Credit scores are designed to tell lenders how much of a risk they’re taking when they loan money to an individual. Which is why it can be more difficult to obtain a loan when you need one if you have bad credit.

However, it’s not impossible. There are several routes you can take to get a loan even if your credit score isn’t as high as you (or the bank) would like it to be.

1. Get a Cosigner

Do you have a close family member or friend with good credit who trusts you? He or she may be able to help you get the funds you need without being the one to loan you the money.

Many lenders are more willing to give loans to someone with bad credit if someone with a good credit score is willing to cosign the loan. A cosigner commits to being responsible to pay the loan if the borrower is unable to do so. This significantly lowers the risk for the lender.

You can ask anyone to be a cosigner, but it’s smart to start with close relatives or friends who are familiar with you and your situation. Remember, when you ask someone to be your cosigner, you are asking them to take on risk, so be prepared for the possibility of them saying no.

2. Look into Secured Loan Options

Another option when you have bad credit and need a loan is to apply for secured loans. In a secured loan, the borrower provides some form of collateral that they must surrender to the lender if they are unable to pay back the loan. It’s often easier to obtain a secured loan, even when your credit score isn’t amazing, because the lender’s risk is mitigated by the offered collateral.

Common examples of collateral used in secured loans include home equity, vehicles, and investments.

3. Consider Qualified Online Lenders

Banks, family, and friends are not the only places to look for a loan. Qualified online lenders can be an excellent resource when you need money with bad credit personal loans in Utah.

Of course, before you trust anyone with your information, it’s important to establish that they are a reputable lender. The first step is to make sure they are registered to do business in your state. Simply confirm their status with your state’s financial institution regulatory bureau.

Read through their website, including the fine print, and make sure you know about any fees or requirements. The URL should start with https, not just http, which indicates that your data you enter on the site is encrypted and more likely to be secure.

If you’re trying to build your credit with the loan, make sure the lender reports to the major credit bureaus.

The Good News

If you obtain a loan and then faithfully repay it, you should start to see a positive impact on your credit score. This will make it easier to get loans in the future. Doing this might require a stricter budget and identifying things you spend too much money on, but the results are worth it.


Contact LIFT Credit to apply for a loan today.

Also, check out rates & terms for Utah, Idaho, and Wisconsin.