Your loan options can be limited if you have had financial problems in the past and you need to get a loan now. If you have a bad credit status, the regular loans from the banks you request will only be available at a high interest rate. You may not be eligible for a traditional bank loan if your credit rating is very bad. Fortunately, there are many options available to you although some of them may pose considerable risk, such as using your personal assets as collateral. Before considering the possibility of following any of these loan options, think about what you have led to a bad credit and if your situation has so bad now that it has a good ability to repay the borrowed money. Obviously, you should avoid anything that will further your financial and credit situation. Investigate the Internet to find a site that gives advice and help you understand your options, as well as determine the best way (whether the demand for a loan is viable or not).



Method 1


Application for a loan to a friend or family member 

1. Find someone to borrow money.

Perhaps your best option is to borrow money from a friend or family member if you are willing to do so because it is someone who can do without hesitation or with a better course.

2. Agree with the terms.

Make an agreement with your friend or family member about how much they are willing to lend you and their payment expectations, including possible interest.

To avoid damaging your relationship through this transaction, you must be honest with the creditor about your circumstances and the time you expect to repay the money.

3. Put it in writing.

It is advisable to make your agreement in writing. In this way there will be no conflict, what were the terms of the agreement.

The borrower can ask you to sign a promissory note and present it to a notary to strengthen his legality.

Treat the terms of a loan as seriously as you would with a bank.

4 Ask to sign a loan.

If you need to borrow more if your friend or family member is at hand or is willing to lend you, consider asking them to sign a bank loan with you.

You can get a better rate if the person you asked to sign the loan with you has a better credit status than you.

Keep in mind that if you are late with loan payments, your child’s or family’s credit rating will be greatly affected. Don’t ask for a loan under the name of someone you can’t pay.

In this case, the specific rate may vary depending on your family member’s credit rating. Review an online loan repayment calculator to determine the payments and dates you need to make.

Method 2

Method 2

Get a loan from a credit union 

1. Find a credit union in place.

Credit unions are small, local banks, and they have members, rather than shareholders.

Due to their business model, credit unions tend to have lower rates and another model of customer service that assess loan applications on the basis of other aspects, rather than credit ratings.

If your credit rating is bad, the rate will be high, but not as high as it would be in a large bank.

2. Open an account Because the owners of credit unions are members, you must become a member and be eligible for a loan.

Opening an account in a credit union is the same as opening one in a bank. Bring cash and a banker’s identity document to help you set up a savings or control account.

3. Request a loan Talk to a banker at the credit union about your eligibility for a loan and complete the necessary paperwork.

Because of the more personal treatment of credit unions, the banker you are talking to will take your own circumstances into account when applying for a loan. It is possible for a credit union to approve a loan, even if a large bank denies it.

However, you should not expect to receive a loan under the same terms as you would if your credit status were good. A poor credit status means that the funds you receive will be granted with a high interest rate. This is because the bank risks more with your loan than with someone who has a better credit rating.

In this case, the specific rate may vary depending on the loan offered by the credit union. Review an online loan repayment calculator to determine the payments and dates you need to make.

Method 3

Get a loan between individuals or a personal loan without warranty 

1 Visit a loan website between individuals.

Since 2005, several companies have emerged that allow borrowers to communicate directly with borrowers. The potential benefit of this is that the borrower usually gets a better rate and is more likely to get a loan, even with bad credit status – while a creditor pays better for his money compared to what is usually achieved. in a bank.

Explore the Internet to find certain web pages that provide this service in your country.

Another option is to visit web pages that are specialized in buying debt.

These web pages allow you to enter the amount you expect to get, your reason to ask and your credit statement general and will tell you based on this information if a loan is available for you to promote in the estimated interest rate, which varies between 5.9% and 36% or more depending on your situation.

The following is a general description of the general process of applying for a loan through one of these pages. The steps you take may vary depending on the type of loan you are looking for and the loan site.

2. Create an Account When you have decided to apply for a particular loan, you need to create an account and provide your personal information to have a credit overview.

3. Request a loan If you have created your account, you can actually request a loan, specify what it is for, how much you need, and so on.

