Best Emergency Loan Options For People With Poor Credit | $500 - $50000

When you need money, you want the best emergency loan options available, even if you have poor credit. Obtaining a $500 - $50000 loan with poor credit may seem like a hopeless endeavor, but it is doable if you know the options available to you. No one intentionally wants to have bad credit, but this could happen to anyone. For some, it may be as a result of financial difficulties in life, whereas others have just practiced bad money management.

In the event of an emergency, having poor credit could make matters worse; however, there are still ways to get by. You may have limited loan options when your credit is in poor shape, but you can explore some other options. Some lenders may be prepared to offer you an emergency loan even with your bad credit score.

Although the loans may not come with the best of terms, they will help you solve your immediate problems. So, how do you access them? This article aims to enlighten you on the best emergency loan options you can access with poor credit. Let's delve deep into it.

Types Of Bad Credit Loans

If you are seeking for personal loans for bad credit borrowers, you have two options to explore: the secured and unsecured loans.

Secured Loans

Collateral are a major requirement for secured loans; you could use your car, home, or any other asset. Usually, the rates, terms, and loan limits are favorable because you will be driven to repay the loan on time. If you are a bad credit borrower, secured loans are easier to obtain than unsecured loans. Failure to repay the loan within the stipulated time will result in the collateral loss. While some lenders provide secured personal loan options, the usual secured loan options are mortgages, auto loans, and home equity loans.

Unsecured Loans

Unlike secured loans, these types of loans do not require collateral, but your $500 to $50000 loan may be approved depending on your creditworthiness. This implies that the loan qualification will be a bit difficult; however, some lenders have less stringent rules. Given that there is no collateral security, unsecured loans attract lower loan limits and higher interest rates, but you do not lose your assets if you default on payments.

Best Loan Sources For Individual With Poor Credit

You can find companies that serve loans to bad credit borrowers; however, carry out thorough research to find the ones whose repayment terms and interest rates are suitable. Feel free to explore any of these sources below.

Online Personal Loans

With the widespread technological advancements in the world today, a lot of online personal loan companies have been springing up, thereby creating better options for bad credit borrowers. You can consider these companies as banks without physical offices. Their business activities are conducted online, which makes them user-friendly.

Unlike getting loans from banks, the loan process takes a few minutes, and funds get deposited in your account within a few hours or days. Also, you do not have to pay any application fees. The lenders take little notice of your credit score; therefore, it is not considered a major criterion during their decision-making process. Some factors that could work in your favor include your employment history, having a college degree as well as the school that awarded the degree.

Peer-to-Peer Lending

Popularly called crowdlending or P2P lending, this loan option has been existent since 2005. P2P lending platforms connect bad credit borrowers to other individuals who are willing to give them a loan. Prospective borrowers list their loan requirements on different websites where investors can evaluate their listings and select a borrower to fund.

Although investors slightly factor in your credit score, these platforms have less stringent lending standards, and you also enjoy lower interest rates than traditional lenders. P2P platforms also conduct versification and risk evaluation to keep both the borrowers and the lenders safe.

Credit Union Loans

Local credit unions are good sources of getting emergency cash. They are non-profit lenders, which make them a good option for bad credit borrowers. Credit unions consider more than your credit score; your entire financial standing is evaluated before you can qualify for a loan, and their terms are not strict. To become a member of a credit union, you have to live, study, or work in a certain place or be part of a particular group. You may need to pay a membership fee while registering.

Loan Aggregators

If you have poor credit, this option might be worth exploring. A loan aggregator isn't a direct lender; however, a considerable number of lenders use the platform. They pay less attention to credit levels, which increases your chances of getting a loan. All you need to do is to send a request with your requirements, and lenders who consider your proposal appealing will make offers.

Find the best emergency loan options for people with bad credit

Best Poor Credit Loan Companies

OneMain Financial

If you need emergency cash, OneMain Financial is your best bet. Your loans can get approved in ten minutes. The platform offers variants of loan options for different types of borrowers. While poor credit borrowers may not be eligible for all OneMain Financial's credit products, they can find offers designed to suit their needs. The company considers other factors apart from credit scores while approving loans. Also, you can use any of your assets as a surety to qualify.

Key Features:

  • Loan amount: Up to $50,000

  • Duration: Up to 60 months

  • Interest rate: 18.00% – 35.99%

BadCreditLoans.com

This company is among the oldest bad credit loan providers. Your loan options become very limited when your credit score is terrible, but this website has been connecting keen lenders to bad credit borrowers for over two decades. After your application, the website sends you offers from its group of lenders. This enhances flexibility because you get to choose an offer that you feel is suitable for you. Bear in mind that the receipt of offers is largely dependent on your financial situation. Also, you can decline offers that do not meet your requirements.

Key Features:

  • Loan amount: $500 to $5,000

  • Duration: 3 months – 36 months

  • Interest rate: 5.99% – 35.99%

NetCredit

NetCredit is another option to try out if you want to get your loan approved with poor credit. One of the outstanding things about the website is that they do not consider only your credit score. In some cases, NetCredit accepts proposals of borrowers whose scores are as low as 550. The platform also features a plethora of tools that promote user-friendliness, and their services are 100% transparent. If a borrower changes his mind, he can return his loan a day after getting funded.

