Qualifying for a personal loan with bad credit is most times very difficult. Some personal loan lenders allow borrowers with bad credit to apply for loans with a co-borrower or a co-signer. While most personal loan lenders require borrowers to have a credit score of 670, some lenders allow credit scores as low as 580 and 600. Different lenders allow this, but what are the best personal loans for bad credit you should consider?
Depending on the borrower’s credit score and other factors, interest rates are determined. Because of this, there is a big chance that borrowers with bad credit will likely face higher interest rates than those with good credit. Instead of searching for the best interest rates as a borrower with bad credit, you should look out for borrowers who offer rates your score qualifies for.
In cases where you identify more than one lender you qualify for, it is best to compare loan limits, interest rates, and loan repayment terms for the best that fits your needs. However, this write-up contains insights on the best personal loans for bad credit.
6 Best Personal Loans for Bad Credit
Different personal loan lenders are willing to offer loans to borrowers with bad credit either through a co-borrower or other factors. Identifying the best lender will help you find the best for your needs as well as the best loan with flexible repayment terms. The following are six of the best personal loans for bad credit.
Upgrade
This personal loan lender is an online offer of accessible mobile and online banking services. It has higher APRs compared to other online lenders. However, upgraded personal loans are available to borrowers with bad credit. It offers loan amounts ranging from $1,000 to $50,000 and has a repayment term of two to seven years.
LendingPoint
This is an online lender that offers loans to borrowers who are based in eligible states. It offers loan amounts ranging from $2,000 to $36,500 along with a repayment term ranging from 24 to 72 months. While this lender has high maximum APRs, it makes its loans available to borrowers with bad credit.
Universal Credit
Universal Credit is an online lender that offers personal loan amounts ranging from $1,000 to $50,000 through its partners. It offers this loan amount with repayment terms ranging from three to seven years depending on your loan amount. Irrespective of whether you have good or bad credit, this lender makes their loans accessible.
Upstart
This lender is identified as one of the best personal loan lenders because of its machine learning-based approach to the qualification of a borrower. Upstart has competitive rates and is a good option for borrowers with bad credit.
It also offers flexible loan options with loan amounts ranging from $1,000 to $50,000, allowing borrowers to borrow enough and not more than what they need. Ranging from three to five years, this lender allows borrowers to repay their loans.
Avant
Avant is a consumer lending platform that offers both secured and unsecured loans to borrowers through a third-party bank. It offers loans to middle-income borrowers with bad and good credit. This is because it only requires a minimum credit score of 580 to qualify. It also offers low maximum loan amounts along with flexible repayment terms of two to five years, making it a considerable option for borrowers.
LendingClub
This is a peer-to-peer lender identified as the largest online lender for personal loans. It has high APRs and no autopay discounts. It allows applicants to select how much they intend to borrow from their loan amounts, ranging from $1,000 to $40,000, along with loan terms ranging from two to five years.
FAQs:
Can I Get Personal Loans With a Credit Score of 550?
Most lenders do not offer personal loans to borrowers with a credit score as low as 550. In this case, selecting a lender that allows a co-signer or a co-borrower with good credit may increase your chances of getting approved for a personal loan with a 550 credit score. However, in other cases, consider taking steps to improve your credit score before applying for a personal loan.
Can you get a loan with no credit check?
Most loans, including personal loans, require a credit check, while others don’t. Lenders that don’t do credit checks are mostly more focused on the borrower’s ability to repay the loan, while some will likely require collateral to issue the loan. However, it is possible to get loans with no credit checks through payday loan stores, online lenders, car title loans, and pawn shops.
Are There Risks in Bad Credit Loans?
Each time you get a bad credit loan, you take on some level of risk. This is because some bad credit personal loans are secured; they require collateral, increasing your chances of losing your property if you can’t repay the loan.
Other personal loans are unsecured loans; they do not require collateral, but you will be faced with the risk of damaging your credit score further if you fail to pay your monthly payments on time.
