With rising prices and the falling economy, it is tough to get by without taking out a loan every now and again. Big ticket items need to be bought or replaced, and these needs don’t always come at convenient times. If you haven’t had the chance to build up your credit, getting a loan can feel almost impossible.

Similarly, you may have gone through tough times in the past that brought your credit down. Even if your financial situation has improved, getting a loan when you need one could still be difficult due to your past history.

If you are suffering from bad credit, getting a loan is not impossible. There are ways to get a payday loan with bad credit and very little restrictions. Here are several ways on how to get a loan with bad credit:

1. Get a co-signer for your loan

In order to get a loan bad credit, it helps if there is someone you trust, and who trusts you, would be willing to co-sign for a loan. This way, you will be more likely to get approved, even if you credit is bad.

It is hard to get just any friend to do it though – it requires a lot of trust. Co-signing for a loan means that friend or family member is on the line if you default on your payments, and it can also affect their credit too.

2. Shop around for the best loans

Some lenders and banks have different standards than others. Just because you have been rejected by one lender does not mean that you will be rejected by every lender. Ask your friends and family for references on places you might try, and search the web for different options. With certain lenders, you may be able to get a loan even with bad credit.

3. Ask for advice on how to get a loan

Go to a financial advisor and get some advice. Find out what your options are. Sometimes there are possibilities that you may not even be aware of. By asking a professional for their advice, you will hopefully be able to find an option that works for you.

Don’t be discouraged if they can’t help you though, you may have to see a couple of different advisors in the hopes of finding one who can come up with a solution for you.

4. Get a secured loan

A secured loan means that there is collateral for the loan. This means if the borrower defaults on the loan, that collateral will be used to pay it off. The loan can be borrowed against a house, a car, or even an RRSP.

Lenders are more likely to lend money to someone using a secured loan versus an unsecured loan, since they know they will at least get something if ever the loan doesn’t get paid back.

5. Bad credit personal loans

A bad credit personal loan is usually a smaller amount as far as personal loans go – averaging around $5,000. Lenders don’t tend to go too high when offering bad credit personal loans since they run a higher risk of not being repaid. The loans also come at a higher interest rate for the same reason.

6. Bad credit car loans

Some lenders will also offer car loans to individuals with bad credit. The payment schedule and interest rate are set, as they would be with a regular car loan. The only difference is that it may be a bit more difficult to find a lender who will approve a bad credit car loan. As with the bad credit personal loans, the interest rate will likely be higher.

7. Ask your friends and family

If you have a friend or family member who would be able to spot you the money up front and let you pay it back over time or when you are able to, this might be a good option. Be careful with this. If you are unable to pay it back, friends and family don’t work like the bank, and will probably be less forgiving if you can’t pay them back. Make sure you have trust and understanding before choosing this option.

8. Ask for a loan again

If you are rejected for a loan you may be able to go back and ask the lender to consider your application again. If you are going to take this tactic, you should be able to demonstrate some reasons why they should lend you the money you are asking for, even though your credit is bad.

If you can show that you aren’t living paycheque to paycheque, or that you aren’t using credit cards without paying them down, or if you can demonstrate that your situation has recently changed they may reconsider. You could also try asking for a smaller amount if possible.

9. Try to improve your credit

This is difficult to do and not always plausible, but if you have the time and means to do so, demonstrating to the bank that you have things under control by making payments on time, paying more than the minimum payment, and relying on credit as little as possible are all helpful in getting you approved for a loan.

The best case scenario is to remain under 30 per cent of your total available debt at any given time. Bringing your credit score at least into the “fair” category can greatly increase your ability to be approved for a loan.