Even if your credit is less than stellar, you have more options for borrowing money than you think. Most of them aren’t that great, but you can still find something that will work for you. Expect that most loan options will be short-term, like payday loans, check advances, and title loans, and with higher interest, because lenders are looking to recover their money quickly. But with complete information about each credit option, you can still get a favorable loan with horrible credit.
How Do I Get a Loan With Terrible Credit?
Your loan options include:
1. Payday Loan
Although a payday loan may seem like a lifesaver if you need money right now, it will become an anchor with high interest rates and sizable payments. The repayment terms of a payday loan usually require you to pay it off in about two weeks or your next pay period. It sounds easy enough until you factor in the interest rates. According to the Consumer Financial Protection Bureau, the average annual percentage rate for a payday loan is — and this is no joke — about 400%.
In addition, under the terms of your agreement, you’ll have to pay your loan back in one lump sum rather than in installments. This means you not only have to turn over the entire principal, but you also have to cover the interest. Instead, most payday loan borrowers — roughly 80%, according to a Consumer Financial Protection Bureau (CFPB) estimate — have to let the loan roll over, often as many as eight pay cycles, before they can fully pay it off. Meanwhile, the interest continues to pile up.
Payday loans are some of the most expensive and predatory loan options. Avoid them completely. Even if traditional lenders have turned you away, you can get a loan from an online lender, even with horrible credit.
2. No-Credit-Check Lender
A no-credit-check lender is not entirely what the name implies: lenders still conduct a credit check, but not a hard inquiry. Typically, hard credit can ruin your credit score, and to keep your situation from worsening, lenders do not go all in on your credit history. Most bad credit lenders run a soft credit check to determine if you can repay the loan. So, if you’re trying to figure out how to get a loan with terrible credit, approach online lenders who only do soft inquiries.
3. Installment Loan
If the amount you’re borrowing would be easier paid off in regular installments, check into a bad-credit installment loan Installment loans are like traditional loans, with monthly payments and ongoing interest rates. You may pay off your loan early to save some amount in interest. Therefore, when looking to get a loan with horrible credit, consult your agreement’s terms to see if there are any prepayment penalties.
4. Friends and Family
It’s always challenging, but consider asking for a loan from friends or family. They’ll likely let you pay it off in installments and may waive any interest fees or at least ask for a smaller amount of interest than you’re liable to get from most lenders. Draw up a simple loan repayment agreement if you’d like, but make sure you’re diligent about paying off your loan. If your friends were good enough to lend you the money in the first place, they’re the kind of friends you want to keep around.
Have Emergency Funds
Of course, the simplest solution to borrowing is not to borrow. Build emergency funds instead of scrambling to get a loan with horrible credit. Start by putting away small amounts of money as you rebuild your credit. Eventually, you’ll want to have a sum equal to three months’ salary in savings. However, a good starting goal would be $1000 to cover most emergency expenses.
How do I Get a Quick Minute Loan Center Loan With Terrible Credit
Before you’re able to build your emergency funds, get a quick Minute Loan Center loan for people with horrible credit for your urgent financial need. Our team of in-house creditors review and approve applications quickly, and you will receive our lending decision promptly. With our 97% approval rate, we will likely say ‘YES.’ Contact us to apply for a loan today!
Kevin brings over 15 years of experience in marketing, with a specialized expertise in growing online businesses. As the Director of Marketing at a leading FINtech company, he employs innovative strategies to enhance brand visibility and customer engagement. Kevin’s passion lies at the intersection of technology and finance, where he pioneers solutions that not only meet but exceed consumer expectations. His commitment to leveraging his expertise ensures impactful results and the building of lasting relationships in the digital landscape.
