Loans For Bad Credit
If you have bad credit, it can be frustrating looking for a loan. Your options are much more limited than someone with an excellent credit score. If you have a poor score, it might feel like all things are impossible. Luckily, there is still hope for individuals with bad credit who want a loan.
Our team of experts gathered the ultimate list of loans that suit a variety of borrowers, regardless of your credit score and history. If you are ready to find the most affordable loan for your situation, keep reading this article to learn everything you need to know.
Top 10 Best Loans For Bad Credit
Read on to learn more about some of the best options for personal loans with a poor credit history. We’ll talk about the best online lenders, the easiest types of loans for bad credit, alternatives to loans, and more. The better informed you are, the better your chance of securing a loan with bad credit. There’s a lot to cover, so let’s get started.
Best Loans For Bad Credit
There are several loan options if you need a bad credit personal loan. We have twelve choices of personal loan lenders for you to examine, all with different options for individuals who need bad credit loans. It doesn’t have to be the end of the world.
Here are our twelve picks for online lenders:
- Jora Credit
- Best Egg
- OneMain Financial
- Universal Credit
- Rocket Loans
These prove themselves in different ways for a personal loan.
Let’s discuss each company in detail to help you determine what you have access to as someone with a poor credit history. Once you understand your options, you can select the best loan for your life. The more you know, the better.
OppLoans is the first choice on this list. They provide excellent help for those in need of money with a low credit score. As a company, they believe that your credit score shouldn’t define who you are.
When you receive a loan through OppLoans, they report your payment history to the three major credit bureaus. When you pay your loan back on time, you have the chance to boost your credit score from inside the loan. They don’t require a hard credit inquiry and won’t harm your credit score if you do qualify for a loan with them.
Through OppLoans, you can borrow up to $4,000. They are an excellent place to turn to if you need a small personal loan for your life. The money can help with many things — car payments, vacations, unexpected medical bills, and more.
If you have a minimum credit score, MaxLend is here to help. They can provide your funds in as little as one day and offer repayment periods of up to nine months. If you want a larger loan, they can provide it. MaxLend offers loan amounts from $100 – $3,000.
There are a few requirements if you want to borrow money from MaxLend. You must:
- Be at least eighteen years old
- Be a resident of the United States
- Have a source of income
- Have an open checking account
These are necessary if you want a quick loan option from MaxLend.
MaxLend offers three ways to pay off your loans. You can use Standard Pay, which allows the repayment to be split into nine monthly payments with no additional action. You can use Payoff Now, which pays off the loan in a single payment. Finally, you can try Payment Plus. This choice permits adding an amount to scheduled money on the calendar.
Unfortunately, MaxLend has an exceptionally high APR. You can expect rates of 471%-841% with every loan taken.
If you want a fast loan, try MaxLend. They have plenty of options for interested borrowers.
Jora Credit is another option if you have a low credit score and need a loan. Although your options may be more limited here than in other locations, they still have something to offer for the average borrower. They are ideal if you need small loans, and they don’t charge significant fees for what they offer.
You can take up to thirty months to repay the loan, which can be good or bad based on your level of responsibility. Some people may find themselves acquiring more debt instead.
There are a few requirements for you to take a loan from Jora. You must:
- Be at least eighteen
- Live in a state where Jora does business
- Have a valid email address
- Have an active and quality checking account
- Have a job or provable source of income
If you meet all these, you are ready to borrow money from Jora.
It’s critical to note that Jora has a high APR. You can expect a rate between 185%-350%. It can be easy to get sucked into high repayments if you aren’t careful, no matter how small your loan is.
If you want a small loan option with tons of repayment time, look no further than Jora. They have plenty of choices for those with bad credit scores who need a little financial help in their lives.
LendingClub is another excellent option if you are looking for financial help with your poor credit score. They offer loans fast with their simple online application process, ideal for anyone with no time to waste. They provide loan amounts up to $40,000 for the average borrower, which may be trickier to get elsewhere for those with a minimum credit score.
Here are a few ways their loans can come in handy:
- Credit card consolidation
- Home improvement
- Balance transfer
- Debt consolidation
These are practical applications.
LendingClub offers a decent APR rate between 8.30%-36%. You have three to five years to repay the loan, a period that can be good or bad depending on the type of person you are. The company works to pay multiple creditors directly and has the potential to offer joint loans to the right person.
If you need a little help with your life, LendingClub is an excellent place to go. They have plenty of options for borrowers, even if you don’t have an ideal credit score.
