How to Get a Personal Loan With Bad Credit

• Requirements. Research lenders' qualification requirements, like minimum credit score, to determine whether you’d qualify. Some lenders’ minimum credit score requirements start at 580 — which falls within the bad credit range — while others only accept applicants with scores in the 700s.
• Loan details. Compare APRs, loan amounts and repayment terms to find lenders that offer the loan you need. Personal loan APRs are generally from 6% to 36%, but bad credit loan APRs are likely to be on the high end of that range. Loan amounts can reach up to $100,000 for qualified borrowers, but bad-credit lenders tend to cap loans at $50,000. Repayment terms are typically two to seven years.
• Other features. Review helpful loan features, such as credit-building tools, fast funding and secured and joint loan options, to find the right fit.

Compare bad-credit lenders

• Government-issued ID such as a driver’s license.
• Social Security number.
• Recent pay stubs.
• W-2 forms.
• Federal income tax forms.
• Recent statements from your bank accounts.

• Interest rates will be higher. Lenders typically charge higher APRs for borrowers with low credit scores, as the chart below shows.
• The loan amount may be lower. Loan providers typically will approve a lower amount of cash to customers with poor credit ratings.
• Loan repayment period may be shorter. Providers will likely offer shorter repayment terms based on clients who have “poor” or “bad” credit ratings.

• Add a co-signer. If a trusted friend or family member has better credit and stronger income than you, they may make a good co-signer. A lender considers both of your financial and credit profiles on a co-signed loan application. A co-signer can’t access loan funds or payment information, but promises to repay the loan if the borrower doesn’t. If you fail to make payments, both of your credit scores will suffer. A lender may offer this option if you don’t qualify for the loan on your own.
• Add a co-borrower. A co-borrower is similar to a co-signer — their credit and income is considered with yours on a personal loan application — but they can access loan funds and payment information. Both borrowers are equally responsible for the loan, so late or missed payments affect both of your credit scores. If a lender offers joint loans, you’ll be asked to enter your co-borrower’s information when you apply.
• Add collateral. Some lenders offer secured personal loans, which can help you qualify or get a lower rate. Banks and credit unions typically let borrowers use savings or investment accounts as collateral, while online lenders provide auto-secured loans. If you fail to repay a secured loan, the lender can take your collateral — and your credit score will take a hit — so weigh the benefits of getting the loan against the risk of losing the account or vehicle.
• Include all sources of income. Many lenders let you include non-employment income on an application, including alimony, child support, retirement or Social Security payments. Lenders prefer borrowers who can comfortably make loan payments, so a higher income may mean a better chance of approval.
• Ask for a small loan. It’s best to only ask for what you need and can afford to repay. If a lender thinks the loan amount you requested would overextend your finances, your application is more likely to be declined.

• Out-of-the-blue calls or text offers for loans. If you receive a phone call or text with a personal loan offer from a provider with whom you’ve had no previous contact, treat with extreme suspicion. 
• Loan offers asking for money upfront. No credible loan originator will ask you to pay money or purchase gift cards before receiving a loan. It’s a sure sign of a scam.
• Advertisements that tout ‘guaranteed approval’ for a loan. As nice as that sounds, no credible loan provider would guarantee you cash before going through an approval process.