Having bad credit can create several problems, the biggest of which is related to the ability to borrow money. If you are trying to borrow money for any reason, it is nearly impossible to do so with a poor credit history. Financial institutions see those with bad credit as higher risk borrowers who are more likely to default on their loans. Someone with bad credit can surely work toward improving their credit scores, but what if someone needs to borrow money immediately?

• Home equity line of credit

If you have bad credit but own a home, you can use the equity in the home to obtain a low-interest line of credit that you can spend however you like. Your lender knows that you are already paying your mortgage regularly and will likely grant you a line of credit (assuming you have the equity) regardless of your credit score.

• Apply to a credit union

A credit union is similar to a bank, but they are owned by the members who keep their deposits there. Members usually have something in common such as living in the same geographical area or working in the same industry. Credit unions typically have different borrowing standards than banks. As a member, you may be able to obtain a loan even with a poor credit score.

• Use a peer-to-peer loan

Peer-to-peer lending has become more popular over the last decade thanks to the Internet. Those looking to borrow can go online and find individuals who are willing to lend. The process is very streamlined and borrowers, even those with bad credit, can find access to low interest loans. Lenders can earn a nice return in the process.

• Car title loans

If you own a vehicle, you can qualify for a car title loan. The best-case scenario is when you have a car that is free of debt. You can still obtain a car title loan if you have an existing car loan if you have sufficient equity. Vehicle owners put up their car or truck as collateral in exchange for a loan. Embassy Loans is one of Florida’s leading car title loan companies and offers customers a quick and easy way to obtain cash. Applying for a car title loan can be done online and processing the loan can be done is as little as an hour. There are no credit checks since the loan is secured by the title to a vehicle.