7 Loan Options For People With Bad Credit - Tnifc-Ecom

7 Loan Options For People With Bad Credit

At some point in your life, you might find yourself in a situation where you need a loan. You may be planning a big event like a wedding or international holiday, or suddenly have an unexpected expense that wasn’t budgeted for. If you don’t know anyone personally who you could arrange a loan with then, like many people all over Australia, a great option for you could be a personal loan.  A financial institution is the best source for getting a loan, even when you have bad credit. The better your credit is right now, the more likely you will be able to get a loan. But what if you need money and your credit rating isn’t as good? You may still be able to get it but may have to look at non-bank lenders who specialise in different credit profiles, or accept a higher interest rate based on your level of risk.  Here are some options you could look into  for loans if you have bad credit.

1. Credit Cards

With bad credit, credit cards may be a good option, especially if you’re looking for a smaller line of credit or just want access to money quickly in an emergency. Credit cards are convenient to use and you may be able to arrange one with the institution you already bank with.. If you already have credit card debt, you may be able to find an offer for a low-interest credit card for a balance transfer to make using the card more manageable when making repayments.  

2. Peer-to-Peer Loans

Another option you might want to consider is a peer-to-peer loan. This is money borrowed from individuals who use an intermediary to invest money into loans for people just like you – think of it like the stock market but for loans.  It’s very straightforward and even easier to submit your application online so you can get the application processed quickly  without delays.

3. Commercial Loans With Bad Credit

Commercial loans are for business owners who need money for an expansion or start-up project in their business. If you own a business, you can often borrow money for whatever projects you need to complete. These loans can be paid back over a long period with low-interest rates and can be slightly more lenient with regard to bad credit than some of the other options. There are also a number of flexible loan options if you’re looking for credit for your business. 

4. Payday Loans With Bad Credit

These are small loans you can take out to pay bills or buy food or other necessities in an emergency.  These very short term loans are only available from select lenders.  These small loans are very high in interest and total cost of credit as they’re intended to be repaid quickly – make sure you understand what you’re borrowing and if there’s a better option available for your specific situation. 

5. Personal Loans With Bad Credit

Personal loans can be taken out for a wide variety of things like home repairs , debt consolidation, travel, wedding, moving house or even school tuition. Again, these are sometimes only available with good credit, but you may still be able to get them with bad credit if you apply with the right lenders and meet their criteria.  Online lenders have a simple and secure online application portal, so you can apply from anywhere and find out quickly if your loan is approved. 

6. Getting Help From Friends And Family

Another option is to get help from friends and family. This is a good idea if you don’t want to borrow money from a financial institution or are having trouble with your credit score. If you know the person well, you might be able to arrange a lower interest rate on loan from them because of your close relationship. Offering to pay interest shows that you’re not looking for a hand out and intend to pay them back as soon as you can.  Of course, getting help from a family member could come with strings attached as there’s no formal contract involved and may cause tension in the relationship. This is why many people opt for personal loans instead, as they prefer to keep their financial life separate. 


Getting a loan when you have bad credit can be difficult, but certainly not impossible! Look for lenders who specialise in bad credit, or offer a tiered structure based on credit profile. Many options are available, but some will suit your needs better than others. The best way to get the loan you need is to explore the different options and take your time choosing the best one for your situation.

By: Raymond James

About the Author:

Ray is a sought-after thought leader and an expert in financial and money management. He has been published and featured in over 50 leading sites and aims to contribute articles to help novice financial planners. One of his goals is to impart his knowledge in finance to educate and help ordinary people create and achieve their financial goals.

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