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Loans for Single Moms With Bad Credit: How to Improve Your Financial Situation

loans for single moms with bad credit

Being a mom isn’t easy. It’s daily work without rest, weekends, and sick leave. But it’s even harder to be a single mother. You have to overcome all difficulties yourself. Statistics show that nearly 11 million households in America are single-parent households. More than that, 79.5% of them are headed by single mothers, of whom a third live in poverty [1].

Every day, they balance caring for their children with struggling to be financially stable. Fortunately, a loan can help you cope with financial difficulties. This is not the kind of support where you can get the amount you need without paying it back. However, this will allow single mothers to cope with financial challenges.

Table of Contents

  1. What Are Loans for Single Moms?
  2. What are the Steps to Obtain Loans for Single Mothers?
  3. Which Loans for Unemployed Single Moms With Bad Credit Are Right For You?
  4. Comparative Table of Possible Types of Loans for Single Moms
  5. Conclusion

What Are Loans for Single Moms?

A single-mother loan is financial assistance for mothers who raise children alone. However, this “help” must be repaid to the financial institution that provided the money to you. Loans for single parents come in all shapes and sizes. The choice of loan depends on the purpose of use, financial capabilities, credit rating, and the desired loan amount. Single mothers often take out a loan to:

cover children’s and personal medical bills; pay for the child’s education; repair a house or apartment; repair the car; pay bills.

What are the Steps to Obtain Loans for Single Mothers?

For single mothers facing financial hardship for the first time, applying for a loan can be daunting. However, if you follow consistent steps, you can get a loan for single moms with a bad credit history. Here is the detailed guide:

Check Government Assistance Programs First

Before applying for a loan, it is worth familiarizing yourself with other opportunities to solve your financial problems. In America, special payment assistance program have been developed for single mothers:

Temporary Assistance for Needy Families (TANF); Supplemental Nutrition Assistance Program (SNAP); Women, Infants and Children (WIC); Down payment assistance programs; Housing assistance programs.

The above assistance programs may provide single mothers in need with cash benefits, offer medical, housing, and food assistance, or help with paying utility bills.

Assess Your Financial Situation

Assess your income, expenses, and credit rating. Establish the scope of your financial needs and determine how much you should borrow to repay it comfortably. This analysis will allow you to understand what type of loan and amount you should take out.

Explore Loan Options

Check out the different loans available to single mothers: payday loans, installment loans, bad credit personal loans, bank loans, title loans, and others. Compare interest rates, fees, and terms to find the most suitable option.

Improve Your Credit Score

If a low credit rating does not allow you to obtain the desired loan, it is worthwhile to improve your score. This means paying your bills on time, reducing the amount you owe, and disputing any discrepancies in your credit report if you find mistakes. A high credit rating is your chance to get a loan on good terms and with low-interest rates.

Prepare Necessary Documents

Single mothers may need to provide an extensive set of documents to increase the likelihood of approval. Be sure to prepare:

a document confirming income: this could be salary statements, alternative income sources, or tax returns; certificate of employment; ID card (driver’s license or passport); a document confirming your place of residence: this could be a lease agreement or utility bills.

This is a basic set. Check the complete list of documents with the specific lender from whom you will take a loan.

Apply for Loan Funds

You can apply online or at banks or credit unions. When filling out an application, the main thing is to provide correct information and avoid mistakes. Any discrepancy with reality may result in refusal.

Review Loan Offers

After submitting your applications, review the loan offers you receive from lenders. Pay attention to interest rates, fees, and terms. Compare several offers to choose the most profitable one.

Accept the Terms of the Loans for Single Parents

Read the loan agreement and ensure the terms are clear. Accept the offer by signing the contract if the conditions match your capabilities.

Use Funds Wisely

Use borrowed funds wisely. Spend them only on essentials and stick to a repayment plan.

Manage Your Repayments

Return the money to the lender on time as per the loan agreement. This will help avoid penalties and fees for missed payments. Paying on time may also maintain or even improve your credit score. Set up automatic payments to ensure you never miss a payment. If you face difficulties repaying the loan, contact the lender to discuss repayment options or request a postponement.

get loans for unemployed single moms with bad credit

Which Loans for Unemployed Single Moms With Bad Credit Are Right For You?

