Ways to Get a Loan with a Low Credit Score

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DES MOINES, IA / ACCESS Newswire / June 24, 2026 / Having a low credit score can make it challenging to qualify for a loan, but it's not impossible. If you need financing and you don't have much credit history or you've had some financial hiccups in the past, it's a good idea to understand your options before you start applying for more credit.

Keep reading as we share four ways to get a loan with a low credit score.

1. Check your credit report for errors

It's important to review your credit report regularly to ensure that your information is accurate. You can request free credit reports from the three major credit reporting bureaus: Equifax, Experian and TransUnion.

There are times when you might find errors like a misspelled name, a wrong address, or a debt that doesn't belong to you. If you find errors on your credit report, you can dispute them with the credit bureau. Include any supporting documentation and explain why you believe the information is incorrect. The credit bureau will investigate your claim and make any necessary corrections to your report. If it's a mistake that impacts one of the credit scoring factors, like late payments or how much credit you're using, it may help boost your score and increase your chances of approval for a new loan.

2. Apply for a secured loan

What is a secured loan? This type of loan requires the borrower to offer collateral, such as a car, home or savings account to the lender. The collateral is then used to secure the loan, meaning that the lender has the right to take the collateral if the borrower defaults. This can make secured loans somewhat riskier for the borrower. However, secured loans often have lower interest rates than unsecured ones and can be easier to obtain, making a responsibly managed secure loan a more accessible option for borrowers with less-than-perfect credit.

3. Find a cosigner with good credit

A cosigner agrees to be responsible for repaying the loan if you default. Often, a cosigner is a family member, friend or other trusted individual. When you apply for the loan, the lender will take the cosigner's credit score into account, which can help you qualify for a better interest rate or higher loan amount.

The risk of using a cosigner is that they will be legally liable for repaying the loan if you default. For this reason, choosing someone you trust and can talk honestly about money with is essential. It's also an extra incentive to make sure you stay on top of your payments to protect your cosigner's financial interests.

4. Try to prequalify

Applying for any type of credit triggers a hard credit check, which can cause a small, temporary dip in your credit score - so you want to be careful you aren't applying for a larger loan than you're likely to receive. But most lenders offer a simple way to estimate the loan amount you might qualify for first through a process called prequalification. Prequalification triggers something called a soft credit check, which doesn't affect your credit score.

It's a good idea to compare offers from multiple lenders before choosing.

Bottom line

It's not impossible to qualify for a loan with a lower credit score, but it can take a bit of work to get there. By doing your due diligence and exploring all your options before you apply, you may be able to secure the financing you need.

Contact Information:

Name: Nagarameshwar J.

Email: [email protected]

Job Title: Director

SOURCE: OneMain Financial