If your credit score is 580 or lower, getting a personal loan can be challenging, but not impossible. Several lenders offer personal loans specifically designed for individuals with lower credit scores, focusing instead on factors like income and employment status. Here are four options worth considering if you’re seeking a personal loan with a bad credit score.
List of 4 Personal Loans To Apply To If Your Credit Score Is 580 or Lower
1. OneMain Financial
- Loan Amount: $1,500 - $20,000
- APR Range: 18.00% - 35.99%
- Loan Term: 24 to 60 months
- Minimum Credit Score: None specified, but generally accepts lower credit scores
OneMain Financial is known for working with borrowers who have less-than-perfect credit. They offer both secured and unsecured personal loan options, which may increase your chances of approval if you can provide collateral. The application process is simple, and you may even receive same-day funding.
2. Upstart
- Loan Amount: $1,000 - $50,000
- APR Range: 5.2% - 35.99%
- Loan Term: 3 to 5 years
- Minimum Credit Score: 300+
Upstart uses artificial intelligence to assess loan applications, considering factors beyond your credit score, such as your education and employment history. This can be beneficial if your score is low but you have other strengths in your financial profile. Upstart provides quick funding and transparent terms, making it a solid option for those with a credit score under 580.
3. Avant
- Loan Amount: $2,000 - $35,000
- APR Range: 9.95% - 35.99%
- Loan Term: 24 to 60 months
- Minimum Credit Score: 580
Avant specifically caters to borrowers with credit scores between 580 and 700, making it a good choice for those with less-than-ideal credit. They offer flexible terms and an easy online application. Additionally, Avant has an excellent mobile app that helps you manage your loan payments and track your balance effectively.
4. LendingPoint
- Loan Amount: $2,000 - $36,500
- APR Range: 7.99% - 35.99%
- Loan Term: 24 to 60 months
- Minimum Credit Score: 580
LendingPoint focuses on personal loans for borrowers with credit scores as low as 580 and takes a holistic view of your financial situation. They provide flexible repayment terms, quick pre-approval, and funding within 1-2 business days. LendingPoint’s approach includes an emphasis on income and cash flow, which may work to your advantage if your credit score is low but your income is stable.
Key Considerations When Applying for Bad Credit Loans
- Interest Rates: Lenders often charge higher interest rates for bad credit loans. Compare rates to ensure you’re getting the best deal.
- Additional Fees: Some lenders may charge origination fees or prepayment penalties, which can increase the overall cost of the loan.
- Pre-qualification: Many lenders offer a pre-qualification option that allows you to see estimated rates without affecting your credit score.
- Repayment Flexibility: Look for lenders that offer flexible repayment terms to help make monthly payments more manageable.
- Customer Support and Reviews: Research lender reviews and ensure customer support is reliable in case you need assistance.
FAQs
Can I get a personal loan with a credit score below 580?
Yes, some lenders specialize in loans for individuals with poor credit scores. Companies like OneMain Financial, Avant, and LendingPoint offer personal loans to borrowers with scores below 580.
Will applying for a bad credit loan hurt my credit score further?
Applying for multiple loans can impact your credit score temporarily. However, many lenders offer pre-qualification options, which allow you to check your eligibility and rates without affecting your score.
What interest rates should I expect with a credit score of 580 or lower?
Interest rates for bad credit loans tend to be higher, ranging from 18% to 35.99% or more, depending on the lender and loan terms. Comparing lenders is essential to finding the best rate for your situation.
Do I need collateral for a personal loan with bad credit?
Not always. Some lenders, like OneMain Financial, offer both secured and unsecured loans. Secured loans may improve your approval odds and potentially offer better rates, but they require collateral.
Can I improve my chances of loan approval with bad credit?
Yes, improving your income, providing proof of stable employment, or applying for a secured loan can increase your chances of approval. Some lenders, such as Upstart, also consider factors like education and job history when evaluating loan applications.
These loan options can be a great fit if you have a credit score of 580 or lower. Remember to carefully review the terms and conditions, compare interest rates, and understand the total repayment cost before making a decision. With responsible management, these loans can help you meet your financial needs and even improve your credit over time.
Also Read: Bad Credit Personal Loans with Instant Guaranteed Approval up to $5,000