Do you need a loan desperately, but have a poor credit score? Well then, your options are probably limited. However, one needs to understand that having poor credit limits loans accessibility, but having poor credit get loans, yes. Many lenders will be willing to give a loan, but they may give you less at a high rate of interest. Poor credit gets loans, probably be for a short-term making it difficult to pay it back within the time frame given.

There are many ways in which a loan can be raised without at the moment trying to raise your credit score. Many private and public institutions and individuals offer loans at a low rate of interest. Listed below are the top ways to get loans despite having poor credit:

Home equity
This is an option where you use your home as collateral to obtain a loan. Even if you are paying a mortgage on your home, e.g., a $200,000 home, where you still owe a mortgage of $50,000 your home is worth 150,000. The loan will be secured on the worth of your home at that time, the interest rates may be low, but the loan is secured by the home. However, if you fail to make the payment, you may lose your home.

Credit unions
These are nonprofit organizations that offer loans to their members in the form of low fees and high customer service. You need to become a member of the credit union to become eligible. You need to open an account with the help of identification and some cash. Check with a banker about the eligibility for a loan. Even if a bank refuses, a credit union may approve it. For your poor credit, the rate will be high, but not as high as it would likely be at a large bank. The loan may not be on the same terms and conditions as that of a bank. A credit union may offer you a loan but at a specific rate.

Peer loan
This has been in place since 2005; it is an online platform that allows you to borrow directly from an individual. It is a win-win situation for poor credit borrowers who pay low-interest rates and investors earn high returns. Borrowers must give details on how much amount they want and why they want it. Such individuals process the applications and check your credit score, but for an individual investor, he may empathize with you. Any and every fact that you present may make you seem like a safer investment like your repayment history. You will have to wait for an offer. They may offer the total amount you require, or it may be a combination of smaller loans. However, peer loans have less favorable terms and conditions.

Loan from family/friends
Poor credit gets loans from a family member or a friend, but it is to be treated seriously as a proper business transaction. You need to record a legal agreement on the amount given, interest charged, and how the payment has to be made. However, keep this as a last resort as failure to make the payment on time may result in a fall out in personal relationships.

Asking a cosigner
For a poor credit, ask perhaps a person known to you with a good credit score if he/she is willing to co-sign a loan. This has to be a person who understands your situation and trusts you to repay the loan on time. If you don’t repay, the creditor will look to the consigner to repay the amount.

Title loan
You can use a car as collateral to obtain a loan. Automobile loans are expensive and may charge around 300% interest and are for a short period. You will need your car, title, and your identification. Some may also ask a copy of the car keys in the case to repossess it.

Pawnshop
Poor credit gets loans from pawnshops for a small amount. You can always visit a local pawnshop and keep a valuable possession as collateral. The pawnbroker will keep your item for a period until he can recover the amount and interest. You may not get the market rate, keep the bill/ticket safe, and keep track of the time. He may sell the item if he does not recover the loan amount.

Payday loan
Many firms will offer you a loan against your pay, but make this the last option. You will need to give a postdated check, account number, and other bank details. If the amount is not transferred in time, he will deposit the check. Many fail to make the repayment, and they end up paying more.

If none of these options work and your poor credit does not get a loan, you have to raise your credit score for a traditional loan.