If you have made poor financial decisions in the past and your credit score shows it, you may still qualify for a loan. That’s good news if you need to borrow money for any reason, whether a loan is needed to consolidate debt, pay overdue medical bills, or upgrade the car you need to get to work.
Now, onto the bad news. The problem with loans for people with bad credit is that, by and large, they tend to come with higher interest rates and fees. This means you’ll need to compare several loan options to find the best deal for your personal situation. This shouldn’t be a deal-breaker by any means, but you should plan to spend some time on your search.
Fortunately, we did most of the work for you when we created this list of the best loans for people with bad credit. If your credit is less than perfect but you still need to borrow money, consider this list of lenders and what they have to offer.
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The Best Loans for People with Bad Credit
The Best Bad Credit Loan Options
Before you dive into our research, it’s important to remember that bad credit means different things to different lenders. In some cases, a lender won’t consider an application from a borrower with a credit score below a certain number. For the purpose of this piece, I’m focusing on lenders who will make loans to customers with credit scores under 640. While this is considered “average” in some circles, lending criteria tightens below this mark.
Best for Really Bad Credit: Bad Credit Loans
Get Started on BadCreditLoans.com’s secure website
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.