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Step 1
Visit a social networking site, such as Prosper. The minimum credit score requirement is 520, although the better your score, the better your chances will be on winning a loan, and getting a good interest rate. Be sure to read the rules of the site and become familiar with the way it works before proceeding.
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Step 2
Ask a friend or family member to co-sign. If you have someone with good credit willing to help you out, this is the best way to obtain a loan with a lower interest rate. Be extra sure you will make your payments, though, you don't want to risk the relationship if you cannot repay the loan.
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Step 3
Apply at your local credit union. Credit unions have different lending rules than a typical banking institution. If you bank at a credit union, and have a relationship with them, you will have a better chance of becoming approved. A personal loan with bad credit has been done many times at credit unions. If you know in advance you may be purusing a loan, research the best credit unions in your area and open an account a few months ahead of time.
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Step 4
Request a rapid rescore. A rapid rescore is an attempt to raise your credit score within days. Pay down your credit cards and then call the credit bureau's to request a rapid rescore. Also try calling any companies in which you have late payments with, and asking them to remove those negative remarks from your credit score. Often they will, if you have maintained a good paying history aside from one or two late payments. Never pay a collection off if it is older than 2 years, this will actually reactivate the account and will temporarily lower your credit score.
