April 24, 2019 8:19 am Written by

Help! I Have Bad Credit and Need a Loan

Many people throughout their lifetimes will experience a financial disaster, which may in turn cause their credit score and credit rating to drop.

It could be due to illness, the loss of a job, or even something self-inflicted such as borrowing too much and being over extended.

Then when you do get back on-track, it seems to take forever to rebuild your credit, and re-establish yourself as “credit worthy”.

While going through the process of rebuilding your credit rating and credit score, you may find yourself in a position where you need a loan.

Maybe to buy a car so you can get to and from work, or maybe for repairs to your existing car, or for some other financial emergency.

So what can you do?

You know your credit score is low, and yet you need a loan.

There are loans for people with bad credit, loans specifically aimed at someone who has a low credit score. And these loans do not use credit scoring as a factor in granting the loan. Lenders use affordability, and other factors.

One fact that is interesting and good to know about this type of loans is that in most instances, once you apply and are approved for the loan, the lenders cn have the money in your account usually within 24 hours.

So not only can you get a loan with bad credit, but you can get a loan fast!

So here are three (3) types of loans for someone who may have a low credit score, or no credit experience.

Payday Loans

We have all heard a lot about payday loans, they have been in the news now quite a bit, and most of the press is negative.

However, payday loans do fill a need in the lending community, if they did not, they would no longer be in business.

Payday loans are granted based on a few factors:

* Affordability: You can afford to repay the loan.

* You have a job: You are working and receive a wage.

* You have a bank account.

A fairly simple process and criteria to receive a loan.

However, we need to look at the pros and cons of payday loans.


* Credit scoring is not involved, so bad credit is OK.

* Quick approvals, money in your account in a day or two.


* High interest rates.

* Short-terms: Loan due on your next payday, usually within 30 days.

Logbook Loans

Logbook loans are another form of bad credit loans, and also do not use credit scoring as a basis to grant the loan.

A logbook loan is granted based on the fact you have a car of value, and the loan is against that car, or the logbook.

Logbook loans are in essence a secure loan against your car. Fail to repay the loan, you could see your car repossessed.

Some of the pros and cons of logbook loans.


* Credit scoring is not an issue.

* Longer terms than a payday loan.

* Lower interest rates than a payday loan.


* You need a car with value to qualify for the loan.

* The loan is secured against the car, if you fail to repay the loan, the car may be repossessed.

Guarantor Loans

Guarantor loans are also a form of bad credit loans, but are also good for someone in need of a loan, and does not have any credit established yet.

These loans are also good for someone looking to rebuild their credit rating.

Guarantor loans are not based on credit scores, but are based on affordability and the fact there is a guarantor for the loan, a third party stating they will repay the loan if the borrower fails to do so.

Some of the pros and cons of a guarantor loan.


* Credit scoring not a factor in granting the loan.

* Lower interest rates than payday loans, and some logbook loans.

* No need to have a car or other collateral to secure the loan.

* Better repayment terms to reduce the monthly payment, making the loan more affordable.


* You need a guarantor, which is not a “con” or negative thing, you just need someone who knows you to be the guarantor.

So should you find yourself in the, help….I need a loan but have bad credit situation. There are loans out there to help.

We compare a range of loans for people with bad credit. If you would like to know more, follow the link to compare guarantor loans for bad credit.

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