Yusra3
VIP Contributor
Having a poor credit score can make it difficult to qualify for a personal loan at a reasonable interest rate. However, there are some options and strategies that may help if you have bad credit:
Check Your Credit Report
Request your free annual credit reports and scan for any errors that could be unfairly hurting your score. Dispute any mistakes with the credit bureaus.
Apply with a Co-signer
Finding a co-signer with good credit to apply jointly can increase your approval odds. But the co-signer is equally responsible for repayment.
Seek Out Credit Unions
Credit unions are nonprofit and may be more willing to consider other factors beyond just your credit score for approval.
Consider Secured Loans
You may qualify for a secured personal loan by putting down collateral like a savings account deposit or vehicle title to reduce the lender's risk.
Explore Peer-to-Peer Lending
P2P lenders like LendingClub match borrowers with individual investors who may take a more individualized approach to evaluating applicants.
Research Lenders for Bad Credit
Some online lenders like Avant or Rise specialize in personal loans for borrowers with subprime credit scores.
Be cautious of exorbitant interest rates and fees that make repayment extremely difficult. And make sure to shop around and compare lenders' terms for the best possible deal.
Check Your Credit Report
Request your free annual credit reports and scan for any errors that could be unfairly hurting your score. Dispute any mistakes with the credit bureaus.
Apply with a Co-signer
Finding a co-signer with good credit to apply jointly can increase your approval odds. But the co-signer is equally responsible for repayment.
Seek Out Credit Unions
Credit unions are nonprofit and may be more willing to consider other factors beyond just your credit score for approval.
Consider Secured Loans
You may qualify for a secured personal loan by putting down collateral like a savings account deposit or vehicle title to reduce the lender's risk.
Explore Peer-to-Peer Lending
P2P lenders like LendingClub match borrowers with individual investors who may take a more individualized approach to evaluating applicants.
Research Lenders for Bad Credit
Some online lenders like Avant or Rise specialize in personal loans for borrowers with subprime credit scores.
Be cautious of exorbitant interest rates and fees that make repayment extremely difficult. And make sure to shop around and compare lenders' terms for the best possible deal.
