Having a credit score that's considered poor — 579 and below, according to Experian — makes you a greater risk for lenders than someone with a high score. A bad credit score can be the reason your loan or credit application is denied, or you might have to pay exorbitant fees to even get credit.
Although it can be much more challenging to get the credit you need, subprime lenders do offer loans for people with bad credit. Keep in mind, however, that most of these aren't "no credit check" loans — the lender will check your credit just like anyone else applying for a loan. Here are 12 providers who offer personal loans for bad credit.
Avant personal loans are available with terms ranging from 24 to 60 months, and the FDIC-insured WebBank issues them. Most customers who get approved for Avant loans have a credit score between 600 and 700, according to the company's website. Loan amounts start at $2,000 and go up to $35,000, and come with rates from 9.95% APR to 35.99% APR, depending on your creditworthiness. Avant's administration fees range from 1.5 percent to 4.75 percent of the loan amount.
2. OneMain Financial
OneMain Financial offers loans from $1,500 to $25,000, with 24-, 36-, 48- and 60-month terms. Interest rates range from 17.59% APR to 35.99% APR, depending on your creditworthiness, income and expenses. To get a lower interest rate, consider applying for a secured loan with OneMain, but remember you must put up collateral for this type of loan.
Customers with credit scores of 600 and above have a good chance of being approved for a 24- or 48-month loan from LendingPoint. You can borrow from $2,000 to $25,000. LendingPoint doesn't list its interest rates and fees on its website. To qualify for a loan from LendingPoint, you must have minimum annual income of $20,000 and a personal bank account.
LendingClub is an online marketplace that connects borrowers with investors — and it offers loans of up to $40,000 with interest rates that range from 5.99% APR to 35.89% APR. All loans are subject to an origination fee between 1 percent and 6 percent of the loan amount; to qualify, you must be at least 18 and a U.S. citizen or permanent resident — or a hold a long-term visa. In addition, you must have a bank account.
Peerform is another peer-to-peer, online lending marketplace that doesn't require borrowers to have prime credit scores. Its loans are funded by Cross River Bank and are available in amounts from $4,000 to $25,000 with interest rates from 5.99% APR to 29.99% APR. The origination fees will cost you from 1 percent to 5 percent of the loan amount, and they'll based on the loan grade — AAA to DDD — for which you qualify.
NetCredit offers different loan amounts, rates and terms depending on where you apply. In some states, NetCredit has partnered with Republic Bank & Trust Company to offer personal loans with interest rates of less than 35% APR.
In some states you'll pay significantly higher rates. For example, California residents can apply for six- to 48-month loans in amounts between $2,600 and $10,000, with interest rates from 34% APR all the way up to 155% APR. Texas residents, on the other hand, can access six- to 54-month loans in amounts between $1,000 and $10,000, with rates ranging from 34.7% APR to 35.99% APR.
PersonalLoans.com is an online loan request portal designed to connect you with a lender or a lending partner from its network. Loans are available in amounts between $1,000 and $35,000, with terms from 90 days to 72 months. Lenders offer interest rates between 5.99% APR and 35.99% APR. To be eligible for a personal installment loan, you must have a credit score of 580 or higher and a minimum income of $2,000 per month.
8. First Financial
First Financial advertises that its personal loans require no minimum credit score. You must, however, be at least 18 and make at least $800 in monthly income. No upfront fees, processing fees or loan insurance are attached to any of First Financial's loan products. Rates, fees, terms and conditions are not posted on the company's website. You must fill out the online form to receive a loan offer.
OppLoans offers loans ranging from $1,000 to $4,000 with terms for up to 36 months and interest rates from 99% APR to 199% APR. Even with those astronomical APRs, OppLoans does not offer bad credit loans with guaranteed approval. To be eligible for a personal loan, you must live in one of the states OppLoans services, be at least 18 years old, and have a steady source of income and a personal bank account.
BadCreditLoans.com is another online loan request portal that connects customers with lenders who offer personal loans for bad credit. To apply, you must be a U.S. citizen, at least 18 years old and have a bank account and a phone number. Lenders' interest rates typically range between 5.99% APR and 35.99% APR, and loan fees could apply.
CashNetUSA offers personal installment loans for bad credit applicants only in certain states, and the loan amounts, terms and fees vary. For example, in California, loans are available in amounts between $2,600 and $3,500 with terms from 18 to 30 months.
A sample interest rate for a $2,600 loan in California is 187.33% APR. With this rate, financing would cost you $5465.59, and you would pay back a total of $8065.59 to borrow just $2,600. Consumers with less-than-perfect credit are encouraged to apply.
Even is another personal loan portal matching service. Just submit a simple online form and you'll be matched with the best lender offer available. Even provides loans in amounts from $1,000 to $100,000, with 24- to 84-month terms and rates from 4.99% APR to 35.99% APR. The company considers a poor credit score anything lower than 600, and fees and interest rates will vary by state law and lending partners.
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