In a perfect world, we would all have a magic pocket that contained exactly the amount of money we need at any given moment.

Until then, we have lenders.

No one really wants to get a loan, but it’s occasionally unavoidable. An expected large bill, a medical expense, or a family emergency can all put you in dire straits, in need of a magic money fairy.

If you have bad credit, that kind fairy can quickly turn into an evil troll. But no need to despair. It’s possible to get the personal loan you need, even with bad credit.

If you need a loan, keep reading. We’ll tell you the secrets to getting a loan no matter what your situation.

Offer Collateral

Did you know that you can get a loan without having your credit score checked?

These loans, called Secured Personal Loans, are part of a larger body of subprime loans, designed for borrowers with less-than-perfect credit, lower incomes, or past financial troubles.

These loans may have higher interest rates, but they are also more accessible.

In a secured loan, you offer an asset, usually your car or home, as collateral for the loan in the event that it can’t be paid back. This will usually compensate for the increased credit risk.

Avoid Banks

Banks are for-profit, so they do what the can to maximize that profit via interest rates and predatory loan terms.

To avoid this, look into credit unions or other member-owned establishments. These are usually non-profit, more willing to work with you, and more likely to offer more favorable terms.

Borrow as Little as Possible

It can be tempting to borrow a large amount. Think of all you could do with the money!

But avoid that temptation. Borrow only what you absolutely need, never a penny more, and never, ever borrow more than your monthly income if you can avoid it.

The less you borrow, the more likely you are to be approved, and the less strict the borrowing criteria will be.

Check Out Peer-to-Peer Lending

Did you know you can borrow money from individuals? And no, we aren’t talking about your rich Uncle Hank.

In peer-to-peer lending or P2P, borrowers can create a listing, indicating their financial need and preferred terms. Potential investors can then choose borrowers they would like to lend to, and voila! Instant personal loan.

You have to make sure to go through a reputable site to protect your privacy and information, but this can be a great solution for folks who don’t have access to a credit union.

Need a Loan? Have no Fear!

When you need a loan and you have not-great credit, the process can seem frightening. But it doesn’t have to be.

Loans are available away from big banks and fancy suits. There’s no need to be intimidated by the process. So take a breath, take these tips, and get to looking! You’ll be looking at a big approved stamp in no time.

For more financial tips, check us out here.