If you are a tenant, you may find it very difficult to get a bad credit loan. High street banks don't normally lend money to tenants with bad credit. However, there are some finance companies that specialise in lending money to tenants with bad credit records. The downside to bad credit loans is that they are very expensive. Ideally, you should work on improving your credit before applying for a loan. With good credit and a regular income you would normally be approved for a loan from your bank.

If you have a bad credit history, you're considered too risky to lend to by lenders. So they may ask that the loan be secured on your car for example. Also, bad credit loans for tenants are usually of very small amounts. Watch out for loan sharks. These are companies and individuals that will try to take advantage of your situation. They charge very high interest rates and sometimes use threats and violence to frighten those who can't afford to pay back their loan. Loan sharks are unlicensed moneylenders.

If you have bad credit, there are some alternatives to getting a loan. The first is to get a second job and try to find other ways of raising cash without borrowing more money. You could sell some of your unwanted stuff on eBay for example. Car boot sales are also another outlet and a source of income too. There are also some businesses you can start that do not require a lot of capital. If you have a van, you could start a courier service for your local community. Just put an ad in the local free ads or newspaper and you'll start getting some calls. Depending on your skills, there are a lot of skill-based business ideas that can turn your skills into cash.

If your bad credit is a result of overspending and not sticking to your budget or indeed lack of budgeting, you should work on improving your money skills. There are ways to get your credit back in shape, but you have to work on it. As your credit improves, your ability to get credit will also improve over time. You'll need to make sure that you pay your bills on time. If you find that you're unable to stick to your budget, get help. Your local Citizens Advice Bureau is a good place to start if you live in the UK. If you live in the USA, there are similar services available which are free.