Instant Loans for Bad Credit: Can They Get Me Out of the Debt Cycle? Help me, I’m Overwhelmed!

Have you gotten behind on bills or had an emergency come up and you need money now? It happens to the best of us, and if it’s happened to you, try not to panic too much. There are options available to you. Here’s what you need to know about how to get a loan with bad credit, first and foremost.

You’re Not Alone – Everyone Makes Mistakes and Has Emergencies

Things come up. Repairs need to be made or you have medical expenses to cover suddenly. Even if a lack of planning is wholly responsible for the financial fix you find yourself in, know that you’re not alone.

In a 2016 report done by CNBC, it was found that about 66 million Americans have no money saved for emergencies. While this figure is a couple years old, it’s likely still applicable to many American households today. Another 2014 report done by the Federal Reserve showed that 47% of Americans said they would be unable to afford an emergency of a mere $400.

Those numbers prove that you’re not alone. Times are tough, even for people who are working hard and trying to stay on top of their finances. It doesn’t take much to dig yourself a financial hole that you can’t seem to find your way out of without a little help. When you throw in job loss, medical issues, or other cataclysmic events into the mix, it’s no wonder so many people are seeking out instant loans for bad credit.

While this might inspire you to plan better for the future, don’t waste your time or energy on shame, guilt, or regret. Now’s the time to push forward and figure out how you can fix the problem rather than dwelling on the issue that landed you in this spot.

Available Options When You Need an Emergency LoanInstant Loans for Bad Credit

Here are a couple of the options you have when you need a small personal loan fast, and some of the pros and cons associated with them.

Payday Loans

Payday loans will allow you to borrow a small amount of money, generally under $500, until your next payday. While they’re simple to get, the fees for this type of loan are rather prohibitive, as is the very short loan term.

Be leery of payday loans. People tend to get stuck in a nasty cycle with payday loans since they can’t really afford to pay off the whole amount with their next paycheck, so they wind up taking out another payday loan and paying even more in fees.

Title Loans

This type of loan is a secured loan that uses a vehicle title as collateral. The lender places a lien on the title until the loan amount is paid in full. You usually have 30 days to pay back the loan amount, and usually only a small amount is offered. Like payday loans, title loans often come with a pretty steep interest rate and lots of fees, so they may not be much help in the long run.

Loans from Friends or Family Members

If you’ve got a family member in a position to lend money, this may be a viable option if you’re not too embarrassed to ask. They’ll likely give you more favorable terms than most other types of loans, but there can be a lot of hard feelings and discomfort that come with owing someone you love money. Also, it’ll hurt more than your credit report if you find yourself unable to pay your loved one back.

If you do decide to go with this option, make sure that the loan terms are written out and signed by you and the lender so that everyone feels secure in the transaction.

Unsecured Personal Loans from a Traditional or Online Lender

Many people think that if they have a poor credit history, a small personal loan isn’t an option for them. However, there are personal, instant loans for bad credit available. There are even guaranteed personal loans you can get, oftentimes without a credit check. Interest rates are generally much lower than other types of emergency loans, and you usually have a reasonable term to pay off the loan.

This type of loan isn’t nearly as hard to find or apply for as you might think. While you’ll need more documentation and will need to fill out more paperwork than other loan types, it’s worth it in the long run.

Which Instant Loan for Bad Credit Option is Best in the Long Run?

So, you’ve weighed the pros and cons and you really do have to get a loan somehow to make it by. You’ve learned a little about several types of instant loans for bad credit, and you’ve considered the pros and cons of each of those. Now it’s time to figure out which type of loan is the best for you.

If you’re keeping in mind your long-term financial goals (and you should be if you have any hope of ever getting out of the debt cycle), it’s likely that a small personal loan is the best option. When you look at the lower interest rates, being able to actually pay off the loan on time, and not being beholden to a loved one, it’s really not much of a contest in most scenarios.

While the idea of a ‘real loan’ can be kind of scary, know that each month you make your loan payment on time, you’re doing good things for your credit score, which can save you money and make your life easier in the long run. If you really need an instant loan for bad credit, at least something positive can come from it.

Shopping Around for Instant Loans for Bad Credit

While it may not seem feasible due to a low credit score to really shop around, you may be surprised at the terms you’re able to get on an emergency loan.

The first thing you need to do to start shopping around for an unsecured personal loan is check your credit score and calculate your debt to income ratio. From there, you might want to check out the Loans Now Discovery Process, where an expert will take your answers to a short questionnaire and find you the best possible unsecured personal loan terms. It’s easily one of the easiest ways to find your best options for instant loans for bad credit, and the process is quick, painless, and free.