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Best Bad Credit Loans For June 2023

Even if you have a low credit score, we can help you find a loan. We make it simple to compare bad credit loan options. There's a lot of relevant information available about personal loans for those with poor credit scores. This includes how to decide whether or not it's right for you and how to avoid scams.

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Find the Best Bad Credit Loan Options with Our Comparison

LendingTree Quick & Easy Online Process
  • APR: 6.99-35.99%
  • Loan Term: 3-180 months
  • Min Credit Score: 550
View details
Key facts
  • The nation’s largest online lending marketplace
  • Over $260 billion in loans facilitated
  • One short form for multiple loan options

Read LendingTree Review »

LendingTree Disclaimer: A Personal Loan can offer funds relatively quickly once you qualify you could have your funds within a few days to a week. A loan can be fixed for a term and rate or variable with fluctuating amount due and rate assessed, be sure to speak with your loan officer about the actual term and rate you may qualify for based on your credit history and ability to repay the loan. A personal loan can assist in paying off high-interest rate balances with one fixed term payment, so it is important that you try to obtain a fixed term and rate if your goal is to reduce your debt. Some lenders may require that you have an account with them already and for a prescribed period of time in order to qualify for better rates on their personal loan products. Lenders may charge an origination fee generally around 1% of the amount sought. Be sure to ask about all fees, costs and terms associated with each loan product. Loan amounts of $1,000 up to $50,000 are available through participating lenders; however, your state, credit history, credit score, personal financial situation, and lender underwriting criteria can impact the amount, fees, terms and rates offered. Ask your loan officer for details. Rates and APR assume fixed rate for the term of the loan may not be available for all consumers, ask your lender for a fixed rate quote. Loan Example: A $10,000 loan with a 5-year term at 13% Annual Percentage Rate (APR) would be repayable in 60 monthly installments of $228 each. The actual payment amount and year-end balance will vary based on the APR, loan amount, and term selected. In this case the total amount expected to pay by the borrower will be $13,680 *This examples are for illustrative purposes only. The examples and match rates are not a guarantee, agreement, or commitment to loan funds or extend credit. Interest rates and terms are subject to change at any time without notice.

5K Funds Fast & easy online application
  • APR: 5.99-35.99%
  • Loan Term: 3-72 months
  • Min Credit Score: 300
View details
Key facts
  • 5K Funds makes it easy to get rates and start comparing terms from multiple lenders.
  • 5K Funds has an extensive network of reputable lenders.
  • Borrowers have the freedom to use a personal loan in a number of ways.

Read 5K Funds Review »

5kFunds.com (the “website”) is not an offer or solicitation to lend. The website only provides a service and is not an agent, representative, or broker of any lender and does not endorse or charge you for any loan or product. The website operators are not lenders, do not make loans of any type, and do not make credit decisions. The website collects personal information provided by you and forwards it to partners in our lender network. You are under no obligation to use this website or service to initiate, contact, nor apply for credit or any loan product with any service provider or lender. Loan amounts vary from $1,000 and $35,000 but not all lenders can provide up to $35,000. Providing your information on the website does not guarantee you will be approved for a loan or credit product. Cash transfer times may vary between lenders and may depend on your individual financial institution. In some circumstances faxing may be required. If you have any questions, contact your lender directly for details, questions, or concerns regarding your loan or credit product. Short-term cash loans are meant to provide you with short-term financing to solve immediate cash needs and should not be considered a long-term solution. This service and lenders are not available in all states. Lenders may perform credit checks with the three credit reporting bureaus: Experian, Equifax, or Trans Union or may perform alternative credit checks or consumer reports through alternative providers. By submitting your request, you acknowledge, agree, and authorize that (a) your information may be sent to lenders and/or third-party partners on your behalf, and (b) such lenders may obtain consumer reports and related information about you from one or more consumer reporting agencies, such as TransUnion, Experian and Equifax to evaluate your creditworthiness. Loan products have a 3 months minimum repayment term. Loan example: A $6,000 loan with a 24.99% APR that is repayable in 60 monthly installments would have monthly payments of $176.07 to a total of $10,565.2

