Having bad or poor credit does not mean that you cannot get financing to obtain the things you need. If you have been turned down for credit cards and loans there are other options to get the things you need. The problem is re-establishing your credit, but it is not an insurmountable problem. Many people with bad for poor credit fall into the predatory lending trap but there are plenty of other options to get financing while staying away from high-interest lenders. We will go over some of your options and several scenarios.
You need a loan for furniture and household goods:
Maybe you relocated from N.Y to California and had to leave all your furniture behind, or your furniture is degraded to the point its not longer useful, regardless of why you need financing for new furniture and other household goods but you cannot get a loan with rates you can afford to pay.
The option you have here is to seek out stores and online outlets that provide in house financing. With this option less importance is paid to your credit standing and more importance is placed on how much you earn. Conns furniture for example has in house financing so does Luthers where all you need to do is prove income and employment. Many of these places have a same as cash deal where if you pay of the balance of your financing within one year there will be no fees or interest.
You need a personal loan:
If you need a personal loan for whatever reason you do have other options besides payday lenders. You have three great options actually which I will go over below
Option number 1: Peer to peer lending
Peer to peer lending platforms will often look past bad credit. This used to be true with all of them but many of them such as prosper now have strict credit requirements but there are plenty of peer to peer lending options for those with less than perfect credit. Many of these sites you post the amount you wish to borrow and why you want to borrow the funds for. Investors then pursue the loans they wish to back with a loan investment. Credit is a factor here but less so than banks and credit unions with some networks.
Option number two: Credit Unions
Credit unions are a great way to rebuild credit. If your employer deals with a credit union all the better for you. If you have a community based credit union they too may be willing to look past your past credit mistakes and work with you to rebuild your credit. You will need to start a bank account both savings and checking with them in most cases. Your interest will be higher then for those with perfect credit but they often will work with you where other traditional lenders such as banks would outright deny you.
Options number three: Co-Signer
Most financial institutions will lend to someone with poor credit if they can obtain a co-signature on the loan. You will need a family member or friend to do with and it carries risk for whoever co-signs your loan. If you default on the loan the co-signer is fully and equally responsible for the debt, they could even face a lien or garnishment should you default on the loan.