If you were to ask a homeowner what the worst thing was about owning a home, they’d probably say the repairs. Even if you do a good job at keeping up with the maintenance, there will come a time when you’ll need to have something in or around your house repaired or replaced. Everything from your furnace and hot water heater to your refrigerator and washing machine will break down eventually, and getting them fixed isn’t cheap.
The problem becomes even worse for homeowners who have poor credit histories and no emergency savings to rely on. This means you can’t dip into your savings account and replace the cash later, nor can you take out a personal loan, a line of credit, or home equity loan to resolve the matter. So, what else can be done? Fortunately, you’re not the only homeowner dealing with such restrictive financial circumstances. Here are a few solutions you can try to handle home repairs despite having poor credit and nothing in savings:
Borrow from Your Pension
If you’re fortunate enough to work with an employer who offers a pension or retirement account, you may be able to borrow money from there. Depending on how long you’ve been investing and how much is there, you may be able to get access to several thousand dollars to handle household repairs. Since you’re an employee, eligibility requirements like credit don’t usually apply to increase your chances of getting approved. Keep in mind, however, if you’re dealing with an emergency, retirement loans are the quickest. Not to mention, you’ll need to repay it in a timely fashion to avoid early withdrawal fees and tax penalties.
Emergency Loans for Poor Credit
Not all lenders will make you jump through hoops in order to gain access to the cash you need to repair your home. If the matter is an emergency that can’t be put off, such as a plumbing leak, or electrical issue, then the fastest solution would be to apply for alternative loans for bad credit online. The lenders of these loans often overlook a poor credit history if the applicant has a checking account in good standing and verifiable income that meets their minimum guidelines. If approved, you could have cash as soon as the next business day.
Sell Some Things
Sometimes, the only way to accumulate cash is to work with what you have. A great way to secure a few bucks in a short timeframe is to sell some things. You can sell your old jewelry, used electronics, or even your junk car for cash. If you have the time, you can also host a yard sale and make big bucks on anything in the house you no longer need.
Do it Yourself
If you can’t afford to hire someone to make the repairs for you, roll up your sleeves and do it yourself. There are a lot of common household repairs that can be done without the assistance of a contractor as long as you’re careful. You’ll save on the cost of labor and parts and can learn a bunch of cool new skills in the process. If you don’t have any idea how to repair something, need extensive experience, or don’t have the right tools, then obviously, you should just hire a contractor.
Hire Independent Contractors
If you have to hire an expert to handle the repair in your home, then do so wisely. Instead of going with the big companies which will charge you more for their services, look for an independent contractor. This is ideally someone who started their own business and work alone (or with very few employees). Since they have less overhead than bigger companies, they tend to charge a lot less.
As you can see, there is more than one way to skin a cat. From maintenance and repairs to renovations and emergencies, there are several ways you can go about getting the cash you need to make your home a comfortable place to live. After using the above solutions to handle the problem, make sure that you start working on your finances and building a nest egg so that you don’t have to jump through so many hoops in the future.