Every now and then we find ourselves in an odd financial situation and we need a loan. There’s no shame in it, life can be unpredictable and it’s difficult to cover the cost of an emergency. So you need a loan and you need to face the creditors. They will analyze your credit history and only then make the decision whether you are worth lending too. They need to determine how risky your financial situation is before making you a loan. This situation is stressful as it is, however it only gets worse if you have bad credit. You might be shown the door out, however, there’s a chance if you play your cards right. Even with bad credit, you can get a loan, so here’s how you can do it.

1. Understand Credit Score

This is what plays the biggest role when it comes to getting a loan approved. The creditor will check your credit score, so before you go to them, you should check it yourself and know all there is to know about it. The easiest way to find out what your credit score is, is to simply ask your bank. You might have to pay a modest fee however, depending on the bank. Once you know your credit score, you can see whether it’s a good one or a bad one. Generally, if you score above 720 you have a great credit score and you can get a loan with around 11% interest rate. If it’s under that number, you might pay triple!

2. Don’t Take a Payday Loan

Even if you have a bad credit score and the bank denies your loan application you might be tempted to take out a payday loan from online payday lenders who offer quick cash. Whatever you do, do not accept a payday loan from these people. The rates are astronomical and these people operate by trapping low-income earners into a vicious cycle of unending debt.

3. Personal Installment Lenders

Sometimes emergencies happen and that’s when the payday lender might tempt you. However, there are other much safer options out there. Start by looking for a personal installment lender. These lenders can cover your emergency expenses and you have a higher chance of getting the loan approved. They look beyond credit scores when they analyze your application.

4. Enter a Credit Union

This is a great option for people with bad credit scores. They kind of work like banks, however, when you send them your loan application they will check more than just your credit score. The trick is that you have to be a member of a credit union before you can ask for a loan. You can become one after they analyze your financial situation and learn where you work, where you live and even where you went to school. All of these factors are important in the decision-making process. So even if you are currently financially secure, you might want to consider joining a credit union in case of an emergency.