Alternative Credit History

• If your credit score is low not because you've misused credit, but because you haven't used it enough, then go to lenders prepared to offer an alternative credit history. Regulation B of the Equal Credit Opportunity Act requires that lenders consider credit information not included as part of a credit bureau's report if it's a similar type of credit account that would be considered as part of a credit report. So if you've paid rent on time for 10 years and have never been late on your phone or water bill, ask lenders to consider this information as part of your credit application.
  
  

Smaller Lenders

• If larger lenders won't consider you because of your low credit score, try a smaller lender. A local bank, credit union or even finance company may be willing to overlook your credit score because you're "in the network": They know your employer is stable and they can easily verify the alternative credit history you've offered. However, be leery of local finance companies that charge outrageous finance charges.
  
  

Borrow Less

• If it's a car, home or other secured item you wish to borrow money for, improve your chances of overcoming your bad credit score by upping your down payment. The larger your down payment, the more invested you seem in the item you wish to buy, the less of a risk you are to the lender and the more likely you are to get your loan despite your poor credit score.
  
  

Ask Your Peers

• When a down payment is not an option and all other sources of loans have panned out, consider your peers. Peer lending options, such as Prosper and Lending Club (see Resources) allow you to borrow money from individuals just like yourself. While the interest rate is often in the double digits, peer lending sites allow you to explain your low credit score to potential lenders, humanizing the borrowing process. It's not guaranteed that you'll get a loan, but it doesn't hurt to try.