Getting Cash Loans with Bad Credit
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Life is unpredictable, and emergencies can happen at any time without warning. Perhaps you lost a job, someone you hold dear fell ill, or your car requires expensive repairs to become road-ready again. Experts recommend having an emergency fund in place to finance these expenses. This rainy day fund should have enough money to sustain you for a few months in case of a job loss or care for any other emergencies.
However, not everybody has enough money saved. If you're in a pinch, you can get a loan and escape the situation. However, if you have bad credit, your chances of securing a loan become significantly slim. And even if you do qualify, you'll be charged a higher rate. But there's good news: there are lenders you can turn to in these emergencies who also cater to individuals with a bad credit score.
In this article
What is a cash loan?
An emergency loan is a loan that targets people going through short-term financial hardships. The money is made available to you quickly, giving you access to fast cash when you need it the most. While loan lengths are shorter than other loan types, meaning you have to pay them off within a few weeks, these loans charge a higher interest rate. As with all borrowings, the information in your credit report carries much weight.
Cash loans can take a few different forms:
- Personal loans: Unsecured loans are amongst the better options because repayment can be made over a few months to several years. But otherwise, it's like other loans: you receive the money in a lump sum and have to repay the amount in fixed monthly installments.
- Credit card cash advances: Credit cards are a great option when you're short on cash at the store and need to buy an essential item. However, that doesn't solve the money problem. But you can also withdraw cash from your credit card through the ATM as a cash advance. But a word of caution: interest accumulates when you withdraw the money.
- Payday loans: Loans issued by payday lenders generally have a short term, between one to two weeks. However, they're your best bet if you're experiencing a financial emergency and have bad credit. Once you receive the money, you must pay it back to the lender on the next payday. However, these short-term loans charge high interest rates and should be avoided.
Use Quicken Loans to Get a Personal Loan
- If you're tight on cash right now, you may want to consider getting a personal loan. A personal loan is a loan that you can use for just about any purpose like: paying off other debt, renovating your home, or family needs like a wedding or adoption.
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How to get a cash loan
The first order of business is to brainstorm about the type of emergency loan you should get. Ideally, you should consider a personal loan because it may have favorable repayment terms and rates. However, your credit score will determine which loan you qualify for and how much money you can get. Payday loans may be your only option if you have a bad credit history.
But once you have locked in the details, here's how you can get that loan:
- Get your affairs in order: Before you apply for a loan, you should gather all important documents like your ID, Social Security number, and proof of income and employment. Doing this before you apply ensures a smooth loan application process.
- Compare: I can't stress this enough: whether you're getting insurance or a loan, compare the providers. Regarding loans, you should look for funding times, rates, and how much you qualify for. In addition, reading customer reviews online is a good idea as well.
- Apply: Many lenders will let you complete an online application, while others may have you jump through a few extra hoops.
Best cash loans for bad credit
ClearViewLoans
ClearViewLoans connects borrowers with a network of lenders. The company funds loans of $100 to $5,000. While every lender has its underwriting policies, the company strives to serve individuals with bad credit, too. ClearViewLoans will cast a wider net to find you a short-term lender if its network doesn't offer a loan. Once you make a loan request, you can expect to get offers fairly quickly. Funding is made early, too. The company says the money will appear in your bank account in 24 to 48 hours. While ClearViewLoans doesn't charge a fee to use its marketplace, the lender will make clear the rates and fees it charges in the loan agreement. Lenders who comprise the ClearViewLoans network generally cater to people who earn $1,000 per month after tax withholdings.
Bad Credit Loans
BadCreditLoans' network of lenders will fund loans of between $500 and $10,000 as early as the next business day. The annual percentage rate (APR) ranges from 5.99% to 35.99%, and you can repay the money in 90 days to six years. You don't need a perfect credit score to become eligible for a loan, but in the end, the lenders decide to make you an offer. Bad Credit Loans will tap into an extended network of third-party lenders if you don't get an offer. Eligibility requirements include having a regular income and a checking account in your name. Bad Credit Loans doesn't charge a fee for its services.
PersonalLoans.com
PersonalLoans.com connects people with lenders. You can borrow a minimum loan of $250 to a maximum of $35,000. The repayment window is generally between 90 days and 72 months, but some loans require repayments earlier than that. APR depends on the lender making an offer, but you can expect to pay between 5.99% and 35.89%. After you've accepted an offer, the money will appear in your bank account in one to five business days. The company offers three types of loans:
- Peer-to-peer loans: You should be making at least $2,000 and have a credit score of more than 600 to qualify for loans from peers.
