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6 Options to Get a Loan with Bad Credit

While having bad credit can be a roadblock when applying for a loan from a traditional lender, the good news is that there are alternative options. Laura covers six ways to get a loan even if your credit is less than perfect.  

By
Laura Adams, MBA
7-minute read
Episode #448

Option #6: Take a loan from family or friends

If you accept a loan from family or friends, view it as a business transaction and create a proper loan agreement to avoid future disagreements.

If you can’t get a loan using these 5 options, the 6th is to borrow from someone you know. Taking a loan from family or friends is a decision that shouldn’t be taken lightly since feuds over money can destroy relationships.

If you accept a loan from family or friends, view it as a business transaction and create a proper loan agreement to avoid future disagreements.

ZimpleMoney and LendingKarma are unique platforms that manage person-to-person loans. Both handle loan documents and payment arrangements to make your life easier. You can also draft your own promissory note with the agreed upon loan terms using sites like Rocket Lawyer or LegalZoom.

How to Raise Your Credit Score

If you exhaust these options and still can’t get a loan, the best way to qualify is to raise your credit score. One of the easiest ways to build credit fast is to use a secured credit card.

Also, check out a multimedia tutorial I created called the Credit Score Survival Kit. It’s a free download that includes a video, audio, and e-book that teaches you 3 smart and legitimate strategies to build excellent credit.

See also: How to Get Credit With No or Bad Credit

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About the Author

Laura Adams, MBA

Laura Adams received an MBA from the University of Florida. She's an award-winning personal finance author, speaker, and consumer advocate who is a frequent, trusted source for the national media. Money-Smart Solopreneur: A Personal Finance System for Freelancers, Entrepreneurs, and Side-Hustlers is her newest title. Laura's previous book, Debt-Free Blueprint: How to Get Out of Debt and Build a Financial Life You Love, was an Amazon #1 New Release. Do you have a money question? Call the Money Girl listener line at 302-364-0308. Your question could be featured on the show.