The need to borrow money from time to time is something that affects most of us throughout our adult lives. Seeking the best lending agreement is a crucial process for anyone, but its importance is heightened when the individual holds a poor credit history.

If you’ve got a bad credit score but are in need of money then it can be a very scary proposition. There’s an endless list of information out there but not knowing where to turn can make the borrowing procedure extremely difficult.

The overload of information is daunting but it does at least mean you’ve got options, even when your credit score is poor. Here’s what you need to know about the options available to you.


When it comes to significant lending, securing a bank loan is probably the most common form of lending. As a way to get the things you need in life, it’s the best option for many people. If you happen to be in a bad financial situation then it may also make it easier to consolidate your debts into one.

Unfortunately, the best deals are likely to be reserved for customers with strong credit history. If yours is full of blemishes then you may have to accept the fact that high interest options are your only option. That doesn’t mean they can’t be used to help you climb back up the financial ladder.

Another alternative is payday loans. Again, you must expect to settle for high interest. But the fact you are almost guaranteed acceptance makes them a very promising prospect for those needing a quick, hassle free option for the short-term solution.

Credit Cards

A credit card gives its owner a little added sense of financial security as it allows them to cover the costs of any unexpected expenses that can arise from time to time. However, if you’ve got a bad credit history then obtaining one can be a little harder than usual.

Still, it is possible for those with poor credit ratings to access a credit card and is an option that most should look to utilise. Not only because it provides you with that short-term safety net, but also due to the fact regular repayments will boost your credit score.

The credit card is a useful tool but using it appropriately is vital. The last thing you need is interest charges and further blemishes on your financial history.

Finance Agreements

When it comes to major life purchases, many of us opt for the monthly financial repayment plans and this is something you should also be smart about.

Getting a car on finance is a little harder when your credit score is poor but it is possible. There are dealerships that specialise in bad credit financing and agreeing a deal with them is arguably the best way to grab yourself a new motor on a repayment plan.

Nonetheless, you need to smart in these situations. Opting for a used car instead of a new one will save you money. Likewise, if you can get a decent sized down payment saved then this is beneficial. Doing so lowers your payments, interest, and the amount of overall credit currently being used.

When it comes to smaller purchases from shops, our advice would be to only use 0% interest options. If this isn’t available, then you should wait until you’ve got the money to buy outright. Besides, you don’t really need that the new TV right now.

Store Cards

One great way to build up your credit score is through the use of store cards. However, they can be dangerous and are something you should only use in a manner that will benefit your financial situation. Using them in an inappropriate manner can really hurt your finances.

Buying products on store cards is good because it allows you to limit your spending only to stuff in that particular shop. This should help curb unnecessary spending and frivolous purchases. Better still, if you pay them back promptly then no extra charges will be incurred.

However, the interest rates on this form of lending can be especially high. Do not let your borrowing amount snowball out of control as it will impact your credit score whilst also hitting your bank balance too.

Friends And Family

If you’re really in desperate need of quick funds then asking for the help of a friend or family member could be an easy way out.

Borrowing money from loved ones will usually result in 0% interest and they’ll most likely be forgiving if you are a few days late with a repayment. Don’t take complete advantage of their good nature, though, as it could put a strain on your relationship. Money is the root of all evil and you don’t want to lose someone you cherish because of it.

The hardest thing about this technique is actually plucking up the courage to ask them. You don’t want to pressurise them into saying yes and, at the same time, you are putting yourself at their mercy.

Another obvious negative is that it won’t bring any improvements to your credit rating.


Taking out any form of credit agreement is a decision that needs careful consideration. When your credit rating is low, the last thing you want is to damage your financial reputation further. Nonetheless, that doesn’t mean you should be frightened about seeking them because of your situation.

Building up your score by showing lenders that you are a reliable customer will improve your options in the future, allowing you to chase the better deals once more. Do everything you can to rebuild your credit but only if those solutions are actually helpful to your current situation. Wasting money solely to help your score is never advised.

There are companies that will target those with bad credit scores and it is important that you don’t fall victim to them. Look after your finances and make sure to only accept payment plans you can afford to keep.

Do this and you should see your credit score rise.