How to Get a Personal Loan if You Have Bad Credit or No Credit

Bad credit can haunt you for years, restricting your financial options and spilling over into your everyday life. It can keep you from borrowing money, buying a car, renting an apartment, and more. And having no credit at all can be just as damaging. It’s hard to get anyone to lend to you when you have no credit history to show. In both cases, there is hope. You can get a personal loan. Here’s how to do it and why you should.

Online Personal Loans Have Simple Approval Requirements

One of the most important ways you can still access loans with bad credit is by going online. If you have already tried banks and other traditional lenders, you have probably been rejected and disappointed. If you haven’t tried those resources yet, don’t bother. Skip right to online lenders to get personal loans that you can actually get approved for.

The reason these loans will work better for anyone with limited or bad credit is that the approval requirements are really simple. You need to have a certain minimum income from your job and a bank account. In addition to a couple other basic things, this is all it takes to get approved. When requirements are simplified, more people get approved.

Try Payday Personal Loans That Aren’t Focused on Credit

Many of the online personal loans you’ll come across in your search are in the form of payday loans. These are great ways to get approved for a loan if your credit isn’t perfect or if it’s non-existent. A payday loan is not focused on your credit score. Lenders for these loans don’t typically have a credit score minimum that borrowers need to meet in order to get approved.

This doesn’t mean that every online payday lender will skip over a credit check, but most will. They just aren’t concerned about credit score. They focus instead on your income and making sure you earn enough to be able to afford a small personal loan. If you earn a regular paycheck from your job, have a decent job history and a bank account where the money can be deposited, you shouldn’t have trouble getting approved.

Using a Small Personal Loan Now Can Build and Repair Credit

Now you know how to get a personal loan with bad credit, but why should you? If you use these loans responsibly, which means repaying them in full and on time, you can actually build up better credit. This is useful if you have little or no credit history because it will help you build positive credit that will help you later on. And, if you have poor credit, little by little, using personal loans every once in a while will reverse that bad score and help build it back up. Look online for the personal loan you can actually get and that will help your finances in the process.