How to borrow money, secure a Credit Card, or get a loan with bad credit

Bad credit definitely has its challenges. Especially when it comes to trying to secure a loan, get a credit card, or secure auto financing. 

Borrowing Money with Bad Credit

Consider personal loans from online lenders or local credit unions—some work with borrowers who have scores as low as 300 or no credit history, such as Upstart or People Driven Credit Union in Michigan (investopedia.com).

Peer-to-peer lenders (e.g., Prosper) and some banks, like LendingClub, may lend with a co-borrower for added approval odds (investopedia.com).

Credit unions often review your entire financial picture, not only your score, and may offer unsecured, credit-builder, or share-secured loans (peopledrivencu.com).

Emergency and payday loans are fast but usually carry very high fees and should be considered only as a last resort (investopedia.com).

Using a co-signer, providing collateral, or requesting a smaller loan amount can also increase approval chances (cnbc.com).

Credit Cards for Bad Credit

For those with no credit or poor credit, Secured Credit Cards are the most easily-accessible type. The card requires a refundable deposit, often equal to your credit limit (experian.com).

Unsecured cards for bad credit exist, but usually have low limits and high fees. Use comparison tools (like Experian or Capital One’s Card Finder) to check for pre-approval offers to avoid hard credit checks (capitalone.com). 

Some credit unions offer credit-builder products that function like a secured card or small loan to help you rebuild credit (peopledrivencu.com).

Loan Options for Bad Credit

Michigan-based credit unions, like People Driven Credit Union, have personal and credit-builder loans, sometimes as low as 13% APR for credit builder loans and under 16% for unsecured loans, depending on the loan term (peopledrivencu.com).

Online lenders (Upstart, Upgrade, Avant) may approve loans (even with scores in the low 500s) but watch for high origination fees in addition to interest (bankrate.com).

“Best” options often offer fast approval/funds, joint application possibilities, and debt consolidation payments directly to creditors, but you must read the fine print on origination and late fees (bankrate.com).

Tips to Improve Approval Odds

Know your current credit score before applying for anything and focus applications on pre-qualifying offers to avoid unnecessary hard credit checks (experian.com).

Gather proof of income, consider smaller loan amounts, and try to apply with a co-applicant or collateral if possible (cnbc.com).

If rejected for credit products, consider joining a local credit union, which may have special programs for members with poor credit history (reddit.com).

These strategies can help you access credit, but always review fees and terms carefully, especially with online-only or high-interest lenders. Responsible use of secured cards and small, prompt loan repayments can gradually rebuild your credit for better options in the future (capitalone.com).