Next is the company Upstart. They have some of the best bad credit loans on the market. You can borrow up to $50,000, access low monthly payments and rates, and find borrower-friendly features. They require a 580 minimum credit score, however.
If you quality, here are a few loans offered:
- Joint loans
- Secured loans
- Home improvement loans
- Debt consolidation loans
- Credit card consolidation
There’s plenty to access through Upstart.
Many love Upstart because they have reasonable terms for their APRs. Note that they also have an origination fee that varies between 2.9%-8%. If you live in Washington, DC or Virginia, you cannot apply for help on Upstart. Everyone else can go through their simple application process.
Best Egg might have a funny name, but they’re one of the best options for borrowers who need a loan but don’t have a high credit score. Their requirements are a little higher than other locations — you need a minimum credit score of at least 600 to qualify with this company. They offer up to $50,000 in loans if you meet their set-forth qualifications.
There are tons of good things that come with a loan with Best Egg:
- A chance to prequalify with a soft credit check
- Direct payment to creditors if you are consolidating debt
- Both unsecured loans and secured loans
- Range of loan amounts
These make it easier for anyone to access a loan.
Of course, it’s critical to consider the disadvantages of a loan company. Best Egg charges an origination fee and there are no rate discounts for interested borrowers. They also don’t offer borrowers a chance to elect an initial payment date.
Still, Best Egg is one of the most ideal options if you have a minimum credit score. They have many benefits and offer some of the best loan options on the market to those who qualify for them. Turn to Best Egg if you want a reliable loan company for your personal loan.
OneMain Financial is another option for individuals that have poor to fair credit scores. They have lots of options for their borrowers — auto loans, home improvement loans, debt consolidation loans, and more. They are one of the best in the industry and have been around for about one hundred years.
If you are looking for an easy way to get a loan, OneMain Financial is an excellent place to turn. You can get up to $20,000, even with bad credit.
They have unsecured and secured loan options. An unsecured loan does not require collateral from the borrower. On the other hand, a secured loan requires collateral. You may need to provide something to balance out the borrowing, such as a car.
There are a few qualifications required for borrowers interested in OneMain Financial. You must have an ID, social security number, and proof of residence and income. They are a reputable company, capable of putting money in your pockets fast.
Universal Credit offers borrowers money with a minimum credit score requirement of 560. If you don’t have a terrible score but can’t find a place that will give you a loan, Universal Credit is an excellent place to go. They have ideal credit-building features and perks for those who want to consolidate their debt.
Some excellent features come with Universal Credit, such as:
- Direct payment to creditors if you have a debt consolidation loan
- Excellent rate discount options
- Free access to your credit report
- Quick funding options
There’s a lot of help for you at Universal Credit if you are someone with a low score.
It’s also vital to consider the disadvantages of this lender. Universal Credit has an origination fee of 5.25%-8%. And, they only have two repayment options available.
Despite these flaws, there is a lot to love about Universal Credit. They have an APR of 11.69%-35.93% and only require a minimum credit score of 560 to qualify for their loans. You can repay in three years or five years. If you are on the hunt for quality, flexible options for bad credit loans, you can find them in Universal Credit.
Upgrade is excellent because they offer personal loans up to $50,000. You can take steps towards financial security without the stress of explaining your bad credit report to the lender. Upgrade is an ideal choice for those who want a quality company to help them out.
Here are a few loan options Upgrade provides to its borrowers:
- Debt consolidation loans
- Home improvement loans
- Major purchase loans
- Credit card refinance loans
These work well for those in need of
Upgrade offers a flexible choice for its borrowers. You can settle on a fixed monthly payment and select a fixed rate and term for your finances. They have a single APR of 17.98%, which includes a 14.32% yearly interest rate and a 5% one-time origination fee. Their APR is excellent compared to other online lenders offering bad credit personal loans.
Upgrade has an excellent track record with customers across the country. If you like the low APR and loan offerings of Upgrade, they are an excellent company to consider for your loan needs.
Rockets Loans is an excellent place to go if you are on the hunt for fast funding with your bad credit. They are one of the most well-known companies out there and prove it with what they have to offer. It’s possible to get loan approval within seconds, and you can expect some payments within the same day of your application. Rocket Loans works fast.
They offer many online loans, such as:
- Vacation loans
- Auto loans
- Home improvement loans
- Medical loans
- Business Loans
- Debt consolidations
Rocket Loans is ready to help with any of these.
Of course, it’s critical to look at some of the disadvantages. They have an origination fee that can grow up to 8%, which makes the loan more expensive. They also do not allow additional people to sign on to a loan, which makes it impossible for many to apply. You will find limited repayment terms with Rocket Mortgage.
