Quick Loans for Bad Credit
Every once in a while, you’re bound to face a sudden expense like a car repair or a medical bill. That’s where quick loans for bad credit come in. They can give you the cash you need to cover the expense, even if you don’t have a great credit score.
Let’s dive deeper into how personal loans for bad credit work and how to choose the right one for your needs.
What are quick loans for bad credit?
With a personal loan for bad credit, you can receive the funds you need to pay for an emergency expense right away. Once the lender approves your loan application, they may give you the money that same day, within 24 hours, or in a few business days. You’ll repay what you borrow via the repayment schedule outlined in your loan agreement.
Common loan types
There are several types of same-day loans for borrowers with bad credit, including:
Payday Loans
Payday Loans are short-term unsecured loans you pay back when you get paid next, typically within a few weeks. A Payday Loan lets you borrow a small amount of money that can hold you over until you receive your paycheck.
Installment Loans
Installment Loans provide you with a lump sum of money upfront. If you take one out, you’ll repay it over time through fixed monthly payments or installments. Depending on the lender, you may be able to borrow a larger loan amount than you can with a Payday Loan.
Title loans
Car title loans are secured loans that use your car as collateral. Upon approval, the lender will give you cash in exchange for your car title. The amount you can borrow is based on your car’s value. You can keep driving your vehicle as you repay the loan.
Lines of Credit
Lines of Credit are flexible loans. With a Line of Credit, you can borrow as much or as little as you’d like up to your set credit limit. When you repay the loan, you’ll only pay interest on the amount of money you borrow.
Why get a quick loan for bad credit?
Easy loans for bad credit offer the following benefits:
Easy application
In most cases, the application process for these loans is a breeze. You may be able to apply online within minutes from the comfort of your own home. Just make sure you have some basic personal and financial information on hand.
Instant approval decision
Some online lenders offer instant approvals on their loans for bad credit. This means you’ll find out if you’re approved to receive the money within minutes instead of waiting days or weeks.
Good credit not needed
Even if you have poor or fair credit, you may still get approved for a personal loan for bad credit. Some online lenders have less strict requirements and are willing to look at more than just your credit score.
How can you use a quick and easy loan for bad credit?
A benefit of quick loans for bad credit is there are few restrictions on what you can use them for, making them useful for different financial needs.
Here are some of the ways you can use an easy loan for bad credit:
Emergency expenses
Whenever emergencies strike, there always seems to be a cost associated with them. Job loss, accidents, natural disasters, and sudden bill increases can impact your finances. A fast loan for bad credit can help you cover unexpected expenses until your money situation stabilizes.
Medical bills
Illness or injuries are already stressful, and the resulting medical bills can feel overwhelming. Instant loans for bad credit can cover those expenses so you or your loved one can receive needed medical care or medication.
Car repairs
We rely on our vehicles to get to our jobs and run errands, so making sure they stay in working condition is crucial. If you’re facing car repairs, a quick loan for bad credit can get your car back on the road and keep you from missing too many workdays.
Home improvements
Replacing and repairing things is a part of home ownership, and it can be hard to cover the costs of a water heater, roof leak, or broken window. Money from an easy loan for bad credit can keep small home repairs from turning into bigger, more expensive problems.
Large purchases
Imagine looking forward to watching the big game over the weekend and realizing your TV has died. Or your refrigerator is no longer big enough to meet the food needs of your growing family. Or your dog has destroyed the couch you’ve had forever. These are all big purchases most of us haven’t saved for, and a loan can provide the money you need to pay for them.
How to choose the right financing option
If you’re interested in a quick cash loan for bad credit, follow these steps:
- Research lenders and loan options: Since there are various types of same-day loans for bad credit, do your research and explore the lenders and loan options with no minimum credit score requirements.
- Compare loans: Once you’ve shopped around, compare the interest rates, fees, and terms of each loan. If you have any questions, don’t hesitate to contact the lender.
- Read reviews: Check out the reviews of the lenders and loans that pique your interest. You may find them on social media Google, or impartial review sites like Trustpilot.
- Make your decision: Last but not least, choose the ideal personal loan for your budget and unique situation. Don't forget to read the fine print before you sign the loan agreement.
How to improve bad credit
Maybe you’d like to improve your credit score to qualify for loans with better rates and terms, but you don’t know how to do it. Improving bad credit takes discipline, patience, and a “long-haul mindset,” but it’s possible to see your score start to increase if you stick with it.
Make consistent, timely payments
This is our #1 tip because your payment history has the biggest impact on your credit score. One late payment can take over a year to recover from, so make a habit of paying all your utility, credit card, and loan payments on time.
The longer you go without late payments, the better your credit history looks to lenders and credit bureaus. If you don’t do anything else we suggest, your credit score can improve by making consistent on-time monthly payments.
Pay down debt
Having high debt levels lowers your credit score, so paying down your debt helps raise your score. There are a few methods for paying off debt, such as the debt snowball method. Do some research to find which method works for your situation and budget.
Negotiate with creditors
If you have credit account problems because you’re experiencing financial hardship, contact the company to find out what arrangement you can make with them. They may offer payment plans, lower interest rates, or even agree to a settlement.
Having an honest, transparent discussion could result in an outcome that keeps your credit history from being further damaged and helps you start getting out of debt.
Keep credit card balances low
If you have credit cards, try to keep balances at 30% or less of your total credit limit. Doing this shows lenders you’re responsible with the credit you currently have, which means you’re likely to be responsible with future credit.
Diversify your credit mix
Having a variety of credit types shows lenders you know how to manage a range of credit products. For example, if you only have an auto loan, consider a secured credit card with a low credit limit or another short-term loan to demonstrate responsible behavior with the new account.
Don’t open too many new accounts
Whenever you open a new credit account, your credit score temporarily lowers by up to 10 points. Since it typically takes several months of on-time payments to get those points back, applying for more credit too soon causes your credit score to keep dropping. Opening multiple new accounts close together also makes you look like more of a credit risk. Wait 6-12 months between applications for new credit.
Get a credit-builder loan
A credit-builder loan builds a positive payment history for your credit report. When you’re approved, your loan money is put into an account for safekeeping while you make all your loan payments. When you make the final payment, you receive your funds, and the lender reports your on-time payments to the credit bureaus.
Become an authorized user
If a family member or friend with good credit is willing to add you as an authorized user on their account, you may be able to piggyback off their credit. However, the account holder and the authorized user are both at risk if either party behaves irresponsibly with the account.
Some lenders won’t allow adding authorized users or they won’t report information to the credit bureaus for authorized users. Be sure to find out what the lender’s policies are before pursuing this.
Check your credit report regularly
Sometimes lenders make mistakes in the information they report to the credit bureaus, which can unfairly lower your credit score. Make a habit of running your credit report regularly and checking it carefully to make sure everything is correct. If you see a mistake, start the process to correct it right away!
Advance America offers fast and easy loans for bad credit
We offer personal loans to all types of borrowers, including those with poor or fair credit. Our quick loans include Payday Loans, Installment Loans, and Lines of Credit. You may apply online and get your money quickly, sometimes within 24 hours.
Explore our website to learn more about the loans we offer. When you’re ready, stop by your nearest Advance America store or apply for a quick loan online.
