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Poor Credit History Loan: How to Secure a Loan despite Your Bad Credit

Having a bad credit history can make life difficult. It can leave you feeling trapped and unable to progress in life. However, it doesn't mean that you cannot secure a loan to meet your financial needs. If you are struggling with a poor credit history, there is hope. This article discusses how to secure a loan despite your bad credit.

Understanding Poor Credit History Loan

Poor credit history loans are specifically designed to assist individuals who have an unfavourable credit score. These loans provide a safety net for people who fail to meet the criteria of traditional lenders. Lenders that offer loans to people with poor credit history understand that financial hiccups can happen to anyone. Therefore, the criteria for securing the loans are more forgiving.

How to Secure Poor Credit History Loans

Just because you have a poor credit history does not mean that you cannot secure a loan. Below tips will help you secure a poor credit history loan:

Improve Your Credit Score

Before applying for a loan, it is essential to check your credit score. You can obtain a free credit score from any credit bureau. Once you have your score, it is advisable to take steps that can help improve your rating. Ensure you pay all your bills on time, reduce your credit utilization ratio and dispute any errors on your credit report. By improving your score, you increase your chances of getting a favourable loan.

Provide Collateral

Providing collateral can be a viable option when looking for a loan. Collateral provides security to lenders, which guarantees that the loan will be repaid. In the event that one defaults on the loan payment, the lender can seize the collateral to recoup the loan amount. However, one should ensure that the loan amount does not exceed the collateral's value.


A co-signer is an individual who guarantees repayment of a loan if one fails to make payments. Co-signers must have good credit and should be willing to take responsibility if you default on the loan. Most lenders prefer co-signers who have a relationship with the borrower, like family members or friends. Co-signers make lenders more confident about lending to someone with a poor credit history.

Credit Unions

Credit unions are non-profit financial cooperatives owned by their members. Credit unions are more flexible than traditional banks and can offer loans even to individuals who have bad credit histories. They also offer lower interest rates than traditional lenders. However, one has to become a credit union member before accessing their services.

Apply for a Loan Online

Online lenders provide a fast and convenient way of accessing loans. Many online lenders specialize in bad credit history loans. They use non-traditional methods to determine creditworthiness, which may be helpful if your credit score is poor. However, one should be careful when applying for online loans. Do proper research and read reviews to find reputable lenders.


In conclusion, bad credit history can be a source of frustration, but it does not mean that you cannot access loans. With the above tips, you can increase your chances of securing a loan despite having poor credit history. It's important to do your research and shop around for lenders that are willing to work with you to find the best loan option.

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