How Can I Borrow Money with Bad Credit?

Female hand with money in cash department windowWondering “How can I borrow money with bad credit?” is a common question, and one that becomes increasingly desperate when your credit score falls below 580. A FICO score under 580 is considered poor, and research indicates that over 60% of consumers with poor scores will become delinquent on an account. It’s easy to see why lenders treat such cases with care, but there are things you can do to get a loan under those circumstances.

How and Where Can I Borrow Money with Bad Credit?

  • Rebuild Your Credit: Yes, easier said than done, but at least make a start. Pay off credit cards, stop making loan applications, and make current payments on time. All you need to do is reach a “fair” credit score — interest payments might be high, but at least you’ll be able to get the loan.
  • Look for Bad Credit Lenders: If you can’t wait, look for lenders who specialize in bad credit cases. Again, interest payments will be high, but such a lender is probably your best bet for a quick loan.
  • Find a Cosigner: If you can’t rely on your own credit score, try using someone else’s. A cosigner will agree to repay your loan if you default, providing some peace of mind for lenders. Just make sure you can repay the loan.
  • Go Through Friends and Family: Your family and friends probably won’t check your credit or charge interest; if you’re really hard-up, asking them for a loan could be an option. Before going ahead, try outlining repayment terms so everyone knows how the money is coming back. If you’re uncomfortable asking one person for a large loan, think about asking several people for smaller ones.
  • Try a Secured Loan: Secured loans use one of your assets as collateral. Cars, home equity, savings, and retirement plans can all be used. Many credit unions offer savings-secured loans to help people rebuild their credit scores.

Xpress Cash Can Help You Build a Strong Credit Score

Whether you need a cash advance for short-term cover or a personal loan to consolidate credit card debt, your local Xpress Cash can help. Visit one of our branches across Idaho, Michigan, and Wisconsin or feel free to contact us online.