best personal loan for bad credit

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best personal loan for bad credit

$100 – $3,000 Personal Loans from King of Kash

When you want money for anniversaries, vacations, school OR when you need money for car repairs, medical expenses or other emergencies, King of Kash is the Easy Loan Store™ for all your needs.

No matter your reason for needing extra cash, or your credit history, you can have the money you need in no time.

King of Kash offers personal loans on a 12 month term, with fixed monthly payments. We specialize in bad credit personal loans ranging from $100 to $3,000 so you can be approved even if your credit is less than perfect!

Unlike traditional lenders and banks, or payday lenders and title lenders, we will work hard to help you meet your financial needs. When you work with King of Kash, we treat you with the dignity and respect a friendly and professional organization should. Many of our loyal customers have worked with us for many years.

Try us today and let us earn your loyalty and friendship!

Getting a Personal Loan is as Easy as 1-2-3

With over 40 years of providing affordable loans for people with bad credit, we’ve streamlined our personal installment loan approval process down to a science so you don’t have to spend hours going back and forth just getting your application submitted.

Our online easy loan application process is simple, secure, and fast! All you need to apply is your government issued ID card, proof of employment (pay stubs), verifiable Social Security Number & phone number, and an open checking or savings account with a Visa or MasterCard debit / credit card.

With getting your bad credit loan online, there is no collateral required regardless of your credit score, and your ability to qualify for one of our affordable personal loans is based off of your ability to repay the loan and not your credit score or credit history! This lets us process your application and approve it in a matter or minutes so you can get your money ASAP.

3. Get Your Cash in Hours, Not Days!

Once you’re approved for a King of Kash online personal loan, you can pick up your cash at the nearest King of Kash loan store location or have the money deposited straight into your checking or savings account!

Bad Credit Loans With Monthly Payments

At King of Kash, we know that everybody needs financial help from time to time. You may be in a hole that you feel like you can’t get out of from emergency medical bills, getting out of debt, or your car broke down and now you can’t get to work without a little help.

Good credit, bad credit, your ability to qualify for one of our personal loans is based of off of your ability to repay the balance and not your credit score or how much collateral you’re able to put down at signing. Our bad credit personal loans can be repaid in easy monthly payments so you get the money you need without it impacting the rest of your life.

Best personal loan for bad credit

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This site is a free online resource that strives to offer helpful content and comparison features to its visitors. Please be advised that the operator of this site accepts advertising compensation from companies that appear on the site, and such compensation impacts the location and order in which the companies (and/or their products) are presented, and in some cases may also impact the scoring that is assigned to them. To the extent that scoring appears on this site, such score is determined by the site operator in its sole discretion, and should NOT be relied upon for accuracy purposes. In fact, Company listings on this page DO NOT imply endorsement by the site operator. Except as expressly set forth in our Terms of Use, all representations and warranties regarding the information presented on this page are disclaimed. The information, including pricing, which appears on this site is subject to change at any time.

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Bad Credit Loans - What You Need to Know

Bad credit isn’t a deal-breaker if you’re looking for a loan. You can still find lending houses that will provide you with a variety of loans, but you may face issues that people with better credit don’t worry about as much.

Your credit score is compiled from your financial history, including loans you took out in the past and whether or not you paid them back on time. It also takes into consideration your credit card habits and outstanding debts. Typically anything under 580 is considered a bad credit rating, and loans given to people in this credit range tend to have a 28.64% APR on average.

Not having debt or any delinquent loans doesn’t guarantee good credit. Financial institutions like to see that you are part of the system and that you have taken out and repaid loans in the past. Having credit cards and regularly paying them off is a good way to accrue good credit.

A bad credit score can mean higher interest rates as well as shorter payment terms and you may be required to put up valuable collateral such as a car or house title to secure the loan.

The bottom line, even if you have bad credit, you can still get a loan, but there will probably be some stipulations. If you'd like to get a loan with better terms, you should take these steps toward fixing your bad credit.

A bad credit score is typically seen as an indicator of high risk, therefore lending companies often assign a higher - or even much higher - interest rate to borrowers with bad credit.

3 Top Loan Companies For Bad Credit

LendingTree​ allows borrowers to review loan offers from a wide range of lenders in order to compare and find one that works for them. Applying for a loan on LendingTree is quick and simple, and it doesn’t require a hard credit pull, so you don’t need to risk hurting your credit score. Because there is an extensive network of lenders, finding one that will lend to someone with bad credit is not difficult. You will likely face high interest rates.

  • Loan Amount: $1,000-$40,000
  • APR: 4.93% - 35.99%
  • Loan Term: 24-84 months

GuidetoLenders​​ doesn’t originate loans, rather it puts users in touch with lenders who will compete for their business. It is often a solid option for people who have been turned down by other lenders because of bad credit scores. It does not charge any fees of its own and you are not obligated to pay anything if you want to just shop around for loans. The application is also known for being simple and straight-forward, and even people with bad credit can find lenders willing to give loans payable over 24-84 month terms.

  • Loan Amount: $1,000-$100,000
  • APR: 4.99% - 35.99%
  • Loan Term: 24-84 months

Getting a Personal Loan with Bad Credit: Understand Your Needs

If you’re considering applying for a loan despite your bad credit, there is some much needed due diligence to be done. First, you need to ask yourself: Why do I need this loan? Is it for a purchase you've had your eye on but you can still put off for a while? Or is it something you need to purchase right now? If you can put off your purchase for some time, you may want to consider it as adding a loan to your existing bad credit may put you into an even greater hole of debt with bad credit. If the loan you need is immediate, you should check out the best types of personal loans for you.

