Getting a Loan with a Bad Credit Score

A friend of mine has a habit of buying stuff on impulse. She sees something she likes and the next thing you know she has it in on credit. The problem with this kind of behavior is that people who are like this forget that their credit cards have limits and that their bank accounts also have limits.

She recently went through a hard time trying to make ends meet and it was a tough process for her. She was being evicted and most of her utility bills were due. I couldn’t watch her like that so I offered to help her through the process.

There was only so much money I could loan her and even just give her because I didn’t want to add to the amount of debt she had. The money I lent her that she did not want to ‘just take’, I gave her a lifetime to pay back, but I don’t’ care if she ever does. Eventually, things worked out for her and I’m glad I was there to help.

In the process, I learned a few things about acquiring money when you have a bad credit score. There are other people out there in the same situation as my beloved friend was in, so I thought it would be kind to share what I learned. I find joy in helping others and I hope this article will prove invaluable to you.

A Friend in Need is a Friend Indeed!

The core of any relationship is love regardless of the nature of the relationship; parent-child, friend-friend, business, family, and even the often confused, romance.

The first place you should consider getting money from when you have a bad credit score is from your loved ones, family and friends to be more specific. Money is a sensitive subject, I mean, besides bedroom issues, money is the leading reason marriages end, family members disowning each other, and best friends becoming strangers. The best person to get a loan from when you are dealing with bad credit is a loved one because chances are that they know and understand you.

However, if this option is valid for you, don’t make things worse by repaying kindness with cruelty. If a friend or family member sticks their neck out for you, then ensure you honor the terms of the favor. If you promised to pay up, be kind enough to do so. If other terms were established, be kind enough to honor them.

Title Loans and Alternative Short-Term Loans

Auto title loans, car title loans or simply title loans are short-term loans that are granted by offering the title of one’s vehicle as collateral. The interest rate is often high as is the nature of short-term loans but the process is fast, so you get your money as soon as you need it. Companies that offer title loans don’t really care about your credit score. Provided the title of the vehicle you are offering as collateral is lien free, you have proof of ownership, documentation that you are indeed a citizen, and you are above 18 years old, chances are that you’ll get the loan in as little as 15 minutes. Title loan companies can be accessed online or by visiting their offices if you know where they are located near you. The online option is more convenient for most people.

Other short-term loans you can consider are payday loans and auto pawn loans. The former involves receiving a short-term loan from a lender, which you will pay back by deducting the amount from your paycheck. The interests are often insanely high, so be careful. Auto pawn loans are just like title loans but the lender will also keep your vehicle. In case you didn’t know, with title loans, you get to drive your vehicle freely, but with auto pawn loans, you may not have that privilege. Nonetheless, you are likely to get more money from auto pawn loans because it is more demanding.

Find a Co-Signer

This is another option where having friends, particularly loaded ones, is a good thing. However, you should be a reliable and trustworthy person for this option to work. The Co-signer is an individual who will allow you to take a loan with their name and signature. The process will involve both you and the co-signer but the co-signer will take most of the heat in case things go south. In other words, it’s like the co-signer is letting you take the loan and then they will take responsibility for anything that ensues from the arrangement. It is truly a generous thing for someone to stick his or her neck out for you like this. I don’t think you need to be reminded to honor this great and noble deed.

What about Peer-To-Peer Lending?

A tricky option but worth a try. There are people online who are willing to offer others money at an agreed upon interest rate. They are individuals and some people call them investors. Nevertheless, like the Sharks from ‘Shark Tank’, your case has to be really moving for them to help you out. If you think you can convince them, give them a try. Go online and see whether you can locate a few within your area.

There are other options like credit unions, which I place on the same category as peer-to-peer lending. You can try these but they can be time-consuming so they are not good options when you need money on the clock.

My friend went with title loans and due to the high interest rate of the loan, she had to be disciplined and pay on time so as not to add to her problems. I worked together with her and now she is just focused on remedying her credit score. I hope one of the above options will prove useful to you as well.

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