Obtaining a loan can be difficult if you have bad credit, which is why we’ve searched for the best lenders for bad credit loans. We looked at the approval speed, average interest rates, maximum loan amounts and more to find the very best loans for people with bad credit. Applying with each of these companies is fast, secure and completely free.
Ranked #1 Avant
Unlike a lot of online loan companies, Avant is not a peer-to-peer lender, which means they don’t rely on individual investors to fund loans. Avant offers customers access to loans through their lending platform, which is really great news if you need your funds quickly.
- A credit score of 580 to 700
- Available in 47 states and Washington D.C.
- $35,000 borrowing limit
- Repayment terms: 2- to 5-years
- APR range: 9.95% to 35.99%
If you have a credit score under 580, you may not be able to get a loan through Avant. Secured loans are not available. Applying is a simple process and Avant also offers an online rate checker so you can see your rates just by answering a few questions and providing income information (And it doesn’t affect your credit score).
Borrowers who have bad credit can use personal loans instead of piling up credit cards or payday loans. Personal loans allow you to have a little more manageable payment schedule and usually a lower interest rate. Plus having a personal installment loan, and making payments on time, can help boost your credit rating.
Ranked #2 Springleaf Financial
Springleaf Financial offers installment loans for individuals with credit scores below 600. They also offer secured loans. In a secured loan, you pledge collateral (car, truck, boat or other valuable assets) and if you fail to pay, the lender can seize the collateral.
The benefit to this type of loan is you usually get lower rates, better terms, and more borrowing power.
- Loan amounts available: $1,500 to $10,000
- APR range: 25% to 36%
- Funds typically available next business day
- Available in 27 states
Springleaf Financial offers a pretty simple application. Following your loan approval, a loan specialist will contact you to schedule an appointment at a local branch to verify and appraise your collateral, verify your information and talk about different loan options.
The company also offers Direct Pay, a free service that will automatically deduct payments from either your saving or checking account every month. Plus they have a pretty good mobile app that makes paying and applying for bad credit loans pretty simple.
If you have very bad credit, Bad Credit Loans are a good choice for you. To qualify for a loan you must be 18 or older, have a reliable income, a checking account, proof of citizenship (or legal residency) and a phone number and email address. Bad Credit Loans isn’t a lender, instead, they work by connecting you with potential lenders who are willing to provide loans that will meet your individual needs.
Bad Credit Loans works with an entire network of bad credit lenders who have agreed not to deny potential customers based just on their credit history.
- Loan amounts available: $500 to $5,000
- Repayment terms: 3 months to 3 years
- APR range: 6% to 35.99%
You can request a loan at any time of the day or night, choose the loan you want and review the offer(s) before accepting – no fees or obligations. Bad Credit Loans pride themselves on making sure customers know exactly what to expect from a loan before you actually take out the loan. Customers receive documentation of every detail of the loan before signing and agreeing to the terms – this allows you to make an informed, responsible borrowing decision.
Ranked #4 OneMain Financial
OneMain is one of the most well-known lenders for borrowers with bad credit. Most loans range from $1,500 to $10,000, but higher loans are available based on your credit profile.
- Credit score: below 600
- Loan amount available: $1,500 to $25,000
- APR range: 25% to 36%
- More than 1,800 branches in the United States
OneMain specializes in secured loans; however, unsecured loans are also available. The company has a number of restrictions on their use of personal loans, but you’ll get a lower APR if you apply for a secured loan instead. Funds are available as soon as the same day in many cases. With OneMain you can get a fixed rate on your loan and can cancel the loan with 14 days without any penalties.
Applying for your loan takes only a few minutes. OneMain offers one-on-one support. With more than 6,000 employees at branches across the company, you’ll get the help you need to be successful.
Ranked #5 Lending Club
Lending Club is a peer-to-peer online loan marketplace with competitive APRs and rather flexible repayment terms. Lending Club offers personal loans, so these funds cannot be put towards college education or to make investments.
- Credit score: no minimum listed
- Loan amounts available: under $40,000
- APR range: 5.99% to 35.89%
- 15 day grace period to make payments without paying late fees
Lending Club claims that borrowers end up with a 25% lower interest rate on their loan than what they were paying on their credit cards or outstanding debt. All loans have a fixed rate, which means your monthly payment won’t increase. Lending Club also allows borrowers to prepay on their loan anytime without a penalty or fee.
Borrowers can schedule payments automatically, so you won’t have to worry about late payments. This can also help to boost your credit score. Consolidating debt and paying off credit cards can help improve your credit score. It’s estimated that about 74% of borrowers see an increase to their FICO score three months after obtaining their loan.
Getting a Loan With Bad Credit Isn’t Impossible
If you’ve ever experienced financial problems and had your credit scores crushed or if you’re trying to build credit for the first time, it can be really difficult to get a loan. But, just because you have bad credit doesn’t mean you can’t buy a new car or get a cash advance to help pay those unexpected medical bills.
Having no credit or bad credit makes you a high-risk customer who might default on the loan and leave the lender stuck with the losses. Because you’re considered high-risk, no matter how responsible you are with money now, it can be really difficult to qualify for a loan. Until you are able to raise your credit score, you’ll have a hard time meeting the standards and large banks and credit unions set and have to follow. But bad credit doesn’t mean you can’t get a loan, and it doesn’t mean that the loan you get will blow your budget with an incredibly high APR.
Like so many other things in life, “bad” is a matter of opinion. What one lender considers “bad” is perfectly acceptable for another. If your credit score is borderline, some lenders might still consider you a great prospect, while others (who have different criteria) consider you a bad apple and riskier.
When it comes to getting loans with bad credit it’s best to shop around. Don’t just settle with the first bad credit loan lender you find with an attitude of “just give me a loan.” Shop around. There are still deals to be found … even for very bad credit loans.
If you have less-than-perfect credit, here are a few things you can do to get approved for bad credit loans online:
- Don’t Assume the Absolute Worst. Don’t take your mom’s word that your credit is bad. Take a few minutes to pull your free credit reports and then pay the few dollars for your FICO credit scores. Even candidates that have the same credit might not be treated the same in the eyes of a lender. Even if your credit history is tarnished, you may have a better chance of getting a bad credit loan than someone who has the same score and no credit history.
- Shop Around. Different lenders will see your low or bad credit in a more positive light than others.
- Don’t Do It Alone. Ask someone to help you find the right loan for bad credit. It helps to have a second set of eyes to look over the loan terms to make sure you know exactly what you’re agreeing to before you sign the papers.
- Shop Loan Terms. Don’t get distracted by the low monthly payments a lender promises. Look for the cheapest money available – that’s the lowest APR over the shortest time period. Don’t sign up for a 7-year car loan because the payments are cheaper that way. You’ll end up paying more in the long run. If you need 7 years to pay for a car, then you can’t afford the car.
- Watch For Add-Ons. Some lenders take advantage of people getting a loan for bad credit and add on all sorts of nonessential services to your contract. Things like extended warranties, insurance, and after-market services aren’t essential to your loan. So keep your eyes peeled and make sure you tell them “no” to those types of extras.
A lot of online lenders offer quick loans with no credit check required and guaranteed approval. Remember, your credit doesn’t have to stay bad forever. Once you qualify for bad credit rating loans, you can start building your credit again. Make sure you make your payment on time every month and if possible, pay a little extra so you can pay the loan off early. Doing those small things will start building your credit and make it easier to qualify for better loans in the future.