Can You Get a Bridging Loan with Bad Credit in the USA?

Let’s say you’ve found the perfect property or business opportunity—but your credit score isn’t exactly glowing. Can you still get a bridging loan in the U.S.? The answer is: yes, but with conditions.

What Is a Bridging Loan?
A bridging loan (or bridge loan) is a short-term loan—usually up to 12 months—used to “bridge” the gap between needing funds now and securing long-term financing later. Common uses include:
- Buying a new home before selling your current one
- Covering urgent business expenses
- Funding renovations or investments

What If You Have Bad Credit?
Bad credit doesn’t automatically disqualify you. U.S. lenders often focus more on:
- Collateral: Do you have property or assets to secure the loan?
- Exit Strategy: How will you repay the loan—sale, refinance, or other means?
- Loan-to-Value (LTV): Lower LTV means less risk for the lender
- Severity of Credit Issues: Bankruptcy, missed payments, or defaults may be considered if they don’t affect your repayment plan

What’s the Catch?
If you have bad credit, expect:
- Higher interest rates
- Shorter repayment terms
- Limited lender options
- More scrutiny of your exit strategy
Some lenders specialize in working with borrowers who have poor credit, but they’ll want strong security and a realistic repayment plan.
How to Improve Your Chances
Here’s how to make your application stronger:
-  Offer valuable collateral (like property equity)
-  Be transparent about your credit history
-  Present a clear, achievable exit strategy
-  Work with a broker who understands alternative lending