5 Options for Getting Money Now with Bad Credit

Facing the reality of a low credit score can be daunting, especially when you need access to funds. Many personal loans from banks and credit unions require a good credit score for approval, leaving those with poor credit in a difficult position. So, what are your options when traditional lending sources are out of reach? In this blog, we'll explore practical solutions to help you secure cash quickly, even with bad credit, and provide valuable insights to navigate these challenging financial waters.

Key Takeaways

• If you need money now with bad credit, you have loan options like installment loans, title loans, payday loans, and other alternatives.
• If you don't want a loan, you can always try other means like selling unwanted items or signing up for gig employment.

How To Get Cash Fast When You Have Bad Credit

Having bad credit can feel like a heavy burden, especially when unexpected expenses arise. Understanding your options and the implications of various financial solutions can help you make informed decisions. In this blog, we'll explore what constitutes bad credit, its consequences, and how to access cash quickly despite a poor credit score. We'll also discuss various loan options and non-loan alternatives, and provide tips on avoiding scams, improving your credit score, and finding the best bad credit lenders.

What Is Considered Bad Credit?

Bad credit is a score below 580. Bad credit typically refers to a low credit score, which indicates to lenders that you are a higher-risk borrower. 

To give you an idea of what is considered a good credit score, a FICO credit score of 670 or higher is considered good, while a score of 740 or higher is very good, and a score of 800 or higher is excellent. If your credit score falls between 500-600, your options for getting emergency funds will be limited.

Several factors contribute to a bad credit score, including late payments, high credit utilization, defaults, and bankruptcies. Regularly monitoring your credit score can help you stay aware of your credit health and take steps to improve it.

A bad credit score can result from various factors. Late payments on credit cards, loans, or other debts can significantly lower your score. High credit utilization, which is the ratio of your credit card balances to your credit limits, also negatively impacts your score. Defaults and bankruptcies are severe derogatory marks that can stay on your credit report for up to seven and ten years, respectively. By understanding these factors, you can work towards improving your credit score over time.

Effects of Bad Credit

Bad credit can have several negative consequences that affect various aspects of your financial life.

• Higher interest rates on loans and credit cards. Lenders may charge higher interest rates to compensate for the increased risk, making it more expensive to borrow money. This can lead to a cycle of debt, as higher interest payments make it harder to pay off balances.
• Loan rejections. Many lenders have minimum credit score requirements, and if your score falls below these thresholds, you may be denied loans or credit cards altogether. This can make it difficult to finance major purchases, such as a home or car, or to access emergency funds when needed.
• Limits your housing options. Landlords often check credit scores as part of the rental application process. A low credit score can lead to rejections or the requirement of a larger security deposit. Furthermore, bad credit can impact your employment prospects. Some employers check credit reports as part of their hiring process, particularly for positions that involve financial responsibilities.
• Increased insurance premiums. Insurers may use credit scores to determine the risk level of a policyholder. A lower credit score can result in higher premiums for auto, home, and other types of insurance. These higher costs can strain your budget and make it more challenging to manage your finances effectively.

How To Get Cash Fast When You Have Bad Credit

When you need cash quickly and have bad credit, there are several options to consider. It's important to weigh the pros and cons of each option to determine which is best for your situation. Here are some potential solutions:

1. Payday-Alternative Loan

Payday-alternative loans (PALs) are offered by some credit unions as a safer alternative to traditional payday loans. 

Pros

One of the primary benefits of payday-alternative loans is the lower costs compared to traditional payday loans. This makes it more affordable to borrow money and reduces the likelihood of falling into a cycle of debt. Additionally, PALs often come with more flexible repayment terms, allowing you more time to repay the loan without the pressure of a short repayment period.

Another benefit is that payday-alternative loans are often provided by credit unions, which are not-for-profit organizations that prioritize their members' financial well-being. This means that credit unions may offer additional resources, such as financial education and counseling, to help you manage your finances more effectively.

Cons

Despite their benefits, payday-alternative loans have some drawbacks. They are not available at all credit unions, so access to these loans may be limited depending on your location. Additionally, you must be a member of the credit union to apply for a PAL, which may require opening an account and meeting membership criteria.