If you are a single mother facing financial difficulties and your only option is to take out a loan, understanding the advantages and disadvantages of each type of borrowing will enable you to choose the best option. The loan must match not only your needs but also your capabilities.

Popular loans for unemployed single moms with bad credit include:

Bank loans. Credit union loans. Bad credit personal loans. Installment loans. Payday single-mother loans. Title loans. Home Loans. Bad credit auto loans.

Bad Credit Personal for Single Mothers Loans

Bad credit personal loans are financial products offered by online lenders to single mothers with low credit scores. The amounts for such loans are small (usually up to $15,000) since lenders are exposed to high risks.

The target audience is single mothers who:

have a low credit rating or bad credit history; need financial assistance to cover various expenses.

Some lenders approve applications promptly and provide funds within a short period. And this is very important if you need money urgently.

Pros and Cons of Bad Credit Personal Loans for Single Mothers


It can be issued to single mothers with a bad credit history. They are unsecured. This means that they do not require collateral. Helps improve your credit rating by making payments on time. They have flexible repayment terms, which allows single mothers to choose the one that best suits their budget and financial situation. They can be a lifeline if money is needed very urgently.


Due to the increased risk associated with a bad credit history, the lender sets high-interest rates, which increases the price of the loan; Without careful budgeting and planning, taking out a personal loan with bad credit can lead to financial difficulties. Defaulting deteriorates your credit score and makes it difficult to access loans in the future.

Installment Loans for Single Mothers

An installment loan is a type of borrowing in which a single mother receives a fixed amount and undertakes to repay it over a certain time in equal payments. Each payment includes a portion of the principal amount of the loan plus interest.

Most installment loans can be obtained without collateral. Loan amounts range from $500 to $5,000. Single parents turn to such loans because a low credit rating is not a determining factor in receiving money.

Pros and Cons of Installation Loans for Single Moms


An installment loan allows you to structure payments, reducing the financial burden for single moms with limited income streams. The money is credited to the account as a lump sum. This allows you to plan forward and cover all your needs at once. Installment loans have no specific purpose, so single mothers can manage the money as they see fit. Paying off installment loans on time may help single parents build or improve their credit rating. This will allow you to receive a loan on more favorable terms.


Although fixed payments make budgeting easier, single moms should know they will have to pay more in interest if the loan term is long. If you default on a loan, your credit rating may suffer. In addition, extra fees will be charged for late payments. Some lenders may charge a loan origination fee, which will make the total loan cost higher.

Payday Loans for Moms with No Job

Payday loans are small loans for single mothers, usually not exceeding $1,000. However, in some states, they are completely prohibited. You can get a payday loan through in-store lenders or online. Payday loans allow you to make ends meet until your next pay and are issued even if the borrower has a poor credit rating.

However, emergency loans for single moms with bad credit are not always the best option. Since the interest rates on such a loan often exceed 400%, and the repayment period varies from 2 to 4 weeks, it may be difficult for single mothers to repay the borrowed amount. An additional fee will be charged for late payments, so your debt will grow.

Pros and Cons of Payday Loans for Single Moms


The money is credited to your account the next business day, allowing you to resolve financial difficulties quickly. To get a payday loan, you don’t have to go anywhere; you can do it online. There is no hard credit check. Single moms with low credit scores can get payday loans since most lenders don’t consider this characteristic. A payday loan requires a minimum of documents, which simplifies and speeds up the loan process.


High interest rates result in high costs. An additional fee will be charged for late payments. Threatens to fall into a debt trap. Some states prohibit payday loans. Short payment terms make it difficult to repay the loan.

