Credit Unions

If you have fallen on hard times and need to borrow some money, then it’s a good idea to shop around to see where you can get loans for people with bad credit.

A bad credit score doesn’t have to mean that you can’t get a personal loan. It’s possible to find lenders that will look more closely at your score and that will take your history into account, so if you had several defaults in the past but you’ve been managing your accounts well in the last several months then this will go in your favour with those companies.

The kinds of companies that offer loans for people with bad credit are more flexible than banks, but they will either have very narrow, specific requirements (in the case of credit unions) or they will charge high interest rates (in the case of cash advance/payday loan companies).

Credit Unions

For the most part, credit unions are the best option for people who need to borrow money but who don’t have a great credit rating. These organisations can help you to repair your credit rating in the long term, while also giving you access to affordable finance – for example, they might say that if you are a resident of a certain area, and you have a certain amount in savings with them, you can borrow money from them as long as you pass their affordability assessment.

If you don’t meet the criteria to borrow from a credit union, or need to borrow more quickly than a credit union would be able to help you with, then it makes sense to try a cash advance company, but be mindful of the fact that the fees associated with these can be very high, and if you miss payments it will make your credit rating even worse.