Key Features:

  • Loan amount: $1,000 to $10,000

  • Duration: 6 months – 60 months

  • Interest rate: 34.99% – 155%

Peerform

Peerform is a P2P borrowing platform where borrowers are paired with investors who wish to lend money. Since the loans on this website are funded by investors, you stand a better chance of getting approved. If you have a poor but not extremely terrible score, lenders on Peerform may consider your loan proposal. The P2P concept eliminates intermediaries, and you also get to enjoy lower interest rates. However, you must understand that Peerform will reject your application if your credit score is below 600.

Key Features:

  • Loan amount: $4,000 to $25,000

  • Duration: Up to 3 years

  • Interest rate: 5.99% – 29.99%

Avant

With Avant, you can apply for a loan online or by using the mobile app and get funded on the next business day. The company places its main focus on average credit customers, but bad credit borrowers also stand a chance. The loan application on Avant is quick and hassle-free. Also, the company has an active customer service that works 24/7/365; hence, you can make inquiries whenever possible.

Key Features:

  • Loan amount: $2,000 to $35,000

  • Duration: 24 months – 60 months

  • Interest rate: 9.99% – 35.99%

PersonalLoans.com

Peer-to-peer platforms serve as a better alternative, and they help widen your loan options. PersonalLoans.com offers its customers an array of competitive loan packages to pick from. When you are done with your online application, the website scans its database to find lenders who suit your financial standing and needs. The search result is displayed, and you can do additional research to find an appropriate lender. Always endeavor to read the terms and conditions of every offer because they vary.

Key Features:

  • Loan amount: $1,000 to $35,000

  • Duration: Up to 72 months

  • Interest rate: 5.99% – 35.99%

LendingTree

Since LendingTree is an online borrowing marketplace, it is in the same category as Peerform, BadCreditLoans.com, and PersonalLoans.com. It is used as a comparison tool to connect lenders and borrowers. This implies that the company is not a direct lender, but you can easily find investors willing to part with some amount. All you need to do is to fill in your details, and you can scan through the different offers made by investors.

Key Features:

  • Loan amount: $1,000 – $50,000

  • Duration: 24 months – 60 months

  • Interest rate: 5.32% – 36%

Frequently Asked Questions About Emergency Bad Credit Loans

Are bad credit loans safe?

Yes, bad credit loans are safe, but you have to do some research; find out how long the loan company has been in business, check online reviews as well as the terms and conditions for taking loans. Most scam companies will request an upfront payment before they can process your loan application, so stay away from them. Under no circumstances should you pay any upfront fees. Also, never divulge sensitive details like your account number or social security number unless the loan company sends you a written documentation concerning the loan.

What are bad credit loans used for?

Things you can use bad credit loans for include:

  • Debt consolidation

  • Upsetting high-interest credit card debt

  • Unexpected emergencies

  • Paying off medical bills

  • Cover moving expenses

Is there any difference between bad credit loans and payday loans?

Yes, in terms of interest rate and repayment time, there is a huge difference. The repayment plan for a bad credit loan is based on installments. This means that you are expected to make consistent payments monthly until your debt is cleared. The repayment period normally lasts for 12 to 36 months; sometimes, it is more than that. Bad credit loans have an interest rate of between 5.99% to 36%.

On the other hand, you have to settle a payday loan with your next paycheck. Therefore, the grace period is between 2 weeks to 1 month. According to the Consumer Financial Protection Bureau, the average interest for a $100 two-week payday loan is close to 400%.

Is collateral a major requirement for obtaining a bad credit loan?

The truth is that most lenders have specific guidelines and most bad credit loans are unsecured; hence, no collateral is needed. But bad credit borrowers have lesser chances of getting their loan proposals approved. If you fall under this category, opting for a secured loan will be your best bet, and you will need to offer a form of collateral to get your loan request approved.

Can unemployment reduce your chances of getting emergency bad credit loans?

Most lenders consider your employment history when you apply for a bad credit loan. Getting a personal loan as an unemployed person is possible, but you will have to tender proof of a steady income source. This could include child support, disability income, social security benefits, investments, and so forth. Having bad credit may hinder chances, but it does not disqualify.

Can you obtain a loan with no credit check?

Yes, this is possible. Some companies can offer you loans without credit checks, but you need to exercise some caution. Lenders who do not perform credit checks charge excessive interest rates up to 400%. As a result, we recommend that you use this option as a last resort. Also, with the many scam companies out there, you must keep your eyes peeled while exploring this option.

Final Thoughts

Having a bad credit score might not be a good thing, but it doesn't disqualify you from accessing emergency loans. All you need to do is to put in some effort to research and find out the companies who offer the best loans and you are good to go!

References:

https://www.debt.org/credit/loans/bad/

https://www.investopedia.com/best-personal-loans-for-bad-credit-4774349

https://www.nerdwallet.com/blog/loans/personal-loans/credit-union-loans-personal-often-cheaper/

https://money.com/best-bad-credit-loans/

https://www.thesimpledollar.com/loans/best-bad-credit-loans/

https://www.bankrate.com/loans/personal-loans/what-is-a-secured-loan/

https://www.bankrate.com/loans/personal-loans/bad-credit-loans/#types-of-bad-credit-loans

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