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Getting a Personal Loan with Bad Credit

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Created on
April 6, 2023


What’s Inside

People often require personal loans to buy a house or pursue higher education, but a poor credit score can delay the personal loan application. However, there are loan providers who offer loans even with bad credit. Other options to obtain a loan include getting a co-signer or adding collateral.

Here are the details on how to get a personal loan with bad credit.

How to Get a Personal Loan if You Have Bad Credit?

Find a Co-signer

To get a personal loan, you can ask a trustworthy friend or relative to act as your co-signer or guarantor. This person will pay your loan if you cannot. However, your co-signer must have a good credit score and history, as well as enough funds to cover the loan expenses. Discussing all the loan details and expenses with your co-signer is recommended for loan approval.

Add Collateral to the Application

If you offer collateral, like shares, property, or other assets, when applying for a loan, your chance of approval increases. The bank will use the collateral to recover the amount in case you default on the loan payments. Therefore, it's crucial to know the precise value of the collateral you offer.

Ask For a Smaller Loan

With a low credit score, it's best to ask for a smaller loan to ensure quick repayment. This increases your chances of getting approved for a personal loan since lenders may decline requests for loan amounts that don't match your financial situation.

Showcase Your Earning Potential

Despite poor credit, you can show a high earning potential to the lender when requesting a loan. This demonstrates your ability to make proper EMI payments. If you have a stable job or successful business, provide financial proof to the lender for faster loan approval.

Fix Your Credit Score

Improve your chances of getting a personal loan approved:• Cut unnecessary expenses• Avoid using credit cards for daily purchases• Pay off existing credit card debt on time• Use cash instead of credit, whenever possibleThese steps will boost your credit score, help you manage your finances better, and allow you to negotiate the loan amount with the lender.


Please take your time and choose the lender (or loan provider) wisely for a successful personal loan application. It's also essential to keep improving your credit score for future loan approvals.

Get a Personal Loan in Minutes

You can get an instant loan directly to your Savings Account through the Fi Money app. These are pre-approved personal loans made available to select users with good credit scores. On Fi, this process is 100% paperless, and the loans are provided at competitive interest rates — where each user remains in control with complete visibility of all details. Plus, you can avoid EMI late fees by setting up automatic in-app payments. Our partner bank, Federal Bank assigns an eligible loan amount to each user (up to ₹5 lakh).

Frequently Asked Questions

1. Can You Get A Personal Loan With A Credit Score Of 500?

It's difficult to get a personal loan with a credit score of 500. You'll need a CIBIL score of 750 or above. However, the lowest acceptable credit score might be 600 for some lenders.

2. What Is The Lowest Credit Score For A Personal Loan?

The lowest credit score for a personal loan falls between 720 and 750. However, the lowest acceptable credit score might be 600 for some lenders.


Fi Money is not a bank; it offers banking services through licensed partners and investment services through epiFi Wealth Pvt. Ltd. and its partners. This post is for information only and is not professional financial advice.
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Getting a Personal Loan with Bad Credit


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