If you have had financial problems in the past and need to borrow money, you will be limited in possible options. If you have a bad credit history, any ordinary bank will raise the interest rate on all products available to you. If the score is very low, most likely you should not rely on a traditional loan at all. Fortunately, there are a few more options that can help you out of this situation. But before considering any of the following types of borrowing, think about what led you to what you have now and how you can improve the situation so as not to increase your debt. If you doubt any points, it is better to consult with close people or professional financiers. And so, how to take money with a bad credit history.
Getting money from a friend or family member
If you have a friend or family member who is willing to lend you money, this may be the best option for you. So, as the one whom you know, most likely will offer service on flexible conditions or at more favorable price.
In this case, think for two. For yourself and your personal lender. So, as we are talking about a loved one, you can assume his financial condition now and for the near future. So that your relationship is not affected by the deal, be open and honest with the person. Tell us about your circumstances and when you will be truly ready to return the money.
Taking money with a bad credit history is not such an easy task, even when it comes to a loan from a friend. It is a good idea to record your agreements in writing and to issue a receipt. Thus, in the future there should be no dispute as to the conditions under which the loan was issued. In some cases, you can notarize the paper.
There is another option for how your friends can help you on how to get money with a bad credit history. If you need more than your relatives can give you, ask them to become your guarantor to get a payday loan. But do not forget that in this case you take on even greater responsibility. After all, if you allow arrears in payments, this will negatively affect your guarantor’s credit history, not to mention that he will have to explain why you are not paying the debt.
Loan secured by property
Another option is a payday loan, for which you can use part of your property. The rate on such a loan is usually low because your property is pledged. That is, the bank has a specific guarantee that it will get its money back. Even if you have a bad credit history, these loans are less risky for the bank.
Contact several banks to find out how to apply for a loan with a bad history, but be careful! If you are unable to pay the loan, you may be left without your own home or car.
As for the car – there are loans secured by cars for a short time. For example, for 30 days. You bring your car to the lender, get the required amount, and take the car after you return the debt with interest. Rates for such loans can be quite high.
If you urgently need a small amount of money, you can bring a valuable item to a pawnshop and use it as collateral for a small loan. As a rule, loans in a pawnshop reach 30-40 thousand rubles.
Your item will be assessed and given to you. From this point on, your personal item will be with the lender. The pawnshop just stores the thing just in his possession, but if you don’t pay on time, he has the right to put it up for sale to offset his expenses.
Try not to pawn everything that you would be sorry to lose. After the deadline ends and the pawnshop will sell the goods, there is no legal protection for you to get the item back.
In this case, the question of how to take money with a bad credit history is exhausted by itself, because at the pawnshop it doesn’t matter what your credit rating is – you have already paid the loan with your item. Therefore, it makes no sense to change the interest rate depending on your CI.
It is very important to stick to your debt repayment plan. If you delay, in some cases, it happens that the pawnshop customers give double the value of the pledged thing within 6 months.
How to take money with a bad credit history – take a payday loan
If you wondered where to get money with a bad credit history – one of the best answers would be – take a payday loan. Contact a reliable company such as Money for the House and see for yourself. Here you can discuss all sorts of conditions of services provided. For the convenience of our customers and faster processing of applications, we have created interesting ready-made loan products.