Creditors use the credit score when deciding whether or not to lend to someone and how much. Having good credit may qualify someone for favorable interest rates on mortgages and loans and allow them access to other financial products like credit cards or personal lines of credit.
Several credit-related issues can affect a person’s credit rating. The most common credit problems, including bad credit, bankruptcy, and foreclosure, frequently translate to lower credit scores that can be difficult to improve.
What is a Bad Credit Personal Loan?
The term “bad credit personal loan” refers to a type of finance credit loan available to consumers who have poor credit history; such loans are available to those with low credit scores.
Unlike other types of loans, personal loans aren’t subordinate to your general financial standing. A bad credit score doesn’t guarantee you won’t get a low-cost loan, nor does it guarantee that you won’t pay more in interest than necessary when paying down your debt.
Generally, a personal loan is unsecured and counts as a fixed-rate loan, which means it will likely not have collateral, and repayment occurs in fixed monthly installments at a fixed interest rate.
Are There Loans for Bad Credit Borrowers?
People with bad credit scores get turned down for traditional home and car loans often, but there are personal loans designed for people with bad or less-than-stellar credit. Find out what is a benefit of obtaining a personal loans.
The key thing to remember is that your credit score doesn’t tell the full story about your financial health. Many lenders look at both financial and motivational factors when deciding whether to grant a loan or not.
10 Online Personal Loans for Bad Credit
Borrowers with bad credit or poor credit scores can apply to the online personal loan lenders listed here. Here are the best personal loan lenders for bad credit borrowers in the market today:
- Universal Credit
- Best Egg
- Minimum Credit Score: 560
- Estimated APR: 5.94 – 35.47%
- Loan Amount: Loan amounts can range from $1,000 to $50,000
- Max DTR (Debt-to-Income Ratio): 75% or less, comprising your mortgage and the new personal loan calculation.
Upgrade offers a range of low-interest rate personal loans with flexible features designed to appeal to the mainstream market. People with fair to bad credit can take advantage of Upgrade’s loan options and discount opportunities.
- Reliable for consolidation of debt payment obligations. A consolidation loan provided by Upgrade allows borrowers to repay their pre-existing debt directly to creditors. Furthermore, Upgrade offers borrowers 1-5% points off. Discounts as high as 5% are uncommon in contrast to those provided by other loan providers.
- A joint loan and a secured loan are permitted. As long as the co-borrower qualifies, lenders can approve otherwise unqualified applicants with the addition of a co-borrower. This could help streamline the loan process and get credit seekers on a faster road to financial freedom.
Vehicular assets can also be put up as collateral for secured personal loans as a guarantee against failure to pay. Upgrade will evaluate the model and value of your vehicle when reviewing your application, which could qualify you for better rates.
- Flexible repayment options are available. If you meet certain criteria, you may be able to reduce your monthly payment or get a permanent loan modification to extend the term by which you have to pay off your balance.
By offering flexible repayment options, Upgrade can reduce the burden of debt for consumers that are experiencing momentary financial stress, such as a layoff. However, extending your loan’s repayment term without negotiating a lower interest rate can lead to higher interest rates in the long run.
- Customers with checking accounts qualify for substantial rates discounts. If you have an account with the lender’s Rewards Checking, your APR on a personal loan may be reduced by up to 20%. An APR of 30% could be lowered to 24% with that discount, for instance.
- Origination fees apply. Charges 2.9% – 8% origination fee. As with most online lenders, Upgrade charges an origination fee based on your annual percentage rate. But compared to other lenders, Upgrade has a higher origination fee of 2.9% to 8%.
- Late fees. Additional fees may also be charged if repayment is received after the due date.
- Does not guarantee same-day approval. Although some of its competitors advertise instant credit approval, Upgrade requires several days to approve a loan application. Fortunately, most borrowers are credited the same day approval is granted.
- Minimum Credit Score: 580
- Estimated APR: 6.95 – 35.99%
- Loan Amount: Loan amounts can range from $1,000 to $50,000
- Minimum Annual Income (Gross): $12,000
Upstart uses advanced technology and unconventional data to make fast, fair, and accurate decisions. This enables them to make more accurate lending decisions with less reliance on traditional credit score data, which is good news for poor credit ratings.
Recommended for borrowers with minimal to no credit history but with strong earning potential, this innovative financial model presents a great opportunity for millions of people who have been underserved by the traditional financial system.
