Financial advisors almost always suggest that having a good credit score is the only way to secure personal loans. However, those who already have poor credit scores and need personal loans urgently may find it difficult to improve their scores overnight. The good news is that with the right strategies, those with bad credit reports can get their personal loans approved. So, here are some ways to secure personal loans with bad credit scores:

1. Get someone to co-sign the loan
The one who co-signs a loan promises to repay the loan in case the lender cannot do so. If the co-signer has a good credit score, lenders may approve the personal loan. One can consider asking trusted friends or family members to co-sign the application.

2. Correct errors in the credit report
Sometimes, the credit report may have errors, which may lead to low credit scores. An incorrect outstanding credit balance or a wrongly credited loan are some of the common errors here. So, before applying for a personal loan, one should check the credit report carefully and get any errors corrected from the bank.

3. Find a co-borrower
Having a co-borrower can increase the chances of loan approval. But this largely depends on the other person’s credit history, so one should choose a co-borrower with a good credit score. It is important to note that the credit scores of both borrowers will dip if they do not repay the loan on time. So, one should apply for a personal loan only after they have a plan in place to pay off the debt.

4. Establish the ability to repay
A recent salary hike or additional income source can increase the capability of repaying a loan on time. So, if there has been an overall increase in income, one should inform the lender about it. There is a chance that lenders may approve the personal loan on this basis.

5. Borrow a small amount
Asking for a large loan with a poor credit score would be met with higher chances of rejection. Lenders may feel more at ease lending a smaller amount here. If savings can cover a part of the required amount, then it is best to borrow only the remaining amount.

6. Pay bills on time for a while
Even a few months of paying bills on time can boost the credit score. If one can afford to wait for some time before borrowing, they should actively try to improve their credit score in this period by not delaying bill payments and improving credit utilization.

7. Be prepared for a hard pull
A hard pull or hard credit check is when a borrower asks to review the credit report before approving a loan. This request is recorded on the credit report, and multiple hard credit checks can affect the credit score. So, it is best to undergo multiple hard credit checks for the same product within 45 days, as this will be counted as one credit check.

8. Borrow with collateral
Banks and other financial institutions may approve loans if the borrower adds collateral, such as a bank account or a vehicle. If the borrower fails to repay the loan within the given time, lenders may take away the collateral. However, one should be prepared to give up the collateral in case they cannot repay the loan.

9. Compare minimum credit requirements
Different lenders may have varying credit requirements, so borrowers should compare terms of multiple lenders. Some may have a minimum requirement very close to the credit score, so there are higher chances of these lenders approving the personal loan.

10. Apply for a loan against property
This is a good option if one has more than one property. If the other house is not occupied and one is looking to dispose of it anyway, one may apply for a loan against the property. Here, the borrower’s property may be confiscated by the lender in case of failure to repay the loan. However, the approval of such loans depends largely on the value of the property and the ability of the borrower to repay the loan.

11. Apply for a gold loan
If one has some gold savings, it is a good idea to borrow with the gold as collateral. So, if unable to repay the amount, the gold may be procured by the lender. Gold loans are usually flexible, so they can be a good option for those with poor credit scores.