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Best Personal Loans For Bad Credit 2018

Do You Have Bad Credit? You Can Still Get Approved.

If you haven’t always been a responsible borrower, your credit report likely reflects your less-than-stellar past. But everyone makes mistakes from time to time and even the poorest remarks will fall off your report eventually. But, if you need cash now and can’t afford to wait for time to repair your damaged reputation, you might be looking for the best personal loan a bad credit score can qualify for.

What Is a Bad Credit Score For Personal Loans?

Before you begin applying for a personal loan, it’s good to know where you stand and what constitutes a poor credit score. Both FICO scores and Vantage scores range on a scale from 350 to 850, and, in each case, the average score in the U.S. tends to hover around the mid- to high-600s.

Most lenders would consider a score in this range favorably, whereas scores below 620 would earn approval less frequently. And scores of 580 or less are generally regarded as poor, which makes it difficult for potential borrowers in this category to secure the funds they seek.

Personal Loans For Poor Credit

If you’re shopping around the for the best unsecured loans for bad credit, here’s a closer look at three of the lenders most likely to give you the green light.

OneMain: Do you keep running into roadblocks with other banks? OneMain doesn’t require any specific credit score to qualify for a loan and they have more than 1,600 locations across the country. Plus, a loan from this lender can usually be funded on the same day it’s requested, though borrowers will have to visit a branch to pick up a check. (Otherwise, bank transfers take one or two business days.) The downside, however, is that OneMain tends to charge greater interest rates than similar lenders that don’t require a higher, credit score for loans. If you need cash fast, OneMain can approve you for a loan ranging from $1,500 to $30,000, even if your credit score is below average. That said, OneMain’s customers with personal loans have average credit scores that range from 600 to 650, so it’s not likely that everyone who applies gets approved.

OneMain Financial

APR: 16.05% — 35.99%
Loan Terms: 2 to 5 years
Loan Amounts: $1,500 to $30,000
Time to Funding: Usually 6 days
Fees: None
Minimum Credit Score: 580+
Est. Monthly Payment N/A
Soft Credit Check? Yes

Click “Check Rates” to apply to OneMain Financial

Avant: Unlike OneMain, Avant does require a minimum credit score, however, that score is a very attainable 580. (It’s important to note that most of Avant’s borrowers do have scores of at least 600, though.) For qualified borrowers, Avant offers loans ranging from $2,000 to $35,000 with interest rates starting as low as 9.95% and going up to 35.99%. There’s also an administration fee to keep in mind, which ranges from 1.50% to 4.75%. On the other hand, there are no prepayment fees with Avant, which many borrowers appreciate.

Avant

APR: 9.95% — 35.99%
Loan Terms: Monthly over 2 to 5 years
Loan Amounts: $2,000 to $35,000
Time to Funding: Usually next business day
Fees: 1.5% — 4.75%
Unsuccessful payment fee: $15
Minimum Credit Score: 580+
Est. Monthly Payment N/A
Soft Credit Check? Yes

Click “Check Rates” to Get Pre-Qualified for a Loan

LendingPoint: If your credit score has been dragged down by derogatory marks, LendingPoint is more likely to approve you than many other lenders. Even if you’ve declared bankruptcy in the past, you can still qualify for a loan with LendingPoint. Unlike Avant, LendingPoint never charges any late fees, nor will you get hit with an insufficient-balance fee in case you’re ever overdrawn. That said, LendingPoint’s interest fees are significantly higher than Avant’s, starting at 15.49% compared to 9.95%. Another drawback is that LendingPoint’s origination fee can be as much as 6%, while Avant’s will never exceed 4.75%.

LendingPoint

APR: 15.49% — 35.99%
Loan Terms: 2 to 4 years
Loan Amounts: $2,000 to $25,000
Time to Funding: As early as 1 business day
Fees: 0% to 6%
$30 Late Fee after 15-day grace period
Minimum Credit Score: 600+
Est. Monthly Payment N/A
Soft Credit Check? Yes

Click “Check Rates” to apply to LendingPoint


Lenders that Offer Secured Loans

Unlike Avant, OneMain offers borrowers both secured and unsecured loans. If you have the title to a vehicle or equivalent collateral, you can qualify for a secured loan with a lower interest rate than you’d likely receive on an unsecured amount. But, then again, you could end up losing your set of wheels if you’re late making a payment.

» MORE: Secured Personal Loans

Lenders that Accept Cosigners

If your credit isn’t strong enough on its own to qualify for a loan, you might wish to enlist a cosigner — a friend or family member who has better credit and can help you secure the funds you need. Using a cosigner isn’t always the best move for everyone, so make sure to do your research and consider your options carefully. Also, keep in mind that many lenders won’t even accept cosigners. In fact, among OneMain, LendingPoint, and Avant, only OneMain will work with cosigners for borrowers with poor credit.

» MORE: Personal Loans With Co-Signers

Tips to Get a Personal Loan with a Credit Score of 550 or Less
Although a credit score lower than 550 is likely to turn off a lot of lenders, it’s not impossible to get a personal loan with a score in that range. Start rebuilding your credit reputation by getting a secured or unsecured loan and making a point of paying your bill as soon as it arrives.

How to Get a Personal Loan With Bad Credit
If you’re ready to get the best personal loans for bad credit start by applying with the lenders featured above. Each of them has their own set of strengths and weaknesses, but at least one of them will certainly be right for you.

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