Your history may have you turned down by banks for the cash you want, but that doesn’t mean that there are no lending options available to you. In fact, your score may not even be a factor if you go to the right lenders. While your ratings have long played an important role in determining what financial options are available to people, that isn’t really the case anymore. There are still going to be those financial institutions that place history above all else when considering you for a loan, but there are many other options as well.

The Short-Term Loan Option

When you know your credit score is poor, then you should start looking for short-term loans, if you need money. These may be called payday loans, fast cash loans or something similar that advertises money quickly and for a short time. These are usually loans with high interest rates, low totals and short repayment terms. You are meant to repay the loan quickly to avoid the high fees, and that small window of repayment helps to ensure that the lenders recoup their money quickly.

This is ideal for people who have credit problems. It’s understood that not all those credit problems are of your own making and that they may even be a part of your past and don’t reflect on your present status. Short-term lenders aren’t concerned about ancient history. They focus on what you have right now, and they want proof that you can repay the loan based on your current financial status.

So, they will be looking at your income and perhaps your bills as well. They want to see that you have money to repay the loan and that you have a steady income. Your pay stub should be proof of that, but your monthly bills could factor in, depending on the lender. Some of them will want to know how much you are paying out each month for other loans, for credit card payments, rent and other expenses. They are essentially trying to paint a picture of your net income and determine if it is enough to qualify you for one of their loans.

You can still be denied a short-term loan, even without any kind of credit check. If your income doesn’t measure up to what the lender thinks you should have to be able to repay the loan on time, then they will not approve you for the loan you

want. They may offer you a smaller loans or different terms that fit your ability to pay better, but you can still lose the loan you want because of your financial situation.

How the Loan Will Affect Your Credit

You should know that short-term loans may be adversely affecting your credit. If you don’t pay the loan back on time, then your credit score will take a hit. That’s going to make future lending options limited for you as well as limit what other kind of financial opportunities you have available. You may be able to recover your score in time, but you want to be careful about taking an already poor credit score and risking lowering it due to bad borrowing practices.

You can also improve your credit score with a short-term loan. If you take out the loan and pay it back on time, it can boost your credit score slightly. Be careful, though, as repeated short-term loans over a short period of time can look bad on your credit report and can suggest financial instability. It’s fine to take out an occasional short-term loan, but jut be careful about how often you do it.