Learn 7 Steps to Getting a Personal Loan with Bad Credit

3. Investigate your borrowing options

If you can’t locate a cosigner, consider whether a personal loan is the best option. You could also pick a credit card with a 0% APR. If you qualify, you may be able to pay no interest for an initial period of time. And in certain cases, getting a credit card is easier than receiving a personal loan. Just keep in mind that if you don’t qualify for a special offer rate, credit card interest can be very expensive, so this isn’t always the greatest option.

4. Contact the lending institutions with which you conduct business.

If you are certain you need a personal loan, you should contact a bank or credit union with which you currently do business. If you have a history with them, they may be more inclined to ignore your bad credit and issue you a loan.

5. Look into lenders who offer negative credit loans

There are many bad personal credit loan lenders who specialize in helping clients with bad credit. While the interest rates on these loans may be slightly higher than those offered to consumers with strong credit, it is generally possible to obtain a loan with fair terms when you need to borrow.

Simply investigate your options to locate a lender and submit a request for pre-approval to see whether you’re likely to get the loan you need at a reasonable rate.

6. Request an in-person interview

If you are denied a loan because of your credit score, see if you can request a meeting with the loan officer. You might be able to persuade them that your previous credit problems were the consequence of an uncontrollable situation that has already been handled.

This will not always work because lenders have stringent rules from which they cannot deviate. But it’s worth a shot, especially if lenders utilize manual underwriting or if you have a good reason for your negative credit, such as a fear of debt that has kept you from creating a credit history.

7. Examine loan terms thoroughly

Finally, if you are approved, be certain that you thoroughly investigate and comprehend the personal loan payback terms. You should ensure that the interest rate is acceptable, the payments are manageable, and the fees are modest. The good news is that if you follow these seven steps, you should have no trouble getting the proper loan for you.