Less Stress, More Fun: The Simplest Way to Get a Loan This Spring, Even With Bad Credit

How to Get a Loan This Spring Even With Bad Credit

People spend all winter yearning for the warmth of spring. The ice thaws, the flowers bloom, and the sun comes out from behind the clouds. It’s the perfect time for a quick getaway with friends or an excursion with family. Unfortunately, outings like that don’t always come cheap. 

Trying to balance your fun plans with your budget can be stressful. Fortunately, you have a few options to take out a loan, even if your credit score isn’t anything to brag about.

Can you get a loan this spring even with bad credit?

Credit scores between 300 and 580 are considered poor. People tend to worry about whether they can get a loan when their scores fall in that range. The good news is that even if you don’t get your score up by the spring, you don’t have to be frozen out of credit options. Here’s how to get a loan with bad credit. 

Loan options if you have bad credit

You might end up with a smaller range of loan choices with a lower credit score. Make sure you’re educated on what type of loan would be best for you.

You might be surprised to see what personal loan offers are available! MoneyLion offers a service to help you find personal loan offers based on the information you provide, you can get matched with offers for up to $50,000 from our top providers. You can compare rates, terms, and fees from different lenders and choose the best offer for you.

1. Secured loans

You can take out a secured personal loan by offering a valuable item as collateral to the bank. Mortgages and car loans are examples of secured loans, where the bank can take possession of your house or car if you can’t pay. Because the bank has that failsafe, you may qualify even if you have a lower credit score.

Because the bank’s risk is secured by collateral, secured loans often come with lower lending rates. However, there’s a risk for you too — you might lose the collateral if you default on the loan. You’ll need to be diligent about paying these back so you aren’t left out in the cold right as the weather gets warmer. 

2. Payday loans

Payday loans are short-term loans that you repay after a short turn-around time (your next paycheck). They tend to be for fairly small amounts — for example in California, payday loans can only go up to $300. While they’re a quick and easy way to get cash fast and can even be done online, they often come with high interest rates. 

3. Cash advances

Cash advances are a method of taking out money against your credit limit. It’s an easy way to get fast cash this spring. They can be accessed from a bank, an ATM, or online. The downside is that they often come with higher interest rates.

4. Peer-to-peer lending

Rather than going through a bank, you can find individuals or businesses willing to participate in social lending or peer-to-peer lending. Some sites are specifically designed to match lenders with borrowers who have low credit scores. Although the interest may be favorable with this method, you may have to pay another fee on top of the interest rate. 

5. Credit-builder loans

Credit-builder loans aren’t necessarily intended to get more cash in your pocket but rather to help you build up your credit score. Unlike with traditional loans, you don’t get your money upfront. Instead, you make consistent payments toward the loan. Payment history is reported to all three credit bureaus to prove you’re a responsible borrower when you make on-time payments. Once the loan is paid off, the money gets released back to you to use as you wish.

Healthy credit is crucial. It gives you access to a wider variety of loans, lower rates, better housing opportunities, and more. 

You can help build yours with a MoneyLion WOW membership. As a member, you’ll unlock the ability to apply for a Credit-Builder Loan that’s helped more than half of our members raise their scores by 27 points in 60 days1.

When you pay off your Credit-Builder Loan on time, you can reduce your debt-to-income ratio and show positive payment history — both of which could help improve your credit score. By improving your credit score, you could qualify for lower interest rates on future loans or refinancing options. 

Join MoneyLion WOW membership and apply for up to a  $1,000 Credit-Builder Loan with a competitive rate and no hard credit check. You’ll also unlock the full suite of MoneyLion WOW’s exclusive benefits, including cashback2, VIP deals, and added benefits to your favorite MoneyLion products. 

6. Credit cards

Credit cards offer you a certain amount of money, also known as a line of credit, that you can borrow at any time. To keep your credit score in good shape, you need to make minimum monthly payments. You can pay off the full balance each month to avoid paying high interest rates. 

7. Credit unions

Credit unions offer many of the same services as a bank, but are not-for-profit. As a result, they may offer lower rates on loans than you’d find at a bank. Credit unions often don’t have as many access points like ATMs and physical branches that you can visit, so you may find them less convenient. 

How to improve your credit score

Your credit score can have a huge impact on the loans you’d be able to take out this spring. You may want to think about using the last few weeks of winter to improve your credit score so you can get better rates once springtime is in the air. 

PRO TIP!  A good credit score can lead to lower interest rates and increased borrowing power on loans and credit cards. MoneyLion offers a free and convenient way to find offers from our trusted partners to help you improve your credit.

1. Pay bills on time

The biggest factor that impacts your credit score is your payment history. Paying your bills on time consistently will help get your score up

2. Reduce debt

The amount of credit that you use accounts for 30% of your credit score. If you’re regularly using a large portion of your available credit, banks might view your finances as being stretched too thin. Reducing your debt can help raise your score and give banks confidence. That’ll give you better access to loans this spring.

3. Monitor and dispute any errors on the credit report

Don’t let errors stand this spring. If you spot something wrong on your credit report, reach out to the credit reporting company immediately to rectify it. 

How to maintain financial stability after securing a loan

In some cases, getting a loan is the easy part. The true test will come after you have the money in your pocket. To maintain or help improve your credit score, you need to have your finances under control. Track your spending, save for the future, and budget enough for your needs, along with your wants. Healthy habits like prioritizing on-time loan payments will help you build credit. It’s a good idea to pick up a side hustle to get a little extra cash. Getting a part-time gig could also give you some extra wiggle room with your finances.

PRO TIP! Create additional income by doing surveys and playing games

Loans to Make This the Best Spring Ever

If your credit score is low and the numbers in your bank account aren’t much better, there are still ways to put a spring back in your step. You can access loans through cash advances, secured loans, and more — even with poor credit. That means you can still have a blast this spring without worrying about finances.


What interest rate can I expect with a loan for bad credit this spring?

If you have bad credit, you may see an annual percentage rate (APR) of 30% or higher in some cases. 

How long does the loan approval process typically take for people with bad credit?

Getting approved for a loan will vary depending on the type of loan you’re taking out and where you’re doing so. Some financial institutions may take a few days; online lenders may be nearly instant. 

What are the consequences if I default on a loan with bad credit?

If you default on a loan, your credit score may drop and take years to recover. That will make it harder to get good loans and favorable rates moving forward and may make it difficult to buy large assets.  

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