Having a bad credit score can be a problematic factor in many ways. It closes many doors in life, and puts you in a disadvantageous situation with regards to your personal finances. And yet, it’s not the end of the world – there’s usually a way out of that mess, as long as you’re willing to work hard for it.

If you can’t get a loan from your bank, you can try some alternative options. Not all of them will be ideal for you, and not all of them will be available either – but you’re not completely out of luck just because you can’t get a loan from your bank.

Secured Loan

Collateral can change a lot. It can completely transform the attitude of lenders in some cases, making them much more open to working with you. As long as you’re willing to put up something valuable enough as collateral on that loan, it can give you access to some great deals. Sometimes, lenders might also accept unique types of collateral that you might not even consider in the first place. Even digital assets are starting to get recognized in this regard – a valuable domain name is a good example.

Make sure that you’re ready to part with whatever you’re putting up though, unless you can guarantee that you’ll be able to pay off that loan on time. If it’s your car, this can seriously impair your ability to work and live in general, which can in turn make it more difficult to get back on your feet financially.

Pawn Shop

Many people look down on pawn shops, but for no good reason. They’re a pretty good way of getting your hands on extra cash when you need it the most, and most pawn shops can actually be quite reasonable when working with you. You’d be surprised how great some of those deals can be, as long as you have something worth putting up in the first place.

As long as you pay off the loan in time, there’s nothing to worry about. Or, on the other hand, you can also take the opportunity to get rid of something that you didn’t need in the first place. While a pawn shop might not give you the best price for your second-hand items, it’s at least a viable option that will take pretty much anything.

Payday Loan

Payday loans are another financial tool with an undeserved negative reputation. The main difference between them and other loan types is the repayment duration. A payday loan, as the name implies, is designed to be paid off roughly in the period of one paycheck. This also means that you’ll have a relatively low borrowing ceiling, depending on how much you earn at your job.

But on the bright side, they’re easily available and very easy to get approved for, making them a good deal for people who need urgent money. Just make sure that you can actually pay off the loan in time, and it’s not a bad option to consider.

Private Loan

Private loans from other people are also something you should not ignore. They often come with some strings attached – such as revealing that you have problems to someone else. But in the end, it’s the best option with regards to the potential impact on your finances in the long run. Defaulting on a regular loan is quite bad, but in this case, it won’t hurt your credit score.

On the other hand, it will hurt your relationship with someone, and that’s often more important down the road. With that in mind, if you decide to take out a private loan, make absolutely sure that you’re able to repay it.

Selling Old Assets

Last but not least, something we already touched on above briefly. Now might be a good time to take a long, hard look around your home and figure out if there’s anything that you should throw away. There are often lots of opportunities for that in the home of the average person, but most of us tend to have a somewhat unhealthy attachment to our possessions.

But you can see this as an opportunity to kill two birds with one stone. You’ll not only improve your financial situation and prevent yourself from running into more problems, but you’ll also free up some space from all that clutter. This can be a surprisingly refreshing change in your lifestyle, and it’s often exactly what you need to do to “reset” your mind state and get back to business. You would be surprised how much clutter can affect our lives, and this is especially true for some people out there.