- Offers multiple payment options. Upstart offers their borrowers the option of choosing between automatic payments, mailed checks, and mobile payments.
- Able to fund loans within one business day. Unlike banks that typically take 3-5 days to make a new loan offer, Upstart can process funding the following business day, giving their borrowers faster access to capital (Exception: education loans, require a three-day wait period.).
Additionally, during the pre-qualification process, borrowers can see their interest rate in as fast as five minutes.
- Offers direct payment to creditors with some loans for consolidating debt. With personal loans used to consolidate debt, Upstart sends your loan proceeds directly to your credit card company.
- Alternative underwriting model. Upstart is unique because they underwrite the risk of a personal loan by making credit decisions based on their users’ potential for economic success rather than using traditional credit measures.
- Borrowers can choose from only two repayment term options. They only offer repayment terms of three and five years. Despite these terms being fairly standard among most online lenders, you cannot reduce the term for lower interest or negotiate an extension in exchange for lower monthly payments.
- Charges origination fee. With personal loans, you can expect to pay some origination fees. This is just one factor that drives up your annual percentage rate through the Upstart loan marketplace.
- No co-signed, joint, nor secured loan options. If you add a co-signer or co-borrower along with the loan, you can get a reasonable rate on your personal loan even if you wouldn’t qualify without one.
Currently, Upstart does not offer secured options, so you might have to settle with an unsecured personal loan.
- Minimum Credit Score: 600
- Estimated APR: 7.04 – 35.89%
- Loan Amount: Loan amounts can range from $1,000 to $40,000
Personal loans from LendingClub are well suited for borrowers with fair to good credit scores and are the best options for credit card consolidation loans. Although, their rates are higher than those of other lenders.
- Provides options for co-signed loans and joint loans. Among the lenders who allow joint and co-signed loan applications, LendingClub is one of the most popular. Loans involving joint borrowers must have a collective debt-to-income ratio of less than 35% for both parties.
- Directly pays creditors when debt consolidation loans are taken out. Borrowers can pay off credit cards and consolidate their debt with a balance transfer loan from LendingClub. LendingClub pays off credit card balances and streamlines consolidation by sending your loan proceeds to up to 12 lenders. All other loan characteristics and rates apply, as well as the same qualification requirements.
- Pre-qualification soft credit check. Getting your rates generates a soft pull of your credit, which has no impact on your credit score. If you’re ready to apply, you can view your rates online via their website.
A hard credit inquiry is only performed once a loan is granted, so you don’t have to worry about your score dipping before loan approval.
- Membership perks. LendingClub’s Member Center is a financial management tool for its customers. Customer Credit Profiles within the Member Center show information such as debt-to-income ratios, credit utilization, and credit scores.
- Repayment terms are only limited to two. A loan can be repaid over a three- or five-year period. The repayment terms for most personal loans from online financial institutions are usually quite short, but this model does not offer you the option to pay less interest by opting for a longer loan term.
- Charges an origination fee. Loans with LendingClub include origination and late fees, but they do not come with a discount for paying on time through autopay, as some lenders do.
- Minimum Credit Score: None
- Estimated APR: 18.00 – 35.99%
- Loan Amount: Loan amounts can range from $1,500 to $20,000
- Average Income: $45,000.
OneMain is regarded as one of the best bad credit loans with cosigned and secured financing. However, their borrowing costs are higher than other institutions. Although they do not appear to offer attractive offers, they can nonetheless be a viable alternative for those who may have difficulty qualifying for other lending options.
- Payment dates can be selected. When signing a loan agreement, the borrower can choose the date for their payment, provided that it is between 45 and 60 days from the day the offer was accepted. The customer can change the payment schedule two more times before the loan expires.
- Joint and secured loans are available. Borrowers can use collateral such as their vehicle for certain secured loans or add a co-applicant to their application. Borrowers may qualify and/or get a lower rate by choosing either of these options. Secured loans require that the vehicle be appraised and insured before approval.
- Loans can be funded in 24 hours or less. Borrowers who provide all the required documentation can receive their personal loan funds the same day their application is approved. Same-day funding is available to applications approved before noon.
- Convenient access. OneMain offers borrowers a mobile application for keeping track of their accounts and managing payments. Despite online lenders being prevalent, it is not common to find lenders with mobile applications.
- Higher interest rates and no autopay discounts. As opposed to other lenders, OneMain does not offer rate discounts to set up automatic payments. Autopay is often offered with a discount, typically 5% or lower, as an incentive for borrowers to pay on time.
