Urgent Loans for Bad Credit | How to Get them?

How to Get Urgent Loans with Bad Credit card

Table of Contents

Bad credit can make people feel stuck when they need financial assistance. Due to their poor credit history, they are unable to access traditional loans, leaving them with limited options in an emergency. However, many options for urgent loans for bad credit cater to people specifically in such situations. 

If you have bad credit, you can rely on these loans to fund your immediate needs without the lengthy approval process. Whether covering unexpected medical bills, repairing your home, or getting your dream car, these loans can be your lifeline in tough conditions. 

Want to know more? In this article, we are going to discuss what a bad credit score is, some top urgent loans for bad credit options, their pros and cons, and how you can choose the right one.

Causes of Bad Credit

Before we discuss the different urgent loans for bad credit, here’s an overview of what really leads to this situation:

Late Payments: Payments contribute 35% to your credit history. So if you fail to make payments on time, whether your utility bill or credit card payments, you’ll end up with a bad credit that may stay in your credit history for years. 

Filing Bankruptcy: Another reason many people end up with bad credit is bankruptcy – inability to pay debts. This bankruptcy information stays on your credit report for up to 7 years if it’s category 13, and for bankruptcy chapter 7, it’s around 10 years, deterring potential lenders from giving you money. 

Legal Penalties like CCJ: In the UK, if you fail to pay your bills and debts on time, the court makes a legal decision against you, known as CCJ (County Court Judgement). It’s on your credit history for six years and does severe damage to your credit score and overall financial trustworthiness.

Get Your Score Now

Types of Urgent Loans for Bad Credit Options

According to FICO, bad credit is when your credit score falls within the range of 300 to 579. If you have such a score, the following are different types of emergency loans for bad credit that you can explore:

Secured Loans 
 
If you have bad credit but own any valuable asset or collateral, you can get secured urgent loans for bad credit. So here’s how it goes – when you apply for a secured loan, the lender needs to know what assets you are going to use as collateral. 
 
You can give anything, whether it’s your car, home, or other assets. The lender will then place a lien on the asset until the whole loan is repaid. However, in any unfortunate circumstances, if you default on the loan, the lender will claim and sell the asset to recover the loss. 
 
Know that most secured loans are installment-based, which means you get all loan amounts at once and then repay them in monthly installments. 
 
Cash Advances 
 
Another type of loan that you can have with bad credit is a cash advance. It’s a short-term loan offered by your credit card company, and they often don’t scrutinize your credit history before approving the loan. 
 
Nonetheless, cash advances come with a higher interest rate than purchases and balance transfers. 
 
Your credit card company may also charge a fee of around 3% to 5% of your total cash advance. For instance, if you get a $300 cash advance with a 5% fee, you will have to pay an additional $15. 
 
Payday Loans 
 
A payday loan is one of the urgent loans for bad credit in which you borrow a portion of your paycheck before receiving it. They are helpful if you urgently need money before your next pay period to fulfill your monetary needs. 
 
However, these loans come with skyrocketing fees and high APRs of up to 600 percent and more. Not only this, but you have to repay them within 10 to 14 days, which is quite early, so it’s better to avoid such loans altogether. 
 
Joint Personal Loans 
 
Joint personal loans are the ones that you take with a co-borrower. In simple words, it’s a loan request that you make with another person, and it can be anyone: your friend, family, or colleague. 
 
If the loan application is approved, you and your partner both are liable to repay the debt on time. Otherwise, the late payment penalty will be visible on both of your credit histories. 
Get Your Score Now

Top 4 Urgent Loans for Bad Credits Platforms

If you are unable to secure any loan due to a poor credit history, here are the top 4 financial companies that can help you out in this situation with urgent loans:

Upstart 

The first platform is Upstart, which is AI-based and partners with different banks and credit unions to provide consumers with urgent loans for bad credit. The best part is that this platform relies on non-traditional points like education and employment to judge your creditworthiness. Even if you don’t have a good credit score, you can still qualify for a loan, as the minimum credit requirement is around 300. 

Pros 

  • A broad range of loan amounts ranging from $1,000 to $50,000
  • Flexible repayment terms as you can pay back the loan either in 36 or 60 months, depending upon the set conditions
  • Funds can be transferred to your account in as little as one day 

Cons 

  • May have to pay an origination fee ranging from 0% to 12%
  • No option to apply with a co-borrower 
Upgrade 
 
Upgrade is an American neobank that offers both credit cards as well as personal loans to consumers with bad credit (minimum credit requirement is 580). This platform is known for its extensive loan repayment terms, which take much of the burden off the shoulders of the borrowers. 

The payment range is the same as Upstart, ranging from $1,000 to $50,000. However, if you fail to repay the loan on time, you’ll be charged late payment fees. 
 
Pros 
  • Offer discounts on interest rates if you sign up for autopay
  • A secured loan option is available, so you can get a loan by giving your car or other assets as collateral 
  • The option to apply for a loan with a co-borrower is also available, so you enjoy a low interest rate and a higher loan amount 
 
Cons 
  • High APR ranging from 9.99% to 35.99%
  • Charges a late payment fee of $10 if you don’t make payment within 15 days of the due date

Avant

Another platform that offers urgent loans for bad credit is Avant. It’s an Illinois-based fintech company that offers personal loans to people with poor or bad credit. The company was founded in 2012 with the sole goal of making the lending experience a breeze for middle-income people. It requires a minimum credit score of 550, and you can borrow up to $35,000. 