Furthermore, payday-alternative loans typically have smaller loan amounts compared to traditional payday loans. This may not be sufficient to cover larger expenses, requiring you to seek additional funding sources.

Who It’s Good For

Payday-alternative loans are ideal for individuals who need a small amount of money quickly and are members of a credit union. They are a good option if you prefer lower interest rates and more flexible repayment terms.

2. Credit Card Cash Advance

A credit card cash advance allows you to withdraw cash from your credit card's available credit limit. This can be done at an ATM or bank.

Pros

One of the main benefits of a credit card cash advance is the immediate access to cash. If you already have a credit card, you can withdraw cash without the need for additional applications or approvals. This can be particularly useful in emergencies where you need funds quickly.

Cons

However, credit card cash advances come with significant drawbacks. They often have high fees and interest rates, making them an expensive way to access cash. Unlike regular credit card purchases, cash advances do not have a grace period, meaning interest begins accruing immediately.

Additionally, using a cash advance can negatively impact your credit score if it significantly increases your credit utilization ratio. This can further lower your credit score and make it more difficult to obtain credit in the future.

Who It’s Good For

Credit card cash advances are suitable for those who need cash immediately and can repay the advance quickly to minimize interest and fees. They should be used sparingly and only in situations where no other options are available.

3. Payday Loan

Payday loans are short-term loans designed to provide quick cash until your next payday. These loans do not require a credit check, making them accessible to individuals with bad credit.

Pros

The primary benefit of payday loans is their quick approval process. These loans are typically approved within minutes, allowing you to access funds almost immediately. This can be crucial in emergencies where time is of the essence.

Another benefit is that payday loans do not require a credit check, making them accessible to individuals with poor credit histories. This can provide a lifeline to those who are unable to obtain traditional loans.

Cons

Despite their accessibility, payday loans come with extremely high interest rates and fees. This can make them very expensive and lead to a cycle of debt if you are unable to repay the loan on time. The short repayment period, often just a few weeks, adds to the financial pressure.

Additionally, payday loans can negatively impact your financial situation if you are unable to repay them. Defaulting on a payday loan can lead to additional fees, legal action, and further damage to your credit score.

Who It’s Good For

Payday loans should be considered a last resort due to their high costs and short repayment terms. They are an option for those who need cash immediately and have no other alternatives, but they should be used with caution.

4. Title Loan

Title loans are secured loans that use your vehicle as collateral. You can borrow a percentage of your vehicle's value and retain the use of your vehicle while repaying the loan.

Pros

Title loans offer fast approval and access to cash, often without a credit check. This makes them accessible to individuals with bad credit. The amount you can borrow is based on the value of your vehicle, which can provide a larger loan amount compared to other options.

Cons

One of the major drawbacks of title loans is the risk of losing your vehicle if you default on the loan. The high interest rates and fees associated with title loans can also make them expensive, adding to the financial burden. Additionally, the short repayment period for title loans can create financial stress, especially if you are already struggling with debt.

Who It’s Good For

Title loans may be an option for those who own a vehicle outright and need cash quickly. However, the risk of losing your vehicle makes this a risky choice. It's important to consider your ability to repay the loan before using your vehicle as collateral.

5. Personal Installment Loans

Personal installment loans are a type of loan that allows you to borrow a fixed amount of money and repay it over a set period with regular, equal payments. These loans are typically offered by banks, credit unions, and online lenders. They can be a viable option for individuals with bad credit who need to access funds quickly.

Pros

One of the primary benefits of personal installment loans is their structured repayment plan. Unlike payday loans, which require full repayment by your next paycheck, installment loans allow you to spread the cost over several months or even years. This can make it easier to manage your finances and budget for the repayments.

Cons

An important drawback is that personal installment loans may have more stringent eligibility requirements. Lenders typically conduct credit checks and may require proof of income, employment, and other financial information. However, many online lenders have more lenient requirements, enabling all types of credit profiles to apply.

Additionally, some personal installment loans come with origination fees, which are deducted from the loan amount before you receive the funds. This means you will receive less money than you initially borrowed, which can be a surprise if you’re not expecting it.