Home Loans for Single Parents

Mothers who raise children are on their dream of having their own home. A home loan differs from a consumer loan in that it has a specific purpose and the purchased house is used as collateral. This means interest rates will be significantly lower. Several mortgage programs make buying a home for single mothers with bad credit possible:

FHA Loans. This type of borrowing is popular among first-time home buyers. It requires a minimum down payment (usually around 3.5%) and can be issued to single parents with a low credit score. The national average annual interest rate for a 30-year FHA mortgage is 6.78%. VA Loans. These loans are available to veterans, active military personnel, and surviving spouses. They usually do not require a start-up fee and have low-interest rates. The national average APR for a 30-year VA loan is 7.16%. USDA loans. These loans are available to people with low incomes. They intend to purchase housing in rural areas. There is no down payment, and rates are low. USDA loans are characterized by low-interest rates (around 1% with payment support) and long repayment terms (up to 38 years). HUD’s Good Neighbor Next Door Program offers half-price housing to people who work in education, law enforcement, or medicine and agree to live in restored areas. Single parents working in these occupations may be eligible.

Pros and Cons of Home Loans for Single Parents


Low interest rates. Minimum down payment or no down payment. Flexible credit rating requirements. Long loan repayment period (up to 30 years). Available to single mothers with low income.


Single parents are solely responsible for mortgage payments, property taxes, insurance, and maintenance costs, which can strain their budgets. If there are problems with loan payments, single parents may lose their homes. USDA credit is available only in eligible rural areas.

Single Mom Loans at the Bank

A bank loan is a traditional type of borrowing. The bank offers a wide variety of loan options, each with its nuances and pitfalls. However, the peculiarity of the bank is that it is reluctant to cooperate with those who have a bad rating and do not have official employment.

However, the loan decision still can be made in your favor if you offer the bank a collateral or a guarantor. Thus, a possible option for a bank loan for single mothers is a secured loan. A secured loan is a type of loan in which money is backed by valuable collateral. Thanks to the guarantee, secured loans have favorable terms and are available to individuals with bad credit.

Pros and Cons of Secured Loans in the Bank for Single Moms


Reasonable interest rates, thanks to collateral. Opportunity to receive a larger loan amount. If repaid on time, a secured loan can improve your credit rating.


Risk of loss of collateral in case of non-payment. Long procedure for obtaining and approving a loan.

Credit Union Loans for Single Parents

Generally, a loan from a bank and a credit union is not much different. However, sometimes, credit unions can offer a better interest rate. Credit unions are similar in structure to banks, but the credit union members own them. Thus, they usually have less strict requirements.

You can get a credit union membership through your job, location, or a family member. If you suddenly need a loan for a single parent, you can find a credit union you can join and apply for it. At the same time, a low credit rating may cause refusal.

Pros and Cons of Credit Union Loans for Single Moms


As credit unions are not-for-profit organizations, they offer lower interest rates and fees than traditional banks. CUs often provide an individual approach to each customer and are more flexible in lending decisions. Membership may offer additional benefits, such as higher rates on savings accounts.


Not available to everyone. To join a credit union, you need to meet certain qualification requirements. Membership fees may apply.

Title Loans for Single Parents

A title loan is a secured loan that requires collateral in the form of your vehicle. A single mother needs to offer the lender the asset, after which they will provide her with the necessary amount. Failure to repay the title loans on time comes with risks. The lender may take your car, sell it, and thus recover the amount you did not pay.

Having access to a car is extremely important for single parents. If you are tempted to use your automobile as collateral, you should think carefully because you can lose your property.

Pros and Cons Title Loans for Single Moms


The money is deposited into your account within 24 hours, which can be helpful for moms who need to cover urgent expenses. There is no credit check. This makes the loan available to those with bad credit or no credit history. Title loans have no purpose, so single mothers can use their money as they please. Title loans often have fewer approval requirements than traditional loans. Therefore, they are available to single mothers who may not meet traditional criteria. You can still use your car while repaying the loan.


Title loans come with extremely high interest rates, often exceeding 100% APR. The car will become the lender’s property if the loan is not repaid. Title loans typically require repayment over a short period, often 30 days or less.

Bad Credit Auto Loans for Single Moms

Bad credit auto loans are designed for people with a bad credit history who want to purchase a car. These loans are secured by the vehicle being financed. The lender holds the car’s title as collateral until the loan is repaid. In most cases, you may be asked to make a down payment of at least 10%.

