How to Get a $2,000 Loan (Even With Bad Credit)

Desmond Rhodes  | 

Small personal loans, such as an $800 or a $1,000 loan, can be used to cover medical, emergency, repair, utility expenses, and more. A $2,000 loan will be no different, except you can pay off larger expenses. 

Where a $2,000 loan differs, however, is that you’ll have more places willing to extend you a loan — even if you have bad credit. Your main considerations for getting a $2,000 loan will be to understand where you can get one, the conditions of each lender, and why to get a personal loan of $2,000 — especially if you have bad credit.

Where to Get a $2,000 Loan?

A $2,000 loan opens you up to more lender possibilities than a smaller loan does. Where lenders might not concern themselves with an $800 or even a $1,000 loan, they may decide it’s more worth their time to extend you a $2,000 loan. Places where you may get a $2,000 loan, even with bad credit, include:

  • Banks and credit unions: Getting a $2,000 loan from a bank is the conventional way of getting a loan. However, those with bad credit may not be approved. Credit unions may be more lenient on those with less-than-perfect credit, although your interest rate on the loan might be high. For either type of lender, a co-signer with good credit may sway the decision of extending you a loan.
  • Consumer finance companies: Consumer finance companies are non-bank lenders. This means that they don’t receive deposits, but do extend loans. Keep in mind that most lenders make a profit by attaching interest to their loans. A consumer finance company will be the same, and will work with those with bad credit. However, remember that borrowers with bad credit are a higher risk to lenders, and therefore, the lender will attach a higher interest rate to the loan.
  • Home equity: Homeowners have an additional option of borrowing from their home equity. Depending on how much you owe on your mortgage and its market value, you may have some equity. For instance, if your home is worth $250,000 and you only owe $50,000 on your mortgage, you have $200,000 in home equity. In many instances, you can borrow from this equity in the form of a home equity loan or a home equity line of credit (HELOC). A home equity loan will give you a lump sum, while a HELOC will let you borrow money as necessary.
  • Peer-to-peer lenders: There are people who are prepared to extend you a loan. Peer-to-peer lending websites can connect you with these people, who generally require lower interest rates than banks, and may be more flexible when working with those with bad credit.
  • Employer: Many times, your employer can give you an advance on your next paycheck. A payroll advance will generally come with no interest or credit check, as the money you borrow will be taken out of your next paycheck. 
  • Payday loan: Similar to a payroll advance, payday loan lending companies will extend you a loan against your upcoming paycheck. These loans will come with interest (sometimes unreasonably high), however, they will often come with no credit check.
  • Direct deposit loan: To get you your money fast, many lenders will provide direct deposit for their loans. If you have a bank account, you may see a loan approved in minutes and the money transferred into your account within a business day.
  • Same-day loan: A same-day loan may be directly deposited, but may be treated as an emergency loan. If you’ve lost your job or have urgent expenses, you could seek a same-day loan for immediate financial relief. Interest rates may be high, but those with bad credit might have an easier time obtaining these loans.
  • Installment loan: An installment loan will have an established, fixed period of time in which you’ll need to pay it off. Installment loans differ from a regular personal loan, as you will have a specific amount of payments that will be scheduled and determined by the lender. If you accept an installment loan, understand the loan term and the interest attached to know whether you will be paying too much in interest. Some installment loans come with no credit check, and may be a good option for those with bad or no credit. 
  • Friends and family: You can always ask a friend or family member to extend you a loan. This requires no credit check, and may not come with interest if the friend or family member is nice. To avoid ruining a relationship, it is best to write out a contract explaining the nature of the loan. These details can include the loan term, when and how the loan needs to be paid back, and interest rate if necessary.
  • Pawn shop: Collateral will be needed to receive money from a pawn shop. Because of this, no credit check is needed, as the pawn shop already has your valuable(s) worth the amount of the money they give you. However, if you fail to pay back the loan, you will not get your valuable(s) back, and it may be sold to another person. 

You have many options for a $2,000 loan. Which type of lender you choose will come down to your credit score (and other eligibility requirements set by the lender), the loan term, and interest rate; consider these factors to determine whether a lender is best for your financial situation.

Why Get a $2000 Loan With Bad Credit?

If you have bad credit, but are confident you can pay back the loan, getting a $2,000 loan may help your credit score. If you make your payments on time and pay back the loan in full, you are showing that you are a creditable borrower and this will reflect nicely upon your credit history — possibly increasing your credit score. 

Many people take out loans they know they can pay just to improve their credit history (and score). If your credit score is too low to get a loan (from lenders who don’t practice predatory practices), you can take steps to raise your credit score and increase your chances of being approved for a legitimate $2,000 loan.

A personal loan of $2,000 can come from a variety of lenders and several different loan types. Your financial situation will determine which lender and loan type you choose. It will be up to you to compare and contrast these different loans to make a proper decision on which $2,000 loan to go with.


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Desmond Rhodes is a writer out of the Northwest. A philosopher, gamer, and enjoys his Hunter S. Thompson.