If you have a low credit score, you may feel like your borrowing options are limited. But that’s not necessarily true. Personal loans for bad credit are available from online lenders such as Upstart and Options for folks with bad credit. These are unsecured, meaning they’re not backed by collateral such as a car or house, and they’re typically offered at higher rates than secured loans. However, they can help you cover unexpected expenses or consolidate high-interest debt.

Home Buying Options for Folks with Bad Credit: What Are Your Choices

You also might consider a personal loan from a community bank or a credit union, which has minimum credit scores and may offer less expensive terms than online lenders. In addition, you could tap into your home equity through a HELOC or a reverse mortgage, though that exposes your house as collateral and comes with its own set of risks.

If you’re considering a personal loan, take the time to research and compare options. Avoid multiple hard credit inquiries that can depress your credit scores by getting pre-qualified with lenders to find the most likely to approve you. And keep in mind that it’s generally best to pay off your existing debt before seeking additional financing. Whether that means paying down your credit cards, taking on a side hustle or seeing a credit counselor to work out a debt repayment plan, it’s essential to continue building your credit and keeping your debt-to-income ratio low. Check out our article about six steps to building a strong credit report for more tips.