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.
|Provider||Min credit score||APR||Amounts||Finder rating|
|Avant||580||9.95% to 35.99%||$2,000 to $35,000||★★★★★|
|NetCredit||400||34% to 155%||$1,000 to $10,500||★★★★★|
|Stilt||7.99% to 15.99%||$1,000 to $25,000||★★★★★|
|Monevo||300||3.49% to 35.99%||$500 to $100,000||★★★★★|
|LoanStart||4.84% to 35.99%||$1,000 to $40,000||★★★★★|
|OneMain Financial||300||18% to 35.99%||$1,500 to $20,000||★★★★★||Read more|
|Regional Finance||550||Varies||$600 to $10,000||★★★★★||Read more|
|Lendvious||550||Starting from 5.99%||$1,000 to $100,000||★★★★★||Read more|
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.
Answers to common questions about getting a personal loan with bad credit.
It’s possible, but your options will be primarily limited to short-term loans. These can be incredibly expensive and come with the risk of trapping you in a cycle of debt, so consider taking out a credit-builder loan or improving your credit before you borrow.
This depends on the lender you choose as well as your creditworthiness, existing financial situation and ability to repay. However, many lenders offer $5,000 personal loans to borrowers with bad credit.
You can, but it might not be a good idea. Unless your credit score has significantly improved since you took on your current debt, you probably won’t be able to qualify for competitive rates or terms.
If you’re struggling to pay off your debt, you might want to consider signing up for a government-approved credit counseling program to figure out your next steps. You can find one near you on the Department of Justice website. You might also want to check out our guide to debt consolidation to learn more about your options.
While improving your credit score can be a slow process, it will help you find better financing and more favorable rates down the road. You can start working on your score by doing the following:
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