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Alternative Ways You Can Borrow Money

Needing to find extra money to survive can be a stressful time, especially if you have a bad credit history which will put off many traditional lenders such as banks. Payday Loan companies have popped up everywhere which makes getting cash easier.

But the interest rates that are charged are extortionate.

So, what do you do when you need money quickly with a bad credit history? Below are some ways that you can borrow money from legitimate companies that will give you a much better deal than you will find at any Payday Loan company, which may help you to get your head above water financially.

Alternative Personal Loan Lenders

If you search, you will find that there are non-conforming personal loan lenders who are an alternative to traditional banks. There are many reasons that a conventional lender may spur you for a loan such as being declared bankrupt previously, being self-employed, or you may have a bad credit history, and these lenders specialize in lending to people who fall in this category. As there is more risk for the lender, interest rates will be higher, but much less than you would pay for a Payday Loan.


Pawnbroking is an old industry, and it may be the perfect solution for your financial problems which are not too big. If you need some quick cash to pay an unexpected bill, then you can take something that you own that is valuable to a pawnbroker and lend money secured against your item.

There is a small monthly charge to pay, and at the end of the agreed term, you either pay the loan back in full or forfeit the item of value. Using a pawnbroker can be handy, but you must work your finances out correctly so that you can afford to pay back the loan and not lose your item which may have sentimental as well as monetary value.

Peer-To-Peer Lenders

Peer-To-Peer Lenders are a relatively new form of funding that allows people to request finances for whatever reason. No one individual provides the full amount of money for the loan. Instead, people from all over the world contribute small amounts of money.

They work in a similar way to a traditional bank, but the operation is highly streamlined so that they can provide a better deal for both the lender and the borrower.


Although crowdfunding is not traditionally used to get a loan to pay off debts, it is still a new way you can raise funds for both emergencies and to get a business off the ground.

There are various crowdfunding platforms such as gofundme.com, where people who need money state the reasons they need the money, and in the case of funding a business, they will also let the contributors know what they will receive in return for pledging cash.

Image Source: Pixabay

The above ways of getting money when you are in need, no matter what your credit history is like, show that there is always something that you can do. Before you decide what you are going to do, always make sure that you seek independent financial advice first.

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