Personal loan can be a life saver for you if you are facing a huge tax bill, unexpected but important expenses such as medical and car repair bills. If you have a good credit score; you should have no problem in getting a personal loan to overcome you current financial disaster, but if you have a bad credit score, you might worry whether you are possible to get a personal loan to resolve your current financial hardship.There are generally two types of personal loans available in the market: secured and unsecured loan. You can still get an unsecured personal loan if you have bad credit score, the only thing you may find a bit troublesome is the interest rate which is slightly higher than any other normal loan. The best way to get a personal loan with bad credit is through secured loan where you need to pledge collateral such as home, land, estate or boat to secure the loan.Due to the unsecured loan does not require any collateral to secure the loan, it makes the loan inherently risky for the lender, hence the amount you can borrow normally will be limited to no more then $1,500. In applying for an unsecured loan, you may not need to undergo a credit check, but you must attach your current income statement and other necessary documents to help the bank officer evaluate your credit worthiness. Although you have a bad credit score, you may obtain the personal loan if you can show you have a steady income and held the same job for a number of years.Your bad credit score will limit you with less choice of good loan packages especially if you are looking for unsecured personal loan. But, if you have asset such as home or boat to pledge as collateral to apply for secured loan, there are many attractive secured loan packages available where you can obtain a personal loan with reasonable low interest rate although you have bad credit score.Bad credit score means high risk to the lender, but if you have collateral, the lender’s risk can be reduced because if any time you default the personal loan, the lenders can carries out the foreclosure process to get back what you have owed them. That’s why it is easy to obtain a secured loan with bad credit. Depending on the collateral’s value, you may be approved a loan with amount up to 85% of the collateral value. However, you should not apply up to the maximum of the allowable loan amount if you do not need that much money to resolve current financial issue. Always remember whatever you have borrowed, you need to pay back with interest, which means the more you borrow the more interest you need to pay. And, if you can’t pay, you will hurt your credit score and making it even worst. In additional to that, defaulting your loan will cause you lose your asset which you use as collateral to secure the loan.SummaryGetting a personal loan with a bad credit is possible for both secured and unsecured loan. Unsecured personal loan will requires no collateral but it has lower limit on the amount you can borrow and higher interest rate. Secured personal loan is the best option to get a low interest rate personal loan but it requires collateral which you may at risk of losing it if you default the loan.