Still, Rocket Mortgage is an excellent place to go if you need help with money, fast. They offer pre-approval almost instantly, same-day funding options, and soft credit pulls for loan pre-approval. You can borrow up to $45,000 with this company.
BadCreditLoans is an excellent free service online that connects people with a bad credit score to reliable lenders who are willing to offer them a personal loan. They have been around for more than twenty years and have tons of experience in the industry. It’s possible to get up to $10,000 from BadCreditLoans, even with troublesome scores.
Here are a few of the loan types they offer:
- Auto loans
- Student loans
- Business loans
- Personal loans
You have a shot at any of these, regardless of your low minimum credit score.
If they find a lender for you, there’s a chance to have access to funds the next business day. The lender selected will determine your APR. As a borrower, you need to meet a few requirements. You should be over eighteen, have a social security number, have a regular income, and have a bank account and contact information.
LendYou is an excellent choice for an online loan marketplace that works with short-term loans. They have a secure way to apply for loans, and it doesn’t take long to hear back. If you work with them, you have the potential to have money in your account the next day.
LendYou offers loans for items like:
- Medical bills
- Auto loans
Whatever you need, you can work with LendYou.
There are a few requirements you need to meet to get an online personal loan from LendYou. You have to be at least eighteen years old, have a valid personal bank account with direct deposit, and make at least $1,000 a month. If you want a loan between $1,000 and $2,500, LendYou is an excellent place to look if you have bad credit.
What Are The Easiest Types of Loans For Bad Credit?
There are a few types of loans that are easier than others to get if you have bad credit. These are usually short-term loans that don’t provide too much risk for the person providing the funds. Secured, co-signed, and joint loans are the easiest, but there are a few specific loans you can find.
Here are the easiest types of loans for bad credit:
- Personal installment loans
- Payday loans
- Car title loans
- Pawnshop loans
These are much simpler than loans that involve more money.
Let’s talk a little more about each loan type. A few of these can be helpful, but others should be looked at carefully by someone who has a bad credit score. The more you know, the smarter your investments can be as you look to borrow money.
Personal Installment Loans
A personal installment loan involves borrowing money and paying it back in little segments. These segments are known as installments and stay the same throughout the investment period. The payments can take place over a few months to a few years. They are typically closed-end, which means that the lender provides all the funds right away instead of spreading out the investment.
These loans vary in size. You can find them for a few hundred dollars or a few thousand dollars. Most personal installment loans are used for items like large purchases, unexpected payments, or debt consolidation. Most companies will require you to show your income, debts, credit score, and other items that pertain to the loan process.
A personal installment loan can be an excellent choice if you are smart with it. Aim for minimal monthly payments and a quick payoff time for the best results for your credit score. If you fall behind on your payments, there could be consequences that impact your ability to find a credible loan in the future.
Personal installment loans are not the only option available to those with poor credit scores. You can also obtain a loan called a payday loan for different results.
There isn’t a set definition for a payday loan. However, most people consider it to be a short-term loan that is less than $500. The money is due back by your next payday, as the borrower assumes you will be able to pay for it once you receive a check for your work—availability for payday loans shifts based on the laws in the state.
There are several features typically associated with a payday loan:
- It’s often repaid in a single repayment on the day of the borrower’s next payday
- Loans are usually for small amounts
- Payday lenders typically do not consider your ability to repay the loan when looking at other life payments
- The loan can come in many formats — cash, check, electronic deposits, or a prepaid debit card
A payday loan is fast and for a small amount of money.
A payday loan can be helpful if you have bad credit and need something fast to cover a bill. However, they can also be dangerous. It’s easy enough to take out $500 and claim you can repay it in a few weeks. However, life can get in the way without warning.
It’s easy to fall into debt and worsen your credit score with a payday loan. It’s best to avoid this type of loan if you can for the betterment of your financial future.
Car Title Loans
Car title loans are another form of loan that involves a lender providing a small amount of money for a short time. These loans involve using significant collateral to obtain finances fast. They can be helpful if you’re running behind and need something quickly. Many companies will offer car title loans, even if you have bad credit.
To get a car title loan, you will need to:
- Give the lender the title of your vehicle
- Pay a fee
- Get money
- Pay it back
It’s critical to pay it back in time.
Car title loans are helpful because it doesn’t take much convincing for a lender to offer money. However, they can be dangerous. If you don’t pay back the money in time, the lender could take your car, and your credit score could drop further. A car title loan can appear in your account fast, but it’s a dangerous game to play if you’re not sure you can repay it on time.
