Having bad credit can really hinder you in so many ways, but it’s most problematic when you need to borrow money. Anyone with a credit score below 669 is classed as a sub-prime borrower. This means their borrowing options are limited and most mainstream lenders will not touch them. If you fall into this category, don’t panic, as there are options available.
The first thing to remember is that borrowing for no good reason is a bad idea. It’s okay to look at your options if you have an unexpected bill to pay or your car broke down and needs replacing so you can get to work. It really isn’t okay to borrow cash to pay for a vacation or new designer dress when your credit rating is sub-prime. If your borrowing is for non-urgent reasons, learn how to save!
Now for your options.
Ask a Friend or Relative
Your first port of call should always be asking a friend or relative. Unless you have burned your bridges by repeatedly borrowing cash and not paying it back, they might be willing to lend you the cash. It’s best to have a good reason for needing the money and to be sincere about paying it back. Put the terms of the loan in writing so both parties understand what needs repaying and when, and also whether interest is due on the loan.
Ask for an Advance on Your Wages
Some bosses are pretty understanding types. They will willingly offer an employee an advance on their wages, as long as they are reliable, and the reason is a genuine one. If you tick these boxes, it is worth asking your boss for an advance, but remember that you’ll be out of pocket when you do get paid. This makes it harder to get out of the debt cycle.
Payday Loans
Payday lenders offer cash loans to people with poor credit scores. The lender won’t normally look at your credit score. Instead, they check your income and outgoings to ensure the repayments are affordable. You can apply online and have the cash in your account within 24 hours or less.
Equity Loans
Equity loans are similar to payday loans in that they are short-term loans, but the main difference is that the loan is based on the equity of your car. Loans are approved within minutes and as long as your vehicle qualifies, you can have the cash very quickly. The more valuable your car is, the more money you can borrow. If you own a newer vehicle, a loan from a lender like Rapid Cash Rancho is well considering.
Credit Union
Most towns and cities have Credit Unions. These are non-profit organizations there to help people who wouldn’t qualify for loans from anywhere else. Loans are offered at competitive rates and an affordable repayment schedule.
If you need money quickly, do not make the mistake of borrowing cash from a loan shark. This will end in tears. Instead, choose one of the options above and repay the loan as soon as possible.
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