Coping with a Financial Emergency When You Have a Poor Credit Rating


Financial emergencies can come in many forms, like an unexpected repair bill for your home or car, a vet bill for your dog or cat, an expensive trip your child needs to go on for school, or just a utility bill that is far bigger than you thought it would be. A lot of people have overdrafts or credit cards to help them cope with situations where they might urgently need money they don’t have to hand, or have savings they can draw on, but if you have a poor credit rating and no savings, these situations can be extremely stressful and frightening. Luckily, there are things you can do, and most people are able to find solutions that not only see them through the emergency, but don’t see them paying a lot for it later on.
Here are some of the options you can consider:

  1. Borrow Money From Someone You Know

Most people hate the idea of asking friends or family for a loan, but it can be the best way to get the money you need straight away and without having to repay large amounts of interest. Friends and family are often more happy to help than you might expect in a genuine emergency, but another option could be your employer. Some businesses even have procedures for offering pay advances to employees who need them in an emergency situation.

Garage sale

  1. Sell Some Things

If you have a little bit of time to get the money together then you may have the option to sell some things you are okay with parting with. It can be easy to sell all kinds of items on sites like eBay, or if you want to sell bigger things like furniture you can often find local Facebook groups where people advertise things they want to sell. If you don’t have time to arrange to privately sell things you can take them to second hand or pawn shops. This is a better idea if you want to be able to get your items back after the emergency has been dealt with, but you’ll get far less money for your items.

  1. Get a Loan

While loans aimed at people with poor credit tend to have very high interest, if you can pay them back quickly they can still be fairly good value in a true emergency when none of the other options are open to you. Check out for loan options. Make sure only to borrow the amount you need and that you can meet the repayment schedule you agree to, to avoid extra cost and further damage to your credit rating.
These are three different options you could consider. There are others, such as trying to find extra work, or using a credit building credit card, too, so you should be able to find a way to pay that suits you. Always look for the option that will cause you the least hassle in the long term, as well as giving you the money you need fast enough.


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