There's almost $1.5 trillion in student loans in the United States this year. That goes to show that there is more bad credit in other forms of loans today.

It seems like almost everyone is taking out a loan to survive in the States today. It isn't necessarily out of habit, but more so out of the need to solve some pressing financial needs.


When it comes to getting loans, your credit plays a huge role in how much you'll get or if you'll get any at all. If you have bad credit, chances are, you may be denied the loan or get a low amount to borrow. So, what are the types of loans that people with bad credit can take?

Bad Credit Loans

Peer-to-Peer Lending

With a low credit score, you can get a loan from peer-to-peer lending schemes. They are also known as P2P lending systems; where lenders will offer borrowers money from their network. Institutions or single people don't offer the loan, but rather, a group of people that will finance the amount. With this form of lending, the interest is quite lower than the others on this list.

Car Title Loans

Most people with bad credit will often opt for car title lenders. Here, you'll use your car title as collateral, and the loan usually has to be paid in 30 days. The loan you get here is around 25%-50% of the value of the car you're putting in as collateral.


Remember that it's your car on the line when considering taking this route. In case of failure to pay back the loan in the agreed timeline, the lender will be forced to repossess your car.

Payday Loans

First of all, payday loans aren't legal in all states. Payday lenders never quite look at your credit score because they know they'll get their money on your payday. All you need to do to qualify is to have a set payday.

These loans are usually short-term fixes that the lenders don't offer more than $500 for in most cases. They, too, carry exuberant high-interest fees, and you'll have to pay them on your next payday.


Unsecured Loans

Unsecured loans come in various forms but are majorly online lending forums. They usually don't take account of your credit score for you to get a loan with them. The major disadvantage they carry is their high interest rate.

Most of them will lend you from $1,500- $20,000 with an interest rate of 36%. The good thing about online lending forums is that they'll offer the loan on the same day you applied. Also, there are several terms that you can choose from. Lastly, there are no shockers on you in case your interest rates rise.


Getting a loan with bad credit is one of the toughest things to do. Most of the loans that you can acquire with a bad score carry high-interest rates and become overly expensive overtime. It is safe to try and keep your credit score high. However, if you're pressed, these were just some of the few types of loans for people with bad credit.