Financial emergencies can happen at anytime, and no matter how we try to prepare for them, such as saving, there can come times when we either may not have enough saved for that particular emergency, or we may not have any savings at all.
Financial emergencies come in many forms:
* Car repairs
* Moving house expenses
* Boiler repairs or replacement
* Emergency travel to visit a friend or family member
* Loss of a job
In any of these instances, you may need to seek out a short-term financial remedy to get you over this transient period, so a loan is a logical answer. However, not everyone has good credit, or a high enough credit score to qualify for a loan.
All is not lost, there are options and alternatives for those with bad credit, and are in need of a loan for a financial emergency.
Family and Friends
If you need to borrow money quickly in an emergency, one alternative is to turn to friends and/or family for a loan.
There are no credit checks or credit scoring used in lending family and friends money, and in most instances if they have the cash readily available, the loan can be arranged rather quickly.
So bad credit is not an issue.
Sell Unwanted Stuff
Another way to raise cash quickly is to sell off any of your old or unwanted stuff. You may be surprised what is hiding and lurking in your garage or loft. Items you may not have thought about, let alone seen in years, yet have a value to someone.
You can list these items on eBay, but there are free web sites available to sell your unwanted items. This is a way to make some quick cash in an emergency.
Use an Asset to Borrow Against
Pledging an asset for a loan, such as a car, or even your property if you have equity, is an option for someone with bad credit who is seeking a loan in an emergency.
Secured loans are easier to qualify for, and having a low credit score may not be as much of an issue.
However, while secure loans are an option for a financial emergency, you may want them to be a last resort or last option.
By pledging an asset for a loan, that asset is now securing the loan, which means if for any reason you cannot repay the loan, your asset, be it your car or property, could be repossessed.
Bad Credit Loans
There are short-term and long-term loans for those seeking a loan and have bad credit.
Payday loans are a consideration if you need a small loan and can repay it within 30 days. While these loans are quick to have, and the only real requirements are that you have a job and a bank account, and can show affordability, they come with high interest rates, and again, need to be repaid on your next payday.
Guarantor loans are another form of bad credit loans, however, they offer more flexibility than a payday loan.
Guarantor loans can be for high amounts than a payday loan, carry lower interest rates, and also offer longer terms to repay the loan, which makes the loan more affordable.
The only requirements are that the borrower have a guarantor, and can show affordability.
Financial emergencies, they are going to occur, and even with bad or no credit, there are options for an emergency loan.