We all need to borrow some cash from time to time. Money can be tight, and something might crop up that needs to be dealt with immediately. The way things are today means that banks and building societies can be a little more choosy about who they lend their money to. But if you have built up a bit of a bad credit rating, what can you do if you need to borrow?
One of the first things you could do is to speak to your family about the situation. If you need money to repair your car, so that you can actually get to and forth to work, maybe someone could help you out. Then you would be in debt to them, rather than a bank. It wouldn’t affect your credit rating anymore, and you can work towards building up a good credit score in the meantime.
There are many ways that you can improve your credit score. One of the most important ones is paying off any debts you have on time. If payments on outstanding debt are missed, then it does make a difference to the score. It is also a good idea to avoid applying for things like credit cards in the meantime. If you apply and are declined, then that is something that can reflect on your credit score. You could use a free credit score check service to see what your score actually is. It also helps you to check if all of the information they have is correct. If they have made an error, this can be rectified. So it is also important to make a note of the dates that you have made payments or applied for things. Then you can compare the two.
But none of this solves the problem of being able to borrow money when you have a bad credit rating. If family aren’t able to help out, then where can you turn to? You might want to look into loans with no credit check. Then you know that you will be able to borrow some cash. It is important to clearly check the terms and conditions and know how much you will actually borrow. If you are happy with that and have a plan in place to make the payments, it could be an option for you. The same goes for short term loans. Check the APR rate and how much you will need to pay back in the end. If it is something that you can afford to pay back, then it might be worth it. If it is going to be too much, the important thing is to remember to not accept it. Otherwise, you could end up in more debt which is even worse.
If you are employed, your employer might have a loan system in place. It would be where they pay you your wages early, but then just balance it all out on your next paycheck. So you get more one month but upfront and less the next month. This could be an option, especially if you can manage on the lower amount the next month. It is important to know that you can still borrow money with a bad credit rating. You just need to be smart and borrow wisely.