For a lot of people, there are a lot of reasons why they would need a personal loan. It does not matter if one is applying to bear their education fees, to endure the cost of raising a child, to purchase a property, to buy a car or a motorcycle.
Nevertheless, if your credit score is not looking at its best, you may be doubtful of your qualification in getting a personal loan. Not to worry, we have some tips and ways for you to apply for a personal loan, even with a bad credit score. However, it would require some, or quite lots of work.

What is a Bad Credit Loan?

Bad credit loans are an option for regulars with low credit scores, whose borrowing alternatives are limited.

What to Prepare Before Applying a Loan With a Bad Credit Score?

Assemble your details

Basically, get to know yourself and your records. Having a poor credit score, you will understand your position in the eye of the lender. This is to prepare you for the application as well as probable rejections.

Firstly, study your credit score and report. This is to foresee what are the possible perceptions your lenders will create towards you when they go through the same documents.

Keep in mind that the better your credit score is, the higher chances you have to qualify for a greater amount of loan and a lower interest rate. If otherwise, some doors of opportunities will be closed, and you are going to only be left with fewer options.

Secondly, understand what exactly a bad credit score is. On a normal practice, a good credit score is between 700 and 850. While 620 to 679 is considered satisfactory, anything below 580 is taken as a poor credit.


Clean up the black marks on your credit score

Clean up the black marks on your credit score

If you can see a few black marks on your credit score, it is still not time yet that you apply for a personal loan, or any type of loan for sure. Cleanse your credit report and make it free from errors and black marks first.

What you do for that is to settle your existing debt as soon as you can, or at least settle those that you can afford to. If you cannot, then discipline yourself on repayments when it is due. Or you may opt for paying in a higher amount than you usually do. This is to show that in the 12-months of time your credit report is going to show, you seemingly give an impression of readiness and consistency.

Risks are what lenders avoid. Also, what you can do is to set a limit on the count of hard credit inquiries on your credit history.
These hard inquiries cause your score to lessen. Hence, hold yourself down and do not apply for every single loan that comes your way. Do proper research and dig deep into all terms and conditions.


Visit your current bank for a consultation

Visit your current bank for a consultation

Talk to your bank or a credit union that you currently bonded to. This is because these people have familiarized with your credit activities.

Hence, the insights you get from them are transparent and realistic. Other than that, you get a clearer picture of your own financial profile, to see where you stand as an applicant.


Prove you are worth it

Prove you are worth it

As said earlier, lenders want to avoid risky applicants as much as they can. When you can prove them otherwise, you have a high possibility to fit into their clients’ criterion.

Most importantly, the problem with a lot of receivers, they are not realistic with the amount they applied for; hence the interest rates will be too much for them to repay in the long run.

Present your proof of income or have a cosigner. A co-signer will usually calm the lenders; these co-signers act as parties to guarantee the money lenders that you are capable of enduring the repayments within the agreed tenure.


If, in any case, that the actual applicant did not complete their repayment, creditors will turn to these co-signers claiming for the remaining amount.


best lender and the best types of loans

Look for the best lender and the best types of loans

It makes the most sense that you send in your applications only to trusted moneylenders with standards that you can afford to meet.

As have been repeatedly said, loans for ones with poor credit scores will be approved with a higher interest rate. Keep that in mind, plan ahead, do your research, and in this way, you will be good to go.

Types of Loan for Bad Credit Score

Below are the usual types of loans for people with bad credit score:

  • Personal loans

  • Secured loans

  • Unsecured loans

  • Payday loans

  • Peer-to-peer lending



If you are not able to clean up your credit report in time due to other reasons and you are in desperate need of money, listed are the suggestions for you to turn to:

  • Credit Union loans for bad credit
  • Borrowing from family members or friends
  • Home Equity loan with bad credit

Bottom line is, do your research some time before you get a personal loan. Look at your credit reports and existing commitments and start working to cleanse your credit report to raise your credit score. As a person with a lower credit score, it is important that you be realistic when applying for a loan and making sure the interest is bearable for long-term.

With that said, if you are on the search for a licensed moneylender in Singapore to aid you with your personal loan, look nowhere else – Raffles Credit is ready at your service. You may visit their office building, call them up for further inquiries or visit their website here.