Borrowing money when you have a poor credit history and a low credit score can be extremely difficult, but it is not impossible. In fact, if you follow the helpful tips below, you can get the money that you need, and you can borrow it affordably as well, so continue reading to learn more.
Work with the Right Lenders
In order to get the money that you need when you need it, regardless of your credit history, it is imperative that you work with the right lender. Not all lenders will be willing to work with individuals who have a low credit score or poor credit history, but there are several good options, such as themoneyhub.co.uk, which are willing to provide both secured and unsecured loans to individuals with bad credit.
Ask Family or Friends for Help
When you are unable to get a loan from any reputable lending sources, you can turn to your friends and family for help. They may be willing to give you the money that you need, provided that you promise to pay them back and treat them just as seriously as you would treat a lender. In fact, some individuals may even want you to write up a contract or agreement that will state what the payment terms will be, if there will be any interest tacked onto the loan amount, if there is any collateral involved, and what will happen if you end up being unable to pay back the loan. This will guarantee that all parties involved will be covered, just in case.
Get Someone to Co-Sign a Loan
Even if your friends and family are unwilling to provide you with the funding that you need directly, one of them may be willing to help you by co-signing on a loan for you. Make sure the co-signer has a good credit history and score. Also, understand that if you’re unable to repay the loan, the lender will go after the co-signer to get the money, so you do need to be ready to cover the loan in order to keep your friend or family member out of it.
Apply for a Home Equity Line of Credit
If you are a homeowner, you could apply for a tax-deductible, low-interest line of credit that can be spent however you see fit. On top of that, you can get this credit regardless of how high or low your credit score is, so it is a great option if you need a bit of money right away. Use caution, however, as going into your home equity will put your house in jeopardy in the event that you are unable to pay back the loan. Therefore, only take this route if you have reliable, steady income.
Although there are several ways that you can borrow money even if you have a poor credit history, make sure that you can repay whatever amount of money that you borrow. The last thing that you want to do is put yourself into further debt and ruin your credit further.