- Origination fee applied. Origination fees are a common feature among online lenders like OneMain. A flat fee of $25 to $400 may apply in some states, while a percentage fee of 1% to 10% may apply in others. It is usually higher than what other lenders charge for origination fees.
- Offers no direct repayment to creditors under its debt consolidation loans. Unlike other lenders specializing in debt consolidation, OneMain doesn’t make payments directly to your creditors when you borrow money to consolidate debt. In essence, the borrower is responsible for keeping track of his or her own repayments.
5. Universal Credit
- Minimum Credit Score: 560
- Estimated APR: 8.93 – 35.43%
- Loan Amount: Loan amounts can range from $1,000 to $50,000
- Income: No minimum income requirement
Universal Credit Offers bad credit loans combined with credit building resources. As a subsidiary of Upgrade, this lender also administers Universal Credit loans.
Universal Credit and Upgrade have many similarities, but when it comes to borrowing, Universal Credit is easier to qualify for when you have bad credit or a lot of debt. Upgrade loan features are available to Universal Credit customers once their loan application is approved.
- Provides rate discounts with direct creditor payments on debt consolidation loans. Universal Credit pays off your other high-interest debts when you consolidate them with a Universal Credit loan, meaning you only have to make one payment each month. As a bonus, you will also benefit from a rate discount of 1 to 2 percentage points. Some lenders direct their payments to other creditors, but few offer discounts.
- You have the option to change your payment date. When you get a Universal Credit loan, you won’t initially be able to choose your payment date; however, the company says you can later change it at any time. That means you can move your payment date to better fit with your payday and expenses.
- Access your credit score for free. Universal Credit borrowers can assess their credit scores for free using Upgrade’s credit score simulator and monitoring services. While lenders can give you your credit score quite frequently, you are less likely to find lenders who also provide simulator tools and tips. By paying attention to your credit score you can understand what behaviors improve or damage it.
- Existing customers are entitled to discounts. As a direct subsidiary of Upgrade, Universal Credit offers discounts on loans to customers with a Rewards checking account – up to 20 percent off in APR. This means that a loan with 30% APR could be slashed down to 24%.
- Approval of a loan can take some time. In some cases, you can receive funding as soon as the next day, depending on the lender. Loans can be funded by Universal Credit on the same day a loan application has been approved, though approval may take several days. Typically, debt consolidation loans can be sent directly to creditors in two weeks or less, depending on the lender.
- No option for a co-signer, joint loan, or secured loan. Collateral, co-signers, or co-borrowers are not permitted on loan applications through Universal Credit. You may qualify for a lower rate, a higher loan amount, or a lower tax rate if you add collateral or a co-applicant with higher credit or income. Unlike Universal Credit, the majority of bad credit lenders provide some if not all of these options.
- Minimum Credit Score: None
- Estimated APR: 27.74 – 35.95%
- Loan Amount: Minimum loan amount at $300 up to $10,000
Oportun’s technology is based on a proprietary platform that allows the company to make near-real-time decisions on loan applications.
Management has said it does not conduct hard pulls on an applicant’s credit history and uses nontraditional risk-based scoring metrics based more on debt-income ratios.
This option is great for obtaining smaller bad-credit loans.
- Various options are available for co-signing, joint lending, and secured loans. A co-signer or co-borrower may be added to a borrower’s application, or a vehicle may be pledged as security for the loan. A combination of any of these may improve your chances of qualifying for the loan or reducing the rate. Defaulting on any of these options will have consequences.
Cosigners could be held liable if you fail to pay, whereas secured loans allow lenders to take your vehicle.
- Credit newcomers are accepted. Oportun claims it aids in building borrowers’ credit history; therefore qualifying borrowers don’t need a credit score. The lender determines your borrowing ability by assessing factors such as your income, rent, and utility payments. Those with bad credit are not eligible for this loan. But when you apply, Oportun will still consider your credit score if you have one.
- Involvement in the community. Oportun is a federally certified Community Development Financial Institution. In addition to providing more resources to customers, some lenders offer complimentary financial coaching.
- Hardship program. Several hardship programs are available to help borrowers who are having financial difficulties. By deferring payments or rewriting the loan, Oportun can reduce interest rates and monthly payments and extend the repayment term in response to particular circumstances.
To be eligible for the program, customers must meet specific eligibility requirements. For example, losing your home or job, being unable to work, or missing work are examples of circumstances qualifying for the grant.
