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How to Get Money When your Credit is Horrible

It seems to be a proven fact; you need money and can’t get it when you need it the most. This could be due to not having enough income or unexpected bills. Whatever the case, a loan could be the answer. However, how do you get this loan when your credit is horrible? Let’s uncover a few alternate methods that may work.

Get Money Out of Your Home

If you own a home, this method may work in your favor. Not many, but some have equity in their home. If this is the case for you, you may be qualified for a low-interest line of credit to use as you wish. This could also be tax deductible as well, a double win for you.

Before taking out the equity in your home, be sure to have a plan in place to pay this new loan. You are putting your home on the line as collateral and risk losing it if you can’t pay it. However, with the low-interest rates compared to a personal line of credit or loan, this is your most inexpensive option.

Get a Loan from a Credit Union

Most people walk into a bank or apply online with their bank for a personal loan. However, your credit score and credit history are the most important factors they take into consideration. Swaying them with your income may not work. Credit unions are different than banks and therefor lend on different circumstances.

However, if you are a member of a credit union, this may work out to your advantage. Credit unions are there to service their communities. It’s a more personal experience. You’ll find their rates are low and customer service levels are high.

Get a smaller Loan

It can be really hard to get a loan from something large when your credit is bad.  If you happen to need less money there are plenty of companies that will lend small amounts of money even if your credit is poor.  One place that offers bad credit personal loans is Lindgren Financial.

Most places will only approve smaller amounts which are generally $300-$2,500.  The good thing is the loans are not backed by collateral and in some cases you can get them without a credit check.

Check Out Peer to Peer Lenders

Peer to peer loans are becoming one of the more sought out loan options. These loans are provided by individuals who are looking to find a great passive income on the side. The underwriters for companies such as Prosper, Lending Club, or GreenNote look deep into your credit history to see if you are a risk or not. You can apply for these loans on their online platform and once approved, you could have access to a network of individuals pitching in towards your requested loan amount.

Get a Cosigned Loan

If your relationship is strong enough, you can talk to friends and family members about cosigning for your loan. If your credit is horrible because of a few issues that have come along, due to no fault of your own, they may be empathetic and willing to cosign for you. If you can show them you’ve been responsible and have a method of paying this loan back, on time, you could be on your way for an approved loan. And on the plus side, this can improve your credit as well as theirs.

Now you can see that a traditional lender is not your only method of getting money. No matter if your credit is stellar or horrible, the above four tips will help you get money when you need it most.

Have you ever used any of these methods to get a loan?

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Erin Thompson

Erin Thompson spent years managing her own blog about budgeting and debt. Because of that, she has great insights not only about managing spending and borrowing but also about running websites profitably. When she's not writing articles for us, she's traveling and looking for new types of wines to try.
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The content on is for informational and educational purposes only. It is not financial advice and we are not certified financial advisors. strives to keep its information accurate and up to date, but it may differ from actual numbers. We may have financial relationships with companies listed on our site. We may receive compensation for the placement of sponsored products or services. We work hard to write authentic and accurate articles.