How To Get A Personal Loan With Bad Credit – 3 Quick Easy Methods

how to get a personal loan with bad credit

How to Get a Personal Loan With Bad Credit

Applying for a personal loan is already difficult enough, but poor credit can make the endeavor ten times worse. If your credit score is between 300 and 630, you may need some extra help securing your loan. Here are 3 quick and easy ways on how to get a personal loan with bad credit.

how to get a personal loan with bad credit1. Consider a peer-to-peer loan

Have you already attempted to get a loan through most of the banks in your area? If so, you’ve still got options.

One of the easiest ways on how to can get a personal loan with bad credit is by applying for a peer-to-peer (or P2P) loan.

These are relatively new. They popped up around 2005 or so, so the kinks are still being ironed out.

With a P2P loan, you’re not borrowing from a bank, but instead from an individual. You’ll still have to pay them back in full (plus interest), but it can sometimes be easier to appeal to an individual.

While P2P loans are a bit of a risk (primarily for the lender), sometimes you have no other choice. Should you choose the P2P route, do your research and make sure you’re getting a good deal from a reputable site.

2. Borrow from a credit union

These small, independently owned and operated institutions don’t have to answer to shareholders.

Generally speaking, most credit unions have lower fees than their larger counterparts. You’ll end up paying a substantially lower interest rate should your personal loan get approved.

Credit unions are likely your best bet if you’ve got bad credit. And odds are there’s one right around the corner from where you live!

3. Find a cosigner

There’s no guarantee that even a credit union will approve your loan. Accordingly, you may need a bit of outside help. But believe it or not, you’re still not out of options.

Find someone you trust and ask if they’ll serve as a cosigner to your loan. With a cosigner, your financial institution will have a guaranteed means of getting their money back.

This is really a win-win, as they’ll be far more likely to approve your loan.

how to get a personal loan with bad credit

Additionally, this will allow you to build up credit. While your credit score may not be in the best shape at the moment, think of your loan as a stepping stone.

By paying this loan back, you can take steps to improve your credit.

For the best results, you may want to get both a cosigner AND applying at a credit union. That way, you’re vastly increasing your chances of approval.

Quick tips when getting a loan with bad credit

We want to make sure you stay safe out there, so here are a few things to keep in mind.

Be vigilant: There are plenty of people out there looking to separate you from your money. Make sure you do your research so you don’t fall prey to a scam

Be smart about your borrowing: Don’t borrow more than you can pay.

Start saving: Saving is one of the easiest ways you can secure your financial future. Set aside some money from each paycheck, even if it’s just a few dollars. It’ll add up and your bad credit will be a thing of the past.

With over 30 years of knowledge of the financial world, we want to help you save money. Whether you need help with how to get a personal loan with bad credit, mortgages, or student loans, we can help.

Be sure to keep up with Credit Squared for all your financial knowledge!  If you have any questions or comments please leave us a message below.

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9 Comments

  1. Nowadays it is so hard to get out of debt once you have dug yourself into that hole. Especially with bad credit, it is tough to be eligible to qualify for a loan.

    Unfortunately, it’s also hard because in order to improve bad credit, you need to pay off debt, but how do you do that if you can’t get a loan or another job?

    Hopefully these 3 tips can help people. Nice review. Thanks for the helpful advice!

    • It does make it difficult when you have too much debt and bad credit and you don’t have many options to get yourself out of it.

      The only way to do that is to start budgeting your expenses and living within your means.

      There are several great articles on this site that can help with improving your credit knowledge.  You can start here with this article http://bit.ly/2sIA7r1

      If you need another resource to earn more, try getting some overtime at work or look for a new job that pays more. If you have the flexibility you could get a part time job on the weekends. 

      I know all tough sacrifices, but it will put you in a better place financially much faster.

      Once you have improved your credit (give it some time) you will be able to qualify for a personal loan which you can then use to consolidate all of your credit cards at a lower rate.

      Use some of the suggestions outlined in this post How to Get a Personal Loan With Bad Credit http://bit.ly/2smfbq7 when you are ready.

      Then work to pay down the personal loan and things will begin to improve for you financially over time.

      Credit Squared

  2. Hey there

    Thanks for the very informative and clear article!

    It is so hard once you get into debt to get back out especially when things get out of hand and you do end up with bad credit!

    You raised some great ideas! It is hard once you have bad credit to clear your name especially if you are in a better position now. But just getting that go to improve it would be a great start!

    Thanks for your post!

    Regards Hailey

    • Glad you enjoyed the post and found it helpful.

      You are correct when you state that it’s difficult to get out of debt once things get out of control.  But if one follows some the steps outlined in the post and if they are patient should be able to make good progress.

      Getting a personal loan with bad credit may seem difficult at first, but with a little budgeting and planning it can be done.

      Consider finding a peer to peer loan.  Contact credit unions, they tend to have more lenient credit standards, or find a cosigner on a personal loan.

      Consolidate all your debt if you can, then execute your budgeting and spending plan and you will be well on the road to becoming debt free.

      Patrick

      Credit Squared

  3. This is great advice! Especially for those of us who are younger and have yet to experience the financial world at its finest. These are tips we can all take notes on for sure. I know I will while going forward in my life,

    These are things that need to be taught in school.

    • H Melissa – I agree, these are things that need to be taught in school.  It would help avoid many future financial mistakes made by younger folks.

      In the meantime many people have gotten too deep into debt and need to find a way out.

      I wrote this post in the hope that it would help guide others to a better financial future. Using some of these tips like peer to peer loans or finding a family member that will cosign on a loan, could be the key to breaking the debt cycle.

      In end it’s all about managing spending and living within your means.  One can get a personal loan with bad credit, but if one can’t control spending then they will always be stuck in the same debt trap

      Thanks for commenting.

      Patrick

      Credit Squared

  4. I have to admit. The information you’ve provided is pretty helpful. There are many sites out there that talk about credit improvement and finances just to get you to buy or purchase something. However, you have information regarding credit (how to improve it or where to get a loan with bad credit, mortgage financing (difference between pre-qualification vs pre-approval), auto financing, and even banking.

    I’m currently in the process of trying to get a loan to repair my vehicle but have had some credit “hiccups” in the past. Out of the 3 methods of how to get a loan with poor credit, I never thought about the P2P (peer to peer) option. If you have any site recommendations for P2P, please let me know.

    Thanks again for the info! It was very thorough!

    • Thanks for the positive comments.  If you have hiccups in your credit history a Peer to Peer loan may be the answer.  There are a couple of websites that specialize in them and can be found performing a simple search on your favorite search engine.

      Here is one where you can do debt consolidation, home improvement a well as major expenses.

      https://www.lendingclub.com/

      Sofi is another well respected site.

      https://www.sofi.com/

      A word of caution. When considering a P2P loan, make sure you do your research and work with a reputable site.

      Credit Squared

  5. It’s great to know how to get a personal loan without great credit. My credit isn’t fantastic, so this is helpful to me. I’ll be sure to do the research needed to find a credible lender, like you said.

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