Pros 

  • May get funds the next business day 
  • Low-income requirements than most lenders 
  • Can use Avant funds for anything, whether it’s medical bills, debt consolidation, or home improvement 

Cons

  • No option of co-signed, joint, or secured loans 
  • Limited loan amount compared to other lenders 

Prosper 

Prosper is a finance marketplace where borrowers can apply for loans ranging from $2,000 to $50,000. The platform doesn’t provide loans directly itself but buys loans from Utah-based Webbank. It’s best suited for you if you have a credit score of 600 and are finding it difficult to secure a traditional loan. 

Pros 
  • Quick and smooth application process; requires just your personal and financial information to prequalify
  • A joint personal loan option is available 
  • No penalty or fine for paying off the loan early
Cons 
  • The interest rate is capped at 35.99%, which is quite high 
  • Doesn’t offer any autopay discount 

Alternatives to Urgent Loans for Bad Credits

If you are still unable to get urgent loans for bad credit, it’s time you consider some alternatives, such as:

  • Get Help from Charity: Many charities or non-profit organizations offer urgent loans for bad credit, especially in emergencies. Therefore, you can contact any nearby charity and provide them with documents like revenue or income history and financial and bank statements. The money granted can then be used to cover anything, whether it’s medical bills, utilities, or other expenses. 
  • Request Paycheck in Advance: If you have been at your job for a while, you can ask your employer to give you an advance paycheck. Some companies really appreciate their employees and are willing to help them financially. So, don’t hesitate to make a request, as it can also save you from some high-interest urgent loans for bad credit. 
  • Ask Your Loved Ones: Family and friends can be lifesavers when you seek urgent loans for bad credit. Share your situation and difficulties with them, and they may provide you with the desired financial assistance, saving you from skyrocketing APR. However, make sure to have clear repayment terms and conditions to avoid any confusion and misunderstanding. 
You may also consider opting for 401(k) loans, where you can access amounts up to $50,000. However, this can impact your retirement savings since the tax deduction in a 401(k) is huge!
Get Your Score Now

How to Choose the Right Urgent Loans for Bad Credit?

When you are in desperate need of an emergency loan with bad credit and exploring different options, there is a chance that you may end up getting scammed. Here are some tips that you must follow to avoid scammers and choose the right loan for bad credit:

  • Compare Interest Rate: The interest rate is the amount the lender charges over and above the principal amount. You should compare the interest rates of different lenders and then opt for the one that charges a minimal amount. Know that even a small difference of 1% can significantly impact overall repayment. 
  • Pay Attention to Terms and Conditions: Some lenders try to be shady and not transparent about their terms and conditions. But you must ask them about the application fees, interest amount, repayment time, and processing charges. 
  • Research Lender Reputation: Most importantly, you should be very careful about the lender’s reputation. Research reviews and ratings and avoid lenders having negative comments from borrowers. 
Don’t forget to review the time lenders take to transfer funds and also check if they provide enough loan amounts to meet your needs. 
 

Tips to Spot Scammers When Searching for an Urgent Loan for Bad Credit

Here are some tips that make it easy for you to spot potential scammers who may be eager to take benefit of your financial situation:

  • Lender Asks for Quick Action: If a lender constantly pushes you to make a decision within a small time frame, it might be a big red flag. It’s because a credible lender knows that taking out a loan is a big decision and requires careful planning without any rush. 
  • No Physical Address: Authentic lenders will have their physical address or origin information on the official website. You can then further research the location to ensure credibility. However, if a lender has no location available, it’s your time to run because you might end up in a loophole of scams. 
  • Unregistered in State: To do business in your state, whether online or at a physical location, the lender must be registered there. An unregistered lender can be a threat since they can use your financial information for malicious purposes. So, contact your attorney general’s office before finalizing an agreement with any lender to know whether they are registered. 

FAQs

How much money can you borrow with bad credit? 

The money you can borrow with bad credit varies depending on the type of loan and the platform offering it. Typically, personal urgent loans for bad credit range from anywhere between $1,000 to $50,000. 

What are the risks of urgent loans for bad credit?

The risks of urgent loans for bad credit include higher interest rates than traditional loans, short repayment times, and, most of all, additional expenses like origination fees. 

How much credit score is considered bad? 

There are two systems that decide what credit score is bad: FICO score and VantageScore. A FICO bad credit score is 579 or below, and for VantageScore, it’s around 600 or below.

Conclusion

Urgent loans for bad credit are the way out for you to get financial assistance if your credit history is subprime. However, if you are unsure of your credit score, you should visit PFScores. 

Just enter your basic information, and we’ll calculate your credit score for you immediately, considering factors like your debt, risk, and asset management. The primary goal is to make your financial situation clear so you can make informed decisions!

Get Your Score Now
Scroll to Top