Those of you with a poor credit history might struggle to get loans. Companies just don’t want to lend to people without a track record of paying it back. However, there are a few options open to you. We all need some extra money from time to time. That is a fact of life. Our wages are pretty low, and so a cash injection is sometimes required. With that in mind, you’ll find some great ideas on this page. At least one of them should be suitable for you. Just remember to always read the small print before signing any contracts.
Payday loan companies have received a lot of bad press during the last couple of years. That is because the industry was barely regulated in the past. That has since changed. There are now limits on the amount of interest those firms can charge to their clients. That has meant that dodgy companies have begun to fold. The only ones left offer reasonable loans you can afford to pay back. Just search online to find a lender willing to help you. Alternatively, you could visit some of those websites mentioned on TV adverts.
Credit cards for bad credit scores
If you only need a small amount of cash, you might consider getting a credit card. There are a few companies that specialise in offering money to people in your position. Just be aware that interest rates will be high. That means you need to clear the entire balance every single month. Never spend more than you can afford to pay back in that period. Otherwise, you will end up paying a fortune before the debt is cleared.
Do you own a car? If so, you could get some cash from a logbook loan company. We spoke to the manager of Varooma to find out how the process works. She told us that borrowers just need to provide the firm with car registration details. The team then use a valuation calculator to work out how much money they can release. The best thing about logbook loans is that you get to keep the vehicle during the agreed term. You only lose the car if you fail to meet your repayment schedule.
In most instances, banks won’t look at your credit score when offering small overdrafts. Indeed, you will get one as standard with certain accounts. Presuming you just need a few hundred pounds to see you through, it could be perfect. The interest rates you pay on the money are very low. So, bank overdrafts are ideal for people who need to borrow for a little longer.
Now you’ve read about those lending options, we hope you are in a better position moving forward. Even with the worst credit score, you have lots of options these days. Just remember there are still a few pawn shops around for those of you who struggle. It might not be the best way of getting the money you need. However, it’s better than ending up on the streets because you couldn’t afford to pay the rent.