Loans for Bad Credit and How to Get Them

If you have bad credit and find yourself in a pinch, you might think that you can’t get a loan. 

Credit scores are a number between 300 and 850 that reflect your likelihood to repay a loan based on your credit history.  

What is a Credit Score?

The higher your score, the more likely a lender thinks you are to repay a loan. In general, a score over 700 is considered a ‘good’ score. 

Excellent – 800 to 850 Very good – 740 to 799 Good – 670-799 Fair – 580 to 669 Poor – 300 to 579

How Bad Scores Affect Borrowing

Banks and other lenders do not want to loan out money that is not likely to be repaid. To protect themselves from lending to people who might not pay their loans back, they make loans more difficult to access for people with low credit scores.  

What Loans Can I get With Bad Credit?

If you have bad credit, be sure you do your research before taking out a loan. You will want to be sure that you can pay your loan back and that the interest rate isn’t too high. 

Credit unions are nonprofit organizations that are owned by their members. Credit unions are like banks in that they can lend money and allow members to have savings funds, checking accounts, and other investments with them.  

Credit Union Loans 

If you need money now and own a home, you might also be able to take out a home equity line of credit or HELOC. Often called a second mortgage, you might be able to use your home as collateral to get access to cash. 

Home Equity Loan 

Peer-to-peer (P2P) lending is a relatively new form of borrowing. This option exists exclusively online and allows individuals to borrow from another individual, group of individuals, or an institution.  

Peer-to-Peer Lending 

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