How To Get a Loan This Spring and Summer, Even With Bad Credit

You can get a loan this spring and summer even if you have bad credit — your options may just be more limited, and you'll generally pay more to borrow money. A personal loan could come in handy if you have big or unplanned expenses on the horizon such as home repairs, travel or moving arrangements.

Here are some options for getting a loan with a lower credit score as well as important qualification and timing details to keep in mind.

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Key Takeaways

• You can still get a loan with bad credit this summer — options are just narrower. A FICO score below 580 is generally considered "Poor" and 580 to 669 is "Fair," and lower scores usually mean higher rates.

• Compare four main paths. Personal loans, credit builder loans, cash advance apps and credit union loans each fit different needs, timelines and credit profiles.

• Credit builder loans can help, but results vary. CFPB research found they work best for people without existing debt and may not raise scores for those already carrying debt.

• Timing matters — apply about two to three weeks ahead. Pull your free weekly report at AnnualCreditReport.com, fix errors and batch your applications to limit hard-inquiry dips.

Summary generated by AI, verified by MoneyLion editors

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Can You Get a Loan This Spring or Summer With Bad Credit?

Even if you have bad credit — often considered a score below 580 — you can get a loan this spring or summer. You won't qualify for the lowest interest rates, but you still have options for borrowing money, including:

• Personal loans

• Credit builder loans

• Cash advance apps

• Credit union loans

4 Loan Options Worth Comparing This Season

Personal Loans

Personal loans are some of the most common solutions for helping people manage the various expenses that can pop up as we move into warmer months. They offer greater financial flexibility overall, with the added benefit of predictable monthly payments that can often fit your budget better than other borrowing options.

If you're thinking about taking out a personal loan, you'll want to make sure you're getting the best deal. One great way to help do that is to compare multiple loan offers with MoneyLion. Simply input some information and you’ll be presented with personalized offers for up to $100,000 based on your unique criteria. 

Credit Builder Loans

Credit builder loan limits range from $1,000 to $3,000 and are mostly geared towards helping you build up your credit score. Credit builder loans work by having the borrower make monthly payments to a lender, who holds the loan amount in a secured account and reports the payment history to credit bureaus. Once fully repaid, the loan amount is released to the borrower — so this isn’t the best option if you need funds fast.

Cash Advance Apps

Cash advances are available through some financing companies and online apps, and they can be a great way to access funds without having to take out a loan. 

If you're anticipating needing extra cash, a cash advance product from MoneyLion may be just the thing to give you an extra bit of financial wiggle room. You can receive up to $500 with Instacash^® with no interest, no credit check and no mandatory fees. 

Credit Union Loans

Getting a personal loan from a credit union can be a great option because credit unions tend to offer lower interest rates compared to online lenders.

That said, it can be more difficult to obtain funding from a credit union, as they tend to only approve borrowers who have fair to good credit — and you often need to be a credit union member. Offering collateral, such as your home if you own one, is one strategy that can make a credit union loan more accessible, although you should proceed with caution considering that if you default the consequences could be severe.

Other Options

Borrowers with lower credit scores can also turn to payday loans, which are short-term financing options, typically for small amounts, which you repay after a short turnaround time — your next paycheck. While they're a quick and easy way to get cash fast and can even be done online sometimes, they usually come with very high interest rates, so they should never be your first option.

Peer-to-peer lending is another avenue, but it has its own downsides. This involves borrowing money from an individual or business, often through a site that matches lenders with borrowers. While it's possible to find fair interest rates with this method, you may be prompted to pay additional fees.

Steps To Boost Your Approval Odds Before You Apply

Your credit score can have a huge impact on the loans you’re able to take out. You may want to think about using your spring and summer to improve your credit score so you can get better rates. Here are the key steps to take:

• Pull your credit report: You can get a free weekly credit report from AnnualCreditReport.com.  Review your report to see if anything looks amiss, such as accounts incorrectly listed as late or the same debt listed multiple times. If you see errors, contact the credit bureau that has the mistake and explain what you think is incorrect, including proof to back it up.

• Pay down revolving balances before applying: The credit that you use accounts for 30% of your credit score. If you’re regularly using a large portion of your available credit on revolving accounts such as credit cards, banks can view your finances as being stretched a bit too thin. Reducing your debt can give banks confidence and raise your score.

• Compare multiple offers in one sitting: Comparing your offers across lenders can help you find the lowest rate. Since applications often result in hard credit inquiries that can temporarily decrease your credit score, it’s wise to batch your comparisons so you aren’t hit with multiple drops to your score.

Time It Right: When To Apply Before Summer Expenses Hit

Starting with Mother’s Day and graduation season in early May, the spring and summer seasons are packed with holidays, and they’re often the time that travel and home repairs get booked as well. 

If you're anticipating needing to borrow money, give yourself ample lead time to find your best option. This way, you’ll have time to compare rates and find the best offer rather than accepting the first one you qualify for out of urgency. Aim to apply two to three weeks ahead of the known expense.

FAQ

Will applying for a loan hurt my credit score this summer?

Applying for a loan this summer may temporarily lower your credit score slightly if your application triggers a hard credit inquiry, but in the long run it can help your score if you make on-time payments. If you fall behind on payments, the damage to your credit score can be more severe.

How fast can I get loan funds before a trip or event?

Some online lenders and cash advance apps offer funding as quickly as the same or next business day. You may need to pay an extra fee for an instant transfer, though.

Can I get a loan with no credit check for summer expenses?

You can likely get a loan without a credit check for summer expenses, but it’s often not the best option. Loans that don’t require credit checks, such as payday loans, may come with higher interest rates and less favorable terms than personal loans that do require a hard credit inquiry.

What credit score do I need to qualify this season?

To qualify for a loan this summer, you’ll generally need a credit score of at least 580. That said, you may still qualify with a lower score, but you’ll also likely pay more in interest and have a more limited selection of options.

Anna Yen contributed to the reporting for this article.

Key Terms

• APR (annual percentage rate): The yearly cost of borrowing, including interest and certain fees, shown as a percentage of the loan amount.

• Hard inquiry: A lender's credit check when you apply for credit, which can cause a small, temporary dip in your score.

• Soft inquiry: A credit check that doesn't affect your score, such as checking your own report or a prequalification.

• Credit utilization: The share of your available revolving credit you're using; high utilization can signal you're overextended and may lower your score.

• Credit builder loan: A loan whose funds are held in a savings account while you make monthly payments; once repaid, the money is released and your payment history is reported to the credit bureaus.

• Earned wage access (EWA): A tool that lets you access pay you've already earned before payday; it isn't a loan and typically charges no interest.

• Secured loan: A loan backed by collateral, such as a car or savings, which lowers the lender's risk and can mean a lower APR — but you risk losing the asset if you default.

• Co-signer: Someone who agrees to repay the loan if you can't, which can improve your approval odds.

Sources

• myFICO — What Is a Credit Score? — FICO ranges and how lenders read "Poor" and "Fair" scores.

• MyCreditUnion.gov — Credit Union Accounts & Services — what credit unions provide to customers

• Consumer Financial Protection Bureau — payday loan risks and credit builder loan research.

• Federal Trade Commission — What To Know About Advance-Fee Loans — why "guaranteed approval" is a red flag.

• NCUA — federal credit union loan interest rate ceiling — 18% cap on most federal credit union loans through Sept. 10, 2027.

• AnnualCreditReport.com — free weekly credit reports from all three bureaus.

Summary generated by AI, verified by MoneyLion editors