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.
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.
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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