If you have a poor credit rating it could mean that you have shown that you have not been careful with money in the past. This means that lenders are wary of giving you any money because they worry that you may not be able to pay it back. This means that you may be limited as to where you can borrow from.
The first thing to do is to obtain a free copy of your credit rating and take a look at it. Check that the information on it is all correct. If there are outstanding payments listed on there that you do not recognise question it and see whether you can get them removed. You may even have outstanding bills you were not aware of that you can clear in order to improve it. Any positive changes you can make will give you a better chance of being able to get access to wider range of loans.
What some people do not realise is that even with a poor credit rating it may be possible to borrow money. However, this is not the case and there may be various forms of borrowing available. Firstly, any advertised loan or form of borrowing could be available although if you have a poor credit rating you could be charged higher interest on it. It can be worth enquiring about a few of these. Ask the lender whether they would theoretically lend to you and if so whether it would be at the advertised interest rate. Without actually applying this will not show up on your credit rating (application refusals can work against you) but you will be able to find out whether that form of borrowing might be available.
There are some lenders that do not do a credit check and so you are able to get a loan even if you have a poor credit rating. Although this sounds like it could be a fantastic solution for those who want a loan, there are quite a few drawbacks and it is worth knowing about them before getting too excited! The payday loans are normally only for a few hundred pounds and so if you want a large sum of money they would not be suitable for you. The loans only last for a few weeks, with the amount borrowed and the interest and fees being repaid as soon as you next get paid. They are also very expensive compared to other types of lending, because of the risk the lenders are taking and so they could end up getting you into more financial difficulty than you were in before. Alternatively it may be possible to use your vehicle as collateral on a loan. This means that if you are unable to pay back the loan then they will be able to take the vehicle and sell it in order to cover the cost of the debt. This is risky as you may lose your vehicle and it is particularly important to be cautious if you use your vehicle for work and therefore if you lose it you could lose your job. You will also need a vehicle which does not already have outstanding loans on it and that has a fairly decent value as the loan will be for a percentage of the total value of the vehicle.
There are not many options for those on a poor credit rating. The options that are there are all really expensive and it can mean that they are difficult to repay because the cost is so high. It is worth thinking really hard before taking out any loan, but these expensive loans are even more risky. If you miss a repayment on them, the fees can rise really high and you could find that you are in a much worse financial situation than you were before you took out the loan. Before taking one out you need to be completely confident that you will be able to pay it back and that you will be self-disciplined enough to make the repayments on time. This is not always easy and you may think you will easily do it but make sure that you are completely sure. Consider how good you have been in the past at paying things on time and whether you think that this will be something that is hard or easy for you. Also calculate the full cost of the loan and decide whether you think that it is really worth it. Having money is great but when you borrow it you will always have to pay for it and you need to consider whether you are really prepared to pay for the privilege of being able to do that. It is a hard decision and one that should be thought about hard before being taken.