People with a high credit score have a better chance of getting approved for financial products, such as personal loans. But there are some lending institutions and banks that help with bad credit. A number of reputable lending partners cater to borrowers with a poor credit score, which is generally below 580. Loans for bad credit can help customers borrow money for debt consolidation, emergency expenses, or other financial commitments.
1. Upstart
The company offers several flexible loan amounts for its customers, ranging between $1,000 and $50,000. Their personal loans for bad credit are significantly larger than most other conventional lending partners. Moreover, they have a straightforward application process. So, it is easier for customers with low credit scores and bad credit histories to qualify for the loan. Upstart considers many factors beyond the credit score when granting a loan. These include the customer’s employment history and education.
The lender limits its loans to two repayment options, which are 36 or 60 months. But their origination fee is higher than many other banks offering loans for bad credit. Upstart has a minimum credit score requirement of 300 and usually disburses the loan proceeds within one business day.
Eligibility criteria
- Meet the credit score requirements
- Be a permanent resident of the country
- Be at least 18 years old
- Have a valid email address
- Have an offer to commence a job within six months or a full-time job/have a regular source of income
- Provide Social Security Number
2. Avant
The lender has a higher interest rate, typically between 9.95 percent and 35.99 percent. But once the customer gets approval, Avant’s possibility of a quick disbursal is higher than that of most other competitors. The lender generally credits the funds in one business day. In addition, the company also has a grace window of 10 days for customers who are unable to make the payments in time. No late fee is applicable during this period.
Avant charges an origination fee of only 9.99 percent. Its loan amounts range between $2000 and $35,000. But its minimum loan amount varies by state. The loan terms can be selected from two to five years, and there is a minimum credit score requirement of 580. It does not charge any prepayment penalty if the loan is foreclosed. Also, if an individual’s income does not comply with the required criteria, Avant is flexible and considers the household income.
Eligibility criteria
Besides meeting the minimum credit score requirements of 580, an applicant’s monthly income should be $1,200. Plus, one must not reside in the following states.
- West Virginia
- New York
- Hawaii
- Vermont
- Massachusetts
- Maine
- Iowa
- Washington
3. Upgrade
This online lender offers a variety of loan terms from which customers can select. They disburse the funds quickly, and most borrowers usually receive the loan within a day of approval. Their APR range lies between 9.99 percent and 35.99 percent. Plus, customers can get discounts if they sign up for autopay functionality. There is an origination fee that ranges between 1.85 percent and 9.99 percent. Also, if the borrowers fail to make payments in time, Upgrade levies a late or failed payment attempt fee.
The lender is a good option for customers seeking a long repayment term for their loans with bad credit. Customers can choose the term from 24 to 84 months. The company also allows for high loan amounts of up to $50,000. Their minimum credit score requirement is 580.
Eligibility criteria
To qualify for a loan with Upgrade, customers must:
- Be at least 18 years or older
- Have a credit score of 580
- Have a verified bank account and a valid email ID
- Be a US citizen or reside in the country with a valid Visa
4. Best Egg
Most of the lenders do not offer secured personal loans. But this is not the case with Best Egg. They enable customers to utilize the permanent fixtures within the home as collateral. Because of this, people with poor credit scores have a relatively easier time qualifying for a loan.
Best Egg offers bad credit loans ranging from $2,000 to $50,000 for 36 to 84 months. The origination fee ranges from 0.99 percent to 9.99 percent.
For anyone interested in an unsecured loan, the Best Egg APR ranges between 7.99 percent and 35.99 percent. To avail of a secured loan from Best Egg, the customer must be a homeowner. Further, missing repayments on time may make the borrower lose the collateral for the loan.
Eligibility criteria
To qualify for a secured loan with Best Egg, the lender does not need an appraisal of the fixtures. But they will check the applicant’s home equity and credit history as part of the qualification process.
Besides this, the customer must:
- Be of the majority age in their state
- Be a US citizen or a permanent resident
- Not reside in West Virginia, Vermont, US Territories, Iowa, or the District of Columbia
- Have a physical address, email account, and a personal checking account
- Have a credit score of 600