With Christmas just a few weeks away, getting everything that you need for the big day can be an expensive experience. If you’re suffering with a poor credit rating, then you may not have the luxury of being able to put all your festive purchases on your credit card to pay back later, or even take out a small loan to cover the cost, which many people do at this time of year.
However, a poor credit rating shouldn’t have to take all the fun out of the festive season for you. We’ve put together some top tips to help you gather some extra funds for Christmas and hopefully improve your credit rating at the same time.
#1. Loans for Bad Credit:
Although you may expect to pay a little more in terms of interest, payday loans for bad credit could be a good idea for you when it comes to raising a little bit more money for Christmas. Many loans, such as Cash Lady’s loans for bad credit are specifically aimed at individuals with a less than perfect credit score, and the good news is that as long as you ensure your repayments are made in full and on time, your credit rating should see some improvement as a result.
#2. Try a Credit Builder Card:
If you struggle to get a regular credit card as a result of having a bad credit score, then don’t worry – an alternative that you might want to consider is applying for a credit building credit card. These cards are designed to give people with a poor credit score a chance at borrowing again and help them turn their financial situation around.
Because of this, you can usually expect to start off with a low and easy-to-manage limit, however, if you can show the lender that you are borrowing responsibly and are able to manage your credit wisely, they may put the limit up after around twelve months.
#3. Get Help with a Guarantor Loan:
Guarantor loans are tricky, because they mean asking a relative or friend to sign and agree to help cover the cost of the repayment if you are unable to make it. Because of this, the other party involved can also be held liable if you’re unable to make your repayments, and their own financial situation and credit score could be affected as a result.
However, if you have somebody in your life who knows and trusts you enough, and you’re sure that you’re going to be able to make repayments yourself, then taking out a guarantor loan could help you cover the cost of Christmas and gradually build your credit rating back up.
#4. Borrow from Friends or Family:
Lastly, although it won’t affect your credit score, if you really have no other option and need some last-minute funds to cover your Christmas expenses, then you might want to think about asking a relative or close friend if they are able to help. Don’t forget to agree a repayment plan with them and stick to it, to avoid putting strain on your relationship.
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