Getting personal loans for people with bad credit aren't impossible. If you're in a situation that requires extra funds and your credit score is on the low side or you don't know it - here are some things you should do before applying for a personal loan with bad credit.

Get Your Credit Report and Follow These Personal Loans Tips

You should check your credit score every year from each of the three major credit bureaus -- Experian, Equifax and TransUnion. If you haven't checked your score lately, you might be surprised that it could be higher than you think. You can get your credit reports for free every 12 months. Go to www.annualcreditscore.com because it's the official site explicitly directed by Federal law to provide them. Besides, you might have mistakes on your report that seriously lower your score. The Federal Trade Commission reports that 1 in 5 Americans has false information on their credit report.

Talk to Your Bank or Credit Union

Now that you're armed with your credit score you can shop around and explore your personal loan options. It's usually best to start with your bank or credit union first because if you have an account with them, they may be a bit more relaxed on their lending standards. You could qualify for more money if you have a direct deposit account with them.

Research Online and Shop Around

There are lots of online options for bad credit personal loans. It's best to read reviews about these companies and see if there are a large amount of complaints at the Better Business Bureau. Sometimes finding local lenders with an actual physical building might be a great solution if you're uncomfortable with trusting online lenders. If you do find a personal loan lender for bad credit online you should always talk to a real person.

Ask Friends or Family

This could be a last resort for most people. But, if you have a good relationship with your family - they might lend you money. When you do borrow from friends or family be sure that you both agree on payment terms and write it down. Both of you need to keep track of payments and develop a system that works.

Know How Much You Can Afford

Borrow responsibly and be certain that you can afford the payments and seriously ask yourself if you really need the money. Write down your budget and consider the amount of time it will require you to pay it off.

Consider Local Loans for People with Bad Credit

If you're considering a payday loan, installment loans for bad credit are sometimes a better option for people with bad credit. Installment loans allow for longer payment terms and could get you more money faster with lower payments. The high interest of payday loans and short-term schedule has the the Federal Trade Commission and many financial experts calling this a last resort lending option.