Ways to Borrow Money with a Bad Credit

Bad credit means a person failed to pay his prior bills on time and will most likely not be able to fulfill his future deposits when required. There are no quick ways to repair bad credit. A bad credit score means a score that is less than 670. This is the score used by loan lending establishments to determine If a person is eligible for a certain amount of loan or not. If your score is below 670, then you will most likely get rejected by the financial firms to lend you further loans. However, If you have bad credit there are some ways to borrow money without going through a lot of effort. 

Secured Loans 

Even If you have a bad credit report, It is very much possible to get a secured loan depending on your financial situation. You can get a secured loan because you are basically offering a big asset such as your house or another property as collateral for the loan. This provides more security against the loan in general and the provider has a lesser risk for repayment.  These types of loans require a credit score of 620, at least.

Even If you are already paying a mortgage on a house, you can still get mortgage financing and put that house up as security against the debt required. It will benefit you with enough money to fulfill your needs until you are able to return everything back to the authorities. 

Guarantor Loans 

A guarantor is a person which co-signs the credit payment agreement with the lender. In this case, agreeing to the terms that he/she will pay the borrowed amount If the person taking the loan fails to do so in a considerable amount of time. This type of loan is an unsecured loan, also known as a Guarantor loan. 

The person who volunteers to become a guarantor should have at least known the person taking the loan, for a few years. They should have a good credit score which proves their credibility. Your legal guardian or parent cannot be your guarantor. With the help of this, a person can get a loan of up to 95% value of a housing asset. 

Payday loans 

This is termed a short-term debt for the person taking the loan. This also comes under the type of secured loans. A person with a mediocre credit score such as 558 to 660 is eligible for this loan. Most companies demand high-interest rates by giving away this loan but some can show flexibility according to their requirements. They are not reported to the credit companies, so they have no effect on your overall credit score.

Peer to Peer Loans (P2P) 

This is an online platform to lend money to businesses or even individuals through online sites. These sites match borrowers with lenders or financial lending organizations. It is treated as a legal investment in many countries now. These are unsecured loans. And even with high-interest rates the lending person or firm is at risk because there is no asset or in other words no guarantee to pursue If the person is unable to pay. It is the sole choice of the investor to give away the investment in the form of a loan to the person taking the loan or not. 

Getting a loan from friends or family 

Friends or family might lend you some loans at low-interest rates. You would not even have to go through the process to qualify for a debt. But If you fail to return the due amount, then It might affect your relationship in a bad way. So try to treat these types of immediate loans like business loans and pay back the total amount or installments whenever possible. 

Cash advance 

This is one of the highest-risk loans and is mostly used in emergencies. But If you are unable to get a loan anywhere, then you can get immediate debt using your credit card line. This service has very high-interest rates. They also charge a fee of 3% when receiving the loan. These are very hard to pay back at an appropriate time, so It’s considered best to avoid this type of loan. 


A person can get stuck in a sticky situation by borrowing loans upon loans, sometimes leading to a bad credit score. This can limit your options to pay your monthly installments or to meet your expenses, but there are a few ways like Payday loans, secured loans, or guarantor loans that can get you back on track. Just make sure that you modify your finances in order to pay all these in due time. This may save you from further troublesome financial situations. This will help you in living a balanced, stress-free life.