How to get a personal loan when you have a bad credit

When you have a bad credit record, it’s impossible to get loans from institutions like banks. You also risk getting into bad credit loans that can make you fall into debt. Even when you manage to get a loan with proof of a stable salary you incur high-interest costs. Here are places where you can get a personal loan even when you have a negative credit score.

Borrowing from family or friends

Family and friends, you can give an emergency loan without being worried about your credit score. You can also get a loan from them on a lower interest level compared to the banks. Your loan from them will also be easily and quickly approved.

To avoid straining the relationship you have, you should make sure that you paid the loan on time. You should treat this loan the same as any other loan. Make some documents and sign a legally binding contract. Do not also forget to make some governing rules.


Sometimes you might have a negative credit score, and it’s impossible to get a loan from family and friends. You can get someone who has a good credit score to accompany you to a lender. You can get a loan by using their credit scores. Paying your loan timely helps you build your reputation, and your rating may also increase. When you fail to repay the loan both of you will suffer the consequences.

Peer to peer lending

Peer to peer lending provides online loan services for even those with a bad credit score. Besides these loans have lower interest rates and are borrower-friendly. Most potential lenders post their loans online, and borrowers show interest in acquiring them. The process requires you to indicate the amount of credit that you want and your intended use for it. Lenders, on the other hand, pick borrowers they find appropriate to work with.

Credit union loans

Credit unions are attached to your employer because you have an income and a good character. For these reasons, they can overlook your negative credit status and still give you a loan. The interest loans on the loans are available since they have standard rates for everyone regardless of their credit score. You can take out a loan that you can afford to pay out of your income.

Home equity loan

If you are a homeowner, you can use your home as collateral for your loan. Alternatively, you home accumulate equity annually. Using it for a loan is easy for you especially with a bad credit score will ensure you get a low-interest rate on your loans. It will put your property in danger since if you are unable to pay it can be seized by the lender. To avoid this make an effort to adhere to the payment agreement.

Final word

Despite having a bad credit score, these methods will help you to get a loan still. When you maintain a good repayment discipline, your credit scores improve. There are even more affordable since they charge relatively affordable interest rates on your loan.

How to get a personal loan when you have a bad credit
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