There are many alternative options for small personal loans for people with bad credit. With a bad financial history, your credit score will not be very good and you will have a tough time trying to get the money you need in an emergency. There are options, though, but you have to look outside traditional lending services and even some non-traditional ones, such as a title for cash service. In this article, we’ll look at a few ways to get small personal loans for people with bad credit.
Family and friends
Your family and friends represent a strong social network that may be willing to help you through a hard time. They won’t want to see you struggling, and your family may be ready and willing to help.
A good friend may help, as well. A good friend may give you the money you need, with you putting up a little collateral. By asking them for a small sum of money, you will be able to pay off that delinquent bill and retain your service or item.
The hardest part will be asking. You may feel like a failure, but that is not the case. In a bad economy, it is tough to find work, and many people may be in the same situation.
Another solution to get small personal loans for people with bad credit involves a local pawn shop. You will need to have items of value to pawn, though.
A pawn broker will provide quick cash, but the value of your item will be depreciated when you sell it. You could expect to get about 25 percent of the item’s value at a pawn shop. As you guessed, that is a very low price, but it can provide emergency financial assistance in a time of desperate need.
If you have some time, trying to sell your item on eBay or on craigslist may be an option. An online auction site or local ad may provide a little more quick cash — even sold at a loss.
Local churches that help with rent and bills
If you are an upstanding member of a local church, you may be able to ask your pastor if there are any emergency funds available to you. This would be more of a loan than a gift, per say. Not all denominations will do this, but some will.
You would need to be a regular at the church, and the congregation will need to know about your struggles with needing money. The point behind this is that they may not want to see one of their own members fall on hard times and may be willing to help out.
A member of the congregation may be able to provide you with contacts where to find temporary work or may have a few odd jobs around the house that need to be done but just has not found the time to do them.
Although cash jobs are difficult to come by, it is possible, especially if you live in a rural area, that some employers are looking for day laborers.
A day laborer job can provide a little bit of cash that could act as a small personal loan. In a case like that, your credit history and score would be irrelevant. The only thing that you would want to do is make sure you report the untaxed earnings to the government at the end of the year.
You may also find a little temporary work with a temp agency.
Community service centers
There are many charities like the Salvation Army and Catholic Charities that can help you. These programs are mainly helping you pay your bills, which can aid in providing more money in your pocket so you won’t need a small personal loan.
If you are trying to keep your home out of foreclosure and searching for quick money, you may be able to rely on the Making Home affordable government program.
Prepare for the future
If you are constantly struggling and strapped for cash, you may want to look into government assistance programs.
These options can help you manage your bills and allow you to put a way a little extra money to keep your checkbook balanced.
You may be eligible for food stamps, which can keep your grocery bill low and help you put money towards other things.
You may have a status such as being disabled or a single mom with kids and that may mean you are qualified with the government for assistance.
I hope these ideas for small personal loans for people with bad credit have been of use to you.