There are various circumstances that can lead people to end up with a poor credit rating. From those which are not your fault, such as simply never having to borrow and repay money, to ones which are, like failing to meet repayment deadlines on credit cards, having a bad credit rating is not the end of the world.
If you still need to take out a loan or borrow money, then there are a number of options open to you. Consider any of the following and decide which one will be best for your situation to get some kind of loan and all will require some credit information.
Use Loans for Bad Credit
There are a number of loans for bad credit available from Everyday Loans, which are designed specifically for allowing those in such a position to still borrow money. They allow anyone to apply for them, looking into more than just peoples’ credit histories. Aspects such as the borrower’s age, employment status and income are taken into account. Plus, they are only open to people over 18 who are currently employed, criteria you must meet.
Borrow from Credit Unions
Credit Unions are not run for profit and provide loans at low rates to their members. Part of their aim is to help members in financial need, with advice and assistance, and as they have a cap on the interest they can charge it should avoid you getting into further debt. However, some credit unions require you to be a member who has built up some savings first, which can prove problematic if you need a loan straightaway.
Improve Your Credit Rating
If you have time before you need to take out a loan, then improving your credit score is one option. This can be done with a few simple steps, such as ensuring you are on the electoral roll and all your personal details are up to date. Paying off or just compiling all existing debts into one will also improve it, as will closing any unused credit card accounts.
Ask Friends and Family
While not an official loan, if you have some great friends or family members then they may lend you some money and shouldn’t charge interest on it. For many people this will probably be a last resort, but it can be the only way if you do not meet the criteria for any of the above options, or need the money quickly. These methods can all be used by people with poor credit ratings to take out a loan in the future.