The credit score is the most critical factor when it comes to your eligibility for a particular loan or not. While there are ways to improve your credit, a fact is that this process can take a lot of time.
If you don’t have a lot of time on your hand, and you need a loan immediately, then you might as well look for lenders that accept bad credit.
In order to help you, we have done our research and came with a few companies. Take a look.
Best Loans for Bad Credit (with features)
What you should know is that while the credit score does play a critical role when it comes to getting a loan, it doesn’t have to be the determinant factor.
What is considered bad credit? Well, a score between 300-629 at the FCI scale. Keep in mind that if you find yourself in this situation, there are certain lenders that will be willing to offer you a loan.
However, in most cases, you will be dealing with an APR of at least 25% and a high-interest rate.
Before we get into what might be the best loans for your situation, you should know that managing your loan the right way does significantly affect whether you will be able to repay it or not.
In this case, it comes down to updating your budget, setting up an autopay, and staying in touch with your lender all the time.
When it comes to bad credit loans, PayOff does offer some of the best conditions out there. The most important feature of it is that you won’t have to deal with any hidden application or late payment fees.
Not only that, but PayOff will also not bother you with prepayment penalties that are quite common for companies that offer bad credit loans.
What you should know is that the maximum loan amount offered by PayOff for someone with a credit score of 300-629 FCI is $30,000. This is for a 2-5 year term and with an adjustable APR.
Depending on the credit card payments that you are currently dealing with, you can consolidate those to a single monthly payment.
The APR will be anywhere between 5.99% and 24.99% depending on the term and the loan amount that you have requested.
If you are in great need of money and you don’t have a lot of waiting time at your disposal, then ProSper does seem like a good solution. As a lender that has funded more than $20 billion in loans, they do offer a couple of loans for those with bad credit.
While the APR is somewhat higher at set between 7.99% and 34.99%, what you should know is that the repayment period is set to anywhere between 3 and 5 years. Additionally, the year the max loan amount is $40,000, which is quite reasonable given the circumstances.
The best thing about ProSper? You can try and improve your rates by using the co-borrower option.
Who is Eligible
Well, there is not much to worry about when it comes to eligibility for bad credit loans. You will need to be a US resident and over 18 years old. Additionally, you should have an open account and demonstrate that you will be able to repay the featured loan.
How to Apply
When it comes to applying for some of the bad credit loans, the first step is to check your credit score report. This is in order to determine whether they might be certain errors that are decreasing your score and thus lowering the chances for a loan.
Once you get that settled, you might want to visit a credit union and ask them if they would offer you a loan (the APR here would be much lower).
In case a credit union is not willing to allow you a loan, then your best chance is to go ahead and pre-qualify by filling an online application. Keep in mind that it may take anywhere from one business day to a few for the company to review your inquiry and come out with an answer.
The fact that you don’t have the best credit score doesn’t have to limit you when it comes to applying for a loan.
We did our best to highlight a couple of viable options, and now it is up to you to go ahead and test this out.