- Personal installment loans: If you have a credit score of more than 580 and earn at least $2,000, you can apply for installment loans.
- Bank personal loan: Eligibility requirements for this loan include a credit score of more than 580 and a minimum of $3,000 monthly income.
Upstart
When checking your eligibility, Upstart does a soft credit check instead of a hard credit check (which affects your credit score). But of course, if you take out a loan, your payment history will be shared with the credit bureaus. You can get a $1,000 to $50,000 loan as early as the next business day through Upstart. Interest rates range between 5.2% and 35.99%. Each lender has its minimum credit requirements, and Upstart considers your employment and education in determining your eligibility, making it more likely for you to secure a loan. The company doesn't have a minimum credit score requirement.
Avant
Avant charges an APR of 9.95% to 35.99% and offers loan amounts of between $2,000 and $35,000. You can repay the money in one to five years. The company also funds the money quickly; you can expect to receive the loan within the next business day. The best part? The company has a dedicated human support staff to answer any queries. Avant caters to people who have a credit score of at least 580. The company doesn't have penalties for early payments.
Read a full view of Avant.
Upgrade
Upgrade works with people who have a credit score of at least 550. You can take out a $1,000 to $50,000 loan with APRs ranging between 8.49% and 35.99%. Like Avant, Upgrade doesn't charge a prepayment fee either. Once approved, you'll receive the money within 24 hours. As for repayment, you'll pay fixed monthly payments for two to seven years.
Use Quicken Loans to Get a Personal Loan
- If you're tight on cash right now, you may want to consider getting a personal loan. A personal loan is a loan that you can use for just about any purpose like: paying off other debt, renovating your home, or family needs like a wedding or adoption.
- TrustPilot Rating 4.6 out of 5
- Connect with lenders for $0
- 100% online experience.
Summary of best cash loans for bad credit
Lender | Minimum credit score | APR | Loan amount | Funding time |
ClearViewLoans | NA | NA | $100 to $5,000 | 24 to 48 hours |
Bad Credit Loans | NA | 5.99% to 35.89% | $500 and $10,000 | Next business day |
Personal Loans.com | 580 | 5.99% to 35.99% | $250 to $35,000 | One to five business days |
Upstart | 300 | 5.2% to 35.99% | $1,000 to $50,000 | Next business day |
Avant | 580 | 9.95% to 35.99% | $2,000 and $35,000 | Next business day |
Upgrade | 550 | 8.49% to 35.99% | $1,000 to $50,000 | Within 24 hours |
Alternatives to cash loans
Home equity borrowing
If you have a home, you can borrow money against the equity in your home. A home equity loan will give you access to a lump sum, while a home equity line of credit lets you borrow against the equity in your home. The former will give you access to a lump sum, while the latter opens a line of credit for you to use on an as-needed basis. This ensures you don't borrow what you don't need. These loans aren't funded as quickly as emergency loans, however.
Credit cards
Your emergency, like a car repair, can be handled with a credit card. If you're in such a situation, using a credit card rather than applying for an emergency loan is best. Doing this means you'll be out of the pickle immediately, and you don't have to worry about bad credit, applying for a new loan, and more debt.
Related: Best Credit Cards for Bad Credit
Friends and family
Friends and family who are on a solid financial footing than you may be able to help us during financial hardships. You should be clear about when you'll pay them back and do everything possible to meet that expectation.
Related: Cashadvance.com Review – Get Emergency Cash Fast
Use Quicken Loans to Get a Personal Loan
- If you're tight on cash right now, you may want to consider getting a personal loan. A personal loan is a loan that you can use for just about any purpose like: paying off other debt, renovating your home, or family needs like a wedding or adoption.
- TrustPilot Rating 4.6 out of 5
- Connect with lenders for $0
- 100% online experience.
The bottom line
Needing money when you don't have it is not a good situation. But unexpected expenses are out of your control. And if you have a low credit score, your options for securing an emergency loan become slim. Thankfully, many loan providers cater to individuals with bad credit. And these financial institutions lend the money quickly, too – as early as the next business day. But if you have bad credit, you'll likely be charged higher interest rates, translating into higher monthly installments. If you can, it's best to exhaust other loan options before turning to an emergency loan.
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Writer
Jasir Jawaid is Joy Wallet's Assistant Editor. He has more than 13 years of experience as a journalist covering Wall Street, equities, financial policy and regulation, and cryptocurrency and blockchain.
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