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Are you living with bad credit? Having bad (or no) credit can certainly affect your life. You may be disqualified from owning a home or even turned down for an apartment. Automobile dealerships, credit card companies and other retail industries also examine credit. It is becoming more common for employers and insurance representatives to check a person’s credit before making their important financial decisions. What can a person do when they have bad credit following them around?

One option is to contact a bad credit finance company. A bad credit finance company markets their services towards consumers that have questionable credit, knowing that they will be turned away from most commercial lenders. A bad credit finance company is definitely an option to consider. However, consider some of the drawbacks. Bad credit finance companies know your situation and figure that you are so desperate for credit that you are willing to pay abnormally high interest rates and agree to stricter terms. This practice has become so common it is now identified by the term “predatory lending.” Lawmakers have often had to step in, in defense of consumers who were being subjected to cruel and unusual finance terms.

Payday loans are another option, and unlike working with many predatory lending companies, they are (in some ways) a safer option. However, be aware that payday loans come with high interest rates, and they have even stricter terms—the loan and accompanying interest must be paid within a week or two, as the name suggests, by the consumer’s next payday. Loan amounts are also severely limited. One benefit of payday loans is that you can qualify quickly, and can easily apply for a faxless payday loan online.

Another option to consider is a Refund Anticipation Loan (RAL). Many taxpayers use this option, which works by the logic that a loan is given out in expectation of an IRS refund coming sometime in the approaching New Year. The disadvantages of RALS are that they intentionally marketed towards the working class, and are often deceptively advertised. RALS often come with very high interest rates, are over-issued to individuals who could just as well use a W-4 form to retain their withholdings, and lastly, and are given to individuals that are deceived into thinking that the refund wait is longer than it really is. Car title loans involve using one’s vehicle as an asset, which is not only a risk, but also (like RALS) comes with unusually high interest rates.

Over the long-term, the best option when faced with bad credit is to take steps to improve your credit. Simple steps like paying your bills on time, applying for store credit cards, and establishing good payment habits work wonders. You can have good credit too. Don’t give up the search and get into even further debt!