Money received from bad credit auto loans can be used only to purchase a new or used vehicle. The loan amount depends on the vehicle’s value and the borrower’s ability to repay the loan. Repayment terms can reach 7 years.

Pros and Cons Bad Credit Auto Loans for Single Moms


Access to financing for single mothers with bad credit. Opportunity to increase your credit rating with timely payments. Some lenders offer flexible terms.


Higher interest rates come with risks. Down payment is usually required. Additional fees may be charged. The limited choice of vehicles may limit options.

Comparative Table of Possible Types of Loans for Single Moms

Here is a comparative description of loans available to single mothers:

Loan Type Description Pros Cons
A secured loan from a bank This is a type of loan that you can get from a traditional financial institution using your valuable asset.

The collateral provides low interest rates (8.49%-35.99%). You can get a loan of up to $100,000. You can improve your credit score by paying on time.

The collateral will be seized against the debt if the loan is not repaid. You won’t be able to get a loan quickly. The bank studies the documents and decides within a week.

Credit Union Loans These loans are provided by financial non-profit institutions. They offer lower interest rates and flexible terms.

Interest rates vary from 6% to 18% per annum. They may offer more flexible terms and repayment options. Unlike traditional banks, they are more loyal to borrowers with imperfect credit histories.

You may be unable to become a certain credit union member. It has fewer branches and ATMs compared to large banks.

Bad Credit Personal Loans These unsecured loans can be obtained from online lenders.

You can get it even with a low credit rating. There is no need to provide collateral or indicate the purpose of the loan. Allows you to receive money urgently.

High interest rates. Lower loan amounts compared to regular personal loans.

Installment Loans This loan can be obtained from an online lender. Repayment occurs within a specified period in equal payments. Installment loans are usually unsecured.

Predictable repayment schedule. They are easy to get with bad credit.

Interest rates are higher for those with poor credit ratings. Some lenders may check your credit history, which can be a problem for borrowers with low credit scores. Failure to pay debt can result in penalties and a drop in your credit score.

Payday Loans A small loan for single mothers that need to be repaid before the next salary. High interest rates characterize it. You may only receive a small amount.

The money arrives in your account the next day. Bad credit history is not a determining factor in loan approval.

Interest rates can reach 300-700% per annum. Short repayment period – from 2 to 4 weeks. Not available in all states. Possibility to borrow a small amount (up to $1000). High probability of falling into a debt trap.

Home Loans This is a loan designed to help you purchase your own home.

A minimum or no down payment is required. Single mothers with unstable income and low credit ratings can obtain it.

Risk of foreclosure if unable to make payments. Large initial costs (for the entry fee).

Bad Credit Auto Loans A type of loan issued for the vehicle purchase. The purchased car is used as collateral for the loan. You can get financing even with a low credit rating.

Single mothers with a bad credit history can get it. By paying your loan on time, you can improve your credit score.

Down payment of at least 10% may be required. Higher interest rates due to the lender’s risk.

Title Loans A short-term loan that requires collateral – a car. Credit history is not that important for lenders.

Quick access to cash without a credit check. The borrower can continue to use his vehicle while repaying the loan.

Interest rates can vary from 100% to 300% per annum. In case of non-repayment, the creditor takes the car. This option may lead to a cycle of debt.


If you are a single mother and need financial help, try taking advantage of government grants and social services before taking out a loan.

However, you can always apply for a loan if other forms of assistance are unavailable or there is no time to wait for help. But remember that it should be repaid on time. Use urgent loans only in extreme cases.

Choose a lender wisely, read the loan agreement carefully, and assess your capabilities sensibly before signing the dotted line.

See also:

  1. What Do I Need for a Payday Loan?
  2. Exploring Payday Loan Alternatives: Finding Better Financial Solutions
  3. Payday Loans for People on Disability


  1. How to improve your credit score
  2. Temporary Assistance for Needy Families (TANF)
  3. How To Get A Loan With Bad Credit
  4. Understanding Secured Loans