Having bad credit makes borrowing harder, but it doesn’t mean you’re out of options – it typically means fewer lenders, higher interest rates, and more scrutiny of your application.
Credit unions and community banks are often more willing to consider your full financial picture rather than relying solely on a credit score, compared to large national lenders.
A secured loan, backed by collateral like a savings account or vehicle, is usually easier to get approved for than an unsecured loan, since it reduces the lender’s risk.
Adding a co-signer with stronger credit can improve your approval odds and the interest rate you’re offered, though it also means the co-signer is legally responsible if you miss payments.
Before applying anywhere, check your credit report for errors – correcting a mistake can sometimes improve your score enough to change which loans you qualify for.
Whatever option you choose, borrowing at a high interest rate to consolidate even higher-interest debt can still make sense – but borrowing to fund ongoing expenses rarely does.