Unplanned Emergencies: What to Do When You Need Money Now and Have Bad Credit

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Around 55 million Americans have no emergency savings.

But, if you have a financial emergency, you can always take out a bank loan, right?

Wrong! Banks require you to have a good credit score before they allow you to borrow money. And, over 30% of Americans have a bad or poor credit score. 

But don’t worry, there are still options for you. 

Keep reading to learn more about your options when you need money now. Here we go!

1. Negotiate Your Bills

You may be surprised to hear that many of your bills are not actually set at a fixed price. You can usually negotiate with the company for a better deal.

First, you need to establish leverage. Why should they reduce your bill?

Imagine your energy bills have skyrocketed over the past year. Call up and say you’re considering switching to a different provider for a cheaper rate. Would they consider lowering your bill?

You can do the same with your car or home insurance, your cellphone provider, your TV or streaming service and much more. 

It can take courage to haggle with the person on the other end of the phone call, but it could save you some serious cash now.

2. Rent out Your Home

There is over $6 billion being wasted in America’s spare rooms.

Obviously, that’s not all potential cash for you. But, if you’ve got a spare room in your home, you could take advantage of some of that money.

You could rent out your spare room on Airbnb for short-rentals. Or, you could offer long-term rentals to get yourself a roommate. 

If you rent out your spare room on a regular basis, you could earn hundreds of dollars in just a few weeks.

3. Take out a Payday Loan 

If you have a poor or bad credit score, you won’t have much luck asking for a loan from your bank.

The advantage of a payday loan is that it does not require a credit check at all. So, you’ll receive instant approval the same day you apply.

Therefore, you can have the cash in your bank almost immediately. Read this to discover more about payday loans.

4. Sell or Pawn Your Stuff

Nearly half of Americans say that their home is somewhat cluttered with stuff they no longer use. Yet, so many people don’t have enough savings for a financial emergency.

You could earn back some money back by selling or pawning your stuff. Sadly, it might be time to sell your comic book collection or your family silver.

If you want to sell your stuff, then you probably need to get started on eBay, Craiglist or Facebook. However, this can be quite time-consuming, especially if you have to list each item individually.

You could also pawn your stuff in exchange for a pawn shop loan. However, be aware that you’ll pay interest on your items if you choose to buy back your stuff.

5. Rent out Your Stuff

If you’re not ready to sell or pawn your stuff, you could also consider renting out your possessions.  

Whether it’s your game console or a formal dress, many people could be prepared to rent your stuff for a fee. You could be earning hundreds each week just for renting out stuff you already own.

Check out Fat Llama to find out more. 

6. Borrow from Bank of Friends and Family

You could also consider asking your friends or family to lend you some money now. Be aware that this could be either embarrassing or strain your relationships. 

However, if you need money now, this could be your best option. Especially if you’ve got a wealthy friend or relative.

Make sure you pay back what you borrowed, otherwise you might screw up your relationships and your credit score.

7. Cash From Your Credit Card

With a credit card, you don’t need to have the money in your bank balance to use it. You can spend the money you need for a financial emergency, and then pay off the debt after.

Make sure you keep your credit card balance below 30%, or you could risk worsening your credit score further.

However, if you don’t already have a credit card, it can be extremely difficult to get your hands on one with a poor credit score.

8. Exchange Your Coin Jar

The average American has over $26 in spare change in a piggy bank or coin jar.

Do you have some spare change lying around? You can exchange your leftover pennies for dollar bills now. 

Make sure you look under the couch and in your pant pockets to find any other lost change which could be swapped for notes.

9. Remember who Owes You Money

You’re in financial difficulty now. But, there could have been times when your friends borrowed money. 

Remember who owes you money. Did you roommate borrow $20 the other day for pizza? Does your best friend still owe you money from your last trip together?

Whoever owes you money, make sure you ask politely for your money back. If you’re too forward, you might not get your money so fast.

10. Ask Your Employer for an Advance

If your employer is understanding, you could also ask for an advance on your salary. This is usually a percentage of your salary paid before the end of the month.

This could damage your standing in your employer’s eyes. However, it could be a risk you’re willing to take. 

Need Money Now? Follow Our Tips!

If you need money now, then you can follow our tips for making a quick buck.

From exchanging the pennies in your coin jar to taking out a payday loan, you need to weigh up the level of your financial emergency before you act.

Are you willing to risk a little bit? You can consider sports betting for extra money. Check out our guide.