We all know that borrowing money isn’t usually the best thing to do but sometimes, it’s unavoidable. If you’re hit with unexpected bills that you need to cover and you don’t have enough cash in the bank, you’ve got no other option really. Most people’s go-to solution in this situation is credit cards. You can borrow quite safely on a credit card with an introductory interest free period and avoid any hefty interest repayments. But what if you can’t get a credit card? If you’ve got a bad credit rating you’ll struggle to get anybody to give you a credit card, especially one with a zero interest period. So, how are you going to pay those urgent bills? The good news is, there are more borrowing options than ever and you don’t have to rely on credit cards anymore. These are just some of the ways that you can deal with financial emergencies when you can’t get a credit card.
Reduce The Need To Borrow In The First Place
Before we get into the alternative borrowing options, it’s a good idea to look at ways to reduce the need for borrowing in the first place. That all comes down to better money management. The reason that you find yourself in a position where you need to borrow money is that you don’t have any emergency savings. If you have a healthy emergency fund, you can cover those unexpected costs without resorting to borrowing. A lot of people think that they can’t save money because they don’t earn enough and their outgoings eat up all of their income before they even get a chance to think about putting some of it aside. In some cases, that is true. However, even if you don’t earn that much, you can usually save something. Look over all of your spending and try to identify places where you could cut down. Financial emergencies don’t come along too often so you only need to put a small amount aside each month.
Personal Loans
Even if you improve your money management and start saving up a bit of money, you might still find yourself needing to borrow some, so how do you access that money without a credit card. Personal loans are one of the simplest options. If you can’t get a credit card, you’re not going to get a personal loan from the bank either, so you need to look elsewhere. There are plenty of companies like New Horizons loans that offer short term loans for people with bad credit. You’ll be paying a higher interest rate than you would on a credit card but you’ll just have to take that hit if you have no other option.
Secured Loans
If you think that high interest payments are going to land you in financial trouble, you might need to find another way of borrowing. If you take out a secured loan, you can get the money you need by borrowing against one of your assets (usually your house or your car). You’ll be able to get a better interest rate on the loan this way but you need to be careful. If you default on repayments, you could lose your assets so only use this option if you’re certain you can afford to pay the money back on time.
When you find yourself in the midst of a financial emergency and you can’t get a credit card, these alternative borrowing methods can help you get out of it.
