Learn How to Get a Line of Credit with Bad Credit

You may also be able to use a credit line to improve your credit. If you’re accepted for a line of credit but don’t borrow the full amount, you may lower your credit utilization rate, which can assist in improving your credit scores.


But keep in mind: Applying for a line of credit may have a negative influence on your credit score because the lender will conduct a hard inquiry. If you need to borrow a larger amount from your line of credit, your credit may also suffer.

A line of credit may be less expensive than a personal loan, mainly if you use it sparingly. Because credit lines charge interest when you hold debt, you should not pay interest if you pay your bill on time and in full.

Cons of getting a line of credit

If you have poor credit, the interest rate on a line of credit may be substantially greater than if you have good credit. And that’s assuming you can find a lender willing to approve you for a line of credit; many only give it to persons with excellent credit.

You can better understand what possibilities are available to you if you shop around at different banks or credit unions. If you make the minimum payments on a credit line, you will lengthen the debt’s life and increase the interest you pay in the long run.


Borrowing on a line of credit may increase your credit utilization percentage, which may harm your credit. You must make payments on time to ensure your credit is well-spent. Some credit lines have additional fees or a cost for each use. It’s critical to read the fine print so you know exactly what you’re getting into.

Alternatives to a bad credit line of credit

When you need to borrow money and have bad credit, there are other options than a line of credit. Let’s have a look at some additional options.

Payday alternative loan

Payday loans provide quick cash, but they are costly and unsafe. Another possibility is an alternative payday loan, or PAL, from a federal credit union. These small-dollar loans can provide a quick solution to meet short-term monetary demands.