Getting financial assistance from any institution is hard. It’s even a lot more difficult when you have bad credit score. If you’ve had financial problems in the past, you’re new to using credit or your income isn’t steady and predictable, you will most likely face some difficulties but there are always options.

Getting a personal loan when your credit rating is low requires that you deal with a lender who looks at more than your credit score.

If you want to get back to borrowing again, you should first put your personal finances into order. Start cutting down on your expenses to fix your bad credit.

If you are still paying for products and services that you don’t use, it’s about time you got rid of it. Start making a budget. This will give you a clear picture of how much you have coming in and where it needs to go each month.

If you find yourself racking up large credit card bills, you should cut up those cards or cancel them. Force yourself live within your means for now. It’s better to get a handle on your spending before you apply for yet another loan.  Once you are ready to apply for financial assistance, these ideas can help you get the best deal possible.

If you definitely want to borrow some money and you are sure you can repay it, there are a number of important factors to consider.

Related: Do You Need A Loan But Have A Poor Credit Score?

It pays to plan ahead

Don’t be desperate! It’s reasonable to plan ahead and prioritise. Apply for financial help when you really need it and have no options. Don’t submit too many applications. Choose wisely and stick what works best for your situation. You don’t want to be tied to another financial contract that takes down your creditor score.

Most people can’t afford to be making monthly payments on loans, hence they default in repayments. Based on what you earn currently, can you afford to repay each month? Make sure you are realistic about how much you could pay if your expenses went up.

Look into interest rate and APR. Find out the cost per week or month and whether this may vary when you are choosing the type of credit or loan. How much you will repay in total. Are there any penalties for missed or late payments?

Guarantor loans is a great option

You may still have bad credit, but as long as you aren’t bankrupt yet, most financial solutions that offer guarantor loans can help you. If someone who knows you is happy to trust you, you are covered. That person will be asked to take responsibility for the loan if you are unable to repay it, so it needs to be someone with a good credit history, who trusts you.

Most people choose someone in their family but it could also be a good friend. Guarantor loans can be a great stepping stone for people with below average credit scores or no history of credit. It can also help you get your credit score up, if you are consistent with repayments.

Look into credit building cards 

Credit builder cards allow you to steadily improve your credit rating by letting you borrow small amounts at a time. This is a great opportunity to get financial assistance whilst you improve your credit score.

It’s designed for those looking for their first credit card or wishing to improve a poor credit history. Credit cards to help build or rebuild credit can create a brighter financial future when handled responsibly.

The credit limit may not be particularly large to begin with but sometimes this can go up after a few months if the card issuer is happy with your behaviour on the account.