Discover the Options: Taking a Loan Despite Your Bad Credit

If you need to take out a personal loan as soon as possible, overriding your current bad credit, there are various lending options available to you:

  • Credit unions - These are member-owned nonprofit organizations that generally offer lower fees than banks
  • Home equity loans - These take out a line of credit on your home and can put you in a tough situation if down the line you are unable to pay it back
  • Peer to peer lending - These are peer lender websites that will let you post your need for a loan. Independent investors will then decide whether or not to lend you money after weighing the impact of your bad credit.
  • Co-signers -This is someone who will sign on a loan with you as a show of trust, promising to take responsibility in the event you can’t repay the amount. When you ask someone to be a co-signer, make sure it is someone you can trust and that has your best interests at heart.

If none of these options are viable for you, remember that you can always go to your bank for a loan. Just be aware that most major credit lenders and institutions are hesitant to lend out money when you have bad credit. Choosing an alternative route may prove to be more successful in the end.

What to Check Before Applying for a Bad Credit Loan

Some companies that provide online loans for bad credit aren’t entirely trustworthy. Be cautious, do some due diligence, compare personal loans for bad creditand keep in mind that if a deal sounds too good to be true - it probably is. Reputable industry leaders can be found in our in-depth reviews.

After you’ve decided which company you’ll apply for a loan with, make sure to start gathering all the necessary documents. Some companies require extensive tax documents, as well as employment information and bank statements. With bad credit, you may need to apply at multiple places, so make sure to organize everything you need in order to save time. If you get rejected, ask the company for an explanation so you can adjust accordingly with the next application.

  • APR rate on loan
  • Is collateral needed, and how much?
  • What is the payment schedule?
  • Which documents will you need, and will a failed application affect your credit score?

Pay close attention to the APR, which can be affected by the loan purpose, amount, term, and your credit rating. For instance, if you took out a $10,000 loan at 4.99% APR with a term of 3 years, you would owe 36 monthly payments of $299.66.

It may sound obvious, but make sure not to sign any loan agreement until you have reviewed the terms of the loan, especially if you put up collateral. Make sure you know how much the interest will be and what penalties you will face for delinquent payments before going forward.

Once you get your loan, consider it a top priority to make your loan payments on time. This will help you repair your bad credit and help you when applying for loans further down the road.

The APR calculation on personal loans will vary depending on your lender but the APR on these loans is lower than what you would typically receive from a payday or short-term loan – usually starting at 10% and capping at 36%. These loans can be a good alternative to payday loans because they are less expensive than credit cards and as mentioned previously, the APR is lower than it is on payday loans. It is not ideal to owe any money but if you require a loan, then a personal loan could certainly be a viable option.

APR rates mentioned include associated fees.

Full repayment for the loans displayed range between 60 days to 180 months.

Representative example: assuming a loan of $10,000 over 60 months at a fixed rate of 3.1% per annum and fees of $60.00. This would result in a representative rate of 3.3% APR, with monthly repayments of $180.80, for a total amount paid of $10,848.00.

Alternatives to Bad Credit Loans

Applying for a secure credit card can be a way to get some quick cash at easier rates than by way of other options. Secured credit cards tend to have low limits, around $1,000 or so, but due to the typically lower interest rates and origination fees, they can be a better option if your cash needs aren’t very high.

If you have a friend or loved one with good credit you can ask them to co-sign a loan with you. However if you don’t make your payments, your co-signer will be on the hook for the payments, and their credit could suffer as a result.

With many retirement plans, you can take an interest free loan out against your plan for the first 60 days, and then pay it back into your plan. Not all retirement plans allow this, and often have as a stipulation that until you pay back the loan it won’t accrue an interest in the stock market.

​Bad credit is a problem that plagues millions of people across the United States and beyond. Many falsely think that their less than ideal credit score precludes them from securing a loan, meaning they don’t take advantage of methods that can help them consolidate debt and improve their financial standing. If you have bad credit, rest assured that you can find lenders who are ready and able to tailor a plan to your needs.

* LightStream Terms and Conditions:

APR Disclosure: Your APR may differ based on loan purpose, amount, term, and your credit profile. Rate is quoted with AutoPay discount, which is only available when you select AutoPay prior to loan funding. Rates under the invoicing option are 0.50% higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice.

Payment Example: Monthly payments for a $10,000 loan at 4.99% APR with a term of 3 years would result in 36 monthly payments of $299.66.

You will be redirected to lender's website where loan terms will be presented.

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Get Personal Loans for Bad Credit for All Financial Needs

The fact cannot be denied that proper flow of cash and finance is very important to you to survive in this competitive world. However, many a times, running out of funds is a common phenomenon – it is not with you, but almost with all. The reasons may be many, but the solution is only one and that is arrangement of cash through various sources. Applying for personal loan for bad credit is a good idea – of course a miracle for people with bad credit. But if you have a bad credit history with the bank then it will be impossible for you to get a loan from a bank. The situation might disturb you, but now there is no need to worry. We are here with the solution in the form of loan for that you can apply easily and get them immediately in your account.