- Currently only available in a few states. There is an online application process for Oportun, but it is only available to residents of 12 states at this time.
- Payment dates cannot be changed or selected by borrowers. Payment dates are assigned to borrowers based on their payment schedules, but this date cannot be changed once the loan agreement has been signed. Even if the option isn’t included at the time of the loan origination, lenders usually allow borrowers to modify their payment dates at least once.
- Direct payments to creditors are not available with debt consolidation loans. As opposed to other debt consolidation lenders, they won’t pay your creditors when you borrow cash to consolidate your debt. This means that a borrower must keep track of her or his own repayment schedule.
- Only 2 out of 3 major credit bureaus are notified of payments. The company relays the borrower’s payment details to Experian and TransUnion, but not to Equifax. All three major credit bureaus receive payment reports from most lenders. Taking care of your bills on time, you build your credit score, thereby becoming eligible for loans and credit cards at better rates down the road. It is possible that creditworthy activity will not be acknowledged if a lender does not report to all bureaus.
- Inflated personal loan interest rates. Oportun personal loans can reach a rate of almost 36 percent, which is considerably high and favorable with other online lenders. Comparing your financing options before you borrow will help you find the best deals.
7. Best Egg
- Minimum Credit Score: 600
- Estimated APR: 5.99% – 29.99%
- Loan Amount: Loan amounts can range from $2,000 to $50,000
Personal loans from Best Egg are most appropriate for high earners with fair to excellent credit scores to consolidate debt or fund major or emergency purchases. Loans cannot, however, be used to fund securities or postsecondary education.
- Obtaining funding and approval faster. Typically, approvals are made the next day. After approval, money is generally available within one business day.
- Affordability for a wide range of borrowers. The loan application process and account management can both be completed online six days a week, and customer support can be contacted via live chat and phone.
- Charges associated with additional services. With its low APR of 5.99 percent, Best Egg can be a good option for those who want a low-cost loan, but its origination fee contributes to higher loan rates. The origination fee can range between 0.99 percent and 5.99 percent. Further, If you miss a payment for three days or more, you will incur a $15 late payment fee.
- Minimum Credit Score: 640
- Estimated APR: 5.99% – 29.99%
- Loan Amount: Loan amounts can range from $5,000 to $40,000
Payday loans are intended to reclaim credit card debt that has accumulated over time, not to create more debt. A good credit rating is a requirement for these loans. If you have not previously defaulted over 90 days within the last 12 months, you are eligible.
Take advantage of Payoff’s better interest rates and quick turnaround times set it apart from high-street lenders because it offers unsecured personal loans that are screened entirely online.
- Tools for managing finances. You can also receive quarterly check-ins to discuss any concerns or questions you have regarding your finances and debt through Payoff’s assessment program.
- Charges are minimal. Payoff representatives can assist you if you need to defer and skip payments or change a payment date. Neither application fees nor prepayment fees are charged by Payoff.
- Financing takes longer than competitors. After your application is approved, Payoff extends the funding timeline for three to six business days. Other lenders often promise funding within one day of approval.
- Origination fee. Upon closing your loan, Payoff charges you a 5 percent origination fee upfront (deductible from loan amount).
- Limitations on loan usage. A payoff loan is designed for settling debts, so borrowing money for an emergency or home improvements is not advisable.
- Minimum Credit Score: 640
- Estimated APR: 7.95% – 35.99%
- Loan Amount: Loan amounts can range from $2,000 to $40,000
It is a peer-to-peer lending company that entered the market in 2005 and provided personal loans to borrowers online, offering low-interest rates and fast processing.
Over the course of its history, Prosper has matched borrowers and potential investors via its online platform, aggregating more than $12 billion in personal loans.
- Positive online experience. Since almost every step of your loan process takes place online, your turnaround time may be shortened.
- Suitable for many borrowers. Credit scores as low as 640 are required for Prosper loans, so credit scores from good to excellent are acceptable.
- Prepayment penalties are not applicable. You have the option to choose repayment terms from three to five years, but Prosper charges no fees if you pay it off early.
- An origination fee may be required. The origination fee ranges from 2.41 percent to 5 percent on Prosper.
- Minimum Credit Score: 580
- Estimated APR: 9.95% to 35.99%
- Loan Amount: Loan amounts can range from $2,000 to $35,000
Avant provides loans as low as $2,000, a valuable benefit for people who don’t need much cash on hand but need access to it quickly. Five years is the maximum term length.