Lending For Bad Credit A marketplace for bad credit loans
  • APR: 6.99-35.99%
  • Loan Term: 2-72 months
  • Min Credit Score: 300
View details
Key facts
  • APR: Varies by lender
  • Loan Term: Varies by lender
  • Min Credit Score: 550

Read Lending For Bad Credit Review »

Lendingforbadcredit.com is a for-profit advertising network. We receive compensation, in the form of referral fees, from the lenders and/or lending partners, or other offers that we direct you to. Therefore, the amount of compensation provided, along with other factors, may impact which offer you are presented. The offer you receive may be coming from the company that bid the most for your information. Lendingforbadcredit.com does not always provide you with an offer with the best rates or terms. Our website does not include all companies or all available offers. We encourage you to research all available loans options for your situation.

 

OneMain Financial No Early Payment Fees
  • APR: 18.00-35.99%
  • Loan Term: 24-60 months
  • Min Credit Score: 300
View details
Key facts
  • Trusted lender for over 100 years.
  • Online prequalification with a soft credit pull.
  • No pre-payment fees.

Read OneMain Financial Review »

Example Loan: A $6,000 loan with a 24.99% APR that is repayable in 60 monthly installments would have monthly payments of $176.07 to a total of $10,565.2. Not all applicants will qualify for larger loan amounts or most favorable loan terms. Loan approval and actual loan terms depend on your ability to meet our credit standards (including a responsible credit history, sufficient income after monthly expenses, and availability of collateral). Larger loan amounts require a first lien on a motor vehicle no more than ten years old, that meets our value requirements, titled in your name with valid insurance. Maximum annual percentage rate (APR) is 35.99%, subject to state restrictions. APRs are generally higher on loans not secured by a vehicle. Depending on the state where you open your loan, the origination fee may be either a flat amount or a percentage of your loan amount. Flat fee amounts vary by state, ranging from $25 to $300. Percentage-based fees vary by state ranging from 1% to 10% of your loan amount subject to certain state limits on the fee amount. Active duty military, their spouse or dependents covered under the Military Lending Act may not pledge any vehicle as collateral for a loan. OneMain loan proceeds cannot be used for postsecondary educational expenses as defined by the CFPB’s Regulation Z, such as college, university or vocational expenses; for any business or commercial purpose; to purchase securities; or for gambling or illegal purposes. Borrowers in these states are subject to these minimum loan sizes: Alabama: $2,100. California: $3,000. Georgia: Unless you are a present customer, $3,100 minimum loan amount. Ohio: $2,000. Virginia: $2,600. Borrowers (other than present customers) in these states are subject to these maximum unsecured loan sizes: North Carolina: $7,500. New York: $20,000. An unsecured loan is a loan which does not require you to provide collateral (such as a motor vehicle) to the lender. Not all applicants will qualify for larger loan amounts or most favorable loan terms. Loan approval and actual loan terms depend on your ability to meet our credit standards (including a responsible credit history, sufficient income after monthly expenses, and availability of collateral). Larger loan amounts require a first lien on a motor vehicle no more than ten years old, that meets our value requirements, titled in your name with valid insurance. Maximum annual percentage rate (APR) is 35.99%, subject to state restrictions. APRs are generally higher on loans not secured by a vehicle. Depending on the state where you open your loan, the origination fee may be either a flat amount or a percentage of your loan amount. Flat fee amounts vary by state, ranging from $25 to $300. Percentage-based fees vary by state ranging from 1% to 10% of your loan amount subject to certain state limits on the fee amount. Active duty military, their spouse or dependents covered under the Military Lending Act may not pledge any vehicle as collateral for a loan. OneMain loan proceeds cannot be used for postsecondary educational expenses as defined by the CFPB’s Regulation Z, such as college, university or vocational expenses; for any business or commercial purpose; to purchase securities; or for gambling or illegal purposes. Borrowers in these states are subject to these minimum loan sizes: Alabama: $2,100. California: $3,000. Georgia: Unless you are a present customer, $3,100 minimum loan amount. Ohio: $2,000. Virginia: $2,600. Borrowers (other than present customers) in these states are subject to these maximum unsecured loan sizes: North Carolina: $7,500. New York: $20,000. An unsecured loan is a loan which does not require you to provide collateral (such as a motor vehicle) to the lender.

