How to Get a Personal Loan with Bad Credit [+ Tips and Advice]

You might be thinking that getting a personal loan with bad credit must be impossible. After all, how can you get a loan when no one will give you their money?

It’s probably fair to say that most people will assume it’s impossible to get approved for a personal loan with bad credit. However, the truth is that many people do find ways to get these loans when they need them. Some banks and other lending institutions are willing to take more of a risk on some customers than others.

If you have bad credit but still need money fast, there are a few things you can do to increase your chances of being approved for a personal loan.

Many lenders will have different requirements depending on what type of personal loan you are applying for, and if they don’t think you would be able to pay them back in time or with interest, they won’t approve your application.

With this in mind, here are some tips on how you can get a personal loan with bad credit:

Research Your Options

Before you even start looking for places to apply for a personal loan with bad credit, you should research your different options for getting this money.

There are many different types of loans out there, and some may be more suitable for your situation than others. It’s also a good idea to look at how much the different lenders are charging in interest rates, as you may want to choose a loan with a higher rate if it is going to be cheaper in the long run.

Certain types of loans that you can typically get with bad credit include: Payday loans: These types of loans are small, short-term loans that you will have to pay back with interest very quickly (normally within two weeks).

Check Your Credit Report

One of the first things you should do before applying for a personal loan with bad credit is to check your credit report. If you have negative marks on your credit report that could potentially lower your chances of being approved for a loan, you may be able to have the items removed from your report.

If you find any incorrect items on your report, you can dispute them to have them removed. It’s also a good idea to look at different types of loans you may be able to get with bad credit, as some may be easier to get approval for than others. You can get a free credit report summary from each of the three main credit reporting bureaus by visiting AnnualCreditReport.com.

Apply for a Co-Signer Loan

If the interest rates on personal loans with bad credit are too high for you, you may want to consider applying for a co-signer loan. With this type of loan, another person co-signs on the loan with you, and they are ultimately responsible for paying back the loan amount.

This could be a good option for a parent, relative, or friend who has good credit and could potentially get approved for a lower interest rate than you. If the co-signer agrees to help you get a loan and you make all of your payments on time, the co-signer will also have a positive mark on their credit history.

You may want to consider this option carefully, as your co-signer will be legally responsible for repaying the loan. If you default, you could end up damaging both your credit and the co-signer’s credit.

Apply for a Debt Consolidation Loan

Another option to consider with bad credit is applying for a debt consolidation loan. This type of loan is designed to combine your existing debts (like credit card payments or medical bills) into one loan.

You will be required to make one lower monthly payment that will go toward paying off your new loan. If you can get approved for a lower interest rate on this loan, it can be a great way to get caught up on your bills.

However, you want to make sure you can make the payments on time and that you don’t take on too much debt to the point where you can’t pay the new loan back.

Conclusion

Getting a personal loan with bad credit is possible, but it can be challenging. Before you start applying for a loan, make sure you check your credit report to see if there are any inaccurate or incomplete items that could lower your chances of getting approved.

One of the best ways to increase your chances of getting approved for a loan when you have bad credit is to decrease your debt. This will help your credit scores, which will in turn make you more likely to get approved for a loan.