Home Personal Finance The Three Best Borrowing Options for Those with a Poor Credit History

The Three Best Borrowing Options for Those with a Poor Credit History

The Three Best Borrowing Options for Those with a Poor Credit History

Take your money

Few things are as stressful as financial hardships, and yet they can befall the very best of us. All too often, finding yourself indebted is a symptom of simple ill fortune as opposed to overspending, a lack of self-control, or foolishness on your part.

Unfortunately, irrespective of the cause of your financial woes, the struggles that you face will be the same as those of everybody else. Not only will money be tight, but there will be very few entities that are willing to lend to you, and when you can barely afford your weekly shopping, this is often enough to make you desperate.

The answer is not to jump into the waiting arms of the nearest loan shark, but rather to carefully consider the options that remain open to you. If you’re struggling to know where to start, here are three borrowing instruments that could be of use…

 #1: Pawnbrokers

 When we think of pawnbrokers, most of us conjure up an image of a miserly old man tucked away at the back of a junk shop, glasses sliding off the end of his nose as he inspects your most precious possessions. This may have been true in the Victorian era, but not so anymore. In fact, pawnbrokers can be a fantastic option for those with poor credit, as no financial history is required in order to borrow from them. You simply hand over the item you wish to pawn, are offered a valuation, and then given money in exchange for it. Provided that you can pay this back on time, your asset will be returned to you at the end of the loan period. If you can’t, it will be sold in lieu of your debt.

#2: Specialist Poor Credit Loans

 Most of the financially burdened will find it almost impossible to secure a loan, but that’s largely because they’re looking in the wrong places. Although you may not have the necessary assets for a secured loan, or the positive credit history needed for most loan options, there are specialist companies who are willing to overlook this and advance you the funds that you need. Enterprises like Everyday Loans will study more than your credit file, and will often consider those who haven’t had any luck elsewhere. It’s well worth approaching them if you’re struggling to find any suitable alternatives.

 #3: Guarantor Loans

 Another option that you might want to consider is guarantor loans. Guarantor loans work by using another financially secure person as an anchor for your debt, meaning that if you fail to pay it, it will pass to them in your stead (with their agreement, of course). This means that if you have the resources to repay a loan, but simply lack the credit record to back up this ability, you should be able to borrow the money that you need, without being charged overly high interest or being forced to accept excessively harsh terms.

If you’re struggling to secure finance, could one of these borrowing instruments be the ideal option for you?

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