You Can Get a Personal Loan Even With Bad Credit

If you have a bad credit history and are in need of an infusion of cash to get yourself through an emergency or address a pressing need, you will probably want to consider taking out a bad credit personal loan. But who will lend to a person with bad credit? First of all, unless you have a cosigner with excellent credit, you can be sure that traditional lenders such as banks and credit unions are not going to give you a personal loan. So, you will have to either get a cosigner or find a private, non-traditional lender. Another consideration will be how much you need to borrow to get you over your financially tough time.

Preparation for Getting a Bad Credit Personal Loan

Whether you are going to use a cosigner or a non-traditional lender you have to prepare. Your first move is to figure your budget in terms of income versus your usual monthly obligations. Do you have enough left over to comfortably make a loan payment every month? Then you have to figure out how much you need. Do not ask for more than you absolutely need. You can go online and find loan calculators that will help you figure loan amounts. Next you need to pull your credit reports from the three credit reporting agencies, Experian, Equifax and TransUnion. Check for any discrepancies and fix them. This also gives you an idea of what lenders will think of you financially when they are researching your approval.

Documentation Needed for a Bad Credit Personal Loan

After you have reviewed your credit reports, you need to gather other documentation. You will need two forms of government issued identification. You will need proof of employment and salary (pay stubs or direct deposit statements), proof of residency (usually a utility bill with the same address as on your I.D.), and proof of a valid and active bank account (usually a checking account with direct deposit). When you get this documentation gathered, along with your credit reports and the amount you need, and how much you can afford to pay every month, you are ready. How much you need will tell you which route to take.

Finding a Cosigner for Your Bad Credit Personal Loan

Generally, if you need an amount in excess of $1500 you are probably going to need a cosigner. Your cosigner would have to present all the documents listed above that you have also gathered for yourself. The cosigner should be gainfully employed with a good salary and have an excellent credit history. The cosigner should be well aware that if you default on the loan for any reason it becomes his or her responsibility to make it good. It may be hard to ask a friend or family member to assume such a role. Having such a cosigner would virtually guarantee the award of such a loan, but you should not ask for anyone to be your cosigner if you know you are not going to be meeting your obligation. This will result in bad blood and ruined friendships.

Finding a Non-Traditional Lenders for Bad Credit Personal Loans

If you do not feel comfortable asking a friend or family member to be a loan cosigner and the amount you need is less than $1500, you could approach online lenders. Use your browser to search for personal loans and you will find scores of lenders willing to execute bad credit personal loans. As with any online transactions, make sure the website is secure and that your lender is reputable. All the documentation you will need is outlined above and the entire process can be done online. You can have your cash in as little as 24 hours. Whether you choose a cosigner or a non-traditional lender, you can get a bad credit personal loan.

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