Home Finance 3 Creative Ways to Borrow Money with Bad Credit History

3 Creative Ways to Borrow Money with Bad Credit History

3 Creative Ways to Borrow Money with Bad Credit History
Image by mohamed Hassan from Pixabay

One of the greatest difficulties people face with bad credit history is borrowing money from lenders. It is even harder when you don’t know where to find a loan with a high-interest rate. Fortunately, there are several creative ways to borrow money with bad credit history.

Take Out a Payday Loan

Taking out a payday loan is one of the most creative ways to borrow money when you have a bad credit history.

What is a Payday Loan?

Payday loans are small unsecured loans that lenders provide based on your income rather than your credit score. A payday loan is different from other types of borrowing because it has to be paid back in full on your next payday. If you can’t afford to make the repayment, then you can also extend the loan by paying off the interest until your next pay date.

These loans are designed for people in dire need of money. Most require that the borrower repay the loan on the next payday. This type of loan allows you to borrow up to £1,000, depending on how much your next paycheck will be.

Payday loans can be used for many purposes, such as paying utility bills, car repairs, medical bills, or other emergency expenses. These loans are ideal for people who have poor credit ratings because they do not require collateral, and the approval process is so fast. 

The biggest drawback of payday loans is that they often have high-interest rates, so it is important to be careful when taking one out. Always ensure that you can afford to repay the loan on time because if you default on your repayment, you will incur extra charges. So, when looking for loans with bad credit history, ensure you check if the lender offers suitable terms.

Peer to Peer Lending

Peer-to-peer lending is a new type of borrowing that is growing in popularity. Peer-to-peer lending allows you to borrow money from people instead of financial institutions.

Some websites specialize in connecting borrowers with lenders. The borrower creates a profile and a request for how much money they would like to borrow and why they need it. The lenders on the site then choose which loan requests they want to fund by reviewing the profiles of the borrowers. The lenders can decide whether they want to lend a portion or all of the requested amount and their interest rate.

An individual with a bad credit score who needs a loan will go online and submit a loan application on one of several peer-to-peer lending websites such as LendingClub or Prosper. Once the website has approved the application, the information about the borrower is posted on the website, and potential investors (also called lenders) can view it and decide if they want to loan out some of their own money. The borrowers are then given their profile page to list their qualifications and reasons for needing the loan.

Once an investor decides to lend some money, they will fund part of the loan, and other investors will fund the rest until the entire amount is met. However, make sure you repay the money by the agreed time. Doing this will allow you to create a good reputation, making it easier for people to loan you next time.

loan application
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Take Out a Title Loan

Taking out a title loan is a creative way to borrow money when you have a bad credit history. The benefit of taking out a title loan is that your credit history doesn’t matter. A title loan is essentially a secured loan, meaning that the item used as collateral will be used to secure the loan. Normally, these loans are only offered if you can use your car as collateral, but now most lenders will offer collateral other than your car. A great advantage of these loans is that you will not negatively affect your credit score if you pay your bill on time every month. 

To get a title loan, bring your car into the title loan company’s office and let them know how much money you need. The lending agent will inspect the car for its value and then offer you a loan based on that value. If you’re approved for the loan, just sign the paperwork, and you’ll get cash. The amount of time it will take to get the money depends on the lender. So, ask the lender how long they take to send the loan once it is approved.

Title loans are very easy to qualify for, making them a great option for most people looking for loans with bad credit. However, make sure you first research before taking a title loan. There are many lenders, so it is crucial that you pick one that will offer affordable interest rates without forcing you to follow any shady rules. That way, you can borrow the loan and repay it without any issues during the process.


Bad credit can be a huge hindrance in achieving your financial goals. If you’re wondering how to borrow money with a poor credit history, you’ve come to the right place. Whether you want to take out a loan for a new car, plan a trip with friends, or repair your home, getting a loan is often difficult. But, don’t lose hope yet! Check out these three creative ways to borrow loans with a bad credit history that just might work for you.

Featured Image by mohamed Hassan from Pixabay