Do you need a personal loan but your credit is less than average? According to Time, access to credit is increasing, but it's still difficult to get a good loan without good credit. You are not out of options yet. If you're wondering where you can get a loan with bad credit, you've come to the right place. This article will provide the resources you need to obtain the funds to meet your expenses and cover any unexpected emergencies.
Loans for People with Bad Credit
Having bad credit can put you in a tough situation when you need a personal loan. Since your credit is an important factor that determines how trustworthy lenders perceive you as along with what interest rate you may qualify for, it's important to try your best to improve your credit when you can.
...access to credit is increasing, but it's still difficult to get a good loan without good credit.
Nevertheless, there are quite a few loans for people with bad credit. Unsecured loans for bad credit allow you the opportunity to obtain a loan quickly despite your credit score. You may be subject to higher interest rates of course, but as long as you can manage to make payments on-time it may be worth a try.
How to get a Loan with Bad Credit
If you're wondering how you can obtain a loan with bad credit, there are a few options you can look into. Today, getting a loan with bad credit is not as difficult as it used to be. However, it's important that you weigh all your options carefully and evaluate your situation to understand what you can and can't handle.
For example, a loan for $1500 with a very high interest rate may not be the best option for you, but a smaller loan amount like $350 that you plan to pay back during your next pay period may be more doable.
Depending on your situation, you can try a local credit union especially if you have been banking there for a while. Credit unions tend to be more lenient than private banks and take more time to evaluate other aspects of your application in detail instead of just focusing mainly on your credit score.
Another option would be peer-to-peer lending. Peer-to-peer lending has been around since 2005 and allows you to apply for a loan with bad credit because you borrow directly from an individual instead of an institution. It usually operates on an online platform where borrowers list a loan amount they wish to receive and why they need it. Lenders then review loan listings and choose the ones that meet their criteria. The downside about peer-to-peer lending when you have bad credit is that it will be harder to convince a lender to take a chance on your and give you a loan.
If you're wondering what the best option is for taking out a loan when you have a bad credit score, it's through a lender that caters to applicants with bad credit. That way, you don't have to worry about explaining yourself and convincing someone to give you a loan. Certain loan companies will be understanding of your situation right off the bat and willing to offer you solutions quickly.
You can find a variety of resources and companies listed on our website that allow you to apply for a loan with bad credit. Since they specialize in assisting applicants with low or poor credit scores, there won't be as many surprises as there would be if you applied through a traditional lender.
Finding Poor Credit Loans
If you have poor credit, a unique loan option to consider would be Vouch. Vouch helps you obtain a loan by building a network of trusted friends and family who can vouch for you in times of need. In order to receive a personal loan for poor credit through Vouch, you'll need to get at least one person to sponsor you by including their name and choosing the amount of money they agree to pay if you are unable to pay the loan back. Similar to co-signing, by using this alternative method of determining creditworthiness, Vouch is able to accept applicants with poor credit scores at or below 600.
Securing Personal Loans for Fair Credit
If you've had issues with your credit in the past that have been resolved or lots of revolving debt, you may have fair credit. Avant is company that offer loans for people with fair credit. They offer flexible rates and terms for loans and have lower interest rates and fixed monthly payments. Avant offers a wide variety of personal loans including debt consolidation loans, home improvement loans, emergency loans and more. The good thing about their emergency loans is that there are several different repayment plans ranging from two years to five years so you won't have to worry about having to pay back your loan almost as quickly as you took it out. While taking a longer time to pay back your loan will result in paying more interest, you can always make extra payments or pay off your loan early before your term ends.
Best Loans for Bad Credit
When it comes to finding the best loan for bad credit, comparing loan options side-by-side can help. Springleaf Financial is one of the best bad credit loan companies that offer loans to borrowers with less than perfect credit scores (often with scores under 600). Springleaf has been in business for 95 years and typically offers secured and unsecured loan amounts ranging from $1,500 to $10,000
If your credit score is below 500, your offers may be extremely limited and you'll subjected to stricter terms. Our bad credit loan comparison tool lets you compare information about various different lenders based on your geographic area, what type of loan you'd like and your credit situation. To use it, you can start by adjusting your desired loan amount and loan term. Then, compare factors like APR, monthly payment details and more.
The purpose of our personal loan comparison tool is to help you determine a realistic option for your situation along with what you can truly afford. It's best to submit a loan application with confidence and be familiar with certain guidelines and expectations in order to set yourself up to receive a positive response from a lender.
For more resources and information, you can check out some of our other articles about bad credit loans along with our personal loan reviews.