From $100 to $5000 – Personal Loans for Bad Credit -

Such kind of loans is easy installment loans online that can be easily paid during the term that is chosen by you. You can get a loan from $100 to $5000. So if you have a problem with credit in the past or even currently facing financial difficulties then you can apply for loans with bad credit.

Bad Credit Loans – Personal Loans for Bad Credit

Personal Loans for bad credit are planned for the situation when a bank drops your credit rating and reject your loan application. A bank may also declare your rating a bad credit rating if the bank does not find any previous credit record for you. So, we are here to help you in that situation with our payday loans.

Why You Need Personal Loans for Bad Credit – Know About the Essential Reasons before Apply

A personal loan for bad credit is a small amount that can help you in improving your financial situation and lessen the financial burdens for you. It’s a great product that will help you in applying bills in times of emergency and later you can easily repay them in monthly installments. However, its always advisable to avoid unnecessary expenses and also avoid taking extra debt.

Why to Choose Personal Loans for Bad Credit – Get Precise Solutions for Unexpected Financial Issues

Such kind of loans is helpful in a number of ways. Personal loans with bad credit and no credit check personal loans are providing you quick solutions to deal with all kind of financial issues.

  • We offer personal loans with no credit check. So, it will be easy to get a loan. These all loans are unsecured loan an nothing is kept as collateral security against these loans.
  • All the loans offered by us are installment loans, so you can easily repay them later in installments.
  • Your eligibility check won't impact your credit score
  • We have simplified process to offer loans as you can apply online for a loan. And once the loan is approved the money will be sent directly to your account.
  • You can easily repay the loan in fixed monthly installments.
  • We do not charge any arrangement fees for the application process

How To Apply for Personal Loan for Bad Credit

The application process is quite simple and fast. Follow just three steps and you are done that will be helpful for you to get the loan amount easily in your given account to use for the needs that are raising their heads.

You need to apply for a loan by filling a form. It will just take 5 minutes .The application forms available on the website so just fill it.

You will be the instant decision about your loan approval. So you will easily know as whether your loan is approved or not.

Cash sent directly in the accounts

Once your loan is approved, the approved amount will be directly transfer in you are account within few hours

Get Personal Loans for Bad Credit in Easy Way

We are one of the most trusted loan provider of USA bringing to you personal loans for bad credit. We offer you a hassle free and quick loan process for all your loans. We are committed to transferring you the loan amount directly in your account. We do not charge customers any fee for processing the loan.

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Best Bad Credit Loans for 2018

Having bad credit doesn’t mean you can’t get a loan. It just means you’ll need to be a bit more selective and take the time to find the right lender for you. When it comes to loans for bad credit, you want a lender who will look at more than just your credit score, but is also transparent about rates and fees, as well as flexible on terms.

Don’t automatically assume you’re limited to a payday lender or title loan. Finding loans for people with bad credit also means avoiding predatory lenders and common scams that can keep you trapped in a cycle of debt. Fortunately, we did the research for you and found a number of companies that specialize in lending to customers who may have poor credit. Check out our list and explore your options using our compare tool below!

Use our loan comparison tool to view multiple loan options from $500 to $35,000+ with no obligation.

Simply enter you zip code, estimated credit rating, monthly income, and the loan amount you need to instantly view loan companies available to accept your application online right now.

The Best Loans for People with Bad Credit

One note before going forward: Bad credit means different things to different lenders. Some lenders won’t consider your application if you have a credit score below a certain number, while others will make it a smaller part of their lending decisions. For the purposes of this article, I focus on lenders who will make loans to customers with credit scores under 640. This score is considered “average” by most lenders, but lending criteria tightens considerably below this mark.

The Best Bad Credit Loan Options

Best for Really Bad Credit: Bad Credit Loans

When it comes to getting a loan with really, really bad credit, your options are limited. The loans that do exist are often of the “payday” variety: low-dollar, short-term, and high-interest loans. While a payday loan can provide much-needed cash in an emergency, high interest and fees can make it difficult to repay the loan in the short time period typically provided.

BadCreditLoans.com is not a lender itself, and instead attempts to connect borrowers with poor credit to a network of willing lenders. To apply online, you must be 18 years old, have a valid phone number and email address, provide proof of citizenship or legal residency, hold a checking account in your name, and have a regular income, whether from full-time or self employment, disability, or Social Security.

After putting in a request, you’ll wait to receive offers from their network of lenders. Keep in mind, though, that depending on your financial situation, you may not receive any offers. If you do, typical loan amounts range from $500 to $5,000 with an APR of anywhere from 5.99% to 35.99%, according to their website. The repayment terms generally range from 3 to 36 months. So, for instance, if you were to take out a $3,000 loan with a 35.99% interest rate and 24-month term, you can expect to pay $177 a month. Your principal would be around $3,173 with another $1,252 in interest — which isn’t ideal, but if you need cash fast with poor credit it is an option.

So, we’ll reiterate: Before accepting an unsavory loan offer, be sure that you have no other options, and that you can definitely pay back the entire loan when it’s due.

  • Even borrowers with truly bad credit may qualify for a loan of up to $1,000. (Those with better credit scores can apply for larger loans.)
  • Bad Credit Loans solicits offers on your behalf from its network of lenders so you can choose the best terms.
  • It’s free to apply, there’s no obligation to accept any offers, and there’s typically no inquiry on your credit report.
  • Most applicants can be pre-approved in as little as five minutes, according to the company, and you can receive your funds via direct deposit in as little as one day.
  • There’s no guarantee you’ll receive an offer from one of their lenders. Fortunately, it’s free to put in a request.
  • Interest rates are high — up to 35.99% — and will skew to the higher end the worse your credit is.
  • Bad-credit loans are generally limited to $1,000 or less.
  • Beware of renewing your loan and getting trapped in a cycle of debt.

