You may have heard that you can’t get a personal loan with bad credit, but it’s certainly not easy. It is absolutely possible to get one, but you may have to take some steps to increase your chances. Here are some tips to give yourself the best chance of landing that loan even if your credit is sub 580.

You Will Need to Put in Extra Work

Even though it is possible to get a personal loan with bad credit, you may not be able to do so right out the gate. You might have to complete a few steps to increase your chances, starting with getting a copy of your credit report. This will give you a strong picture of why your credit score is low and what you can possibly do to increase it. In some cases, it may be a small debt that is lowering your score that can easily be repaid and give your credit a boost.

Other reasons your credit score is low can be due to a high debt-to-income ratio, poor history of payments, or larger past-due accounts. Uncovering the reason will give you a game plan moving forward.

Use a Co-Signer

One of the best ways to get a personal loan with bad credit is using a co-signer. This is generally a friend or family member that has stronger credit and income than you. However, it’s essential to know: if you fail to pay that personal loan on time or at all, the co-signer will be on the hook for the payment. You may also have a hard time finding a loved one to sign on with you, especially since it will affect their credit as well.

Individuals may also have an easier time finding a personal loan if they have something to put up for collateral. This could be a vehicle, for instance, but the vehicle will be taken if you fail to pay off the loan.

Shop Around

Whether you have poor, good, or great credit, it is always a good idea to shop around for loans. The qualifying criteria vary from bank to bank and credit union to credit union, and your first stop may not be the best offer for you, especially if you’re declined. It’s essential to do your research and apply to the right lenders to increase your chances of scoring a good loan, fewer fees, and a lower interest rate.

It’s suggested that you generally start with your bank here, as they often have access to your current credit cards, income, and debt. They have an accurate picture of what you can afford. Even if you feel it’s a good offer, make sure to ask other lenders what they have for you. Online lenders can also be an excellent option as they tend to offer competitive rates, even to those with bad credit.

Can You Get a Personal Loan With Bad Credit?

Bad credit doesn’t automatically rule out a personal loan approval, but it does apply some roadblocks to the process. By working your way through these three ideas, you can improve your chances of getting an acceptance letter that works in your favor.