When it comes to obtaining finance, a lot will depend on your credit rating. A lender will examine your credit rating at the time of your application and they will base their decision on the information that they uncover in this search.

If you have ever asked what loan would accept me with bad credit, it is obvious that you have been frustrated in the past. Obtaining finance can make a massive difference to how you live your life and it is easy to see that people who can obtain finance quicker and easier will be in a better position to make plans and take action in life.

You should never think that you are out of options though and when it comes to obtaining a loan with a bad credit, options include:

• Obtaining a loan from friends or family members
• Payday loans
• Guarantor loans

It may be that you don’t want to ask anyone you know for a loan of money and this would be fair enough. Money can often place a great strain on friendships or relationships and a number of people have grown apart from people they had a close bond with due to money problems. You may not want people you know to know about financial issues you are facing or you may not think that anyone you know will be in a position to help. These are all strong reasons for not asking for help in this manner but when you weigh up your options, it may be that asking people you know for assistance is the best option.

Payday loans and guarantor loans are your best options

However, if this isn’t an option, you are probably left with payday loans and guarantor loans. If you were under the impression that these two loans were similar, you have been mistaken. They are both loans which are available and suitable for people who suffer from bad credit but there are big differences in how these loans plan out. The biggest difference comes in the APR, which means that there is a lot more money to be paid back with respect to a payday loan.

With a payday loan, the lender is taking a risk by loaning the money to someone, often with poor credit, and this level of risk is reflected within the amount of interest that has to be paid. With respect to a guarantor loan, the majority of the risk is being taken on by the guarantor, not the lending company, and this means that the cost of borrowing with a particular lender is much more affordable when you opt for a guarantor loan.