How to Get a Loan With a Bad Credit Score

How to Get a Loan With a Bad Credit Score. There are many credit companies that make loans available to people with bad credit scores. Even if you have a bankruptcy on your record, it's still possible to get a loan. The biggest concern, however, is that typical "bad credit loans" have very high interest rates, forcing you to take responsibility for high monthly payments.

Try to improve your credit score before you need the loan, if you have the time. Simply reducing your use of credit cards in the month prior to taking out a loan can help, as long as you continue making payments as normal. Even getting your score up by only a few points can be worthwhile.

Consider borrowing from a source other than a bank or other commercial lender if you can. Friends and relatives are less likely to charge high interest, although you should consider a personal loan just as important and pay it off as quickly as you can manage.

Ask a relative or friend with a good credit score to co-sign for a loan with you. A co-signer is responsible for paying off the loan if you can't or don't for any reason. If their credit score is higher than yours, you will be able to get a lower interest rate on your loan.

Take out a secured bad credit loan. A secured loan will require you to put up some kind of collateral prior to receiving any money, but will offer lower interest rates than an unsecured loan. However, if you default on the loan or cannot make your payments, you will be forced to give up your collateral.

Get an unsecured bad credit loan if you cannot qualify for a secured loan. Shop around to get lower interest rates, but it will be hard to find any unsecured bad credit loan that does not have very high interest rates.


  • If you get a loan and take care to meet all payments on time and in full, the loan can actually help your credit score.


  • If your credit score is low, most lenders will only offer you high interest loans. Not only will you be making higher monthly payments, but the loan will also cost you significantly more in the long run. Make sure that you are getting your loan from a legitimate lender. There are numerous lending scams that specifically target desperate individuals with bad credit scores.

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