How to Get a Loan With Bad Credit

It's easier to get a loan with bad credit than many people think. In the United States, the average credit score is 680. Below this number is considered to be a bad score, and can hinder those who need to get a loan. Money emergencies can happen to anyone, and getting a loan to get you through your troubles may be necessary. If you take advantage of a couple of easy steps, you can still get a loan--no matter how poor of a credit score you may have.

Step 1

Check into applying with a payday loan company, also known as a cash advance. The requirements for these types of loans are simple, and you can have bad credit and still be eligible to receive a loan. These loans are short term, and only require an open checking account, a steady source of income and to be 18. These can be one of the easiest loans to get when you have bad credit; plus, they are fast and easy to apply for. You will be required to pay a finance fee depending on the amount of the loan you take out. Generally, this is between $10 and $30 for every $100 that is borrowed. Payday loan companies' fees can easily cause even more of a financial hardship, so be sure that you can pay back the amount that will be due. Many borrower's find themselves trapped in an endless cycle of renewing their loan as soon as they pay off their current one.

Step 2

Discuss your options with your local bank. While banks normally require very high credit scores before they issue a loan, you may be able to get a smaller amount if you have bad credit. Just remember that you may be charged the highest financial fee possible because of your credit history.

Step 3

Open up a credit card, or look into one you already have. Your credit may be bad, but a credit card is not out of the realm of possibility, and you may be able to take a cash advance from one if you are approved. If you already own one, consider taking out a cash advance. You can generally borrow hundreds to even thousands of dollars, but be forewarned---the interest rate will be higher than any purchases you make on the card. There is usually no grace period as well on the balance of a cash advance, so as soon as that money is withdrawn, you will be charged interest.

Step 4

Talk to your family or friends to see about getting a loan. You may be able to find someone who is willing to lend you the money you need, and who understands that your credit is keeping you from a traditional loan. Think about drawing up a written agreement and having it notarized. This type of written statement should detail how much you borrowed, a payment schedule and other important details.

Step 5

Speak to your workplace about borrowing a loan, either as an advance from your paycheck or as a loan you need to pay back. Many employers are willing to help out their loyal employees, and you may be able to arrange an easy payment plan, as well. Talk to your current boss about the possibility of such a loan or the accounting department of your workplace.