A bad credit report can be a real
stumbling block, and extremely inconvenient at a time when you desperately need
to borrow money. The vast majority of lenders dealing with personal loans and
other forms of credit are very choosy these days about who they lend money to.
This means that it does not take much to be rejected for a loan, and you do not
want too many rejections, because that hurts your credit score even more.
So what is the answer when you need
cash but you have bad credit? The good news is that there certainly is an
answer, though it does depend on how much money you want and how long you want
it for. The way to get round a bad credit report is to go for a type of lending
where the credit report is of little importance. Your credit report matters to
the mainstream lenders because they are looking at a long term risk and if you
stop paying there is not that much they can do about it except sue you.
There are two options open to you,
one is for small amounts of cash for a short time, and the other is for large
amounts of money, paid back over a longer period of time. For large amounts of
money the only option you have is secured borrowing. This is only an option if
you have your own home and a mortgage. It involves taking out a loan and using
your home as security. In other words your home and the loan are legally bound
together, and in the worst case scenario, the lender can arrange to get their
money back by selling your house if you default on their payments.
The other, much easier and less
drastic step is for cash advance, or 'payday' loans. These are widely available
in both the UK and US now and are a hugely popular form of short term, and most
of all fast, borrowing. The best companies can have cash in your bank account
the same day as you apply online, sometimes within an hour! The principle is
that you get a cash advance to help you over until you next get paid, which is
when you must immediately pay it back.
The beauty of payday loans is that
the lenders are generally not interested in your credit report, provided you
can show that you have a job and a bank account. Because the amounts being
borrowed are relatively small, the lenders know that as soon as you get paid,
there will be enough money in your account to cover the debt. That is partly
why the process is so quick - the best direct online lenders will give you an
answer straight away, with money in your account soon afterwards.
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