Are you struggling with bad credit and in need of some quick cash? Getting a loan with a less-than-perfect credit score may be possible. The answer is yes; you can get loans with bad credit, but the process may be more challenging than those with good credit. In this article, we will explore the world of loans and give tips on improving your chances of getting approved for a loan, even with bad credit.
Let’s start with some basics to help us better explain your online loan options if you have bad credit. Your credit score is calculated using two different methodologies. The FICO score is the most common method and ranges from 300 to 850. VantageScore is the alternative scoring model developed several years ago by the three credit bureaus (Experian, Equifax, and TransUnion) to give financial institutions a choice when scoring applicants. VantageScore also uses a scale of 300 to 850.
And though the scoring ranges are the same, each model uses different weights to create your credit score.
The most recent version of the VantageScore, on the other hand, looks at six factors:
Having bad credit means that you have a history of not paying back debts on time or not paying them back at all. This can happen for various reasons, such as job loss, medical bills, or overspending. Credit bureaus, such as Equifax, TransUnion, and Experian, track your credit history and give you a score based on your credit behavior. So if you are missing payments, have too high balances, apply for credit too often, etc., your score can plummet.
If your credit score is below 580, it is considered a bad credit score, making it difficult to get approved for loans or credit cards with favorable terms. But this doesn’t mean that you can’t. Several lenders specialize in loans for bad credit or don’t have minimum credit score requirements. For example, Cash Store does not require a credit score or minimum credit score to apply for any cash advance, title loan, or installment loan. But even though lenders like us offer these loans that don’t require a particular credit score, it doesn’t mean you shouldn’t take steps to improve your score.
Here are some steps to increase your chances of getting approved for lower-interest loans and credit cards with higher borrowing limits.
Having bad credit can make getting approved for loans or credit cards with favorable terms challenging. However, it's not impossible to get online loans if you have bad credit. By improving your credit score, such as paying bills on time, disputing errors on your credit report, and keeping credit card balances low, you can increase your chances of getting approved for loans or credit cards with better rates and terms.
Alternative lending options, such as payday or installment loans, are worth considering if you cannot borrow from a family member or friend. However, read the terms and conditions carefully and borrow only what you can afford to repay. Cash Store is here to help offer competitive options to Idaho, Texas, and Wisconsin residents. Check out our installment loans, title loans, and cash advance loan options today.
*The content on this page provides general consumer information or tips. It is not financial advice or guidance. Each person’s circumstances are unique. The Cash Store may update this information periodically. This information may also include links or references to third-party resources or content. We do not endorse the third-party or guarantee the accuracy of this third-party information. There may be other resources that also serve your needs.
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*Loan Amount is subject to loan approval. Loan terms and availability may vary by location. Approval rate based on complete applications received across all Cash Store locations. Customers can typically expect to receive loan proceeds in less than 20 minutes; however, processing times may vary.
Loans / Advances are provided based on approved credit. Cottonwood Financial uses a proprietary model to evaluate the creditworthiness of each applicant for credit. Vehicle is subject to evaluation for title/auto equity loans. Please see the Licenses and Rates page for additional product details.
Cottonwood Financial offers consumer credit products that are generally short-term in nature and not intended for long-term borrowing needs. In Texas, Cash Store is a Credit Services Organization and Credit Access Business. Loans are provided by a non-affiliated third-party lender.
Customer Portal residency restrictions apply. Availability of funds may vary by financial institution.