Do not fret about getting loans when you have a quick need for cash, and you are not really in good books with the bank. Here are a few tips on how to get an emergency loan with bad credit. Use them to improve your chances of getting the money you need for your emergency.

Use peer-to-peer loan options

Check out peer to peer lending because it is a new service that bypasses the traditional banking institutions and it also allows you to negotiate on friendly terms. The service works by allowing individuals with lots of money to pool it together through a common platform and advance it to willing borrowers who have sufficient proof of their ability to repay.

 

Secured loans

They are just like ordinary loans except for the part where you offer security. For instance, you could use your car as your loan security. If you fail to pay back the loan within the prescribed time, the lender will move in on the security you provided. Your house, a car, a farm or anything for that matter will become the property of the lender because you defaulted. However, a good borrower can benefit from the secured loans because they do not require you to have an excellent credit rating. You can use the guaranteed loans offer for a while, and it would help to fix your credit. It would show that you borrow and payback in time, a sign for a well-disciplined borrower that lenders love.

Getting a Co-Signer

Most lending institutions will accept your request for a loan when you have bad credit. They will do so when you provide them with an alternative borrower’s details. The alternative borrower is your guarantor for the loan. He or she will foot the bill in case you bail on the lender. Therefore, find an excellent, willing borrower with a high enough credit rating. Next, convince them to be your co-signer for the loan. You will repay the loan, but you will use their credit rating to qualify for the loan. When you pay back the loan, it will be a win-win situation for all of you.

 

Get post-dated checks

When your credit rating is terrible, the lender wants all the assurances that you could pay back, minus the hustles of doing so. Thus, offering a post-dated check to cover all your monthly payments will be the best assurance you can provide. The post-dated checks will ensure that the lender gets money when its due. Meanwhile, it will be your responsibility to make sure the checks do not bounce, as that will expose you to the legal trouble that can cost much more than the loan and its interest payments. It will push you to work harder at repaying the loan. The lending institutions understand this fact, and that is why they readily accept your loan request even with bad credit.

 

As noted in the tips above, getting a loan when you have bad credit is not hard. Take your time and weigh the many options available.