You can get a $2,000 loan with bad credit by going to a credit union, consumer finance company or online lender; taking out a loan against your home’s equity; borrowing from a family member or friend; getting a payday loan; or pawning some valuables. You could also become an authorized user on the card of someone with good credit and a high limit. Of course, not all of these options are ideal, as there are risks to consider.
Here’s where you can get a $2,000 loan with bad credit:
- Credit unions: You’ll have trouble qualifying for a loan at a bank without good credit. But you may have better luck with credit unions, which cater to people in a specific location or career. However, the worse your credit is, the higher your interest rates are likely to be. Plus, you may need to put down collateral to secure the loan. But if you can get a co-signer to take responsibility for your debt, the lender will base its decision on that person’s credit.
- Consumer finance companies: These non-bank lenders are known for offering financing to people with less-than-perfect credit. More than one-third (34.2%) of consumer finance loans in 2017 went to people with credit scores below 620, according to Equifax. But since there’s more risk to the lender, interest rates tend to be high.
- Home equity loan or line of credit: If you’re a homeowner, you can borrow money from your home equity. Equity is the difference between the market value of your home and the amount you have left to pay on your mortgage. So if your home is worth $200,000 and you owe $25,000, you have $175,000 in home equity. The main difference between home equity loans and lines of credit is that loans give you a lump sum, while lines of credit let you borrow as needed.
- Peer-to-peer lenders: There are tons of sites online where you can get matched up with individuals interested in lending their money. Lenders use these sites to get higher returns than they’d earn from a bank account, but borrowers still often get lower interest rates than banks charge on loans.
- Family/friends: A family member or friend is more likely to help you out, given your personal relationship. Just be sure to have a clear written contract as well as a repayment plan. You don’t want the money to come between you.
- Being an authorized user: If a friend or family member doesn’t want to give you a cash loan, they could make you an authorized user on their credit card account and allow you to spend $2,000 of their credit line. This could at least get them extra rewards out of the deal. But high interest rates could also be a concern if the primary accountholder can’t pay in full.
- Employer: If you have a steady job, you could ask your boss to give you an advance on your paycheck. That means you get money upfront but get paid less when your next paycheck comes.
- Payday loan: A financial institution may give you a short-term loan against your next paycheck. You’ll need to pay it back in full once you receive your check. To qualify, you’ll need to provide proof of your employment and income.
- Pawn shops: If you have something valuable just sitting around, you can pawn it. That means you’ll get a portion of the item’s value as a loan, and if you pay it back (with interest) in a certain amount of time, you get your item back. Otherwise, the shop is allowed to sell it. This isn’t a great option unless the item is something you don’t care much about.
Even if you’re very low on funds for now, you’ll eventually want to have a credit card to start rebuilding your credit. But you won’t be able to find an unsecured card that will give you a $2,000 limit. Many secured cards allow credit lines of $2,000 or greater, but you would have to make a deposit of the same amount.