I'm sure you are fully aware once you start missing or making late payments to your current credit agreements, you will find it difficult to obtain a loan. By having a bad credit rating, you may find that the majority of mainstream lenders will not even consider you for a loan for up to 7 years.
So can you still Borrow Money With Bad Credit? You have a few options available to you, but as i have mentioned you won't be able to go down the traditional route.
1) Borrowing against your property - If you currently have a mortgage and you desperately need to borrow money with bad credit, you should always approach your mortgage lender first. As long as you have kept up to date with your home loan payments and have sufficient equity in your home, you may be eligible for a further advance. I would always advise that you are sensible when borrowing money against your property. Should you start missing payments on your mortgage, you could find yourself in a whole world of trouble. This could culminate in you losing your home.
2) Cash Advance From Your Credit Card - This would usually be a last resort. However, if you have a credit card and have not spent everything, most companies will allow you to withdraw up to 90% of your credit limit in cash. This could be as simple as drawing your funds from an ATM or visiting your specific lender and drawing cash over the counter. Once again, be very careful. You can expect a cash advance from a credit card to be charged in the region of 30% interest. If you don't watch your spending, you could soon find yourself in a lot more debt than when you first started.
3) Specialized Bad Credit Lenders - Due to the recent economic downturn, falling house prices and the world recession, many people have been falling into the trap of poor and adverse credit. The majority of lenders now realise that by ignoring potential customers, they are simply losing business. So a new wave of specialized lenders have flooded the marketplace. You can borrow money with bad credit from these institutions. You can expect your interest rate to be slightly higher than with a standard loan and the amount you are allowed to borrow may be less than you wish. A decision will be made based on your personal circumstances.