Best Secured Bad Credit Loans: OneMain

OneMain specializes in personal loans, but what makes them great for borrowers with poor credit is that they offer secured and unsecured loans. Generally, if your credit falls within the poor or bad range, you’ll need to either decrease the loan amount or look for a secured loan. Getting a secured loan means putting something up for collateral, such as a car, boat, truck, motorcycle, or more.

Once approved, loans for people with bad credit usually range from $1,500 to $10,000 (however, they do offer loans up to $25,000) with APR between 17.59% and 35.99%. The term length varies between 24, 36, 38, and 60 months. Another perk of OneMain Financial is that while you can do everything online, they also have more than 1,600 branches you can visit in person.

  • An option to consider for borrowers who have credit scores under 600.
  • Offers both secured and unsecured loans.
  • Has more than 1,600 branches.
  • In business for over 95 year with an A+ rating from the Better Business Bureau.
  • Website is vague about potential APRs and loan amounts.
  • Branches only available in 44 states.

Best Peer-to-Peer Loans: Peerform

For anyone whose credit score isn’t good, but not severe, PeerForm is a peer-to-peer lender that you may want to consider. As part of their process, any application with a credit score below 600 is declined (so if you have some time, it may be worth working to raise your credit score). Because of their credit score restrictions, they’re able to offer loans ranging from $4,000 to $25,000 to potential borrowers with APRs from 5.99% to 29.99%.

One of the downsides to using Peerform, though, is that it can take up to two weeks to receive funding. So, if you need cash fast, this may not be the best platform for you. Additionally, there are fees associated with the loans, such as a 1-5% origination fee, and loans are only available to residents of 42 states.

  • Low advertised APRs (5.99% to 29.99%) for borrowers
  • High borrowing limit up to $25,000.
  • Website is very clear about potential APRs, loan amounts, and fees.
  • Received an A rating from the Better Business Bureau
  • Requires better credit score than some other lenders (600+).
  • Does not offer secured loans.
  • Loans not immediately funded.
  • Several fees may apply, including an origination fee up to 5%.

Avant focuses on loans for “in between” borrowers — most customers who receive loans have a credit score between 600 and 700. Unlike many online loan startups, it is not a peer-to-peer lender that relies on individual investors to fund loans, instead Avant offers access to loans through its lending platform. That’s good news if you need your funds quickly — you may even have your loan the next business day after you apply.

Loans from Avant range from $2,000 to $35,000 with APRs between 9.95% and 35.99% for terms from 24 to 60 months. Their loans come with a 4.75% administration fee so that’s something to keep in mind before borrowing. Avant branded credit products are issued by WebBank, member FDIC.

  • APRs range from 9.95% – 35.99% for borrowers.
  • Available in 46 states and the District of Columbia.
  • Loans funded in as soon as one business day, unlike peer-to-peer lenders.
  • High loan ranges of $2,000 to $35,000.
  • Choose payment terms as short as two years or as long as five years.
  • A+ rating from the Better Business Bureau.
  • Does not offer secured loans.
  • If your credit score is under 580, you’re out of luck.
  • Not available in Colorado, Iowa, Vermont, or West Virginia

The good thing about NetCredit is they look beyond just your credit score (sometimes accepting applications with scores as low as 550); however, that does come with a cost. Their loans range from $1,000 to $10,000 with APRs starting around 34% — and in some cases ranging as high as 155%. If your offer comes with an extremely high (some would say borderline predatory) APR, look into other options, such as a secured loan or using a cosigner.

PersonalLoans.com allows multiple lenders to solicit your business after you fill out just one application. APRs are competitive and there are several types of loans, which top out at a generous $35,000. Of course, this is a referral site, so your terms, fees, and APRs will vary depending on the lenders who contact you. This kind of information can be easier to determine with a direct lender.

Best Loans for Bad Credit: Summed Up

How Can I Fix My Bad Credit to Get a Better Loan?

Because even the most sympathetic lender won’t give you a great APR if you have bad credit, we recommend making every effort to give your bad credit a boost before resorting to a loan. It’s not a quick process, but the effort will be more than worth it in the long run. Here are a few of your first steps to better credit:

  • Get to know your credit report. Is your credit as bad as you think it is? Have you actually checked your credit report lately? Surprisingly, the answers to those questions are “no” and “no” for many people. If you haven’t already done so, pull a free credit report. This will also let you verify that there aren’t any errors or fraudulent activity keeping your credit in the dumps. If there are, you can file a dispute. Check out our guides on the Best Credit Report Site and the Best Free Credit Report Site if you need recommendations.
  • Make more payments, and do it on time. It’s probably pretty obvious that you need to pay your bills on time to raise your credit score. (If you’re having trouble, set up automatic payments that can save you from forgetting.) Less obvious might be that making smaller payments more frequently can help, too, because it can show you’re using less of your available credit — a good thing for your credit score — when credit bureaus look at your data.
  • Don’t use most of your available credit, even if you pay it off on time. Your credit utilization ratio — your outstanding balance vs. your total credit limit — should be no more than 30%, but 10% or less is ideal, experts say. That means that even if you have a $10,000 limit on your card, charging more than $3,000 on it can negatively impact your credit score. This holds true whether or not you pay off your balance every month.
  • Resist the urge to close accounts. Got a credit card you don’t use? It’s probably tempting to close your account, but it’s best to leave it open. Why? Again, having credit that you actually don’t use is good for your score. Keep the account active by using it to pay a small bill from time to time. Having the same account open for several years also lengthens your credit history, which has a positive effect on your score.
  • Take advantage of credit-building tools: Secured credit cards, for example, provide a safe way to make monthly payments. If you need to take out a loan, ask someone with good credit that you trust to become a cosigner. Again, making payments on time, every time, will help rebuild your credit.

