A couple of times you may have seen on several loan advertisements “No credit, no problem!” This is not true. There is definitely a little problem when you have a poor credit and no credit at all. It’s not an unassailable one, but it will still be a problem nonetheless.

Major lending institutions have strict standards and greatly rely on your credit scores, so having a poor credit makes you a high-risk customer to them. You should make an assurance that their loans will be repaid or else they won’t make the loan.

Before we get to ways on how you can avoid bad credit and still be qualified for loans, you have to understand first your credit score. Outlined below are the frequent signs of a bad credit score.

Poor bad credit score indications:

• Having a history of late payments for housing, electricity, utilities or other monthly bills

• Paying higher interest rates than what is advertised

• Paying minimum amount on high-interest credit cards

• Overdrawn bank account on a constant basis

• Difficulty in getting a housing property

• Cell phone companies won’t give you a cellular service contract

The signs mentioned above can negatively affect your credit score causing for a more difficult loan application. If you have a bad credit, it may take you a little time to get a loan. Here are some great options available for getting that loan with a bad credit or no credit.

Get Help from Family or Friends

Borrowing from your family and friends is sensible rather than dealing with strangers. The only downside of doing this may create a toxic relationship to a relative that can go far beyond a bad credit report. However, people closest to you are still your best source of funds and getting a family loan is beneficial for everyone involved. Whether it’s your family or a stranger, you should always remember to handle any loan as if it were an important business transaction. If possible create a written contract that includes the loan term and interest rate and the conditions if you were not able to repay. Everything should be formalized with clear documentation and legally recorded.

Approach a Co-Signer

If borrowing from a friend or relative is not possible, you can get help from someone with a good credit who believes in your capability to repay the loan and ask that person to be a co-signer on a personal loan from a lender. Having a qualified co-signer, loan terms are set by a lender based on his or her credit rating, who will be equally responsible for the repayment. Be very careful on this one because if you default on the loan or get late with payments, you will cause damage to your cosigner's credit score. Make sure to pay your loans on time and as you frequently do this, it will be easier for you to obtain subsequent loans without a co-signer and your score will eventually improve.

Explore a Credit Union

A credit union is a nonprofit institution which is similar to commercial banks in terms of services, but this institution is owned by their members rather than by profit-seeking shareholders. Credit unions work by passing their earnings along to their members in the structure of lower fees, borrowing costs and better customer service.

If you’re going to choose a credit union, it is suggested that you choose one that is affiliated with your current or previous employer or one that is community-based. Why? Greater are the chances that may be willing to look beyond your poor credit history and make a judgment of granting you a loan based on your character. If you want to get help from a credit union for a personal loan, choose the one you have something related to. For instance, if you are a teacher, there are credit unions specifically created for members of that profession. If you can provide and manage to match their terms with your credit history, you will likely be able to find a credit union that is willing to work with you.

Payday Loans

A payday loan is one of the fastest and easiest ways of accessing cash. When you apply for this kind of loan, most lenders will immediately accept your application when you provide the necessary information. No lengthy words or forms to fill out as it is with the cases of conventional loans. Having a bad credit does not hinder you from applying for a payday loan. There are only a few requirements, one of the most important is having a justified source of income, must be 18 years of age, and a permanent resident in your state. You can still apply with a bad credit as long as you can assure that you can pay the borrowed money.

Secured Loans

If your credit score does not meet the standards of banks and credit unions, another great option is to get money through a secured loan. How does this work? You borrow loan from them against an asset you own, such as a house, car, savings or stocks. A lender will hold that asset you own as collateral if ever there is a failure of payment.

Lenders determine the amount you can borrow by the amount of equity you have in your asset you plan to use as collateral. The best collateral that can be approved for a secured loan is your home. There is no need to liquidate your asset when getting a secured loan against savings or stocks, as long as when you have paid off the loan, you are still the owner of the stocks and savings.

If anything else fails or if you are turned down repeatedly due to no credit or bad credit, it might be helpful for you to ask a lender for an in-person interview. Once you get the interview, prepare every document needed for proof that you’re a good risk. Present to them that you have lived in the same house, worked the same job for the same employer, show them that you are creditworthy.

Author bio: Ivandrea Ollero is a daytime writer for Quick Cash, one of Australia’s top responsible lenders that offers fast and reliable payday loans & cash loans of $200 to $2000. Ivandrea writes to provide information for successful cash loans and payday loans to help people over a difficult patch. Ivandrea graduated from St. Scholastica’s College Manila, Philippines with a Bachelor’s Degree in Mass Communication minor in Broadcast Journalism.