If you are turned away from the high street lenders one avenue many people in your situation turn to is the payday lenders road. These are specialist lenders who are able to provide instant loans to people who have previously been refused either credit or a loan.
A payday loan is a short term unsecured loan usually for a relatively small amount of cash. They are generally used as a way to cover urgent expenses such as outstanding bills or to cover the cost of urgent repairs. One such example would be the need to borrow some money to get your car fixed or to get it passed its MOT. Another good use for this type of loan it to prevent your bank account from going overdrawn. This can prevent you from getting charged by your bank for going overdrawn. Bank charges can often be extortionate so getting a loan to prevent yourself from getting charged can save you money in the long run.
These types of loan can often get you out of financial trouble at very short notice, however there can be circumstances where you are unable to repay the money by the next payday. This is because it would leave you short for the following month where you may require another loan.
One solution is to extend the loan and turn it into a 3 month loan which essentially means that you have 3 months to repay the loan rather than the usual one month. To extend the loan you will usually have to contact the lender beforehand to negotiate a longer repayment period. Please bare in mind that there will be additional lending charges to cover the longer period that you will be borrowing the money for.