Finance

How to Borrow When You Have Bad Credit

Good credit is one of those things that you don’t need all the time, but when you need it, not having it can really cause you severe challenges. It is also something that takes a long time to get and only a short time to destroy. So even if you have been great about maintaining good quality credit over a good while, there is a chance that your credit score is still not one that can get you credit cards or make most businesses comfortable enough to provide you their goods on credit.

How to Borrow When You Have Bad Credit

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Without access to the things good credit affords you, life can definite be more difficult. Most people will lean on some type of loan facility when they have a financial challenge. It may be a credit card, a home loan, or some other type of loan provided by a bank or finance company. With bad credit, however, these avenues are not open to you. Where can someone with bad credit go to get a loan? Here are some great options:

Get a payday loan:

For more than a decade, payday loans have been a primary source of quick cash for those with bad credit. Pay day loans are loans made against a person’s pay check. The borrower signs over the rights to the paycheck to the lender and then receives a cash advance against that paycheck. The paycheck which pays off the amount borrowed and the interest and fees due, then goes to the lender. When the debt is paid the loan terminates.

Payday loans are quick to acquire and are not dependent on your credit history or credit score. The amount of a pay day loan will less than one paycheck so the loans are often used for small emergency situations.

There is a version of the payday loan called a short term loan that many payday lenders offer. These loans can be paid back over the course of several paychecks rather than the one paycheck of a payday loan. They work the same and only require a reputable job and portion of your paycheck to can be turned over to the lender. For those with bad credit who need larger sums of money short terms loans can be a great option.

ll types of payday loans have fees in addition to high interest rates, and this should be considered when seeking this type of loan. However for those who have the need for quick money, they can be the best personal loans for bad credit.

Take Loans from Friends and Relatives:

Another option is to borrow money from your loved one. This is a road that is difficult for many to go down because of the potential for creating negative feelings if anything goes wrong and you cannot pay off the loan. When it is family or friends we are typically not as disciplined about making the payments and so often it creates animosity. However, if you have someone close to you who is willing to help and you can treat it like it is a business transaction, things can turn out fine. Just be honest about what you need it for and your ability to pay it back.

These methods can solve the problem of someone needing quick cash but not having the good credit to go the traditional routes.

About the author

Suhail Ajmal

Suhail is a father of three who loves nurturing them day and night. Profession wise he is a recruitment consultant with strong interposal skills. He likes to share his tough life experiences with the world and save people from those troubles he had to run into.

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