When you have good credit you have all types of lending options, from credit cards to personal loans. Those who have bad credit will have much less in the way of options for lending, but that does not mean that finding money to borrow is impossible. Even with bad credit, there is a way to find extra money when you are in need. If you’ve had money problems, here’s some help on how to borrow money with bad credit.
Finding a payday loan
If you have bad credit one of the first places that you can turn to is the payday loan. Payday loans do not check credit. Most payday loans will require your personal information, including name, address, and job information. Once you have applied, the loan will typically be approved immediately and dispersed by the next day. The fees and interest for payday loans can be high, but if you need quick cash, they present a real possibility.
Look for a signature loan from your bank
If you have been with a bank for several years with a history of your account being in good standing, the loan or credit union may be willing to bend the rules and allow you to have a small signature loan. Many smaller banks and credit unions are community based institutions and have less rigid standards for approving loans than large banks. Apply for a small loan with your community bank or Credit Union to see if they can help you.
Getting a loan on collateral
If you have collateral to put up, you will notice that loan options will increase significantly, even with bad credit. Go to a bank that has a history of working with those with fair and less than desirable credit and apply for a collateral loan. The types of collateral that you may be able to put up is properly, expensive jewelry, and other belongings that make it worth the risk for your family.
Borrow from 401k
If you have a 401k, you can borrow from this without having to deal with the credit check and approval process. Technically, the money that you have inside of your retirement account belongs to you. The one thing that you must remember when borrowing money from your 401k is that you will deal with fees and penalties. These may vary, depending on the type of account that you have. If you desperately need money without hassle, taking out money against your 401k can help you more easily.
Peer lending has opened up new doors when it comes to funding startups and receiving personal loans. If your credit is not the best, finding a marketplace that offers peer lending may be easier for you. Crowdfunded loans present the ability to borrow from a group of investors who are operating as people, rather than a bank. This means that you can appeal directly to the individuals for a loan, rather than having to deal with the approval algorithm of a bank, which significantly improves your chances of getting the funding you need.