It is your opportunity to make yourself attractive to potential borrowers. The information you can include will be seen as a safer investment. You can comment on a story about whether you paid your debt or comment on your innovative business plans, for which you will use the money you borrowed.

4. Waiting for an offer. In this phase you will have to wait for a creditor who believes that you are a good investment to make you an offer. You can get an offer for the total amount you requested, or you can combine several small loans.

As with a financial institution loan, you should expect the terms and conditions of the offer you receive from a home loan website to be less favorable than you would be if your credit rating were good.

For example, many of these institutions offer information such as “5.5%” or other promises. The reality is that many of the annual rates for loans vary between 12 and 16%, while in loans more risks are at 36%.

Specifically, a customary duty for one of these services may be 15% interest plus a 1% opening commission. Therefore, if you applied for a $ 10,000 loan under these conditions and you have to repay it within two years with $ 500 monthly payments, you will eventually pay 1,715.56 in commission and interest. It represents almost one fifth of the original amount borrowed.

5. Make an agreement. When you lured a creditor or creditors, you will make an agreement with them and your funds will receive you.

Normally, the website will monitor the status of the loan if you pay it and will be responsible for billing.

Note that some sites may charge an opening commission. Make sure you review the terms of service before applying for a loan.

Method 4

Method 4

Get a guaranteed loan. Get a home loan. Another option is a secure loan in which a property you own is used as security. A mortgage loan is the one obtained according to the value of your home.

  • The mortgage guarantee on your home is the amount worth less than the amount you still owe on the mortgage. For example, if you have a home worth $ 100,000 and you still owe $ 30,000 to the bank, your capital is $ 70,000.
  • The rates of these loans tend to be low because the value of the loan at your home is insured. This means that even if your credit status is bad, these loans are less risky for the bank. In addition, interest is usually deductible.
  • Use the aforementioned capital values ​​and if you have a 5% interest rate, imagine that you have borrowed $ 20,000 for five years by using a capital loan. You need to pay $ 377.42 a month and finally pay $ 2 645.52 for interest when canceling the entire loan. This makes this type of loan one of the safest and cheapest for anyone with bad credit.
  • Talk to your banker about how to apply for one of these loans. However, keep in mind that you can get a better offer in a credit union.
  • Be careful! You can lose your home if you do not meet your payments. 2 Get a loan with a car title. A car loan loan works just like a home loan, to the extent that your vehicle is used as collateral to secure the loan. Before you even consider this possibility, remember that this type of loan can be extremely expensive, as you can expect to pay up to 300% interest.
  • Unlike a home loan, a car title loan usually has a higher rate and is for a shorter time (thirty days).
  • To get a car loan loan, get a car loan lender and take your vehicle, title and identity document. The creditor will get the title of your car and return it to you when you have paid the debt and the respective interest on the loan.
  • Some car loan borrowers will request a copy of the car keys if you need to reposition them.
  • Look at the rules of your country regarding car titles. Some sites have specific rules for these loans, while others do not allow them. For more information, do an online search.
  • Make sure you ask about the full amount you will have to pay and when. Don’t borrow more than you can pay thirty days. Otherwise you lose your car.
  • One study revealed that average people applying for this type of loan paid $ 2,142 in interest for a $ 951 loan. In general, this is a case of term extension fees due to the impossibility of getting in time to pay.
  •  3 Visit a pawnshop Take valuable items to a pawnshop and use them as collateral to apply for a loan if you need a small amount of cash quickly. A pawnshop usually lends about $ 150.
  • When you pledge an item, a borrower agrees to give you an amount of money. Then you will keep the item for a while, during which you can recover it by paying the debt, in addition to the interest. If you go on time and don’t pay the debt, the borrower will sell the item to recover the cost.
  • Do not try to promise anything that oppresses you. When the time goes out and the borrower sells the article, there is no legal power that can be used to recover it.
  • Don’t expect to receive the market price of the item. The borrower can sell the item at less than the market index and the profit can be obtained by accepting such risk.
  • Keep the ticket of the article. When you pledge an item, the borrower gives you a ticket or a receipt that you can use to buy the item you have promised. Keep it in a safe place and review the time you need to pick up the item.
  • The price of a pledge loan will not affect or be affected by your creditworthiness, no matter how bad it is, as the loan is paid for the item you promise.
  • Depending on the pawnshop regulations in your country, these loans may charge between 12% and 240% per year. In extreme cases you will eventually be the current value of the item in just five months!

