Searching for the best personal loans for bad credit requires looking closely at the kind of loan you’re agreeing to. Personal loan interest rates, origination fees and lending terms are just a few factors you must carefully consider when choosing the best personal loan.
Use this comparison of some of the best bad credit personal loans to see which personal loan might be right for you. Whether you need money to repair your home or to cover unexpected financial emergencies, here are the best personal loans for people with bad credit:
Lending Club is a peer-to-peer online credit marketplace, meaning your lender will be another individual rather than a bank or other financial institution. Lending Club will act as a broker that puts you in contact with potential lenders. The model appears to be popular, with over 2.4 million customers borrowing more than $35 billion.
The application process can take mere minutes, and you can borrow up to $40,000 with repayment terms of three to five years at interest rates as low as 5.89% APR. But, although there’s no minimum credit score needed, lenders will likely charge a higher APR for borrowers with lower credit scores, meaning you might be pushed toward the higher end of the rate ranges if you have bad credit.
- People in need of large sums of cash
- People who don’t want to borrow from a bank or other financial institution
- A 15-day grace period to make payments without being charged a late fee
- Borrow up to $40,000
- No origination fee
- Personal loans cannot be put toward college education expenses or to make investments
- Online-only lender without branch infrastructure
Avant offers personal loans for poor credit, and it has already served more than 600,000 customers with some $4 billion in loans. Loans can be secured with an APR as low as 9.95 percent in just a few minutes. There is, however, an administration fee that can reach upwards of 4.75 percent.
- People with a very short credit history
- People in need of quick access to funds
- Fast approval
- Funds might be available by next business day
- No restrictions on usage
- Administration fee as high as 4.75 percent
- Late and dishonored payment fees
OneMain Financial’s personal loans require no minimum credit score and include the potential to get a secured loan depending on your finances. This company also includes certain restrictions on how you can use the money — you’re not allowed to use this loan for college tuition, vocational expenses or business expenses, among other things — and the lowest APR available is 16.05 percent. You can possibly get approved in a single day with your funds available the next day.
- People willing to pay higher interest for fast access to funds
- People looking for a bad-credit secured loan
- No minimum credit score required
- Fast approval and availability of funds
- Option for secured loan in certain circumstances
- High minimum APR
- Limits on how funds can be used
PersonalLoans.com boasts that its proprietary technology can evaluate your personal loan needs and connect you with the ideal lender for your circumstances. It offers loan terms as long as six years, the option to borrow up to $35,000 and approval within minutes for many applicants. The minimum credit score required, however, is 600, and you’ll pay a 1 to 5 percent origination fee.
- People with a credit score over 600
- People looking for a long repayment period
- Flexible loan terms of six to 72 months
- Loans up to $35,000
- Approval in minutes
- 1 to 5 percent origination fee
- Minimum credit score of 600
NetCredit doesn’t just offer personal loans for poor credit — it provides financial tools you can use to improve your credit and create a loan that fits your needs. My CreditBuilder is designed to help you improve your bad credit score, the My RightFit Tool enables you to customize the personal loan that works best in your financial life, and the ClearCost for Me tool claims to offer up totally transparent information about repayment terms, fees and interest.
NetCredit offers some of the lower loan amounts at some of the worst terms of the options on this list, however, with a minimum APR of 34 percent — ranging up to as high as 155 percent — and a maximum loan amount of just $10,000.
- People interested in tools and features to help them understand their credit score
- People looking for customizable terms
- Online tools to help improve credit
- ClearCost for Me promises transparency about costs and terms
- My ScoreSaver allows you to check eligibility without affecting credit score
- 34% to 155% APR
- Maximum loan amount of $10,000
Rise positions itself specifically as an alternative to high-interest payday loans for people with low credit and short-term financial crunch. Given that it’s intended for consumers with a financial emergency, the company promises a rapid turnaround from the application process to receiving the money in question, but the terms of the loans involve a very low maximum amount you can borrow as well as very high interest rates. Of the companies listed here, none offers less money or higher rates than Rise.
- People in a financial emergency who need fast cash and can afford a higher interest rate
- Free TransUnion credit score
- Free credit alerts
- Can secure funds by next business day
- APR range of 36 to 225 percent
- Maximum loan amount of $5,000
Lending Point offers up to $25,000 and a next-day deposit on its loans in addition to the option for breaking your monthly payments up into bimonthly payments to make them more manageable. Moreover, there are no restrictions on how you spend the money.
LendingPoint does, however, have a minimum credit score requirement of 600 and charges a 5 percent origination fee. It’s also only available in 32 states.
- People looking for more, smaller payments
- Next-day deposit of funds
- Option to break up monthly payments to make them smaller
- No restrictions on usage
- Minimum credit score of 600 required
- 5 percent origination fee
- $30 late payment fee
- Availability limited to 32 states and Washington, D.C.
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