Personal Loans For Bad Credit

Personal loans for those with bad credit are not at all uncommon.
personal loans bad credit
22 Oct 2016

Personal Loans For Bad Credit – You Can Still Get Them

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Many wrongly assume that, if their credit is bad they simply will not qualify for a personal loan. Personal loans for those with bad credit, however, are not at all uncommon.

It is true that the number of lenders willing to give you the loan will diminish with a lower credit score. And it is also true that the rate you are offered will be affected by your credit history, as well as by your income (ability to re-pay). However, if you are willing to search diligently and compare your options, both online and off, you can usually find an agreeable lender who will offer you reasonable terms.

“Bad” vs. “Poor” Credit

While rates and policies vary from lender to lender, here is a general assessment of what you will likely encounter:

  • “Average” credit might get you an APR of around 20%
  • “Bad” credit (a score of 580 to 629) might get you around 28%
  • “Poor” credit (below 580) will often not be approved, but where it is, rates could be as high as 36%

Banks and credit unions will sometimes offer personal loans, but you may be able to locate a lender online as well and process the loan much more quickly. Be careful to research the company since scammers and predatory lenders do exist, but don’t give up either. There are a lot of legitimate lenders out there, and there are many “loan broker sites” that can find you the right lender.

Typically, you can get a personal loan with bad credit based on factors like a steady, verifiable income, low debt, and having a U.S.-based bank account. As personal loans are unsecured, lenders rely on such factors to gauge your ability to pay, despite your having had some “turbulence” in your past credit history.

A Co-signer Can Help Secure the Loan

personal loans bad creditEven with bad credit, you can probably find a willing lender, but in order to get a lower interest rate and better terms, it is sometimes necessary to get a friend or relative to co-sign on the loan.

The co-signer must have good credit him or herself and must be willing to become liable for the debt should you fail to pay. This should motivate you to be extra careful to make all your payments on time.

Also remember that, while paying back a personal loan can help your own credit recover, if you fail to pay it back, both your credit and that of your co-signer would suffer.


Getting personal loans with bad credit is not nearly as difficult as many suppose. Other factors like a steady income or a co-signer can help secure the loan, and comparison-shopping can locate optimal rates.

So say goodbye to your financial woes, and allow Bonsaifinance to help you get the online personal loans that fit your needs today!