How to Get a Loan with a Bad Credit Score


Do you have many unpaid bills? Do you always pay the bills late? If so, you should know that your credit score might be greatly affected. Having bad credit can be incredibly frustrating, especially when trying to earn the lenders’ trust and prove that you can pay the loan promptly.

Obtaining a personal loan, even with bad credit, isn’t impossible. By taking the time to increase your credit score and look for the best lenders, you can still get a loan through the personal loan App. A low credit score means you will get a loan at higher interest rates, but it can still help in emergencies.

Here is how you can get a personal loan even with a bad credit score:

  1. Check Your Credit Rating & Report

It is important to know your credit score before applying for a loan. You can get a free copy of your credit reports from the credit bureaus in India such as CRISIL or ICRA. Review your credit report to ensure you know what lenders check when examining your loan application. Check for issues that may have occurred in the past, including failed payments and closed accounts, and take action to start building a better credit score.

If you discover an inaccuracy or suspect fraud, you can dispute credit report entries with the relevant credit bureaus. The bureaus will collaborate with your creditor to authenticate and investigate disputed data.

  1. Understand the Costs of Getting a Loan with Bad Credit

For those with bad credit, obtaining a loan is typically more expensive. Lenders tend to charge higher origination fees and interest rates to offset their risk in providing such loans, which ultimately translates into an increased annual percentage rate (APR).

When looking for the best loan deal, comparing APRs is essential. While lenders typically advertise a range of APR rates on their loans, ultimately, your credit score and repayment term will play a role in determining which rate you are offered. Considering all these factors, interest rates, fees, and repayment terms help to ascertain what option is cheaper.

  1. Look for the Best Personal Loan Offer

Shopping around for the best offer on a personal loan is a wise move, as lenders tend to offer varying terms. Taking note of each lender’s APR and fees can help you decide which will best suit your needs. For those with bad credit scores, many specialized online personal loan lenders provide loans and other beneficial services such as fast funding and credit-building tools. Comparing different offers is the key to finding an ideal loan that meets all your requirements.

  1. Use a Cosigner

By enlisting an individual with exceptional credit to your loan application, you can improve the odds of approval while attaining a lower interest rate or more advantageous terms. Usually, the cosigner has to agree to cover the loan payments if you fail.

To secure a loan, many borrowers seek the help of someone close to them and enlist them as cosigners. Your chosen cosigner will have to go through the same process you did when applying for the loan: submitting personal information like income records, credit history, and credit score.

Taking out a loan with a cosigner can cause tension in your relationship if you can’t repay the loan amount in full. To lighten this load and keep everyone in the know as your debt is being paid off, maintain consistent communication throughout the process.

Opt for Secured Loans

A secured loan is perfect if you have bad credit and need money. When you provide an asset as a security for the loan, a lender can provide a loan at much lower rates than unsecured loans due to the low risk. Taking out a secured loan can be one of the best ways for those with poor credit scores to access finance without being hit by sky-high interest payments.

However, the downside of getting secured loans is that your asset may be repossessed when you fail to pay the amount in full. Hence, only think about taking out a secured loan provided that you can make all payments on time every month without fail.

Other Ways to Secure a Loan with a Bad Score

Struggling to be approved for a loan and desperately need money? Don’t worry; there are alternative options you can explore:

  • Borrow money from a family member or friend – Asking a family member or close friend for money can be uncomfortable and threaten the relationship. Still, it may also be your best financial option. Though it’s not ideal, having them lend you funds will usually have a lower interest rate than any loan you could obtain from a lender.
  • Get Credit Cards – Getting a credit card specifically for those with bad credit may be an attractive option to pay off medical bills or other expenses, but you could have other good options. While credit cards are usually associated with higher interest rates than personal loans, if you have a better credit score, you could be eligible for more competitive loan terms from lenders.


Obtaining a personal loan can be difficult and costly when you have bad credit. Besides, your chances of getting approved are slim. But with the tips here, you can easily get a loan through a personal loan App even with a bad credit score.

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