Financing Options for People with Bad Credit

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Just because you have bad credit doesn’t mean that you are left with no options when it comes to short term financing. Yes, it will be more difficult to avail a loan and the interest will be much higher. In any case, there are quick financing you can resort if you need cash as soon as possible. Below are some options you can look into:

Family and Friends

f you’re only looking to borrow a small sum of money, your family and friends may save the day. Just remember that going this route may put a crimp on your relationship if you don’t pull through with the payment. When you say you’ll pay the loan back on the promised date, do it without excuses. The fact that this kind of loan has little to no interest should be motivation enough to keep your word.

Peer-to-Peer Lending

If banks and high street lenders refuse your loan application, you can turn to peer to peer lending for a personal loan. There is no middleman in this case. You borrow directly from the lender or peer through online means. All you need to do is sign up for a website or service offering this type of loan to get approved for a small short term financing.

Bad Credit Credit Cards

Another option worth looking into is a credit card for bad credit. This is not exactly a short term financing but it’s one way to raise some extra funds. Credit cards are also useful if you want to improve your credit rating. Just stay within the recommended 30% charges of your credit limit and pay your bills on time to see significant results.

Logbook Loans

Finally, we have here logbook loans that are secured against your vehicle. If you’re looking to borrow a large sum of money, this type of financing is suitable. Since the loan is secured, you can borrow up to £50,000 or up to 70% of your vehicle’s official trade value.

The loan is also especially created for people who have struggled to get a personal loan elsewhere. There’s no credit check involved in the process hence approval is faster than other loans. In fact, you can receive your money in 24 hours or less provided that you meet the requirements and provide the documents.