The majority of people need some kind of loan at some point in their life—in order to simply pay the bills or pursue various financial goals utilizing available startup capital—but for those with bad credit, finding loans can be extremely difficult, and it takes a knowledgeable approach to successfully borrow money with bad credit. Studies show that more and more Americans are finding their credit scores riddled with black marks and demerits that end up severely limiting the lending options open to them. When you have less than stellar credit, here are some ways to deal with loan approval requirements in creative ways.

Explore Informal Lending Options

One of the first steps for making a detour around excessively restrictive lending requirements is to find specific lenders that are more set up to offer bad credit loans to those with subpar FICO scores. One avenue to explore is micro-lending, where individual investors lend money to borrowers in small increments, taking the place of the large banking institutions that people used to go to first for personal loans, car loans and other types of lending. Another option is to go to a local credit union with an existing affiliation and ask for a special bad credit personal loan, working around any issues with a bad credit score that raises the risk rating for the borrower.

Show Income and Assets

For many people who have bad credit, lending needs to take a slightly different form. Many lenders will reassess the situation if they see that the borrower has significant assets, from savings in a cash account to equities, fund investments, or physical property like real estate and vehicles. In some of these cases, the borrower will pursue a secured loan where the collateral is tied to the lending agreement. Always be careful with these loans, since the physical assets can be seized by the lender if the loan is not paid.

Think About Using a Cosigner

A cosigner is someone else who basically takes on the risk for a borrower with bad credit. The idea is that the cosigner will know the person well and be able to handle the risk of late payments or payments at all. In practice, cosigning can be extremely risky, so think of it only as a measure of last resort for getting necessary loan money.

Look into Applicable Government Programs

Sometimes, a federal or state government program will provide an easy solution for those with poor credit who need money for a specific use. For example, a specific kind of FHA Title 1 loan program allows for federally insured personal loans to be used for home repair exclusively. With programs like these, homeowners have options for getting necessary loans, even if their credit is somewhat bad.

Think about all of these strategies for getting around a strict lending requirement when your credit is standing in the way of getting the money that you need. Loan approval is a complex process, and there is more than one way to eventually get qualified for a loan. Trial and error will likely end up helping the borrower achieve personal loan approval for securing a financial future.