I Need A Loan But I Have Bad Credit, Who Will Give Me A Loan?

Being an adult in the 21st century is hard, especially with the Great recession’s effect being experienced by all. If you are someone with a poor or yet non-existent credit score, you have probably asked yourself the above question already.

In all honesty, getting a personal loan when you have bad credit is quite difficult. There is no way I can sugarcoat the  truth  for you  since  it  is a fact that lenders will see you as a high-risk   borrower.

Sometimes, the risk might be too high for them to take and that is where  the  problem starts. However,  don’t lose all your hopes  yet.

If you are in an “I need a loan but I have  bad credit” situation,  there are still some ways through which you can get a loan. I  know  how demoralizing it can be when the  big banks  tum  you  down,  but  they are not the only option for  you.

However, before I explain the 5 ways to get a loan when you are in an “I need a loan but I have bad credit” state, keep in mind  that  these  are options that you should use as your last   resorts.

You should always try to work towards having a good credit score, and if you are lucky enough to have one, make  sure  you  stay  disciplined  enough  to  maintain it!

Without further ado, let’s talk about how you can get out of the depressing “I need a loan but I have bad credit” phase

5 ways to get a loan when you have bad credit

Ask a friend or relative for a loan

When I was going through a bad time, my only backup was my family. I had asked my uncle to give me a loan which  I promised  to  pay  back within 5 months and he agreed. Those  5  months were  the  turning  point  in my life and  I managed to make things  right.

Therefore, asking a friend or family can be a valid option, as they are the people who are most  empathetic  and  understanding  towards  us. However, make sure you can pay it back! Otherwise, you will end up destroying  a  personal relationship.

Ask someone to co-sign a loan with you

Sometimes, the people around you might  be unable  to  give you a loan  due to lack of cash. However, if someone has a  good  credit  score,  he might be able to help  you.

If you can convince that person that you  will  pay  the  installments  on time, and if  he trusts you enough, he can co-sign a loan with    you.

This means the lender will then set the terms of the loan based on  the person with good credit, and both of you will be held equally responsible  for the loan. The loan will be recorded  on both your credit   scores.

So, if you fall behind on payments you will be severely damaging your cosigner’s  credit score. Make sure you don’t do  that!

Visit Saccos

Just like banks, Saccos offer loans too. However, unlike  banks,  they do  not do it for  profit.

Saccos are owned  and  run  by a group of similar  people, such as citizens of the same neighborhood or people of the same profession. Therefore, if you can find a credit union to which you can link yourself  to somehow,  you might get a  loan.

Try out person-to-person lending

Otherwise known as peer-to-peer lending, this type of loans are online­ based. Instead of applying to an institution, you will basically  be  interacting  with a person  directly.

The procedure is quite simple: the borrowers have  to  post a loan listing  that consists of how much money  they  need  and  why they  need  it for. The lenders judge the lists based on needs and credit score  and  select which one they want to fund, but they might overlook your score for a genuine,  good-enough cause.

Put your home on the line

In my opinion, this should be the very last thing you could    do.

By using your equity in your home, you can  apply  for  a  home  equity loan. You are basically giving your home as collateral, which means they will have the  right to cease your home if you fall behind on   payments.

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