What kind of loans can you get with bad credit?

Loans for bad credit range from conventional personal, auto, and home loans with less-favorable terms to short-term, no-credit-check loans like payday and auto title loans. All have pros and cons, but some are a much wiser choice than others — and some should be avoided entirely.

Personal loans for bad credit, available through brick-and-mortar banks, credit unions, and online lenders including those profiled above, are loans made for any purpose. The amount the lender will be willing to part with varies widely based on your credit and whether the loan is secured (backed with collateral that your lender can seize if you cannot pay back the loan) or unsecured (no collateral required). If you want to do business locally, credit unions can be a particularly good choice because they might be more flexible with their lending criteria than bigger banks – especially if you’re a longtime customer.

Experts warn against borrowing from lenders who don’t thoroughly check your credit history, repayment ability, and other financial circumstances. You should also be wary of expensive insurance add-ons that ensure the loan will be paid back if you die or become disabled.

If you have very bad credit, secured loans can be a viable option — it will be easier to qualify and you’ll receive more favorable terms, such as a higher loan amount and a lower APR. However, you must be absolutely sure you can repay your loan on time or you could lose whatever collateral you’ve agreed to use — typically, your home, car, or savings account.

Another option is getting a co-signer with better credit to sign for a loan with you. The lender will then use the co-signer’s credit to determine the terms. Of course, doing so puts the co-signer at huge risk. He or she is equally responsible for payments if you suddenly can’t afford them. If you think there’s any chance you will default, save your friend or family member the trouble of becoming a co-signer or you’ll risk their finances — and your relationship — too.

Use our loan comparison tool to view multiple loan options from $500 to $35,000+ with no obligation.

Simply enter you zip code, estimated credit rating, monthly income, and the loan amount you need to instantly view loan companies available to accept your application online right now.

Can you get a mortgage with bad credit?

Even after the subprime mortgage crisis, it’s still possible to get a mortgage with bad credit. Of course, your choices will be more limited. Experts say it’s wise to work with mortgage brokers who can help you evaluate your options. One of them is an adjustable-rate mortgage, which can be easier to qualify for than conventional fixed-rate loans.

One of the best places to look is the Federal Housing Administration’s loan program. Because the government backs these loans, lenders can still offer competitive interest rates while accommodating borrowers with credit scores of 580 and above. You’ll need a down payment of at least 3.5% — far less than the typical 20% required for conventional mortgages. The major downside is that you’ll pay fairly high mortgage insurance payments over the life of your loan.

Experts say one related kind of loan to avoid is a mobile-home loan. High interest rates are very common, and even if you can get one with terms comparable to those of a regular subprime mortgage, mobile homes depreciate so quickly that refinancing is difficult.

Bad credit auto loans are simply loans for car buyers with bad credit that have less favorable terms — generally a higher APR and a lower loan amount — than auto loans made to buyers with good credit.

There are reputable lenders who focus on bad credit auto loans that I detail in a separate post on the Best Bad Credit Auto Loans. However, beware: Unscrupulous dealers may take advantage of bad-credit customers with shady tactics including leading you to believe your credit is even worse than it is or requiring you to buy add-ons in order to get financing. In general, you also shouldn’t pay interest rates in the high double digits or sign for a loan with terms longer than five years.

Payday loans might be the most ubiquitous loan for people with bad credit. Unfortunately, they’re also almost always a bad deal for you.

Payday loans are typically small, usually $500 or less, and made for a short period of just a week or two before repayment is required on your next payday. They’re easy to get as long as you provide proof of income. The lender usually requires you to write a check for the loan amount plus interest that can be used for repayment. You may even give the payday lender electronic access to your account.

The main problem with payday loans is the astronomical finance charges. According to the Consumer Finance Protection Bureau (CFPB), you may pay $10 to $30 to borrow $100. If you pay $15 to borrow $100 for two weeks, that’s an APR of a whopping 400%. Many lenders allow you to pay only the interest and roll over the loan. This tempting scenario traps many low-income borrowers in a cycle of debt since they can only afford to pay back the interest. In fact, the CFPB has found that more than a third of borrowers take out between 11 and 19 payday loans over the course of a year. A quarter owe money to payday lenders for more than 80% of the year.

Some states have cracked down on payday lenders by capping interest rates, but 32 still allow the practice unabated. Bottom line? You’re best off avoiding payday loans.

Do not confuse auto loans that are meant for car buyers with auto title loans. Auto title loans require you to use your car as collateral in order to get a loan that can be used for any purpose. The amount of these loans varies, but it’s usually for much less than your car is actually worth. You usually won’t need a credit check to get an auto title loan.

