Editor's choice: OppLoans Installment Loans
- Easy online application
- Quick approval
- Long repayment terms
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Most lenders consider bad credit to be a credit score between 300 and 579. We reviewed over 130 lenders before selecting these providers that are friendly to borrowers with credit scores in this range. But while you might qualify, it won’t be cheap. Bad credit rates are usually on the higher end of the ranges available.
These lenders and connections have options for borrowers with bad credit.
9.95% to 35.99%
$2,000 to $35,000
34% to 155%
$1,000 to $10,500
7.99% to 15.99%
$1,000 to $25,000
3.49% to 35.99%
$500 to $100,000
4.84% to 35.99%
$1,000 to $40,000
18% to 35.99%
$1,500 to $20,000
$600 to $10,000
Starting from 5.99%
$1,000 to $100,000
The average interest rate for people with a credit score between 560 to 579 is 105.39% APR, according to 2019 customer data from LendingTree. However, this number includes installment loans from payday lenders. These types of lenders accept all credit types, but charge higher rates than a personal loan provider is allowed to. Most states cap personal loans at 36%.
Lenders that extend loans to borrowers with bad credit tend to look at your income, current debts and ability to repay instead of your credit score.
The coronavirus outbreak has made it a lot more difficult for borrowers with bad credit to qualify for a personal loan. Lenders have tightened credit requirements in response to the economic downturn, making it more difficult to get approved with bad credit than before.
But it’s not all bad news. The coronavirus has also highlighted flaws in the current credit rating system, and lenders are relying less and less on credit scores. If you have bad credit because of a divorce or another one-time event, consider applying with a local bank. You’ll get a chance to explain your situation, unlike with an online lender.
The time it takes for a lender to finalize your loan and get you funds will vary significantly. Some may be able to finish everything the same day you apply, while others may take a week or two. Check with the lender to get an idea of how long the entire process takes before applying.
While it varies by lender, you’ll typically be asked to provide the following:
While you might not be able to borrow from a large bank when you have poor credit, you still have several options to choose from.
Use our table to compare rates and loan amounts from lenders with credit score cutoffs you can meet.
These tips won’t guarantee you’ll be approved for a loan, but they can help increase your chances when you have bad credit.
Follow these steps to up your chances of qualifying for a personal loan with a low credit score:
The easiest way to know your credit score is to check your credit report. You’re entitled to a free copy of your credit report every 12 months from any of the three main credit bureaus: TransUnion, Equifax and Experian. You can also read our guide to bad credit to learn more about the ways you can tell if your credit is below average.
Applying for a bad credit personal loan? There are a few things to avoid:
Not sure a personal loan is right for you? Consider these alternatives instead:
Bad credit isn’t the end of the line when it comes to taking out a personal loan. Credit unions, CDFIs and online lenders all offer options, though how much you’re able to borrow might be limited. And you’ll likely face higher interest rates and fees, since you pose more of a risk to the lender.
Learn more about how it all works with our guide to personal loans.
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