Life happens. Unexpected bills. Or worse, what happened to me, our air conditioner broke last July and we live in Texas! Unfortunately, we didn’t have a home warranty so the repairman gleefully informed me that I needed to pay him $2500.
Or I could enjoy the 100+ degree heat. Since we go to the same church I got him down to $2300. But I was grateful that my credit union had approved me for an unsecured personal loan over the phone, we got our A/C fixed and I bought a home warranty! Lesson learned!
But what if I had bad credit and something like that came up?
Well, its best to try to improve your credit before such a situation comes up. But if you wake up one morning, sweating, barely able to breathe the hot air and you need to get a loan fast. Check out these bad credit personal loan lenders.
The loans on this page provide unsecured bad credit loans. Some of them can approve you the same day, while some take more time. If you have no time to wait on an approval, you might want to check out these payday loan lenders. They can approve you the same day and sometimes get you the money the SAME DAY! But use a payday loan ONLY as an emergency! its best to work with one of the other lenders first.
Tips to help you get approved
- Make sure you read the requirements for approval.
- Some of them will require your most recent W-2
- Join a credit union. They have the best rates for their members! I used to work for one for YEARS and have kept my account open because they treat their members like gold! They have instant approval loans for people with good credit and most also have unsecured bad credit loans!
- Know what your credit score is BEFORE you apply so that you are sure you fall within their credit requirements. You can order your credit report and score online.
- Don’t be afraid to call or email them for clarification
- If you get a decline. Find out why. And then ask them if they will reconsider if you are able to provide some collateral.
- If you can, ask a friend or family member to co-sign for you. Make sure you show them you are able to repay the loan. A lot of people don’t want to be a co-signer because they are afraid of taking on someone else’s debts.
- If you have time, fix your credit. You can do that on your own or hire a professional credit repair company
Quick credit fixes
If you have a few months before you will be applying for a loan, there are things you can do to improve your credit quickly!
Get a copy of your report from each the three major credit reporting agencies prior to submitting your loan application. If you do find errors, send a letter of request to the agency that issued your report so that the items can be fixed or removed from your report. If your request is valid, the credit reporting agency must notify the other credit bureaus about the corrections and send you an updated copy of your report at no charge.
Negotiate with your creditors.
If paying your outstanding balances is not an option, the best thing to do is talk to your creditors. Explain your present situation and request if your repayment terms can be modified so you can have a chance to keep up with your obligations and avoid inflicting more damage to your credit history.
You’ll be surprised that many lenders are willing to adjust their terms to help a borrower in need. Let your lender know the steps that you are doing to get yourself out of debt. By showing your lender that you are sincere about paying your debts, you can surely get their support.
Choose the right bad credit loan lender.
Applying for a subprime loan is a very serious decision. Do not forget the risks associated with these loans. Choosing the wrong lender can only lead you to a far worse situation than you’re already in. Spend time and effort doing research and comparison about bad credit loan lenders. Carefully examine your loan contract and make sure that you understand the terms of your lender.
Protect yourself from scammers.
Being in a bad debt situation can make you vulnerable to scams and tricks. Watch out for bad credit repair services that promise to give your report an instant fix in exchange for a one-time fee! Remember, if those charges in your report are correct, the only way you can repair your credit is to pay off your debts.
Furthermore, beware of predatory lending companies that offer incredibly low rate loans and instant approval. The low interest rate could be a trap! The moment you sign up for the loan, you may suddenly find yourself stuck with a loan packed with hidden fees, unreasonable penalties and continuously increasing rates.
Plan your repayment.
How do you plan to keep up with your monthly loan payments? Have you created back-up strategies to make sure that you will not miss or delay with a single payment? Create your personal repayment plan before submitting your application. If you must get a bad credit loan, you might as well use it to rebuild your imperfect credit.