Having a low credit score doesn’t mean that you can’t qualify for loans. Several lenders are willing to offer loans for people with a low credit score which is from 500 – 600. However, it will be expensive to get a loan when you have a low credit score. The following are the 5 best bad credit loans.
1. Lending Club
Lending Club may be suitable for those with bad credit because the minimum credit score it accepts is 600. It can be a good deal for borrowers with low credit ratings who often have to settle for low-quality offers. You have 3 – 5 years to pay off the loan. You need to get your loan request fulfilled by at least 70% before it can be approved. After that, it takes about 7 days for the funds to become available. There is no fee if you set up automatic debit through your bank account. However, if you make the monthly payment by check, you will be charged $7.
2. OneMain Financial
OneMain Financial is an online lender that specializes in providing low credit score financing. It does not have any minimum requirement on the credit score. The interest rate starts from 18% – 35.99% which is quite high. It also charges an origination fee of $25 – $400. The minimum and maximum loan amount you can borrow also vary across different states. Most people apply for a loan between $1,500 – $20,000 from OneMain Financial. It has over 1,500 branches in 44 states.
Avant offers loans from $2,000 – $35,000 for borrowers with a credit score between 600 – 700. The interest rate starts from 9.95% – 35.99%. You can choose a loan term from 24 – 60 months. Avant loans have an origination fee of up to 4.75%. You also have to pay for the administration fee when you apply for an Avant loan. There is no early payment penalty that will be incurred if you decide to pay off your Avant loan in full. The fund can be in your account in the next business day if it gets approved by 4.30 pm CT from Monday – Friday.
LendingPoint offers loans from $2,000 – $25,000 for borrowers with a credit score of 585 and above. Borrowers have the option to choose a loan term from 24 – 60 months. There is the option to choose the due date which can be biweekly, 28 days or monthly. LendingPoint loan is not available in West Virginia. You can make payment for the monthly amount without getting charged with an additional fee. LendingPoint loans have origination fee from 0% – 6%.
5. First Tech Federal Credit Union
First Tech Federal Credit Union also offers personal loans for people with bad credit. Unlike other lenders, First Tech does not require you to take out a substantial loan. You can apply for a loan for an amount as low as $500 with a reasonable interest rate. You can become eligible as a member of the First Tech credit union if you have a membership with the Computer History Museum or Financial Fitness Association. The maximum amount you can borrow is $50,000. The APR interest fee ranges from 6.7% – 18% and the loan term is from 24 – 84 months. There is no soft credit check. When you apply, they will perform a direct hard credit pull to check your qualification.