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5 Tips For Getting Personal Loans With Bad Credit

3 April 2012 13 Comments

Having bad credit doesn’t mean you can’t get a loan; it simply means that you’re going to have a tougher time, do a little bit more research, and probably have to live with terms that aren’t as attractive. Exploring your options for getting personal loans with bad credit starts with a realistic assessment of your situation, consideration of the kinds of options out there, and deciding which best fits your needs. It also is important to educate yourself on these matters https://oinkmoney.com/ for more information on this. Here are some things to keep in mind when you’re trying to get a personal loan with bad credit.

Watch out for predators

The fact of the matter is that there are some lenders out there who engage in predatory practices. While there are laws in place to curb many of these practices, some lenders find ways around them. Unfortunately, this is especially true for lenders who make offers to people with bad credit. You need to be circumspect, and choose a lender that’s not going to simply take advantage of your situation.

Understand that you’re going to pay a higher interest rate

That’s just the way our system works. If your credit score is above 720, you’re going to get great rates. If your credit score is between 650 and 720, you can get decent rates. Below 650, and you’re looking at rates that aren’t nearly as attractive. If you can wait a while to apply for your personal loan, consider taking steps to improve your credit score in the meantime. It will pay you back many times over in the additional interest you’d otherwise pay.

You can do some relatively simple things to improve your credit score in a quick fashion. For example, simply paying all of your bills on time for six months can raise your score as much as 20 or 30 points. If you can lower your overall credit balances, that will help too. Consider getting a copy of your credit report, and look for errors. If there are errors, you have a right to dispute them by contacting the credit bureau.

Go for a secured loan whenever you can

There are many types of secured personal loans out there for people with bad credit. Some of the most common types include:

  • Car title loans. These are loans that use a vehicle as security on the loan. Know that choosing this kind of loan will usually require you to carry full insurance coverage, so factor that in as an additional cost.
  • Home equity loans. Similar to car title loans, home equity loans use the equity in your home to secure the loan. Home equity loans will get you a better interest rate than many other loans, but it can be difficult to get one if you have bad credit. Talk with a variety of lenders, as there are some that will work with you in this regard.
  • Home equity lines of credit. This is like a home equity loan that is disbursed on an as-needed basis. Typically, the rate will be slightly higher than with a home equity loan, but with this type of loan you also can borrow only what you need, when you need it. Here again, not all lenders will offer home equity lines of credit if you have bad credit.

If you can get one of these types of loans, you’re usually much better off.

Unsecured loans can be costly

Unsecured loans can be costly, and with bad credit they are even more so. The most common type of unsecured loan you’ll qualify for with bad credit is a payday loan, and many of these lenders fall into the “predatory” category above. Think long and hard – and make sure you fully understand rates and terms – before you choose a payday loan. However in some situations these can really help out, just beware of the interest rates.


In some cases, a lender that is willing to make a personal loan to someone with bad credit is also willing to negotiate. Get several offers, and use one to leverage better terms on the others. It never hurts to ask for a better rate; doing so isn’t going to convince the lender to rescind the original offer.

Having bad credit doesn’t mean you can’t get access to the money you need. However, it does make you vulnerable. The best way to protect yourself is with knowledge. Understand what options are available to you, and consider all of the terms and rates before you make a final decision. A little bit of diligence will keep you from becoming a victim, and from ruining your credit even further.



  • Tracy Chatman said:

    Paying the minimum amount on time is by far the best thing to do when times are hard. Also it doesn't hurt to know what your Fico Score is from time to time during these times and I know just how to do this free..

    Tracy Chatman

  • Jane said:

    That is a ridiculous idea to just pay the minimum amount. Even if you are short on cash, you should plan out a way to pay off your credit card debt rather than just putting in the minimum payment. You'll end up paying the interest every month as you work endlessly to pay off the debt by doing minimum.

  • Shirley Langston said:

    You can get a loan even if you have bad credit. You can improve your credit by getting a loan and paying it off. If you develop a relationship with creditors and lenders you will find that it is easier to acquire a loan. One kind of loan to consider is a home equity loan. Because the interest is variable, you can save money. Without the up-front fees, you are able to use the cash sooner rather than later.

  • kathrynfkoopman said:

    Thank you so much for the great tips that you have here and I hope we will all be receiving great benefits from this and I hope that people will also learn something very important here.

  • Rick Pua Pila said:

    You may think that personal loan for poor credit is hard to get approval on. However, that is not entirely true. There are ways to get your hands on an unsecured personal loan if you have poor credit history. All the lenders would ask you to do is to meet a short list of criteria and being sensible about how much money is applied for.

    Everywhere in the world you will find that lenders are all cautious about bad credit ratings and also about the reasons why somebody might have a bad credit. Lenders who are offering personal loans that are unsecured would of course be on red alert if they meet an applicant with poor credit rating. The only way to convince them to lend you unsecured personal loan is by calming them down and making them feel happier about approving your application.


  • Rick Pua Pila said:

    You may be able to have your applications approved in the end, but you will see that there are some compromise you will have to make. Interest rates might be higher, the terms may not be the most ideal ones and the loan limit may be lower than you might need.

    In order to get approved for an unsecured personal loan if you have poor credit rating, is to consider what amount of money might be acceptable to the lender. Your lender may not be happy if you are applying for a $100,000 loan without any collateral from your part. Try and apply for more reasonable amount of money such as $3,000. You will most likely not be disappointed.


  • missfi said:

    You have to have good credit to get a personal loan….

  • Erick said:


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  • Parker Quinn said:

    Sure, the most common type of loan that you may be able to get is payday loans if you have bad credit, but there are many other loan types that are available rather than use these sharks – you can still get a bad credit installment loan and may personal loan lenders will listen to your case and offer you a loan.

    Recently, we have found that more installment loans are being offered to people with bad credit, sure they are not as attractive as the standard personal loan but at least they are repayable, especially for larger amounts.

  • Beauty Consultant said:

    Similar to car title loans, home equity loans use the equity in your home to secure the loan. Home equity loans will get you a better interest rate than many other loans.

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  • Meditation said:

    Decided to make the loan debt is a thing that must be considered thoroughly. In my opinion, this is not very good because we have to return the loan along with interest. Therefore, we must know exactly what will we do with the loan.