Having bad credit can be disheartening for someone short on cash. Applying for a loan with bad credit can sometimes feel as trying to pull out teeth with a rusty old pliers—it can be quite difficult and often disheartening when you’re in dire need of funds. But do not fret because even when your credit history looks as though you’ve incurred enough expenses to last two lifetimes there are still ways to secure a loan application. Here are a few tricks to get bad credit loans.

Review Your Credit History

Sometimes some people make the mistake of accepting their credit history at a glance and not bothering to look into it more. There are some credit histories that are not as accurate as you would like to think and most of the mistakes there are caused by simple clerical errors. So before you count yourself as one of the many people with bad credit history take another look at your own and see if there are any expenses there that seem odd or inaccurate. There have been reports of bad credit histories because former spouses have incurred expenses with joint accounts or other incurred expenses made due to identity theft.

Apply Loans from Credit Unions Instead of Banks

Credit unions are the much better alternative to banks when it comes to applying for a loan with a bad credit history. Banks are large institutions that tend to view prospective clients as just assets or liabilities and if you have a bad credit history chances are they will view you as a liability. Credit unions, on the other hand, are much more sympathetic towards people needing loans. There is a more personal interaction with credit unions since they are much smaller in scale as compared to banks so chances are you’ll have a more sympathetic ear if you apply for a loan with a credit union.

What These Institutions Offer

Credit unions offer different types of loan programs. Also known as online loans, payday loans, installment loans, instant loans or cash loans, loan programs offered by these non-traditional lending institutions have things in common. The loan application process is usually faster and that your credit history does not matter. Depending on the type of loan you apply for though, your repayment terms may vary. Installment loans, for instance, are paid in an installment basis over a period of time, usually between 3 months to a year. Instant loans , as the term suggest, are loans that guarantee “instant approval” for qualified borrowers. Instant loans, in most cases though, have to be paid back on your next payday. Your repayment term will vary on the type of bad credit loan you get and this also varies per lender, so it is important that you always read the fine print before signing for anything to avoid surprises later on.

Use Collateral

Some banks or credit unions are hesitant to provide loans to people with bad credit history simply because they’re afraid that you’re not serious about making your repayments. One way of assuring them that you have every intention of paying back your loan is to provide collateral. Truth of the matter is some banks and credit unions will ask you for collateral if you’re going to apply for a loan so might as well prepare yourself to offer one. One kind of collateral that will up your chances of getting that loan is property equity. Home equity is the market value of your unencumbered interest on your real property and you can use this to apply for a loan.

There are several ways to acquire a loan even with bad credit and all you have to do is research about them online. There are also several online lenders who have various programs that could help people with bad credit histories secure a loan. As long as you have the capacity to make your repayments on time and with the right amount your chances of having your online loan application approved is high.