- Borrowing range. With Avant, you can fund a range of projects, from home maintenance to unplanned emergencies. Borrowers with fair credit ratings can get loans from $2,000 to $35,000. This range is excellent for the average online lender.
- Mobile app. Like many other lenders, Avant offers a mobile application that allows you to view your payment history and manage upcoming payments. It has a high rating in both the Google Play Store and the Apple App Store.
- Co-borrowers are not permitted. Avant does not allow joint borrowers on one loan, unlike many online lending platforms. You may have to consider another company if your credit or earnings are not sufficient.
- The APR cap is high. If your credit is exceptionally bad, you could be charged a double-digit rate on an Avant personal loan. When consolidating credit card debt, you will probably not achieve a better rate than what you are currently paying on your credit card.
- Fees. The majority of online lenders no longer charge fees, but Avant charges a $25 late fee, a $15 dishonored payment fee, and an administration fee of up to 4.75 percent.
What Does a Bad Credit Score Look Like?
Credit scoring models exist and you can use them to determine your score, but one of the most popular is the FICO system, which factors in the scores from the three major credit bureaus. On the lower end are scores considered fair or poor, while scores on the higher end are considered excellent.
Your FICO Score Is Considered Bad if They Are Within These Limits:
- Fair credit: 580 to 669.
- Poor credit: 300 to 579.
Your FICO Score Is Calculated By Considering Five Factors:
- Payment history: 35%
- Amounts owed: 30%
- Length of credit history: 15%
- New credit: 10%
- Credit mix: 10%
Financial lapses in any of these areas can lead to a low score. If you commit late payments, this will have a significant impact on your credit score, as your payment history contributes most to your score. You will also see your credit rating drop if you file for bankruptcy, foreclosure, or have high debt relative to your income.
Credit scores can seriously undermine your ability to qualify for a loan, even making it difficult to buy a home. In the event of approval for a loan, having bad credit might result in rising interest rates and higher fees. However, your credit score can be improved by cultivating long-term habits like paying your bills on time and checking your report regularly for errors.
How to Compare Bad Credit Loans
1. Prerequisites for Borrowers
The credit score is one factor considered by many bad-credit lenders when applying for a personal loan, but they consider other factors too – such as your monthly cash flow and your livelihood status.
Borrowers need at least to meet a lender’s minimum credit score requirements – ideally, a higher score is even better.
The interest rate on bad credit loans is usually much higher than that of loans with good credit, especially for an unsecured loan, but you should still compare offers to find a loan that fits your budget. To determine the cost of a loan, you need to know two things:
- Annual percentage rate. Unlike interest rates, annual percentage rates incorporate all fees a lender charges, such as origination or prepayment fees. This number can be compared with other options, such as credit cards, to determine the cost of one personal loan versus another. Financial experts recommend that affordable loans have an annual percentage rate of less than 36%.
- Monthly payments. Determine if you can afford the monthly payment of a loan by comparing it with your budget. Using a personal loan calculator, you can estimate your monthly repayments on any available interest rate and term. In many cases, lenders provide this information as part of the pre-qualification process. Take into consideration your budgetary capacity before taking out a loan.
3. Loan Terms
Loans secured by a bad credit score are usually repaid between one and five years. Choosing a longer repayment term will lower your monthly payments, but don’t let it go beyond what you can afford.
As your repayment period lengthens, your interest charges increase with it. Make sure your repayment term permits you to make monthly payments that are affordable but will help you eliminate your loan quickly.4.
4. Duration of The Funding Process
Loans for bad credit borrowers usually disburse the loan proceeds either the same day you apply or within a week of submitting your application.
When your request is being reviewed, you may need to provide further documentation, such as W-2s and paystubs. Choosing between comparable offers is made easier when you compare funding time and affordability.
5. Tools that Build Credit.
You must choose a lender that will assist you in repairing your credit if you have poor credit. Several lenders are willing to share FICO scores with you for free, and they may also offer financial education to enable you to understand credit-building methods.
How Do you Get a Personal Loan with Bad Credit?
Applicants who have bad credit can apply for a loan by following the steps below:
- Check your credit report: Your credit report contains information about your credit history and financial history. It is important to check your credit score reports periodically to stay informed of any changes. Sometimes a single issue can cause a negative credit score, and it’s important to be aware of any issues that could put you at risk.
