Bad credit doesn’t necessarily mean you can’t get a loan – it just means you’ll need to do a bit more homework about the options available to you.
If you don’t have any assets such as a house, then one option is a personal loan (sometimes known as an unsecured loan). With this, you can borrow money at a fixed interest rate and pay it back over an agreed period of time. You’ll usually be encouraged to take out some form of protection so that you’re covered if you can’t make the repayments for whatever reason e.g. illness so you can’t work.
With personal loans, the more money you borrow, the more attractive the interest rate – but be careful because it’s all well and good borrowing more than you need to get a lower interest rate overall, but remember – you still need to pay it all back its not free money.
If you do have assets, then a homeowner loan could give you credit using your home as a guarantee. These types of secured loans will usually give you the largest amount of cash but the stakes are high and if you don’t keep up with repayments, you could lose your house.
If your credit score is more brass plated than pure platinum, then a guarantor loan could be an alternative. This is when a relative or friend promises to pay back the loan if you can’t; it’s a tricky situation and it’s worth being absolutely confident about your ability to meet repayments unless you want a one-way ticket to alienation.