1. Get Personal Loans with Home Equity
If you own your own home, one of the best ways to get a personal loan with bad credit is to use the equity you have built up in your home. When your credit is iffy, this is usually the best method to get a loan that has a respectable interest rate.
Just make sure that you are careful about taking out loans on your home. If something unexpected happens that leaves you unable to pay off the loan, you could lose your house. Therefore, you always must take out a reasonable amount that you know you will be able to afford to pay back even if your income diminishes or unexpected expenses crop up.
2. See Your Friendly Neighborhood Credit Union
Another smart way to get a low-interest personal loan is to take advantage of your local credit union. Credit unions are non-profit lenders who are always looking to help people out when they are in need. You should always make the credit union one of your first stops when you are looking for a personal loan. Try to shop around with as many different credit unions as you can gain access to. This will help ensure you find the loan with the most generous terms.
3. The Power of P2P Lending
Peer-to-peer lending has transformed the financial world in the 21st century. No longer are consumers held over the barrel of the banks and corporate lenders who are often looking to take more interest than they deserve. With P2P lending, you can find regular people just like you who have some extra money lying around. They are looking to lend it to people who need it for a reasonable rate of return. PSP lending is convenient because you can take care of everything online with a minimum of hassle. For a quick, easy loan with good terms it is hard to beat P2P lending when you need a personal loan.
4. Turn to Friends and Family
You may want to get by with a little help from your friends when you need some quick cash. A personal loan from a friend or family member can be a wonderful way to get a personal loan in a flash with no hassle. One of the best parts of going this way is that the loan will likely be for no interest or token interest at worst. Just make sure that you never borrow more than you can afford to avoid letting the loan ruin a good friendship or family relationship.
5. Get a Co-Signer
If you are having trouble securing a personal loan with your bad credit, you can always appeal to someone who cares about you to co-sign the loan. Co-signers are a smart idea because they allow you to get a bigger loan for a lower interest rate. Again, this can become a nightmare if you don’t pay back the loan. It would negatively impact the co-signer’s credit as well as your own.