- Consider your budget: When you’re applying for a personal loan, it’s helpful to know how much you can afford to pay toward the purchase. The amount varies depending on the type of loan you’re applying for. Lenders also use different loan amounts for different types of loans so be sure to ask about them before beginning the application process.
- Online pre-qualification: Lenders may offer loans with very high-interest rates, carry hefty fees, or even deny loans outright if you fail to make payments. By pre-qualifying for your desired loan, lenders will have access to your credit information and know whether you’re able to pay back what you owe. Pre-qualifying also allows lenders to see if you have any financial issues that may impact your ability to pay back a loan.
- Co-signed or secured loans might be useful: Collateral or a cosigner might be necessary if your credit score is below the average range. This can increase your chances of getting approved for a loan by offering additional protection in the event the company behind the loan decides to pursue delinquent borrowers.
- Prepare the necessary documents: Some people find it helpful to collect tax documents or complete other paperwork before they apply for a loan. Others find that gathering these documents helps them more quickly understand their credit score and how it’s affected by past purchases and relationships. These pre-application tasks could save you the time and money it takes to get an application in order and help you narrow down your choices if your score is already in the green.
- Apply online: For a lender to review an application and fund a loan, it might take anywhere from one business day to a week. Your credit score may drop initially as a result of the process, but as you make on-time payments on your personal loan, your score should recover.
Secured vs Unsecured Bad Credit Loans
A secured loan may be easier to qualify for if you have bad credit, as an unsecured loan generally has stricter credit requirements.
Lenders need some basic information about you to decide whether to lend you money, such as your income and credit history. By requiring collateral, a lender lowers their risk, as they can take something valuable if you fail to pay.
You should weigh the advantages of having collateral to help you qualify for the loan against the disadvantages of losing it.
How to Choose The Best Bad-Credit Loan Company
The most common mistake people make when looking for a bad credit loan is applying for one without understanding the important fine print.
Let’s explore some of the key factors you should consider when selecting the right company for your needs:
- Eligibility requirements. To be approved for a bad-credit loan, you must meet strict eligibility requirements that often require an extensive financial history, including minimum credit scores, minimum income levels, and maximum debt-to-income ratios. These can vary widely from one lender to another.
- Interest rates and fees. The best bad-credit loan company will have a good understanding of your personal finances. They will be upfront with you about the fees they will charge and all of the terms and conditions that will be included in your loan. Make sure there’s a good chance you can qualify for the loan and that any fees you may be incurring are worth the potential risk.
- Repayment terms. Loan providers may offer repayment terms of up to 12 years for personal loans. Choose a bad-credit loan company that offers repayment plans to help you get out of debt and keep your payments manageable. Make sure you ask questions about their underwriting process, including how they avoid setting you up for expensive repayments that could ultimately leave you penniless.
- Type of lender. No loan providers are created equal, so when choosing a company, you should consider what kind of problems they can solve, and how reliable the service will be. It is also important to look for a company that has an impressive track record for providing excellent customer service and protecting borrowers against default. Do your due diligence—learn about the company’s reporting standards and what the information includes.
FAQs (Other Things you Need to Know)
1. What Interest Rate Can I Expect from Loan with Bad Credit?
If you have bad credit, the interest rate charged by your lender will be significantly higher. Rates for credit cards can often reach 30 percent, even higher if your credit rating is below par.
2. Where Can I Get a Personal Loan with Bad Credit?
For people with poor credit, these are the two main options:
Access to loans for borrowers with bad credit is made easier by online lending networks. They oversee the search for lenders that will approve your loan request. One form can typically be submitted to compare offers from several lenders.
The institution that approved you may also provide bad credit personal loans directly. Among these are banks and other financial institutions.
Even if you are faced with an emergency expense, a bad credit history should not spur you to resort to loan sharks or predatory lenders. A cheaper option may still be available despite issues with your credit.
- Bad credit loans should only be an option when your scores aren’t up to standard. Bad credit loans generally have higher terms and provide lower loan funds.
- Despite the average terms for loans for bad credit borrowers being on the more costly side, the best bad credit loans will have favorable terms that may prove advantageous to your situation. Make sure to take a careful look at what each of them offers.
- Co-signing or joint applications can improve your chances for loan approval.
- Don’t just look at the loan term, interest rate, monthly repayment cost, and loan amount from a lender. The reputation and other helpful tools of a lender are also just as important.
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