LoansUnder36 Over 100 Lenders at Your Fingertips
  • APR: 5.99-35.99%
  • Loan Term: 3-72 months
  • Min Credit Score: 300
View details
Key facts
  • See loan offers from over 100 lenders
  • Loans available for any type of credit
  • Fees depend on specific lender

Read LoansUnder36 Review »

loansunder36 Disclaimer: “loansunder36.com (the “website”) is not an offer or solicitation to lend. The website only provides a service and is not an agent, representative, or broker of any lender and does not endorse or charge you for any loan or product. The website operators are not lenders, do not make loans of any type, and do not make credit decisions. The website collects personal information provided by you and forwards it to partners in our lender network. You are under no obligation to use this website or service to initiate, contact, nor apply for credit or any loan product with any service provider or lender. Loan amounts vary from $500 and $35,000 but not all lenders can provide up to $35,000. Providing your information on the website does not guarantee you will be approved for a loan or credit product. Cash transfer times may vary between lenders and may depend on your individual financial institution. In some circumstances faxing may be required. If you have any questions, contact your lender directly for details, questions, or concerns regarding your loan or credit product. Short-term cash loans are meant to provide you with short-term financing to solve immediate cash needs and should not be considered a long-term solution. This service and lenders are not available in all states. Lenders may perform credit checks with the three credit reporting bureaus: Experian, Equifax, or Trans Union or may perform alternative credit checks or consumer reports through alternative providers. By submitting your request, you acknowledge, agree, and authorize that (a) your information may be sent to lenders and/or third-party partners on your behalf, and (b) such lenders may obtain consumer reports and related information about you from one or more consumer reporting agencies, such as TransUnion, Experian and Equifax to evaluate your creditworthiness. Loan products  have a 3 months minimum repayment term. Loan example: A $6,000 loan with a 24.99% APR that is repayable in 60 monthly installments would have monthly payments of $176.07 to a total of $10,565.2″

Bankrate More than 4 decades of experience
  • APR: 6.24-35.99%
  • Loan Term: 6-144 months
  • Min Credit Score: 550
View details
Key facts
  • Borrowers can find a personal loan option that fits their exact needs
  • Offers a comprehensive knowledge hub
  • Simple to use online loan comparison tool

Read Bankrate Review »

The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guarantee the accuracy or availability of any rates shown. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own website where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

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What is a Bad Credit Personal Loan?

Your credit score is an important factor in determining the interest rate you will pay on loan. However, it is essential to understand that multiple credit agencies publish credit scores, each with slightly different criteria and ranges. A score of 300-600 is considered poor by Credit Karma, 280-559 by Equifax, 300-579 by Experian, and 300-600 by Transunion. In general, a score between 280-560 is considered poor.

Your credit score can be affected by various factors, such as recent bankruptcy, late payments, charge-offs, defaulting on loans, or a short credit history. Lenders use this information to determine the interest rate charged on a loan, and a poor credit score will result in higher APRs from lenders. If you are looking to consolidate your debt, a debt consolidation loan company may offer better interest rates than payday loans or credit card companies.

Navigating the Loan Landscape: Strategies for No Credit Borrowers

With the right approach, it is possible to get a personal loan with bad credit or no credit. Comparing different loan options is the key to finding the right loan. Loans can now be compared and found online thanks to the availability of numerous online lenders. However, it is important to keep in mind that poor credit limits your options and leads to higher interest rates.

The following options may help you find a comfortable interest rate if you have trouble getting approved:

Get a co-signer

You can increase your chances of getting approved if you have a friend, spouse, or close family member with good credit. In addition, your loan interest rate may be improved if you have a co-signer.

Marketplace Lenders

Getting a loan can be easier with an online personal loan marketplace. They will run a soft credit check without harming your credit score based on a few details about yourself and your financial profile. This will allow you to compare rates from lenders who are eligible for your loan.

Improve Your Credit Score

Getting better credit may be a solution to unsatisfactory loan terms offered by lenders you qualify for. You can earn better loan rates or refinance your loan in the future if you boost your credit score even if you need a loan right now.

