Personal loan but bad credit
Best Personal Loans for Bad Credit for 2019
When you have bad credit, it seems like it comes back to haunt you at the most inconvenient times. Whether you have a medical emergency or your car gets totaled, there may come a time when you need extra cash fast.
To help you with your search, we’ve compiled a list of the best online personal loans for bad credit. With this type of installment loan, you will receive higher interest rates than borrowers with good credit. But, they can sometimes be used to consolidate credit cards with even higher interest rates.
Keep working on repairing your credit and look for a bad credit loan with affordable terms. You don’t want to get yourself into further financial difficulty, but a personal loan actually could help improve your FICO credit score if you make your payments on time.
on BadCreditLoans.com’s secure website
Rather than being a direct lender, BadCreditLoans.com serves as a loan marketplace.
The typical loan range is only between $500 and $5,000 and the loan terms are short, making them akin to online payday loans. In fact, your repayment term could be as short as three months, or as long as five years.
Here are some of the requirements the lenders through BadCreditLoans.com are looking for. You need to be at least 18 years old, a legal U.S citizen, and have a steady income for the last 90 days (either through a job, disability or Social Security).
You’re never under any obligation to accept any offer you receive, so you can make sure it fits your budget before making a decision.
on PersonalLoans.com’s website
Similarly, the loan amounts start off as low as $500 and go up to $35,000 depending on your needs and how much you qualify for. Loan terms are quite flexible, starting at six months and lasting up to 72 months (or six years).
PersonalLoans.com works with three different types of lenders, each of which has different minimum requirements. P2P lenders require a minimum credit score of 600 and you must also earn at least $2,000 a month in verifiable income.
Both installment lenders and bank lenders require just a 580 credit score, although with a bank loan you’ll need at least $3,000 in income. For all loans, you must be at least 18 with a social security number, regular income, and a valid checking account.
on NetCredit’s secure website
Rates and term lengths with NetCredit vary depending on the state in which you live. In general, expect to start around 36%. In some states without rate limits, you might see that number jump up to 155%.
Alabama, Arkansas, Arizona,California, Washington, DC, Delaware, Florida, Georgia, Idaho, Indiana, Kansas, Kentucky, Louisiana, Michigan, Mississippi, Missouri, Montana, Nebraska, North Dakota, New Mexico, Ohio, Oregon, South Carolina, South Dakota, Texas, Utah, Virginia, Washington, and Wisconsin.
Income and credit requirements are flexible, so it’s a quick and easy way to access personal loan funds, regardless of your credit score. So if you have bad credit but need a personal loan, you could potentially qualify for a loan through CashUSA’s network.
Lenders through this website offer personal loans for as little as $500 or as much as $10,000. APRs range from 5.99% and 35.99%. Additionally, you can find repayment terms lasting anywhere from 90 days to 72 months — a broad range to choose from.
You need to be 18 years old and have a valid banking account. This is used for both depositing your funds and automatically withdrawing your monthly payment on the due date. You also need to make at least $1,000 after taxes each month.
If they do, you can review the loan terms directly through the lender’s website. The details vary from lender to lender, so check carefully to find out if there are any fees or other important policies to be aware of.
While there are flexible credit score requirements, you will need to meet a series of financial history requirements. For instance, you can’t have an account for more than 60 days late and no recent bankruptcies.
On top of that, you’ll need to prove that you have a consistent source of income. If you do meet all of the requirements, NorthStarCash could connect you with a personal loan between $1,000 and $10,000.
If you don’t like what you see, there’s absolutely no obligation to take out the loan. If you do, you simply sign a loan agreement with the lender. Then you can receive your loan funds anywhere between one and five business days.
on Avant’s secure website
Avant is a solid lender for borrowers of any credit type. The minimum credit score requirement comes in at just 600 on the FICO scale. If you’re in that lower bracket, expect to pay on the higher end of their interest rates, which range between 9.95% and 36% APR.
Most borrowers with this lender actually report quick upticks in their credit scores. Why? More than half of all Avant loans are used to consolidate debt. Users report an average of a 12-point jump in credit score within the first six months of having the loan.
on LendingPoint’s secure website
24 to 48 months
Finally, applicants must live in one of the following states: Alabama, California, Colorado, Delaware, Georgia, Michigan, Missouri, Montana, New Jersey, New Mexico, North Dakota, Ohio, Oregon, South Dakota, Texas, Utah, and Washington. If you meet these basic qualifications, then you’re a strong candidate for a LendingPoint loan.
LendingPoint’s application process is quick and easy. Just pull together some basic documents, like your proof of employment and income, recent bank statements, a voided check, as well as your driver’s license.
Once you sit down to apply online, it should take no more than five minutes. If you’re approved, you’ll be provided with different loan options to choose from. Pick one and receive your funds as soon as one day later.
on OneMain’s secure website
Up to 60 months
The amount you can borrow depends on where you live, but you’ll find the scale goes anywhere from $1,500 to $25,000. Each loan does come with an origination fee anywhere between $25 and $40, and it’s more expensive for smaller loan amounts.
This may seem like a cumbersome step. However, if you already have bad credit, you may find it helpful to compare loan offers with a professional to help decide how different options can affect your payments.
Once you get your OneMain loan, you have flexible payment options each month. You can pay online or through the OneMain app, at a branch, through the mail, or even at a Walmart Service Desk. However, there is a fee each time you pay by debit card or at a Walmart.
How to Get a Personal Loan with Bad Credit
Even with bad credit, there are several places you can go to look for a loan. One option is a local bank or credit union, especially if you’re already a member. You’ll likely need to go apply in person but smaller financial institutions often have less stringent lending guidelines than larger ones.
Another option is to get a co-signer. Some personal loans allow you to add a second borrower to the application to include their credit and income to improve your chances of approval. The loan will also appear on their credit report, however, so any late payments or delinquencies affect them as well
Finally, consider an online lender. This is oftentimes the easiest and most convenient way to apply for a personal loan with bad credit. That’s because there are lenders who specifically work with credit challenged individuals.
What to Look for in an Online Lender
Unfortunately, the Internet is riddled with scammers and predatory lenders, but there are several steps you can take to avoid getting into trouble. In most cases, you should also avoid taking out a payday loan.
You should never be asked to pay any fees upfront before receiving your loan funds. In fact, reputable lenders deduct their origination fees from the loan funds, so you never pay anything except your monthly bill.
A final tip is to check and see if the lender reports to the major credit bureaus. This doesn’t imply whether they’re trustworthy or not, but it does help your credit score if your timely payments are regularly reported.
What to Expect with a Bad Credit Loan
When you start looking for online personal loans, it’s important to be aware of a few different things. The lower your credit score is, the higher your APR will be — both your interest rate and often your origination fee.
If you have really poor credit, you might only qualify to borrow $1,000 or $2,000. Pay careful attention to your actual loan needs and what your monthly payments look like. If it is really going to pinch your budget, it may not be worth it.
This is especially true if your lender requires you to use collateral for a secured loan. That’s how many lenders defer the risk of making a bad credit loan. They have you use your personal property to secure the loan — whether it’s your car, boat, or savings account.
In the event you default on your loan, the lender then takes possession of that collateral to offset the cost of the loan. This really ramps up the stakes of a bad credit loan, so just be sure to proceed with caution.
However, if you pay off the loan quickly and on time, those regular payments could positively influence your credit report. This will put you on the path to better credit (and consequently, better credit offers in the future).