getting a loan

Getting a Loan

Sometimes you just need help getting a loan to get you through some kind of temporary or emergency financial need. You could take out a large loan, but that would take years to pay off. You just need money for a few days, weeks, or maybe even for a few months. The point being, it is a short term loan and you intend to pay it back quickly. But what if you have bad credit? Will lenders still be willing to work with you on getting a loan? They may, but you’ll probably have to look into high risk loans, which are entirely different than conventional loans.


Here are some of your best options for getting a loan with bad credit.

Getting a Loan Option 1–A Pay Day Loan

This is the most obvious option for getting a loan if you have bad credit, and one that most people think of first when applying for funding of this nature. A pay day loan is one that is meant to be paid back within a week or so. Usually, you get the loan to cover you until your next pay day, and then pay it back when you get paid. It helps cover emergencies that come in between pay checks if you’re running a little short on funds. These are essentially no credit check personal loans, since your credit isn’t a factor in getting the money. The drawback is that the interest rate is very high on these high risk loans, and if you don’t pay it back on time, their collections departments can be relentless in pursuing you until you pay. But if you’re in a bind and really do have the money to pay them back in a timely fashion, a pay day loan can be a good option in getting a loan.

Getting a Loan Option 2–Credit Union or Bank Loans

You can sometimes get banks or credit unions to give loans for bad credit. It all depends on the bank or credit union, their credit requirements, and your history with them. These institutions are more likely to loan money to people with whom they have a relationship, so it helps to have an account at the institution you want to use. Credit unions can be even more flexible in their lending practices for their members, so you may want to join one if you know you’ll have a need for high risk loans coming up. Your credit will be checked, but the requirements for good credit are not as stringent in some places as they are in others. You may have to do a little shopping around to find the best bank loans for bad credit for you, but they’re there.

Getting a Loan Option 3–High Risk Mortgage

Yes, you can get a short term loan in the form of a high risk mortgage. This is usually called a hard money loan, and is particular to the mortgage industry. It’s a high risk mortgage because your credit isn’t usually a factor in getting the loan. The loan is based on the value of the property you intend to purchase. But these loans are meant to be paid back within a couple of months, or maybe a year at most. This makes them a short term loan option. You won’t get a high risk mortgage in the form of a 30 year loan. Investors use these loans a lot to fix up and flip properties, so if you’re doing that, then a hard money loan is a good choice for you. It’s also a good choice if you plan to refinance the house or property soon after buying it. You may be working on rebuilding your credit and are confident you can qualify for a regular mortgage soon after buying the property. If this is the case, then a high risk mortgage in the form of a hard money loan may be just what you need to get you into the house.

High risk loans abound, and many of them are no credit check personal loans or bank loans for bad credit. The one you choose depends on your needs. Just remember a short term loan has to be paid back more quickly than other loans, and keep that and the interest rate you’re paying in mind as you go about getting a loan.