Even when you have bad credit, getting a loan is not something that is impossible. You have options, even if you don’t realize it. From getting an alternative to a payday loan to a home equity line of credit to trying to get a co–signer, there truly is hope. Let’s take a closer look.

Alternative Payday Loans

People tend to all agree on one thing… payday loans are for the birds. Thank goodness there are alternatives. It is relatively easy to learn how to use an alternative payday loan, too. They are easy to qualify for and qualified applicants can borrow up to $1,250. All you need is a verifiable stream of income, a checking account that is active, and a social security number that is valid. Once you get your approval, the money can make its way to your account in as little as a single business day. When it comes to repaying the loans, the terms are flexible so as to make it easy for you.

Apply for a Loan

No matter what your credit score is, you should apply for a loan if you need one. It doesn’t necessarily need to be with a payday loan with no broker cost, but any type of loan. Just don’t fall prey to the mindset that your credit is so horrible that you will never get a loan. It could be that your credit isn’t quite as bad as you think.

Speaking of Credit Scores

Before you do anything, check out your credit reports and credit scores. Once you have this information in hand, before you go to apply for a loan, you can see if you will be able to meet the requirements. If you are not able to find any requirements for the loan you are thinking about, call the lender in question and ask them what their qualification criteria is. Sometimes, they will not give you a definitive answer, but most of the time, they will. Whether they answer you or not, you should still apply for the loan. You might be surprised that you can get approved for a loan with interest rates and repayment terms that are reasonable even when you think your credit is too bad.

Secured Loans

This is a type of loan in which you will need to provide some form of collateral in order to guarantee that you will repay your loan according to the terms you agreed upon. This collateral can take a variety of forms:

  • Secured credit cards
  • Secured loans using property as collateral, such as real estate or a vehicle
  • Secured loans with cash

In all of these cases, the value of the collateral that you provide will almost always need to be worth the entire amount that you are trying to borrow.

There are a few exceptions to this though. Say your credit score is over 600. You might only need to provide collateral that is equivalent to a portion of what you are trying to borrow.

Alternatively, if your score is below 500, the value of your collateral might need to exceed the amount you are trying to borrow. In cases like this, if you default on the loan and the collateral becomes the property of the lender, they will typically reimburse you for the difference.

Secured credit cards are typically the exception to this. If you happen to miss even one payment, this can lead to the forfeiture of your entire security deposit while they will also close your line of credit.


Co-signers will typically be required for people who either have bad credit or who haven’t established any sort of credit history. Generally, the interest rates for any loans you take out will be determined by your credit score. This is true even when you co-signer has impeccable credit. This is called the cost of bad credit. There isn’t much that you can do to get around it either.

When you choose a co-signer, try to find someone who has good credit so that your chances of being approved will be better. If the co-signer’s credit score is only a bit higher than yours, you might not get approved.

Research all of your options before doing anything so that you will be making the best choice for you.