We’ll go over one final loan—a pawnshop loan—similar to the two previously mentioned. You can easily obtain a pawnshop loan, even if you have bad credit.
A pawnshop loan is a fancy name for a collateral loan. If you want to borrow money, you need to provide an item as collateral. Once the lender has that item, they know you have an incentive to pay them back. They will return the item once you have repaid them in full for what they provided.
Here are a few common items people use as collateral for pawnshop loans:
- Musical instruments
Items that are high-value work best for a pawnshop loan.
Some fees come with pawnshop loans. At the end of the day, they’re not worth it. You risk losing an item of high value and paying more than what you originally borrowed. Unless you are desperate, you should avoid pawnshop loans and other similar methods of borrowing money. You could lose more than you gain.
Alternatives To Loans For Bad Credit
If you have bad credit and need money, they are other choices besides traditional loans from companies. Sometimes, it may be in your best financial interest to go with an option that doesn’t involve borrowing money and risking your credit score further.
Here are a few of the best alternatives to loans for bad credit:
- Sell items you don’t need
- Ask for money from a friend
- Request an advance in your payroll
- Get a loan from your retirement account
- Borrow against your life insurance
- Start a side hustle like watching kids and dogs
These can bring in more income without borrowing against your name.
If you have bad credit but don’t want to take out a loan, go for one of these options. You can get money without worrying about owing any company money, interest, or additional fees on the finances you take out.
What Is Considered Bad Credit?
We’ve talked about bad credit personal loans — but what is bad credit? How low does your score have to be for lenders to reject you due to bad credit? Everyone seems to have a different standard for quality credit scores in their company. What is the official consensus on a score that qualifies as bad?
FICO considers a bad credit score to be anything below 580, but you will have trouble in many locations if it’s anywhere below 600. Research has shown that many people with scores this low are late with their debt payment obligations. Companies don’t want to give money to people who won’t pay them back.
What Can Cause Bad Credit?
Many factors can contribute to a poor credit score. Some of them are obvious, while others might come as a surprise to frustrated individuals. It’s critical to know what can lower your score and what you need to do to improve your standing in the financial world.
Here are a few items that can cause bad credit:
- Late monthly payments
- Filing for bankruptcy
- Defaulting on loans
- High credit card balances
- Maxed out credit cards
- Closing cards with credit
- Having only credit cards or loans
These are the worst contributors to bad credit.
Ensure you make all your payments on time and don’t do anything drastic with your finances to keep your credit in check. If you see it going down, look for any of these items in your credit history. If you notice anything suspicious, take action and address it right away. The sooner you correct the matter, the better your credit score will be in the future.
Luckily, there are ways to improve a credit score if yours is less than ideal. Let’s talk about a few of them for your benefit.
How To Improve A Credit Score
If you have a low credit score, there is no need to fear. There are several things you can do to actively improve your credit score and prepare for the future. The higher it is, the better you will be if you need a loan, apartment, or future home.
Here are a few ways to improve your credit score:
- Look over your credit reports
- Catch up on payments
- Try for 30% credit utilization or less
- Limit new credit requests
- Enjoy a thin credit file
- Keep old accounts open and handle any delinquencies
- Consolidate debts
- Try credit monitoring
These will work well in time.
The most critical thing you can do is make your payments on time. The better you are at that task, the more stable your credit score will be. You may not be able to do all of these things — but you can at least make your payments when they are due.
Frequently Asked Questions About Loans For Bad Credit
There are several loans a person with bad credit can get. Some of them are helpful, while others should be avoided for the individual’s financial future.
Here are a few of the loans a person with bad credit can get:
- Payday loans
- Car title loans
- Personal loans
- Peer-to-peer lending
- Payday alternative loans
These are available to individuals with a minimum credit history or poor scores.
Some restrictions apply to these loans that aren’t necessarily beneficial to someone with a low credit score. Sometimes it’s best to take an alternative route instead of asking for a loan from a company.
It’s still possible to get online personal loans with bad credit. Some companies will turn you away, but others are ready to take on people with low credit scores. This number doesn’t have to be your downfall when it comes to investing for the rest of your life.
Three loans are easy to get with bad credit — secured, co-signed, and joint loans. A secured loan is where the borrower offers collateral for the finances. Co-signed loans bring another person into the picture. Joint personal loans are another form of adding another person to the borrowed money.
What Type Of Loan For Bad Credit Fits Your Situation Best?
Compare the best loans in the table above.