How to Borrow Money with a Poor Credit History

by Adam on May 24, 2017

small questionBorrowing money with a poor credit history isn’t easy.

However, borrowing cash from time to time is something many of us feel we have to do, whether it is for an urgent home repair, a new car, a medical bill, or anything else. Just because you have got yourself into financial difficulty in the past, doesn’t mean you aren’t going to pay the loan back. But banks and building societies are more careful than they ever have been regarding who they lend money too, which leaves you somewhat limited. Don’t fret, though, there are some ways around it.

 

Do you really need the money?

The first thing you need to do is ask yourself whether you really need the money. Are you looking for a new car because your current vehicle is a write-off? Or, do you simply fancy an upgrade? If the latter applies, you shouldn’t be looking to borrow money. Don’t dive right in without having explored all options. Borrowing should always be the last resort.

Have you asked your family or a close friend?

This is an option that is well worth considering. If a loved one is in the position to lend you money, it means that you can pay them back without having to pay interest on top. It is a good idea to set up a direct debt and pay your family member or friend back on a monthly basis. This will make it easier for you to manage, and it will reassure your loved one that they are getting their money back. Of course, this option is not for everyone. Some people don’t want to turn to people they know, as they don’t want to reveal their financial struggles. It can be difficult to ask for help, so if you would rather do it alone, continue reading for some more options.

Have you considered a guaranteed loan?

If you don’t want to ask a close friend or family member for help, a guaranteed loan is an option to think about. How do they work? This type of loan is guaranteed against a property or person. We have established that you don’t want to involve anyone else. So, why not secure the loan against your property? This means that you can apply for a loan even if you have bad credit or you have been bankrupt. If you are open to involving someone you know, going through a more official channel like this where you are doing it off your back can often be a lot more appealing.

Boost your credit score

If you aren’t in an immediate rush for the money, why not work on your credit score so that you can get the financial assistance you need in the coming future? There are many different ways you can better your credit score, including signing up to the electoral roll, keeping your applications for finance down until you have boosted your score, and ensuring all details are up-to-date, including your address. View more tips on improving your credit score here.

While options may be limited for those of you that have a poor credit score, all hope is not lost. If you follow the tips above, you should be able to get the cash you need for whatever financial trouble you are facing.

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