According to the FTC, auto title loans typically last for 15 or 30 days and have a triple-digit APR. These kinds of loans can easily trap borrowers who can’t afford to repay the loan in a cycle of debt as they continually renew the loan with interest-only payments. The CRL and Consumer Federation of America found that a borrower of a $951 auto title loan pays more than $2,000 in interest on a loan he or she renews eight times.

Many lawmakers have cracked down on auto title loans, which are now illegal in 23 states. If auto title loans are still legal in your state, beware. Like payday loans, they simply aren’t a smart choice for those with bad credit.

What is collateral, and do I need it?

Collateral is an asset a borrower owns, such as a house, car, or personal valuables, that is put up to reassure payment of a loan. If a borrower fails to pay their loan, the lender is allowed to repossess the collateral and sell it in order to make their money back.

There are two types of loans available to borrowers — secured and unsecured.

Secured is named because each loan is secured by a borrower’s collateral. Usually the item put up for collateral is specified when the loan begins. Other types of collateral are required by the type of loan. (Mortgages, for example, are always secured using the borrower’s home as collateral.)

From a lender’s perspective, loans secured by collateral are less risky. Borrowers are more likely to pay if their personal property is at stake. As a result, secured loans tend to come with lower interest rates. And borrowers are usually able to take out higher amounts of money with a secured loan.

Unsecured loans do not require any collateral. Borrowers are essentially promising lenders that they’ll be able to repay their loan in full. Lenders tend to see unsecured loans as riskier investments, so unsecured loans tend to come with higher interest rates.

Can I take out an unsecured loan with bad credit?

It is possible to take out an unsecured loan with bad credit, although your interest rates may be considerably higher than with a secured loan.

You should only consider a secured loan if you’re positive in your ability to repay. You don’t want to risk your car or your home for the sake of a loan.

Can I get a loan if I’m unemployed?

You can get certain types of loans even if you’re unemployed, but we strongly advise against considering them. Borrowing money while unemployed carries risks, and you’d probably be better off taking proactive steps to improve your credit score and generally shape up your financial situation.

There are generally three types of loans available to unemployed borrowers:

  • Unsecured loans with high interest rates
  • Secured loans with high interest rates
  • Payday loans

None of the above are good options. If you borrow without the ability to repay, you’re putting both your financial and professional future at risk. Some organizations require a credit check as part of their hiring process. A bad or poor credit score may prevent you from getting a job.

If you’re unemployed with existing debts, you still have a few steps you can take:

  • Examine and prioritize your debts
  • Negotiate with your creditors
  • See if you qualify for unemployment insurance
  • Consider freelance or part-time work

If you’re newly unemployed, you might qualify for unemployment insurance. Click here to check out unemployment benefits by state. For more information and advice on finding employment, you can check out our guide here.

Can I get a bad credit loan with no checking account?

Many lenders require borrowers to have at least a checking account in order to receive funds. Both installment and lump-sum lenders prefer to deposit funds directly into a checking account.

If you have bad credit and don’t have a checking account, it might be tempting to turn to alternative loans — payday lenders or credit card advances. But even now, you have other alternatives that can help you receive a loan and build credit.

Joining a credit union with bad credit

Larger banks usually examine your credit history closely when you’re applying for a new account. If your credit score needs work, it’s less likely that you’ll be able to open an account. But instead of just considering your financial history, credit unions will consider your overall financial situation.

Credit unions are nonprofits, offering their members lower borrower rates and annual fees. But to join a credit union, you often have to be a member of a specific group or live in a specific area. Luckily, a number of credit unions have more relaxed membership requirements. To join, you may just have to donate $5 -$20 to a charity with a relationship to the credit union.

Getting a second chance checking account with bad credit

Second chance checking accounts are like secured credit cards — they give those with bad credit another shot at traditional banking.

Many second chance banking accounts come with required monthly fees as collateral. Second chance accounts often restrict an account holder’s ability to overdraft. You won’t be able to take out more than you have.

Second chance accounts give account holders the opportunity to pay bills and write checks from their account. Holders can access debit cards that pull directly from their account.

Second chance accounts can be transitioned into traditional accounts after 6 months to a year as a result of good financial practices.

Spotting Bad Credit Loan Scams

Bad credit puts you in a vulnerable position when you’re searching for a loan. But just because your terms won’t be as favorable as they would be with excellent credit doesn’t mean you should accept any old offer. Keep your eyes peeled for these red flags while searching for the best bad credit loans:

  • Guarantees. Legitimate lenders won’t tell you that you can get a loan without knowing your income, credit score, and other personal information. Any lender who guarantees that you’ll qualify before evaluating your information is probably bad news.
  • Upfront fees. It’s against the law for lenders to charge you simply for filling out an application.
  • Lots of uninitiated contact. Be careful if you’re getting constant mailings or calls from a certain company. Legitimate lenders don’t need to hound potential customers.
  • Fishy-sounding names. Some unscrupulous companies will closely copy the names of legitimate lenders to profit from their better reputations. Make sure you’re really doing business with the right company.
  • Pushy requests for personal information. You should only provide personal information to a company you trust once you know what kind of loan you’re applying for. Be particularly cautious about giving out information over the phone, especially if you didn’t initiate the call.
  • Scare tactics. It’s common to shop around for the best deal and wise to take time to evaluate how much you can safely borrow. Your lender shouldn’t pressure you to make a deal before you’ve considered your options.