 

Credit Score Boosting Tips for a Better Financial Future

  1. Pay your bills on time every time: To avoid late fees and damage to your credit rating, remember to pay all your bills before their due dates.
  2. Keep your debts low: Keep your debts low to avoid damaging your credit score.
  3. Don’t max out your credit cards: Don’t use your credit cards to the full limit, as this can negatively affect your credit score.
  4. Keep unused credit cards open: There are several benefits to keeping unused credit cards open, including an increased credit score and a higher utilization rate.
  5. Review your credit report for errors: Verifying your credit report regularly can help you spot any errors and maintain an accurate credit score.
  6. Add yourself as an authorized user to a friend or family member’s credit card or loan: By doing this, you will be leveraging someone else’s good credit history in order to increase your credit score.

Whenever you compare lenders for bad credit loans, you should always check if they have a minimum credit score requirement. If that is the case, apply for loans that require no minimum. Furthermore, you want a lender who offers flexible terms, such as repayment fees, loan terms, and so on.

A bad credit loan also comes with fees that should be understood. Lenders may charge origination fees, late fees, or prepayment penalties, which can increase your loan’s costs over time. Ensure you understand all the terms, conditions, fees, and charges of the loan before applying.

Steps for Applying for a Personal Bad Credit Loan

  1. Know your credit score before applying for a loan:- A credit report is available from most of the major credit bureaus.
  2. Shop around for lenders: Different lenders have different loan requirements and interest rates. It is best to compare several options before making a decision.
  3. Most lenders require documentation, including proof of income, employment, and other personal information. Before applying, ensure that you have everything you need.
  4. Fill out your loan application completely and accurately.
  5. Your application will typically be reviewed and approved by the lender within several days.
  6. Review the loan offer: If approved, carefully review the loan offer and make sure you understand the terms and conditions of the loan.
  7. Accept the loan: If you are satisfied with the offer, accept it and sign the loan agreement.
  8. Repay the loan: Make your payments on time and in full to avoid damaging your credit further.

Discover the Different Types of Bad Credit Loans Available

When it comes to personal loans for those with bad credit, there are several options available. Understanding the different types of loans can help you make an informed decision and find the best option for your specific needs.

  1. Unsecured Personal Loans: These loans do not require any collateral, such as a car or house, as security. They are ideal for those with bad credit who may not have the assets to secure a loan. However, unsecured personal loans typically have higher interest rates than secured loans.
  2. Secured Personal Loans: Secured personal loans require collateral, such as a car or house, to secure the loan. As a result, these loans typically come with lower interest rates than unsecured personal loans.
  3. Payday Loans: Payday loans are short-term loans that are designed to provide quick cash to those in need. They are often used by those with bad credit who need to borrow money quickly. However, payday loans typically come with extremely high-interest rates and fees, so it is essential to be careful when considering this type of loan.
  4. Debt Consolidation Loans: Debt consolidation loans are designed to help individuals consolidate their debts into one manageable loan. This type of loan can help those with bad credit by reducing their monthly payments and lowering their interest rates.
  5. Peer-to-Peer (P2P) Loans: P2P loans are personal loans that are funded by individual investors. This type of loan can be a good option for those with bad credit, as P2P lenders may be more flexible when it comes to credit scores.
  6. Installment Loans: Installment loans are loans that are paid back over a set period of time, typically with equal payments each month. This type of loan is ideal for those with bad credit who need to borrow a larger amount of money and want to make payments over a longer period of time.

Regardless of the type of loan you choose, it is important to carefully review the terms and conditions of each loan to make sure you understand the interest rates, repayment terms, and any other fees involved. Remember, taking out a loan with bad credit may come with higher interest rates and fees, so it is important to find the best option for your specific financial situation.

In conclusion

For those with poor credit scores, bad credit loans can be a valuable financial tool. Research your options carefully and make sure you understand the terms and conditions of the loan before applying. It is possible to find a loan that meets your financial needs and will help you improve your credit score over time if you follow the tips mentioned above and compare loan options.

How do I know if I have a bad credit history?

What causes a low credit score?

Can I get a personal loan with a bad credit score?