It’s a sad fact of life: After a difficult divorce, a few slow child support payments, and trying to get back on your feet, a single mother can wind up with bad credit. It’s becoming more and more common in today’s economy, but there are ways to get loans for single mothers with bad credit. 

Here are a few of the options you might have as a single mother for loans for single mothers with bad credit. Keep in mind that not all loans are created equal, and for the most current rates and opportunities, you should always consult a financial advisor.

Bad Credit Bank Loan

If you already have an established account at a bank, they might be your first option. Often banks will have programs in place for those with bad credit who have already established a relationship with the institution. Your interest rates might be higher and your payments might be a little more, but over time you can establish better credit – and when you come in to renegotiate, it’s a good bet your rates will go down.

Consolidation Loans With Bad Credit

Even if you have bad credit, that doesn’t mean you can’t get loans. Single moms already have a lot on their minds and worrying about loans isn’t one of them!

Equity Loan

If you have something that can be used for secured credit, such as a car or a house that has been paid off, an equity loan might be your best bet. This means you will have to sign paperwork for a lien against your property, and if you default on your loan, the property could be taken from you in order to settle the debt. This is an option only if you are certain you can pay off the loan on time.

A Fresh Start Loan

This loan is provided for those who have bills that have gotten out of control, but who don’t want to file for bankruptcy. The loan takes into account all of your bills and then pays them off. In turn, you make monthly payments to the bank that provided the loan. Shopping online for these loans is a good idea, but always be sure you are paying a low interest rate for the loan – there are some unscrupulous places who will claim to get you out of trouble but only put you deeper into it six months down the line. Run it all by a financial advisor before you sign on the dotted line!

Loans Tailored to Your Needs

Depending upon what you intend to use the loan for, there are organizations out there that can help. Look into government loans for housing, especially if you already have a small amount of the down payment saved up. If you’re looking to opening a small business, there are loans earmarked for that, and especially for single mothers. If you are trying to get a car to simply get to your job interviews, very low-interest loans are available for those as well. Talk with your Department of Human Services or your local bank to find out what options are out there for you.

Understanding the Terms

There are many kinds of loans, some of the most common types are secured and unsecured . A secured loan (like the name suggests) is one that is backed up by other assets. These assets could be a home, car or other property. However, an unsecured loan is not backed up with any collateral so they are riskier. These risks may mean that there are higher interest rates. Usually these unsecured loans are used for making smaller purchases.


Once you have understood the loans and what they mean and what exactly is covered under the terms, make sure you make the right decision for you. For example, understand the duration of the loan and make sure that the interest rate is best for you. Also learn to be wary of cash advances and pay day loans (especially if the terms are not clearly spelled out. )

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