Having a bad credit might leave you thinking that there is no other possible way you could ever acquire a loan. With a low credit score, it is indeed difficult to get your way through it. The reason for that is, unfortunately, you’re left with few options to choose from. And sometimes, the options provided to you don’t even do well when it comes to interest rates, payment scheme and doesn’t even make at least half of the loan amount you have in mind.

Although it could be a challenge, it is not impossible to acquire loans for people with bad credit. However, before you let yourself get persuaded due to desperation to dig into some of the options offered to you which might not be helpful in reality, check out some of the ways listed below which could help you get a loan, even with a bad credit.

Use Home Equity Line of Credit (HELOC)

If you own a property by any chance and have reached enough equity on it, then you’re not particularly left with nothing really. Though this might sound risky, availing for a home equity line of credit (HELOC) might be the solution to your problem. What HELOC does is letting the lender provide an upfront amount to the borrower based on the amount of the mortgage. This will then allow the borrower to draw an amount which only needed, either by writing a check or thru a card, and then just pay the interest after. HELOC is useful for intermittent needs, such as home improvement or paying off a certain credit card. However, bear in mind the importance of paying on time and with the full amount as it might jeopardize your property.

Try Peer to Peer Loan

Peer to peer (P2P) lending may not be a new idea for most of us. It is simply borrowing from another individual, through an online platform, rather than borrowing from a bank or any financial institution. Interest rates start at 6%, which might not be a lot compared to the always changing rates of a bank, but could be big deal for the person who lends the money. So it naturally creates a win-win situation for both the borrower and the lender. Although, this type of loan could also look into your credit rating, conversing to someone in a more personal manner could get you somewhere rather than stick to financial institutions that would require several documents from you upfront, yet would still decide to decline your request.

Apply to Credit Unions

Credit unions are smaller financial institutions than banks. There are times, that they would listen to your story like a person to person conversation, rather than an institution to person one.

Get a Loan Co-Signer

If one of your close friends owns at least a small business in the area, why don’t you try to speak to her and ask if she can be a loan co-signer? This might be one of the best ways to acquire one while you are still working on your bad credit score. The reason for this is that the financial institution will look into your co-signer’s history instead of yours. Once you get the loan amount you need, do your very best to be a good payer and work on your credit score. After all, you wouldn’t want the trust to be ruined after this right?

Borrow from Family or Friends

When all else fail, I’m sure you have family and friends who have your back and are ready to support you. Why don’t you try to reach out to them and just ask the possibility of borrowing money? When you ask, you should be ready though with a strategic plan on how you could pay them off in a certain period of time. This would give them a peace of mind that you have a man-on-man conversation and that you will keep your word. Not only this strengthens family ties, but also might lead you to realize that after all the hassle of applying for a loan, you have your family and friends to lean on to at the end of the day. And once you’ve worked yourself up with your credit score, then you can pay it forward.

The Bottom Line

It might look impossible at first to apply or be approved with a loan given a low credit score, but that doesn’t mean it’s impossible. You just have to make use of your available resources and create a pact with yourself to never be in the same situation again.