It can be really tough to have to come up with a large sum of money in a snap, and many Americans don’t have the financial cushion to back them up in cases like these. Whether an emergency medical bill needs to be paid or a broken-down car needs to be fixed, coming up with the funds necessary to cover such expenses is impossible for many.
That’s where personal loans can come in really handy, and in some cases, they can be a real life-saver. But securing a personal loan can prove to be very difficult for those who have bad credit. If you’ve got bad credit and attempt to take out a personal loan with a conventional lender, you’ll likely have the door shut in your face.
So, should you throw in the towel? Absolutely not. While bad credit definitely limits your options, there are still other avenues you can take to get approved for a personal loan.
That said, you should be prepared to pay higher interest rates and have fewer term options available as a result of your bad credit. While borrowers with a higher credit score are usually afforded with lower rates and better loan terms, bad credit borrowers are usually charged much higher interest rates – as much as 36% or more. But if you’ve got a steady income and a low debt amount, you can boost your chances of getting a better rate and better terms.
Is a Bad Credit Personal Loan the Right Choice to Make?
Before you take out a personal loan, make sure it fits your financial plan well. You don’t want to add more debt to the mix if you can avoid it. While personal loans can absolutely be an extremely handy way to pay off a pressing expense, you’ll want to ensure that it fits your overall financial plan.
Assess your overall financial health first before borrowing any money. Apply for a personal loan if it will help you out of a financial jam or even to consolidate your debt, but don’t borrow more money if it’s just going to place added financial pressure on you. If you have an insurmountable amount of debt on your plate, adding more to it will only put you in a deeper hole.
What to Look For in a Personal Loan
Before you settle with a specific personal loan service, you should take a little bit of time to assess each one first. There are three things that you need to consider:
- Interest rate. Perhaps the most important thing to look at when comparing different personal loan options is the interest rate you would be charged. Obviously, the lower the rate, the better. Some personal loans for bad credit can be incredibly expensive when it comes to the interest rate charged, so be sure to check out these rates and calculate how much you would have to repay based on the loan amount you require.
- Loan amounts. Every personal loan service provider has their own loan range that they work with, so you will want to work with a service that can offer you the loan amount you require. Generally speaking, loan amounts are usually no less than $500 and no more than $35,000.
- Loan term. The amount of time that you have to repay your loan will depend on the lender you work with and your specific financial history. You’ll want to ensure that you are comfortable with the loan term provided that fits with your financial situation.
So, what’s the best personal loan for bad credit? Well, there are a number of solid options, and the best one for you will ultimately come down to your particular circumstances. That said, we have some information on five personal loan options available…
Lendvious specializes in personal as well as debt consolidation loans even for borrowers who have less than a perfect score. It is a marketplace which connects you with multiple lenders. From debt consolidation, credit card refinancing to Medical expenses and taxes, Lendvious covers almost every reason to take out a personal loan.
Lendvious loan is available from $1000 to $50,000 which is perfect for any borrowers with bad credit who are looking for a wide range of loan amount.
You can get pre-qualified for a loan with Lendvious and also check your rate which is free and will not have an impact upon your credit score. Lendvious is known for its quick and easy online process which can get the funds you need in as soon as next business day.
- Interest Rate: Starts at 4.99%
- Loan Term: 24 to 60 months
Another service that’s considered among the best personal loans for bad credit is BadCreditLoans. You can get a loan of up to $5,000 and have your money deposited into your account after approval as soon as the next day. This service connects borrowers to willing lenders who deal specifically with borrowers who have bad credit and are unable to secure a personal loan the conventional way. They’ve been around for over 20 years, so they’ve got a bit of clout in the world of bad credit loans.
In order to apply, you’ll need to be at least 18 years old, have a steady income and checking account, and provide a valid email address and telephone number.
- Interest Rate: 5.99% – 35.99%
- Loan term: 3 to 60 months
Over 2 million customers have already used MoneyMutual to help them fill an immediate financial need, despite their bad credit. You can complete the online application in less than five minutes and have your funds available in less than 24 hours. Loan amounts are capped at $2,500 depending on your income, how long you’ve been employed, and so forth.
MoneyMutual will connect you with one of their many lenders in their network to find the best one willing to lend out funds based on your particular financial circumstances.
- Interest Rate: varies based on lender
- Loan term: varies based on lender
PersonalLoans is partnered with professional lenders who provide borrowers with loans based on their specific financial situation and is considered to be one of the best personal loans for people with bad credit based on recent ratings. Loan amounts vary from anywhere between $500 to $35,000, and although any credit score is accepted, higher loan amounts are usually reserved for those with a higher score.
As with the other loan options, you can get approved and have your funds deposited into your account is as little as one business day. There are no fees for this service, so you don’t have to worry about getting slapped with a bill for getting hooked up with a potential lender.
- Interest Rate: varies based on lender
- Loan term: 3 to 72 months
One of the best personal loans for bad credit is CashUSA. You can secure a personal loan of anywhere between $500 to up to $10,000 with this service, which can be used for whatever pressing need you might have. In just four simple steps, you can get approved for a personal loan and have the funds deposited directly into your account as soon as the following business day.
All credit scores are accepted, so there’s no need to worry about your score. You can get approved within a few short minutes, so there’s no need to wait around to find out the status of your application.
- Interst rate: 5.99% – 35.99%
- Loan term: 3 to 72 months
Clearly, there are several loan options for you to choose from, and the best personal loan for bad credit will ultimately depend on your specific financial circumstances and needs. That said, the aforementioned loan products make great options that will give you a good chance of getting approved for a personal loan, despite your sub-par credit.
But even after you’ve secured one of the best personal loans for people with bad credit, that doesn’t mean you should just sit back and enjoy the money you’ve been loaned. If bad credit is haunting you, the time to start repairing it now. While you still have options as far as personal loans are concerned – despite your bad credit – you could have many more options afforded to you if you bring your credit score back up to snuff. Take steps to boost your score today to broaden your loan options for tomorrow.