Finding Personal Loans for Bad Credit: Our Top Recommendations and How to Qualify
Qualifying for a personal loan can be a daunting task for individuals with poor credit or a short credit history. However, there are loan providers that offer bad credit loans with flexible lending criteria and affordable rates. These loans are available for borrowers with fair credit, poor credit, or no credit history at all.
OneMain Financial is one such provider that offers both secured and unsecured personal loans, giving borrowers with spotty credit histories more options. They promise quick funding timelines, with borrowers potentially receiving their funds within an hour of closing on the loan. The company has received thousands of positive Trustpilot reviews, highlighting their professionalism and efficiency throughout the application and funding process.
Upgrade, on the other hand, offers long repayment terms ranging from 24 to 84 months, making it a suitable choice for individuals looking for lower monthly payments. They also have a quick application and funding process, although they do charge origination fees that can impact the amount received.
Upstart is best for borrowers with a thin credit file, as they use advanced underwriting software to review alternative data like education and work experience to help qualify applicants. While they have received positive reviews on Trustpilot, some users have reported issues on the Better Business Bureau’s website.
LendingPoint stands out for its rate drop feature, which may lower the interest rate after making on-time payments for at least six months. This can help borrowers save money on interest costs over the life of the loan. The company has received positive customer service reviews and offers a quick turnaround time for funding.
Happy Money specializes in loans for paying off credit card debt, offering lower interest rates compared to credit cards. However, they have a longer turnaround time for funding, and some users have reported difficulties in making additional payments towards the loan principal.
Avant is best for early repayment, as they offer a refund on the administration fee if the loan is repaid in full ahead of schedule. They have earned positive reviews on third-party websites and offer loans to borrowers with fair credit.
LightStream offers a Rate Beat Program that promises to beat a competitor’s interest rate by 0.1 percentage points. They also have some of the longest repayment terms in the industry, although they have received negative feedback on customer service.
LendingClub allows co-borrowers on loan applications, which can improve the chances of qualifying for a loan with poor credit. They have restrictions on how the loan funds can be used and charge an origination fee.
PenFed Credit Union offers low APRs on personal loans, making them a cost-effective option for borrowers with poor credit. They do not charge an origination fee and have received positive reviews for customer service.
When choosing a loan provider, it is essential to consider their reputation, loan offerings, and prequalification process. It is also crucial to understand the pros and cons of bad credit loans, as they often come with higher fees and interest rates compared to traditional loans.
Overall, getting a personal loan with bad credit is possible, but it’s essential to research and compare different loan providers to find the best option that meets your needs.