Above all else, take a few minutes to check up on a lender yourself. Look at online reviews and the company’s Better Business Bureau profile. Be suspicious of consistently positive or negative reviews — the truth is probably somewhere in between. Double-check a company’s address, too. Being proactive at the beginning of your search can save you a lot of trouble down the road.

How I Picked the Best Bad Credit Loans

Interest rates are a big consideration when you’re searching for a loan with bad credit, but there are other factors to consider. Here are the criteria I focused on in my search for the best loans for bad credit:

  • Higher loan limits: While it’s common for some lenders to cap loans for bad credit at low amounts such as $1,000, the best lenders allow larger loans for those who need them.
  • Reasonable APRs: Unfortunately, you’re not going to land a low interest rate with a bad credit score. Exorbitant APRs are out there, especially if you have very bad credit and are trying to get a loan without collateral. The best lenders still keep their interest rates competitive relative to your credit score.
  • Reasonable fees: Common fees include charges for loan originations, late payments, prepayments, and unsuccessful payments. Some lenders charge most or all of these; others don’t charge any fees at all. The best lenders keep fees to a minimum and charge a reasonable amount for those they do require.
  • Flexible terms: You may want to pay off a loan as quickly as possible to save on interest, or you might want a longer term to keep your payments low. The best lenders don’t lock you into one or two predetermined terms, such as three or five years.
  • Easy-to-find specifics: The best lenders understand that potential borrowers want to know potential APRs, loan amounts, terms, and fees before they start an application and include that information on easy-to-find pages on their websites.
  • Extensive reach: Different state regulations mean lenders may operate only in certain states. The best lenders have a wider reach.
  • Reputation: I considered each lender’s online reviews and status with the Better Business Bureau. BBB accreditation isn’t a necessity, especially for newer companies, but it is a plus. I also considered how long the company has been in business. I gave the least weight to individual reviews, as it’s common for prospective borrowers to give negative reviews for reasons such as being denied a loan.

Finding the Best Loan When You Have Bad Credit

Be sure to evaluate a range of choices when you’re searching for the best bad credit loans. You’ll want to find a lender who knows your credit score is just one part of a bigger picture, and you’ll need to make sure you understand what kind of loan you need, what kinds of loans to avoid, and how to avoid scams. You’ll want to consider all of your options to find the best loans for bad credit that work well with your unique situation. A great place to start is to compare multiple loan companies using our free loan search below.

Use our loan comparison tool to view multiple loan options from $500 to $35,000+ with no obligation.

Simply enter you zip code, estimated credit rating, monthly income, and the loan amount you need to instantly view loan companies available to accept your application online right now.

2018‘s Best Reviews: Personal Loans for Bad Credit

BadCredit.org is a free online resource that offers valuable content and comparison services to users. To keep this resource 100% free for users, we receive advertising compensation from the financial products listed on this page. Along with key review factors, this compensation may impact how and where products appear on the page (including, for example, the order in which they appear). BadCredit.org does not include listings for all financial products.

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  • • Signature loans from $1,000 to $35,000
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Review Breakdown: Personal Loans

Personal loans come in all shapes and sizes, and that is especially true when it comes to loans designed for those with poor credit. The good news is, no matter what your personal loan need, there are reputable providers that want your business -- despite your imperfect credit history. Below is a summary of the top loan services for people with bad credit, along with links to each service's secure online application.

Here are 2018's best personal loans for bad credit:

Looking for other offers?

16 Best (& Worst) Uses for a Bad Credit Personal Loan

By: Mike Randall

People with bad credit often find themselves in a particularly challenging situation when the need for quick access to cash arises. A credit card cash advance is where many people turn, but when you either don’t have a credit card or don’t have a high enough credit limit, this isn’t an option. Frequently, in these situations, taking out a personal loan is the only way to bridge the financial gap.

However, there are some types of personal loans that can be beneficial — and others that should be avoided. Here is a list of the 16 best and worst uses for a personal loan that folks with bad credit may want to consider.

Generally Good Uses for Subprime Personal Loans

If you really must take out a subprime personal loan to meet urgent expenses, consider these types of loans. Each has its merits, and can be a suitable way to gain access to the financial resources you need. Consider your situation and how each of these loan types might best serve you.

Getting a cash loan from a lender or from a private source may be the most straightforward type of personal loan you can obtain. Frequently cash loans require some form of collateral or pre-arranged commitment to pay — either automatically in the case of a payday loan money transfer, or even via a post-dated check. You may also be able to get a cash loan from a relative or someone you know, which may be a more preferred avenue. If you do decide to borrow from a friend or relative, you should still consider signing a personal loan agreement that spells out the terms of the loan.

Emergency loans are frequently associated with the workplace, where you may request an advance on future earnings or on accumulated vacation pay. If an employer offers such a program, this may be a viable alternative in some cases. Emergency loans can also be requested and withdrawn from funds that you have contributed to, such as a 401(k), an individual retirement account, a healthcare flexible spending account or something similar. Emergency loans are typically short-duration loans of between 30 and 90 days.

An installment loan is simply a loan that is paid back over time in incremental (and usually equal) payments. Installment loans are typically used for purchases of big-ticket items like furniture, vehicles, and even houses. Yep, a mortgage is an installment loan. The average installment loan usually requires a decent or even good credit score, but if your credit score is high enough to qualify, this may be a good way for you to go.

