How to Find a Personal Loan With Poor Credit

By Stephanie Mojica

  • Overview

    Finding a personal loan with poor credit can be difficult, but not impossible. Standard job and income requirements for most personal loans are even more stringent for applicants with a checkered credit history. Except in the worst credit cases, many people with poor credit should still be able to qualify for some type of personal loan.
    • Step 1

      Visit your local bank or credit union and ask to speak to a lending officer. Explain that you have credit problems and wish to get a personal loan. If you have good income, a history with the bank, and have been at your job for a while, then you may qualify for a personal loan. However, some banks will outright decline your application or request collateral such as a savings account, certificate of deposit (CD), retirement account, or car title.
    • Step 2

      Apply online with American General, a popular finance company for individuals with poor credit (see Resources). This lender typically works with employed people of all credit types, and may consider unconventional collateral such as a computer.


    • Step 3

      Consider using a loan matching service such as Choice Personal Loans (see Resources). This website allows lenders who will consider individuals with bad credit to bid on your business.
    • Step 4

      As a last resort, visit a payday lender. While hundreds of payday loans are available online, most require fairly quick repayment that is deducted from your checking account. Some local payday lenders will work out installment plans, but it depends on the business. Payday lenders do not do credit checks. However, many cash advance lenders have high interest fees, require quick full repayment plus interest, and are considered a short-term fix.
    • Skill: Challenging
    • Tip: If you recently got out of bankruptcy, you may have an easier time qualifying for a loan than someone whose credit report contains open and unpaid collection accounts.
    • Warning:
    • Do not take a traditional personal loan or payday personal loan without a full understanding of the payments you'll be required to make.

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