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Thursday, October 14, 2021

5 Ways To Borrow Money When You Have A Bad Credit Score

No one ever wants to be in debt. But, unless you’re financially established and not merely living paycheck-to-paycheck, it’s highly likely that you have debt. And, you could also be struggling to pay off that debt. Times are hard and there are also seasons in your life wherein, despite all efforts to pay off your debts and save, the cash you have just isn’t enough. Perhaps, you’re reading this as, currently, you may be in dire need of a quick financial fix. You need to borrow money, but, unfortunately, you’re also suffering from a bad credit score.

To lenders, the credit score is a very important metric. This is what they use to decipher whether or not your loan application should be approved. It shows your ability to pay and your current financial standing. If you have a bad credit score, your chances of getting approved for a loan may also be slimmer.

With that said, here are five ways you can borrow money even when you’re currently suffering from a bad credit score:

  • Go For Online Lenders

Given today’s digital age, it’s not surprising that almost everything can also be done online. Among the many legitimate transactions that can be done online, one of these is applying for online loans with same-day approval. Online lenders are springing up as an alternative to physical and traditional personal loans from credit unions and banks.

There are many advantages to online transactions, mostly circling around ease of application and convenience. Also, going alongside those advantages is the fact that online lending institutions may have lower interest rates.

This means that even if you have a bad credit history, you can still get approved for a loan from online lenders. Also, the documentary requirements are less, and the promise of fast funding is also there. Once you’re approved, the money can be deposited directly into your account in as little as one or two business days.

  • Borrow From Credit Unions

When you’re looking for fast cash or a quick loan right now, your best bet is, often, to apply for a personal loan. As its name implies, this is a loan granted to those needing cash for a personal purpose. This means it’s not for a house and lot mortgage, car purchase, nor is it also for business purposes. It simply means you’re in dire need of fast cash, right now.

If you’re keen on applying for a personal loan, you ought to do so from credit unions. These financial and credit institutions are more generous with their terms and offers than banks. Plus, they also offer lower interest rates.

One drawback to credit unions, however, is that most of them will require you to, first, be a member of such organizations to be able to borrow money. If you aren’t, but you know of a family member or a friend who is, then you may ask them if they trust you enough to use their membership account in a particular credit union.

  • Borrow From Family Or Friends

If you’re not shy to do so, it’s also worth considering borrowing some cash from family and friends. Of course, you can’t expect friends you’ve just met to lend you some cash. But, if you have friends with whom you share a long-standing history of friendship, they might trust you enough to lend you money.

As to family, this element of trust might also be lighter and easier to prove. For family members you’re absolutely close with, they’ll also be more than willing to take good care of you through your hard financial times.

Depending on the friends or family members you borrow money from, some may let you borrow money with or without interest. If it’s the latter, you could be lucky enough to be charged with lower interest rates, as well as a more favorable payment timeline. Credit history and score won’t matter as much with your family and close friends. 

  • Find A Co-Signer

If you can’t get approved for a loan because of bad credit history, you may be able to do so successfully if you have a co-signer for your loan application. This co-signer should be someone trusted by the bank or the financial institution you’re applying for a loan from, for good credit standing or, perhaps, a strong inflow of accounts.

When you have a co-signer, banks and other credit institutions can trust you better. In your failure to pay, they know they have the co-signer to chase. Most importantly, you could also be a good candidate for a lower interest rate. The co-signer with good credit standing doesn’t pose so much of a threat of non-payment to the financial institution, so the interest rate doesn’t have to be as high.

  • Borrow From Payday Lenders

Payday lenders offer payday loans, usually for a low amount. While the ceiling amount may be quite lower than other types of loans, if it meets your needed amount anyway, then there’s no need for you to opt for a loan that offers higher loan amounts.

However, a word of caution you have to remember with payday loans is that, as their name implies, you’ll have to pay off the loan amount immediately on the next payday. Otherwise, the penalties can also be hefty. So, you have to be absolutely certain that paying off that loan amount on the next payday is something you can do.


If you desperately need to borrow money right now, there are so many other options you can go for apart from taking the usual route of getting bank loans. Don’t be dismayed if a bank has recently denied your loan application. You can try out any of the other methods discussed above.

In closing, however, it’s very important to remember that a loan isn’t added money to your plate. Rather, it’s borrowed money, which you’ll still have to pay for, along with an interest amount. So, you should still always be cautious. Borrow only the amount you need, and be sure it’s for a very important present need.

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Daniyel Carlson
Daniyel Carlson is a Young Researcher in the field of Data Science & Analytics having research experience of more than 8 years. He has a Masters in Computer Engineering and currently serves as an Editorial Assistant in IGI Global, United States of America. Daniyel also holds honorary positions in the Associate Member of Institute of Research Engineers and Doctors, International Association of Computer Science and Information Technology, International Association of Engineers, Society of Digital Information and Wireless Communications.

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