How to get a Personal loan with Bad Credit

Writer and editor - Bryan Robinson | Updated on 2023-03-05

If you have bad credit, it may seem impossible to get a personal loan. But there are options available to you. We’ll go over some of the best ways to get a personal loan with bad credit, so you can choose the one that’s right for you.

First, let’s take a look at how your credit score affects your ability to get a loan. Then we’ll explore some of the best lenders for people with bad credit.

What is a personal loan?

A personal loan is a type of loan given to an individual for a variety of reasons, including medical bills, vehicle repairs, home improvements, or even to consolidate debt. The interest rate on a personal loan is usually fixed, meaning it will not change over the life of the loan. This can make personal loans appealing to borrowers who are trying to keep their monthly payments low.

How to get a personal loan with bad credit

If you have bad credit, you might be wondering how you can get a personal loan. The good news is that there are lenders out there who are willing to work with you. Here are a few tips on how to get a personal loan with bad credit.

Look for a cosigner

If you have bad credit, your best chance at getting approved for a personal loan is to find a cosigner with good credit. A cosigner is someone who agrees to take responsibility for repaying the loan if you can’t. This effectively transfers the risk of default from you to the cosigner.

When you apply for a loan with a cosigner, the lender will look at the cosigner’s credit score and income to make a decision. Even if you have bad credit, you may be able to get approved if your cosigner has strong enough credit and income.

Of course, this means you’ll need to find someone who is willing to take on this responsibility. You should only ask someone who you trust and who has the financial ability to make payments if you can’t.

If you decide to go this route, make sure you shop around for the best terms. Even with a cosigner, personal loans for bad credit can be expensive. You should compare offers from multiple lenders to make sure you’re getting the best deal possible.

Find a credit union or community bank

Credit unions and community banks are more likely to work with you if you have bad credit. They may be willing to give you a loan with a higher interest rate to help you get on your feet. You can find a credit union near you at

Consider a secured loan

If you have bad credit, one option you may be considering is a secured loan. A secured loan is one in which you put up collateral – typically, this is in the form of a piece of real estate or a vehicle – in order to secure the loan. If you default on the loan, the lender can take possession of the collateral and sell it in order to recoup their losses.

One advantage of a secured loan is it may be easier to qualify for than an unsecured loan, as the collateral serves as a way for the lender to mitigate their risk. However, secured loans also typically have higher interest rates than unsecured loans, so you will need to weigh the pros and cons before deciding if this type of loan is right for you.


There are a few options available to those with bad credit who need a personal loan. There are lenders who specialize in loans for people with bad credit, and there are also a few government programs that can help. The best option for you will depend on your individual circumstances.

Bryan Robinson

Bryan Robinson
Writer and editor

Bryan Robinson is a finance writer with expertise in lending and their interest rates, fees, contracts and more.
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