Method 5

Get a cash advance, a quick loan or a repayment loan. Find out if you have any other option. The following options can be extremely expensive or risky. Most experts regard them as abusive and do not recommend them. Here you will find information about them to get a better understanding of their operation as well as the risks involved. Think carefully before considering any of them and talking to an advisor before choosing one.

Get a pre-paid loan. You can get a loan based on your early repayment if you were not successful with the other methods and expect a refund of your income tax. Contact a large tax preparation company for a prepayment loan. Banks no longer offer these loans.

  • Early repayment loans use your expected tax refund as security and consider an interest rate of ten percent or more in addition to other possible rates.
  • These loans are usually available in early January, at the end of the fiscal year until April, when taxes are levied.
  • If you submit your tax online through the electronic system, you can get your refund almost as fast as you can follow these loans. Consider carefully if you really need a loan because it takes a substantial portion of your refund.
  • For example, it is usually a loan of this type to charge a commission of $ 50 and an annual interest rate of 36%. With this information, if you asked for a $ 2,000 loan for 15% days with this type of loan, you should have about $ 80 in interest and commissions. This makes this type of loan one of those with the highest interest rate.
  •  Get a cash advance. You can use a bank credit card to get a small loan that will be applied to your card invoice.
  • If you have a credit card issued by a major company (such as Visa, MasterCard, Discover or American Express), you can take it to your bank’s local branch and request a cash advance, although these funds have a higher interest rate than Your general transactions with the mentioned card.
  • Try to pay the cash advance for the next statement. If you do not, the interest will be added to subsequent payments.
  • Keep in mind that these cash advances usually charge an annual interest of 24% over and above a 5% commission.
  • For example, if you get a cash advance of $ 1000 with an average rate (24%) and you have to pay it in a year with $ 100 installments, you pay about $ 190 in commissions during the time the loan lasts.
  •  Get a quick loan A final possibility is to get a quick loan if none of the above methods worked for you and you need cash quickly. There are many businesses, physical and virtual, that offer a loan for your next salary. These secured loans and a high interest rate should only be used as a last resort.
  • To get one of these loans, you need to give the lender a post-dated check or your bank account number and bank account. If you do not return to pay your debt, or if you do not transfer the money electronically to the borrower, he has the right to pay the check or collect it online.
  • Because there are high standard rates, most borrowers have very high interest rates on their short-term loans. The average annual percentage rate of quick loans is 390%. Avoid applying for a loan like this. However, if you have to do this, save it quickly because interest will rise quickly.
  • Be careful with the fall that this type of loan has. Many people applying for this loan cannot return it. That’s why they end up even more than before. Those who apply for a loan of more than 60% of their salary ultimately pay more interest than they originally borrowed. It falls into an endless cycle of guilt.
  • For example, in a quick loan of $ 500 (with an interest rate of 300%), a borrower will only have to pay $ 125 a month in interest only. This means that at the end of the first payment period (usually two weeks) you will have to pay or be forced to accept even higher payments in the next cycle.



  • Always ask about rates, interest rates, payment dates and deadlines, regardless of the loan option you choose. Keep your information in one place and easily accessible.
  • Prepare your information before requesting a loan, information such as your identification, your referrals, and your bank information, as this will make the process faster and easier.
  • Leave out all your possible options before choosing a loan described in the last part of this article. Usually, these loans have the highest interest rates and rates.



  • Because many of these loans are regarded as a high risk to the borrower, the interest rates will be higher than a typical bank loan.
  • Many of the loans are meant to be short-term solutions. Try not to get caught up in a cycle where you depend on the loans to pay for your regular expenses. High rates will cause more devastation to your finances.
  • Not all of these suggestions apply to all countries or all countries. Make sure you check local laws and rules on borrowing and borrowing money.