Qualifying for a loan with a fair credit history can be very challenging, not to say almost impossible at times. This can become worse if you have a bad credit history. Most of the time you can get a loan, but you will have to pay more in terms of interest rate over a long period of time.
There are a number of options you can go for if you have a bad or fair credit history. A fair credit history is one where you do not have any major faults against your record. However, you could have a few late payments, a few collections or insurance payment defaults. But it should not include anything serious like a filing for bankruptcy, which can seriously hamper your credit record.
The best option you can go for is a secured loan. A secured loan is one where you provide some sort of collateral to the bank in return for a loan. The interest rate will be very low for such loans. But the interest rate will largely depend on how much the collateral is worth, and also how easy it is to sell the said collateral in the open market. For example, a piece of artwork or the deeds and title to an estate are good forms of collateral. There are different types of collateral which can be classified based on their properties.
Physical collateral is one which has to be stored in the bank physically in a vault. This can include art work or jewelery. Paper collateral can include deeds to estates or homes and also stock options. Banks do not usually prefer physical collateral; this is because they do not want to deal with storing and protecting a costly item until the borrower pays back the money owed. There are also self collaterals and external collaterals. The former is where the money you borrow will be used to buy the collateral and the latter is when you will provide the collateral to the bank against the money that is lent to you.
Apart from this you can try rebuilding or repairing your credit history to qualify for a good loan. You can also negotiate a settlement with the bank, by saying that you are capable of paying back the loan in the future. For this you will have to show income proof for the following year.