How Can I Borrow With a Poor Credit Score?

If you have a poor credit score then you may feel that you will not be able to borrow any money. However, there may be some options available to you that you might want to consider.

Ask your Bank

It could be worth asking at the bank that you use the most as to whether they would be able to lend to you. As they know you more, because you are their customer, they may be more likely to lend to you than other places. This could be especially true if you have a local branch and you have got to know the staff well, as they may know more about your personal situation and be better able to judge if they can lend to you.

Try a Credit Union

It is worth investigating if there are any credit unions that you might be able to borrow from. These tend to be locally run organisations, usually by churches and their interest rates are reasonably competitive. They tend to judge each case individually rather than using credit scoring. They may want you to save some money with them before they are prepared to lend you any though, but they are all different so you will need to check with any that you qualify to use.

Improve Credit Score

If you can take some steps to improve your credit score, then you may find that you will then be able to borrow the money that you need. Check your credit record and make sure that all of the details are correct. Then look at whether there are things that you can improve with regards to making regular payments and things like this.

Borrow from a Friend or Family

If you have no success at the above, then you could consider asking a friend or family member if they would be able to lend you some money. They might be able to let you have what you need and be fairly flexible with the repayments as well. Of course, borrowing from friends and family is not always possible and even if it is, is not always a good idea. It can lead to problems with your relationship with the person, especially if they suddenly need the money back and you do not have it. Therefore, think very carefully about whether this will be a good idea or not.

Take a no Credit Check Loan

There are some lenders which do not worry about whether you have a good credit score or not and will lend to you anyway. These can be handy for emergencies but it is worth bearing in mind that they will be expensive. They take on a big risk by lending to people who may not repay them and that is why they charge a lot. Taking out this sort of loan could also look bad on your credit report so may mean it will make it harder for you to borrow in the future, particularly if you want a mortgage, so you need to be very wary of using these.

These are just a few of the options, but you can see that they are not ideal. It is much better to try to avoid borrowing if you can. You can hopefully find a way around it. If the item you need to buy is not necessary, then hopefully you will be able to save up for it rather than borrowing. If it is necessary then you may be able to cut back spending elsewhere to pay for it. You may also be able to think of some ways to earn a bit of extra money. You might be able to do some freelance or temp work or find some ways to earn online. You might even be able to sell some things that you own and no longer need to get the money.

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