You can borrow between $500 and $3,000, with repayment spread over several months or years, making it easier to manage.

Credit Unions

If you belong to a credit union and have built a strong relationship with them, they may offer more personalized bad credit loan options tailored to your situation.

Banks

Traditional banks can also offer bad credit loans, but they usually have strict criteria. If you have a checking account or credit card with the bank, it’s worth checking your eligibility for a personal loan.

Title Loans

A title loan lets you use your car as collateral to borrow around 20% to 30% of its value, depending on the car’s age and condition. While interest rates range from 125% to 300% APR, they’re typically lower than payday loans. Be aware that if you fail to repay, your car could be at risk of foreclosure.

Cosigner Loans

You could ask a friend or relative to cosign your loan, which adds credibility to your application. With a cosigner, you can borrow larger amounts, even up to $5,000 or $10,000. However, your cosigner will be liable if you miss payments, so managing your payments and relationship is essential.

Home Equity Loans

If you own or have inherited a home, you could use its equity to secure a loan. The loan amount depends on your home’s value and the equity you have in it. However, these loans come with risks, including the potential to lose part of your property if you fail to repay.

What Are The Risks?

Repayment Challenges

As with any loan, the primary risk is that you may struggle to repay it. If you can’t repay your loan on time, you could face late fees, penalties, and a negative impact on your credit score. If you lose your job during the loan term, you may find it difficult to meet your repayment obligations.

Communication with Lenders

If you maintain regular contact with your lender and explain your situation, they may offer more flexibility. Lenders could extend the repayment term and even freeze penalties or extra charges if you inform them of financial changes.

Ignoring Lender Communication

If you fail to inform your lender about financial changes and ignore their attempts to contact you, the situation could worsen. You might receive excessive calls, letters, and even a court order if your fees become severely 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.

Useful Guides

Will a lender contact my employer?

What should I consider before getting a payday loan?

What checks are carried out during my loan application?

Can I take out a loan on behalf of someone else?