If you’re currently struggling with a poor credit rating which is making it impossible to get a loan – then you’re certainly not alone. In these difficult times, many people are facing challenging financial situations, and the prospect of getting loans for people with bad credit is never an easy one.
However, even if your bank isn’t giving you the loan you need, there’s still several options available to you for getting that loan – so with this in mind, let’s take a look at some of your options.
1 – Use peer to peer loaning
In 2005, a new form of loaning was created thanks to the internet, and it’s popularity has continued to grow since this time. Known as ‘peer to peer’ loaning, this concept involves having other people loan you the money online, rather than turning to your bank.
While your credit rating may still be an issue, it’s generally less of a deciding factor compared to traditional loaning from your bank. In fact, peer to peer loans have come to the rescue for many people who suffer with a poor credit rating, and these days, it’s one of the best options to turn to whenever you need loans for bad credit.
2 – Turn to family and friends
If you still can’t get a loan via the peer to peer system, then another good option is to set up a loan with a friend or family member. It’s quite possible to do this in a very professional manner – and in fact, it’s very advisable to borrow in this way. By having the proper documents in place to make the loan legally binding, you will give your friend or family member a lot of confidence in your ability to pay it back – and it will keep you focused on making the cash you need to pay off your debts.
Ultimately, this is a very effective strategy for anyone who’s struggling with a bad credit situation – especially if the banks aren’t willing to help you.
3 – Use a co-signer
However, if you’re adamant about borrowing from the bank rather than a friend or family member, perhaps you could find a suitable co-signer who can help you get that loan from the bank. By having a qualifying co-signer, you will reduce the negative impact that your bad credit rating is having, which means you’ll be able to secure a better deal on your loan request.