If you’ve had the wind knocked out of your credit score sails due to financial problems or because you have battled to build credit for the very first time, it can be hard work trying to get a loan. The good news is there are more options than you probably realise. You can get a loan even with a poor credit score.

Getting a loan with bad credit

Having poor or no credit can be a major stumbling block to getting a loan as you will be viewed as a high risk customer who could possibly default and leave your lenders a headache.

It’s really just a fact that until such time as you raise your credit score, you’re going to battle to fit the standard lending guidelines that bigger banks follow. You may not be aware of it but there are actually companies, like Debt Fix, who can help you during these times.

If you have previously been turned down for a loan or are trying to avoid paying high interest rates, take the following points into consideration.

A home equity line of credit

The housing bubble has certainly left many homeowners owing a lot more than their home is actually worth. Nevertheless, if you have equity in your property, you may be eligible for a low-interest line of credit that is tax-deductible and yours to spend however you like.

You need to understand, though, that tapping into a home equity will put your property in jeopardy if you are unable to repay the debt. Yet, if you are lucky enough to have a reliable income and are going to be disciplined about paying down an equity line, this can be one of the great options for loans for people with bad credit.

Boat title Loans

If you need a short term loan, you can get fast cash on your boat, too. You can use your boat as collateral, instead of your car. Boat title loans are secured by the equity value of your boat, which lowers the lender’s risk and should also result in a much lower interest rate for you. You can use your title loans to cover regular expenses like utilities and rent, and other unexpected bills.

Apply to credit unions

Credit unions are sort of like banks, but are actually owned by their members who usually have something in common, be it working within the same industry or living in the same state. There are non-profit organizations who pass along earnings to members in the form of higher customer service and lower fees.

Reach out to a co-signer

If you have been unable to convince a family member or friend to give you the loan you need, perhaps one who has a good credit rating will be willing to co-sign a loan with you. This should be someone who is familiar with your situation and who trusts your ability to repay the debt.

Keep in mind, though, that if you fail to repay the debt, the creditor will look to your co-signer to make full payment. What’s more, all the payment history will be recorded on both you and your co-signer’s credit reports, and that could be devastating for the co-signer if you fail to hold up your end of the bargain by making late payments or defaulting.

If one of these three lending options don’t work for you, you’re going to have to work hard at raising your credit score to qualify for a traditional loan. A particularly good place to start is to check your credit report online and correct any errors that could be hurting your scores.

You can start improving your credit by making sure you settle your bills on time and don’t over-extend yourself on credit cards and loans.  Do you have more tips you can share with us? Share it to us in the comments section.