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Money need seems a catastrophe nowadays. Stuck with debts, job loss, or medical support during the pandemic, most people lost their savings and opportunities. Moreover, debts worsened their credit score and prevented them from borrowing anymore.

You feel desperate, and none of the banks gives you approval? See what to do in money emergencies.

Care of Your Score First

According to FICO - the largest credit agency in the US, the average score reached 711 and is gradually rising. It’s an unexpected dynamic in the present situation - faced with a global crisis, people somehow developed their rates.

Citizens gradually realize the impact of this number on their opportunities and future. Use their methods to improve your position too:

1. Review the Report

contact your agency and demand the report with all of your debts and repayments. This way you may notice forgotten debts - for example, subscription bills, and fix them all at once.

2. Start With the Smallest

Most people try to get rid of the largest debt first - it seems that such issues influence your score the most. In truth, the best way to see the improvement is to fix small problems.

3. Use Different Types of Credit

If you decide to borrow again (think twice though), use new types of lending. For example, turn to installment loans if you already have records about payday ones. This factor shows you like a flexible person, aware of the lending sphere.

4. Automatic Payments

You can set automatic translation from your card each time you need to pay for utilities, phone, and subscriptions.

5. Learn to Maintain the Budget

Don’t want more debts? Take control over your lifestyle and avoid overspending again. Be sure you won’t collect even more debts while working on the old ones.

Improving score is your investment in the future. This way you’ll be able to obtain financial support in case of emergency or simply allow yourself more.

How to Act in Emergency: Alternative Lenders

Let’s be realistic - most commonly, emergencies chase us in the most inappropriate moments and give no time for preparations. What to do if you already need financial support and no time for fixing the rate?

Choose among the best loans for bad credit, available for people of any budget and situation.

Loan with a Surety

This type uses third parties as a guarantor or repayment.

How it works? You apply for credit and use another institution - a bank or insurance agency, as a party who’ll pay instead of you in case of non-payment.

Such agreements include 3 participants:




It’s a borrower who needs financial support. To ensure the lender in his/her reliability, the principal finds an institution to vouch for him.

This party provides funding for the principal. To give money, it needs a strong guarantee of repayment. That’s why it requires another party - if the borrower misses payments, the obligee will receive money from the guarantor.

It is usually insurance services, particular persons, or banks. They protect the borrower - vouch for him and pay the debt if the borrower cannot do that.


For such help, the surety gets a payment from the customer at the beginning. 


It’s a way to obtain low interest and protect yourself from the risks. However, you’ll need cash for the initial payment.

Personal Loans

It’s not a particular option - rather a variety of options, intended for private persons.

Depending on your needs, you can choose specialized variants like car, divorce, holiday loan, or choose a type with no particular application.

Such credits are an extremely popular grace to their availability. They are usually provided by private lenders and approve even for low-score customers.

Still, be ready to overpay - the interest is much higher than in official institutions.

Emergency credit

It’s a type of personal loan intended to solve immediate troubles. If you need money today and have no time for waiting, it’s the only variant. Such options are:

●      given online to save your time

●      provided by private services

●      available for customers with bad history

●      given in 24-48 hours after the approval

Payday Loans

Usually, people use them as a last resort. Payday options are super convenient, but lead to risky consequences:



given to people with any score

●      implies small sums to fix temporary troubles

●      are given in one day right on your card

●      available online

have the highest interest

●      forbidden in several states

●      automatically charge the debt right from your card

●      requires higher rates for each prolongation

Summary: How to Act in Money Emergency

Having some time, try to take care of your score. For this, repay the small debts and find errors in the reports. Clear all small issues to quickly influence the rate.

1. If you have no time and your score is extremely low, search for alternative variants - don’t expect banks to help you.
2. A loan with a surety allows you to obtain good conditions and terms of repayment. For this, you’ll need to pay to a surety institution and face more risks.
3. Personal credits are a wide range of offers with different contusions and demands. Rates here are higher, but you’ll obtain quick help. Use it when time is the priority.

4. Emergency credits were developed to protect people from unexpected events. The particularity is extremely fast funding.

5. Payday loans are a last resort with the higher standards of interest, available even for people with the lowest scores.

A lower score implies a higher interest rate. It’s a formula each lender uses to compensate for the risks. That’s why finding a solution once, don’t stop fixing the whole picture. It’s the only way to avoid such troubles in the future. Don’t neglect the repayment this time and study to plan your finances.

Need a Loan for Bad Credit in 2021? Follow This Guide
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