How to Get Bad Credit Finance

Whether youve gotten into credit difficulties due to a layoff, poor money management or unexpected emergencies, there are options. You can wait until you pay off your bills or look for lenders willing to work with you and extend you additional credit. Apply directly to some of the various lenders that work with credit-strapped consumers or go through an intermediary.

Instructions

1

Explain your situation to the lender. Not all consumers with bad credit are irresponsible. Unexpected medical expenses and job loss are common reasons people develop poor credit. While your credit report plays a major role in helping lenders make decisions, they have the option of extending credit to customers with a generally honest history who paid their bills prior to the setbacks. Provide copies of your layoff notice or hospital bills to support your hardship claim.

2

Develop a relationship with a small-town banker or credit union representative so she can get to know you and follow your financial history. Talk directly to the representative about your situation and point to your history with the institution as proof that you are a trustworthy customer who has consistently worked and made regular deposits. Arrange for an automatic withdrawal to pay back the loan.

3

Look for online microlenders or nonprofit organizations -- such as the Association for Enterprise Opportunity -- that offer business loans to entrepreneurs with poor credit ratings. The interest may be higher than a traditional bank offers and you will be tied to a strict pay-back agreement, but such a loan can provide you with capital when you need it and serve to repair your bad credit as you pay back the loan on time.

4

Visit a retailer that provides credit to customers with poor credit reports. While you can expect to pay much higher interest rates, such companies design payment plans specifically for consumers who need assistance. Instead of focusing strictly on the negative aspects of your credit report, businesses such as car dealerships and furniture and jewelry stores look for positive signs that you will be reliable. Additionally, they often have repossession plans in place if you default on your loan.