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If you’re looking for a personal loan but have less-than-perfect credit, it may be tough to find an affordable option.That doesn’t mean you should give up. If you need the money for a true emergency expense or other use, you can find lenders that offer personal loans for bad credit. (For example, FICO defines a “poor” credit score as anything below 580.) But beware: In some cases, personal loans targeting those with bad credit can have annual percentage rates, or APRs, that are much higher than the average personal loan, so you’ll want to be selective and compare multiple lenders whenever feasible. And before you accept a personal loan, it’s important to compare offers for their APRs, fees, loan terms and monthly payments as well as for transparency. You deserve and need to know what you’re getting into. The lenders we’ve picked as the best personal loans for bad credit all offer prequalification options that let you preview your estimated rate without a hard inquiry on your credit reports. Keep in mind that if you officially apply, the lender may pull a hard inquiry at that time, and your final terms may change. Also keep in mind that these loans are not necessarily available in all states. Check your Approval Odds for a loan Get Started
Best for larger loan amounts: PersonifyWhy Personify stands out: If you’re looking to borrow more than a few hundred dollars through a personal loan, Personify could be a good option. This lender offers personal loans of $500 to $15,000, depending on where you live. Keep in mind that Personify may offer different terms on Credit Karma. Here are some more details about Personify’s personal loans.
Read our full review of Personify personal loans to learn more. Check your Approval Odds for a loan Get Started Best for building credit: OportunWhy Oportun stands out: If you’re looking to build credit from scratch, Oportun may be a good option for a personal loan because you don’t need to have credit scores to apply. Oportun also reports personal loan payment history to credit bureaus, so you may be able to establish positive credit history as long as you make your loan payments on time. Take note before starting an application with Oportun that it’s important to check the terms of any prequalification offer closely. (Remember, also, that the terms of a prequalification offer are not guaranteed — your final offer may be different.) Here are some other things to keep in mind about a personal loan from Oportun.
Read our full review of Oportun personal loans to learn more. Best for educational resources: NetCreditWhy NetCredit stands out: NetCredit provides a variety of educational articles and resources to potential borrowers as well as budgeting tools to help you track expenses. This may make the lender an appealing option if you’re looking to learn more about how credit works or get your budget on track. Here are some other things to think about if you’re considering a personal loan from NetCredit.
Read our full review of NetCredit personal loans to learn more. Best for short-term loans: Possible FinanceWhy Possible Finance stands out: If you’re looking for a personal loan that’s an alternative to a payday loan, Possible Finance is a good place to start. The lender offers small loans that have relatively short repayment periods — about two months — but give you more time to pay off your loan than typical payday loans allow.
Learn more in our full review of Possible Finance. Things to know about personal loans with bad creditWhether you want to consolidate high-interest debt, finance a home improvement or take care of an emergency cost, a personal loan may help. Here are some things to know if you’re considering applying for a personal loan with bad credit. Compare loan termsIf you have bad credit, a personal loan may cost you more because lenders may see you as a greater credit risk. Since personal loans for people with bad credit can be more expensive, it’s especially important to compare loan terms to find the best deal. Here are a few basic terms to pay attention to.
Also consider the lender’s reputation, especially if you’ll be borrowing from a lender that’s marketing loans for bad credit. The Better Business Bureau has information about many lenders, and you can check the consumer complaint database maintained by the Consumer Financial Protection Bureau to find out if people have filed complaints against a lender you’re considering. Should you take out a personal loan if you have bad credit?While qualifying for a personal loan can be challenging and expensive for someone with bad credit, borrowing may make sense in certain situations. A key question Is whether the loan option will not only help you now — but won’t hurt you financially in the long term. This can depend upon the loan terms and the loan amount, as well as what you’ll use the loan for. For example, a personal loan for someone with bad credit could be helpful if …
In each case, the cost of borrowing can determine whether a personal loan makes sense. With a high-interest personal loan, consolidating may not be worth it if the loan doesn’t actually provide any savings. Should you take out a loan to pay off credit card debt? Should you consider a payday loan?If you need money right away, need a small loan or have been denied a personal loan because of your credit, you may be tempted to try a payday loan. A payday loan is a short-term loan for a small amount, usually $100 to $500. With payday loans, you typically give the lender a post-dated check or electronic access to automatically withdraw money from your bank account. And the loan is usually due on your next pay date, along with fees. Depending on the state, payday lenders may charge from $10 to $30 per $100 you borrow. A payday lender won’t necessarily perform a credit check with the major credit bureaus when you apply for a loan. While that may make it easier to get a payday loan when you have bad credit, the high cost could make it difficult to repay. High-cost payday lending is prohibited in some states. Other states set limits on how much payday lenders can loan, maximum loan terms and finance charges. Before applying for a payday loan, explore all other alternatives first, such as borrowing from a credit union, signing up for overdraft protection on your bank account or working with a consumer credit counseling service to work out a payment plan with creditors. What can you do if you’re denied a personal loan?If you’re denied a personal loan with bad credit, you have some options.
If you’re denied credit because of information in your credit reports, you should receive what’s called an adverse action notice from the lender, giving you an explanation. This can help you understand why you were denied and inspire you to comb through your credit reports and see where your credit stands. How we picked these loansWhen we looked for the best personal loans for bad credit we considered factors such as ease of the loan application process, interest rates, fees, loan amounts offered, loan terms and lender transparency. Check your Approval Odds for a loan Get Started About the author: Paris Ward is a content strategist at Credit Karma, providing readers with the latest news that will aid their financial progress. She has more than a decade of experience as a writer and editor and holds a bachelor’s… Read more. Can you get a line of credit with bad credit?While you may be able to get approved for a line of credit with low credit scores, that doesn't necessarily mean you should. There may be other options for you like a secured line of credit, a personal loan or payday alternative loan — but remember, some of these options can come with serious drawbacks.
What credit score do I need for a personal line of credit?Personal lines of credit are typically reserved for consumers with a good credit score, which is 670 or higher using the FICO scoring model. Since personal lines of credit aren't secured by an asset like your car or a house, your credit is weighed as your ability to repay what you borrowed.
What's the easiest loan to get with bad credit?The easiest loans to get approved for would probably be payday loans, car title loans, pawnshop loans, and personal installment loans. These are all short-term cash solutions for bad credit borrowers in need. Many of these options are designed to help borrowers who need fast cash in times of need.
What kind of personal loan can you get with bad credit?Types of loans for bad credit. Secured loans. With a secured loan, you'll have to offer your lender an asset as collateral, like a car, a home or even a savings account. ... . Unsecured loans. ... . Joint personal loans. ... . Payday loans. ... . Cash advances. ... . Bank agreements. ... . Bad credit home equity loans. ... . HELOC loans for bad credit.. |