Five Tips for Getting Loans With Bad Credit

Since the banking collapse in 2008, qualifying for a loan is harder than ever, especially if you have bad credit. Many traditional banks won't touch borrowers who have a score lower than 650. Even if you do qualify with a low credit score, you will be penalized with a higher interest rate. Here are five tips you can use to get a loan when you have bad credit.

Talk to Your Church

To prevent parishioners from taking out high-interest cash advance loans, churches throughout the United States have started working with members to help them qualify for loans. The Jubilee Assistance Fund in Virginia, helps members of the Methodist church acquire loans of as much as $8,000. Other churches act as cosigners on their members' loans to assure they qualify and get the money they need.

Sell Unused Items

Before taking out a loan, see if you have unused items you can sell. This includes jewelry you never wear, LPs that are gathering dust on a shelf somewhere, or small appliances that you only use a few times a year. Raise as much of the necessary cash as you can by selling these items on sites like Craigslist.

Look for a Cosigner

With bad credit, there's the chance you'll qualify for a loan if you can get someone to cosign. The benefit of the cosigner is that they back you up. If you can't pay, the bank knows they have someone with good credit who will step in and ensure payments are made on time.

Check With Your Company

Some businesses now extend short-term loans to their employees. Others help employees out by allowing them to cash in vacation days for cash. These are both viable options for getting the cash you need. Companies like IBM, JNET Communications, Kronos, and Pricewaterhouse Coopers have created loan programs that help their employees pay off things like emergency car repairs, household emergencies, medical bills, and student loans.

The thought on these loans is that a stressed employee will be less productive at work. By eliminating the stress and giving them an alternative, you get better output from your workers.

Apply for a Payday Loan

If you've exhausted all other alternatives, talked to family and friends about borrowing cash, and simply have nowhere left to turn, go online and search for a payday loan. Many sites like make it easy to find the best payday loan. They take your information and market it to dozens of lenders to ensure you get the best offer and APR. You'll have the power to pick the loan that works for you.