July 2023’s Best Personal Loans for Bad Credit
July 2023's Best Personal Loans for Bad Credit
Best Personal Loans for Bad Credit: Funding Options for Any Situation
Are you in need of quick personal loan funding for expenses like moving costs or vacations? If so, a personal loan might be the right choice for you. Personal loans are fixed-rate loans that are paid off in monthly installments, offering a variety of options for term lengths. Even if you have bad credit, there are still lenders who are more lenient on loan credit score requirements. In this article, we will provide you with a list of the best personal loans for bad credit, as well as valuable insights and tips to help you make the right decision.
Compare the Best Personal Loans for Bad Credit
Upgrade Personal Loan
Upgrade Personal Loan is one of our top picks for bad credit loans due to its low minimum APR. However, it’s important to note that if your credit isn’t in good shape, you may end up paying a higher interest rate, potentially as high as 35.99%. Despite this, Upgrade offers a lower minimum loan amount of $1,000 compared to other comparable lenders. Keep in mind that there is an origination fee between 1.85% and 9.99%, which is taken from your loan proceeds. However, Upgrade does not impose any prepayment penalties. Once you accept your loan offer, you can typically receive your funds as soon as the next day.
Avant Personal Loan
Avant is another lender that is more lenient on credit score requirements. While it only sets a minimum credit score as a guideline, most Avant borrowers have a credit score between 600 and 700. One of Avant’s highlights is its quick funding process – if your loan is approved by 4:30 p.m. CT on a business day, you can often expect to see the funds in your account by the next business day. Furthermore, Avant offers excellent customer service hours and has a strong mobile app.
Upstart Personal Loan
Upstart sets its minimum credit requirement at 600. However, unlike other lenders who solely rely on credit scores, Upstart also takes into consideration your employment and education history when making lending decisions. This holistic approach may benefit borrowers who may not qualify for a loan based solely on their credit score. Upstart offers limited repayment term options of three or five years, but it usually funds loans within one business day, making it a great choice if you need your funds quickly. Prepayment penalties are not imposed by this lender.
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OneMain Financial Personal Loan
OneMain Financial stands out among our top picks as it does not require a minimum credit score to apply for a loan. If your credit is in particularly rough shape, OneMain Financial may be a more viable option for you. Additionally, it is one of the few lenders to offer both secured and unsecured personal loans. Secured loans are backed by collateral, such as a house or a car, which can provide more flexibility for borrowers. When it comes to funding, OneMain Financial provides same-day disbursement for eligible applicants.
LendingClub Personal Loan
LendingClub allows you to include a co-borrower in your loan application. This can be beneficial if you are concerned about qualifying for a loan or if you want to secure a lower interest rate. Keep in mind that it may take two to four business days to receive your funds, which is longer compared to other lenders in our list. LendingClub also charges a late fee of 5% of the minimum payment amount or $15 (whichever is greater) of the total loan amount.
LendingPoint Personal Loan
LendingPoint has the lowest minimum credit score requirement among our top picks, making it an attractive option for borrowers who struggle with their credit score. The application process is quick, and you can often get your funds the next business day after approval. However, it’s important to note that LendingPoint is not available for residents of Nevada or West Virginia. Additionally, fees and interest rates may vary depending on the state you live in.
Additional Considerations for Bad Credit Loans
When selecting the right bad credit personal loan, it’s essential to consider what is most important to you. While many borrowers prioritize the lowest interest rate, it’s also vital to consider any fees, the minimum credit score needed, and the accessibility of the lender’s customer service. You’ll also want to ensure that you can choose a loan term length that works for you and that the loan’s purpose is allowed by the lender.
To further assist you in comparing lenders and their offerings, guides like this one provide a comprehensive evaluation of lenders’ pros and cons. Reading individual reviews of the lenders you are considering is also highly recommended.
Trustworthiness and Methodology
When choosing a lender, trustworthiness is crucial for an optimal loan experience. To help you with this decision, we’ve considered each institution’s Better Business Bureau (BBB) score. The BBB rates businesses based on factors such as responsiveness to consumer complaints, truthfulness in advertising, and clarity about business practices. So far, all of our top picks have been rated A or higher by the BBB. However, it’s important to remember that a high BBB score does not guarantee a positive relationship with a lender. It’s always a good idea to continue researching and gather information from others who have used the lender for a more comprehensive understanding.
Our methodology includes rating personal loan products on a 1-5 scale. We consider several categories, such as interest rates, fees, term lengths, funding speed, borrower accessibility, customer support, and ethics. Rates and fees are given the most weight as they directly impact the overall cost of the loan. Factors like customer support and ethics, while still important, have a lesser impact on the overall rating as they do not directly tie to a personal loan’s terms.
Remember, approval for OneMain Financial Personal Loan is subject to meeting their credit standards, which includes a responsible credit history, sufficient income, and collateral availability. Loan amounts and APRs may vary depending on the applicant’s qualifications.
In conclusion, by considering the best personal loans for bad credit and taking into account your specific needs and circumstances, you can find the right funding option for any situation.