If you’re an active member of the military, you may qualify to take out a personal loan against future earnings. Active service members should check with their commands to see if this is an option for them. Another type of military loan is a VA or Veteran’s Administration loan for the purchase of a home. This type of military loan is available to anyone who has served and was honorably discharged from active service. Because these loans are guaranteed by the government, they offer service members great terms and rates.

Getting married can be a huge expense. If you need cash to pay for some or all of your wedding costs, you may want to consider a wedding loan. To be fair, what we’re really talking about here is a personal loan for the purposes of paying wedding expenses. There are plenty of lenders out there who will make loans to cover the costs of a wedding, and payments can sometimes be spread over as many as seven or eight years. Of course, if you own a home already, tapping your home equity line is another way to secure a wedding loan.

Buying a boat is a big expense, and you should consider carefully whether taking out a personal loan is in your best interest. However, if you’ve found a great deal on a boat and need a loan, there are lenders who will grant subprime boat loans for folks with less than perfect credit. Usually, a boat loan will require you to make a substantial down payment, but if you have the means to do so, you could be the proud owner of a new boat loan.

The government offers loans of different types through various agencies, and for a number of specific purposes. Some examples of government loans include small business and business expansion loans, housing loans, student or education loans, farming loans, and even disaster relief or emergency loans. To learn more about the specific government loan type you’re interested in, check with the appropriate agency or government sponsored enterprise (GSE) responsible for issuing these loans.

A debt consolidation loan is a type of personal loan typically used to pay off high-interest rate credit cards or other debt. As the name suggests, it’s a way of combining or consolidating your disparate debt payments into a single payment each month. You should use caution with this type of personal loan though, and only consider it if you can get a substantially lower overall interest rate. Also, if you choose to go the route of a debt consolidation loan, you need to have the discipline to curb your spending and not add to your existing debt.

Generally Poor Uses for Subprime Personal Loans

If you’ve got bad credit and find yourself in need of access to cash, it can be tempting to turn to any available source. However, some subprime personal loans simply aren’t worth the risk. Below is our list of the types of subprime personal loans you should avoid, and why. Remember, there may be better options out there for accessing the financial resources you need.

When you need a loan to pay for higher education, private student loans actually offer less flexibility than their government-backed equivalents. Some examples of how private student loans are a poor choice as a personal loan type include: they have variable interest rates that can suddenly rise, they offer no loan deferment, forbearance or forgiveness like federal loans do, and finally they are offered by institutions that are designed to make a profit — off you. Consider a federal student loan instead of one issued by a private lender.

When you’re in need of cash to start, expand or fund your small business, turning to a bank or lending institution for a small business loan can be tempting. However, this isn’t always a good idea. Loans for small businesses can often come with high interest rates and exorbitant terms — especially if you have bad credit. Instead, consider a loan offered through the federal Small Business Administration. This government-funded agency offers loans with reasonable rates and terms for things from expansion to short-term working capital.

Hard money loans are often referred to as the ‘loan of last resort’ for borrowers with bad credit. They are used when a conventional mortgage or home equity loan is impossible to get. A hard money loan uses the value of a property as the collateral, but often with untenable terms. These loans are more expensive and have higher origination costs than a standard mortgage, making them impractical as a personal loan for most borrowers.

A commercial loan is money that is usually lent to a business instead of to an individual. These loans are also sometimes referred to as commercial and industrial or business loans. They are usually secured by property — sometimes a personal residence — and are frequently used to fund business operations or expenses. These loans are usually short-term, and can be very risky. They also frequently come with high interest rates and severe penalties for non-payment. Commercial loans are a poor choice for a personal loan.

Peer-to-peer lending has gained popularity in recent years, thanks in large part to an explosion of P2P lending groups and websites. Although peer-to-peer loans may seem like friends lending to friends, this model has actually evolved into a far bigger business than its name might suggest. And while a booming business may seem good for everyone, you should think twice before requesting a peer-to-peer loan. One thing to consider is that the loan acceptance process of many P2P lenders may leave subprime borrowers paying higher interest rates than they deserve to. Also, regulation of this industry is far from robust, making it a very risky source for getting a personal loan.

So, you want to buy a bridge? Just kidding, of course. Bridge loans are loans designed to bridge a gap between the purchase of something, and the permanent source of financing for it. Bridge loans are usually of very short duration, and because of this, they can charge an extremely high APR. A bridge loan that charges 6% interest for a loan that comes due in three months can actually be more expensive than if you borrowed on a credit card. And due to their short duration, they are not a wise choice as a personal loan.

A construction loan is a loan type that is also usually short in duration. They are frequently used to pay for the costs of building a new home, after which you can apply for a standard mortgage. The problem with many construction loans is that they can be expensive and risky. It used to be that small builders and developers could get their own financing and could “lend” the homeowner the money as part of the construction process. That went away to a great degree after the home mortgage meltdown.

Now, with the homeowner responsible for getting a construction loan, if anything goes wrong during the building process, they are on the hook.

Different from student loans that can be federally-backed, college and school loans refer to obtaining a personal loan for education from a non-standard source. Frequently, government-backed lending programs can’t cover all of the costs of a 4-year degree, so alternative sources are sought.

Looking for college and school loans outside of the traditional methods can be very risky, as the rates are usually much higher, the terms are not as forgiving, and the penalties for default can be severe. If you are considering a personal loan for college or other school purposes, exhaust all of the traditional methods first.

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