4 Easiest Loans to Get in 2020 for Bad Credit

By  //  August 27, 2020

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Nearly a third of Americans have a credit score below 601 i.e bad credit, according to the credit bureau Experian.

Nearly a third of Americans have a credit score below 601 i.e bad credit, according to the credit bureau Experian.

That’s likely to grow as America works its way through the coronavirus pandemic and the greatest economic downturn since the Great Depression.

Bankruptcies, sudden medical expenses, and surprise layoffs are just some reasons consumers are looking for a loan.  

But just because you have bad credit or are going through financial difficulties doesn’t mean that you are out of options. So what are some of the easiest loans to get with bad credit?

What follows are a few options for people with low credit scores to secure emergency funds. 

1. Secured and Unsecured Personal Loans

Personal loans come in two types: secured and unsecured.

Having collateral is the name of the game when it comes to secured loans. You’ll get more favorable rates if you already own a home or a car. You’ll also get a higher loan limit with a secured loan.

Unsecured loans don’t require collateral, but with bad credit, this type of loan might be hard to secure. A low credit score could result in an ironclad refusal. 

The downside of a secured personal loan is the real possibility of losing your assets if you find yourself unable to pay the loan back.

2. Cash Advances

These loans can be great for paying off an unexpected expense when only cash will suffice. Cash advances are usually issued by your unsecured credit card lender and have a higher APR than regular credit card transactions.

While these rates are usually less than that of some other short-term loans, the interest begins to accrue immediately upon the cash advance, meaning there’s no grace period.  

3. Home Equity Line of Credit

These loans, or HELOCs, are similar to home equity or secured personal loans. They are cash loans issued by your home lender for specific projects. This is a good option for small home improvements where you want to spread out repaying the loan over a long period of time.

Of course, like any secured loan, you are putting your home at risk. Yet, the rates might be favorable if you are working with your longtime mortgage lender.

4. Payday Loans, The Easiest Loans to Get

There are many options for payday loans and if you need money fast and have only a pay stub, this could be an option for you.

Yet, a lot of these companies are deemed predatory lenders, so do your research. More information on which specific company can choose can be found on several payday loan research sites.

With some payday loans, the interest can be greater than 300%. Often, payday lenders will require access to the loan seeker’s bank account. Between the interest and the willingness of payday lenders to file suit, individuals in this type of loan need to be careful. 

Covid-19 Credit Crunch

Even people with good credit can find themselves in dire straits with the suddenly changed economic landscape sparked by the coronavirus pandemic.

The United States is only now starting to make some headway after April’s disastrous 14.7% unemployment rate.

Some of the easiest loans to get with bad credit may be preferable for short-term cash, rather than tap retirement savings or money set aside for food, rent or a mortgage payment.

Search this site for more articles on consumer spending and the pandemic. If you like this post, share it on Twitter, Facebook, or your favorite social media stream.  

Nearly a third of Americans have a credit score below 601 i.e bad credit, according to the credit bureau Experian.

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