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Ability to access any loan facility now heavily depends on your credit rating. Employment as well as rent opportunities also are dependent on the credit history reports. A bad credit report can therefore have serious effects. If you have a bad credit report however you should not panic as you still have chances of obtaining credit just like anyone else. When you approach your bank for a loan facility and you are told you cannot qualify because you have a bad credit history, here is what you should do.

Fist you need to obtain your credit report from your credit bureau. Check it for any errors. If you notice them, have them corrected as this could raise your credit scores. Carefully evaluate your credit status and note any bad debts that you have. If possible pay them off as this also boosts your credit score. If you still do not attain the minimum scores to get normal loans, do not despair. Low credit score loans are now available to help people with very low credit scores. You will obtain these at slightly higher interest rates that other normal loans but it doesn’t matter as they can be used to repair your damaged credit history. If you decide to go for these loans you have two options;

Personal Secured Low credit Score Loan

This type of loan is the one that requires you to provide security or collateral. Collateral here refers to the material assets that you pledge as security for the loan. If you fail to repay the money, then the assets can be liquidated to repay the loan. The kind of collateral differs from bank to bank. It also depends on what the borrower wants to pledge as security. Some common securities include motor vehicle log books, land title deeds, share certificates, insurance policies or even homes. Payment of these loans is spread over a long period depending on the amount borrowed just like normal loans. This type of loan can help one repair a damaged credit report if is repaid promptly.

Payday Low Credit Score Loan

These are short term loans that are usually payable in less than two weeks. Some people like to call it cash loan. Interest on this type of loan is a bit high due to the short repayment period. To obtain this type of loan you must submit evidence of a steady salary income of not less than half a year.