A lot of people are under the mistaken impression that you cannot get loans if you have bad credit. While it’s true that it’s hard to get low interest loans with bad credit, you can certainly find a lender that is willing to work with you if you can provide proof of income, or perhaps a guarantor.
The problem with looking for loans with bad credit is that you can expect to pay a lot more than the average person. The kinds of lender that will offer a loan to someone with a poor credit rating are the kinds that will charge massive interest rates. They have to do this, because they are accepting that there is a high risk that the loan will not be paid back. The high interest rates paid by those who do make their payments are intended to cover the costs of those who do not pay their loans back on time.
Perhaps the question should not be ‘can you get a loan if you have a bad credit rating’, but ‘should you be borrowing’? In the ideal world, people with poor credit ratings would focus on repaying their old debts and building up savings so that they can afford to cover other crises. But that’s not how it usually works out.
When you are faced with a dire emergency and have bills to pay, you will take whatever funds you can get. Credit unions, doorstep lenders and payday loan companies are a good answer for people who are in that position. If you use them sensibly, then they could be the lifeline you need to help you get back on your feet, and continue rebuilding a good credit rating over the next few months or years. The option is there, it’s what you do with it that counts.