Who It’s Good For

Personal installment loans are a good option for individuals who need a larger amount of money and prefer a structured repayment plan. They are suitable for those with bad credit who can demonstrate a steady income and meet the lender’s eligibility criteria. These loans are particularly beneficial for borrowers who want to avoid the high costs and short repayment terms of payday loans and are looking for a way to improve their credit score through consistent, on-time payments.

Non-Loan Alternatives for Bad Credit

If you prefer to avoid loans altogether, there are several non-loan alternatives to consider:

Borrowing from Friends or Family

Borrowing money from friends or family can be a quick and interest-free way to get cash. However, it's important to approach this option with caution, as it can strain relationships. Be clear about repayment terms and stick to them to maintain trust.

Gig Work

Taking on short-term or freelance work can help you earn extra money quickly. Consider gig economy jobs such as driving for a ride-sharing service, delivering food, or completing tasks through platforms like TaskRabbit or Fiverr.

Pawn or Sell Items You Don’t Need Anymore

Instead of getting a loan that you’ll have to pay back, consider selling things you don’t need or want. Smaller items like clothing, shoes, and jewelry can add up quickly, but larger sales like designer handbags, phones, tablets, and furniture may give you all the money you need in one transaction.

You could even consider selling a second car to get extra cash. Not only will you get cash for a vehicle you don’t need, but you can also alleviate yourself of the insurance and maintenance for it.

Pawning is another option. By pawning an item, you have the option to buy it back as long as it has not sold. This is risky for items that you don’t want to lose, and you will still owe interest even though it isn’t a typical loan.  

Get Community Assistance

Financial assistance comes in many forms, especially when it’s from a local source. Some of these options will accrue interest, and some won’t. Depending on the lender, you may not even be required to repay the loan.

Here are a few examples:

• Churches and non-profits. These organizations offer a variety of donations, financial assistance, and low-interest loans based on individual needs.

• Peer-to-peer lending. P2P lending will often approve borrowers that the bank won’t. Once you have built your credit back up, you can return the favor by lending money (and earning interest in the process).    
• Private loan. Even a small loan from friends or family could protect your credit from being ruined in the future and your budget from being ripped apart in the present.

How To Avoid Bad Credit Loan Scams

Scammers often target individuals with bad credit, so it's important to be vigilant when seeking loans. Here are some tips to avoid bad credit loan scams:

• Research lenders. Before applying for a loan, research the lender thoroughly. Check for reviews and ratings from other borrowers. Look for any complaints or red flags that indicate the lender may not be legitimate.
• Verify licensing. Ensure the lender is licensed to operate in your state. Reputable lenders are required to comply with state regulations and licensing requirements.
• Avoid upfront fees. Legitimate lenders do not require fees before approving a loan. Be wary of any lender that asks for payment upfront, as this is a common scam tactic.
• Read the fine print. Carefully read all terms and conditions before signing a loan agreement. Make sure you understand the interest rates, fees, repayment

Getting an Online Personal Installment Loan Near You

If you are interested in getting a personal installment loans, Simple Fast Loans has an easy online application that can get you money as quickly as the same business day.

Beyond that, there are many great reasons to choose Simple Fast Loans when you need money now:

• Your personal information is stored securely
• Apply for $200 to $3,000 (depending on where you live)
• There’s no waiting and worrying, thanks to same-day decisions
• You’ll have short, manageable repayment terms and flexible repayment options
• No collateral is required to secure a personal loan
• Attentive customer service is available before and during your loan
• Most importantly, Simple Fast Loans boasts a nearly perfect rating from over 5,000 reviewers on TrustPilot. 

Uses for Personal Installment Loans 

Personal loans are here for you in times of dire need. They should never be used for trivial purposes. Here are a few of the reasons people apply for personal loans with Simple Fast Loans:

• Medical expenses
• Home repairs  
• Major appliance replacement
• Car repairs
• Utilities or other time-sensitive expenses

To start, fill out the form at the top of our website to submit your information. Just that fast, you could be approved for a loan to help you cover medical expenses, take care of a family member, or relieve the stress of a pending car repair.