Many people are pressed to take up loans when they are faced with financial difficulties. When you have loans and not earn enough, you will have a problem in paying back on time which also affects your credit score badly. If your credit score is bad, you can still borrow money from bad credit lenders provided that you have the means to pay back. The following are the 5 best personal loans for people with bad credit.
- OneMain Financial
OneMain Financial offers secured and unsecured loans for people with a credit score that is lower than 600. You can get a loan between $1,500 – $10,000 from OneMain Financial. If you have better credit, they can offer a loan of up to $20,000. The typical APR they charge you for the loan is 18% – 35.99% per year. The loan term range from 2 – 5 years.
- Bad Credit Loans
Bad Credit Loans is not a money lending company but it can connect you to a network of lenders that are willing to lend money to people with bad credit. After you apply, you will get several loan offers. You have the option to accept or reject the loan offer. Usually, you can get a loan offer that ranges from $500 – $5,000 and the interest rate can get as high as 35.99%. It is easy to get preapproval within 5 minutes from applying.
NetCredit looks beyond your credit score for approving the personal loans. They extend loans to applicants with credit score as low as 550. The advantage of NetCredit is that it does not charge any prepayment penalty if you want to prepay the loan. You can apply for a loan anywhere from $1,000 – $10,000. The APR starts from 34% and can get as high as 155%. You can get a cosigner if the rate you are offered is high.
Avant specializes in offering loans for people with average credit score that range from 600 – 700. You can expect to receive the money in your bank account as fast as the following day. With Avant, you can get a loan between $2,000 – $35,000 with an interest rate from 9.95% – 35.99%. You can choose to pay back your loan in 2 – 5 years. It does charge an administration fee of 1.50% – 4.75%.
Peerform is a p2p lending platform that offer personal loans for people with poor credit score. It can extend a loan in between $4,000 – $25,000 and they charge an APR rate in between 5.99% – 29.99%. It can take up to 2 weeks for Peerform to release the money. Peerform also charges an origination fee of 1% – 5% on the personal loan.
Posted by Richard Griffin
CPA, CFPA, MBA in Finance – Kent State University 2007