This guide will direct you to lenders based on your credit score, credit history and the amount of additional debt you can manage.
The Difference Between an Unsecured Bad Credit Loan, Secured Bad Credit Loan, Fair Credit Personal Loan, and a Personal Loan
An unsecured bad credit loan is a loan where the lender offers you money based on your credit score and credit history without asking for any form of collateral or security. If your credit score is below 590 and you do not have anything in collections, bad credit loan providers will offer loans ranging from $500 to $5,000. If your credit score is below 580, we would recommend not applying for more then $1,000 until you can work through whatever is keeping your credit score this low.
Here are a few examples of lenders that offer loans when your credit is blemished:
Unsecured Personal Loan from $500 to $5,000
Not available in the following states:
- AR, AZ, CT, GA, MA, MD, ME, NC, NJ, NY, PA, VT, WV
- Interest rates from 5.99% to 35.99% although rates can be higher
- Loans from $500 to $5,000
- Bad Credit loans is not a lender. They will attempt to find a lender that matches your credit score and ability to pay
Fair Credit Loan
If your credit score ranges from 590 to 650, this is considered a fair credit loan. Interest rates are traditionally higher.
- Loan Amounts: $2000 to $25,000
- Credit Score: 590+
- APR: See LendingPoint Detailed Review for up to date APR information
- Terms: 2 to 5 years
- Fees: Origination fees range from 0 to 6%
- Check this out for a bad credit option
- The company specializes in fair credit loans starting at 590+.
- Soft Pull only to start
- Was established in 2014 offering personal loans throughout America. The company is based in Kennesaw Georgia and has an A+ rating with the BBB
Secured Bad Credit Loan
A secured bad credit loan is a loan that the consumer has provided the lender with something they can repossess if the loan is not repaid in full. Assets that can be used for security include your home, auto, stocks or property. It can be difficult getting a bad credit secured loan and you may need to go outside of traditional lending services like private peer to peer lenders.
A Title Loan
A title loan is a loan secured against the title of your vehicle. Many lenders in the title loan market are not reputable, and they are hoping you miss a payment on your car.
America Loan Service recommends Lending Tree for New and Used Auto Purchase, Lease Buyout and Vehicle Refinance. Their group of auto loan lenders will provide you with fair service. You will need the ability to repay the loan they will check your credit score and work history
A personal loan will be provided based on your credit score, credit history, and your current monthly paycheck will determine the size of the loan you will receive.
A personal loan from SoFi could help save thousands. With low interest rates and a fixed monthly payment, you can pay off credit cards, fund home improvements, or make a significant purchase.
Members get a 0.125% rate discount on an additional SoFi loan—just for being a member.
Financial Advisors – Members get complimentary guidance from licensed financial advisors. We also waive our fees to invest with SoFi Wealth for members.
- Loan Amounts: $5,000 to $100,000
- Credit Score: Starting at 660+
- APR: See the SoFi review for up to date APR information
- Terms: 3,4,5,6, or 7 years
- Fees: No application fees, no origination fees, and no prepayment penalties
Added Benefits of SoFi
- Will consider borrowers with limited credit history with great cash flow
Upgrade was started by two of the founding member of Lending Club, a pioneer in marketplace lending. They were part of facilitating $33 billion in loans and made credit available to over 2 million America families over the last decade.
Through Upgrade, consumers can access affordable personal loans from $1,000 to $50,000 with low fixed rates that never change. Personal Loans may be used to pay off high-interest credit cards, make home improvements, make a major purchase and much more!
- Loan Amounts: $1,000 to $50,000
- Credit Score: 620+
- APR: See Upgrade Detailed Review for up to date APR information
- Terms: 36 to 60 months
- Fees: 1% to 6% Origination Fee and will vary by loan term
- Debt to income of 50%
- Funds will be sent to your bank via ACH within one (1) business day of clearing necessary verifications
Debt to Income or DTI
The one item all lenders are looking for is your ability to repay the loan. This is referred to as your debt to income ratio. In simple terms, you can make the payment every month without struggling. The typical debt to income ratio lenders are looking for is less than 40-50% of your monthly income goes towards covering your total monthly expenses. This link will provide you a debt to income calculator to figure out if you will qualify. If your debt and payments are so high every month that you will not have enough money to cover the payment, the lenders will not offer you a loan and if you are in this position
Collections or Loan Default
If you're currently in default or have a collections agency contacting you about a past unsecured loan, we suggest that you do not apply for a loan until you are in good standing.
We would suggest getting some help improving your credit score by contacting Novita.
The lenders will first try to work directly with you to work out payment terms. If they are unsuccessful, they will contract a collection agency or go court to recover the debt. If the consumer loses the case, the court can order a judgment that could include taking assets.
A Co-signer loan is a loan secured by someone with a great credit score and credit history. The co-signer guarantees the loan if you default on a payment
- Loan Amounts: $10,000 to $40,000
- Credit Score: Co-signer credit score 670+
- Interest rates decrease with a qualified Co-signer or a retirement fund with a minimum of $40,000
- APR: See Freedomplus Detailed Review for up to date APR information
- Terms: 2 to 5 years
- Fees: Origination fees range from 0 to 5%
- Check out Freedomplus with a co-signer
- Offering co-signer loans
- Minimum income of $30,000 to apply
- Soft Pull only to start
- Debt to income of 40%
An installment loan is a loan with a set number of monthly payments to repay the loan. Companies Like OppLoans have come into the market to help people that are trapped in high-interest payday loans by offering a loan with 9-16 months of fixed payments.
When you have poor to bad credit and are trapped in a payday loan or title loan
Interest rates from 99% to 199%
OppLoans offers installment loans in 26 states and a line of credit in 3 states
|Arizona||Illinois||Mississippi||Ohio||Utah||Line of Credit|
Key points of an installment loan:
OppLoans offers a number of monthly payments that lowers the principal with every payment. When this loan is paid in full, it will help improve your credit score if all payments are made on time
OppLoans reports to:
- While the interest rates are high, you will pay off the payday loan
- No risk of losing your vehicle
- No collateral required
- Any credit score can apply
OppLoans interest rates are extremely high roughly 160% interest and payday loans are 1500% interest. While we consider both of these options intolerable, OppLoans is the best of two evils.
Payday loans are unsecured and are to be repaid on your next payday in full. The trap with payday loans is that most people cannot afford to repay them in full with their next paycheck. The payday provider charges a penalty that can be as high as 1500% and this starts a cycle of repeated penalties.
- Loan from $100 to $1000 | This is a Payday Loan
- CashAdvance is not a lender. They connect consumers to a lender in their network.
- Loans available from 90 days to 72 months. Short terms loans will have higher interest rates
- Not available in the following states: AR, AZ, CT, GA, MA, MD, ME, NC, NJ, NY, PA, VT, WV
- Additional fees vary by lender
We recommend applying with badcreditloans if you find yourself in this trap.
A bridge loan is usually taken when someone is purchasing a home or condo and need a loan for a few weeks until the mortgage is in place.
Lenders will review your credit score and work history to review your borrowing activity. If there are collections, bankruptcy, default on any payment, or late payments on credit cards, this will all be listed on your credit report. Before you apply, check your learn more about your credit score and find out what makes up all aspects of your credit report.
Unsecured bad credit loans will have higher interest rates than a secured loan with the lender taking on more risk. The higher your credit score, the better your interest rate offer will be from all lenders. If you can wait to borrow and improve your credit score, we highly recommend it. The monthly interest rates expense will impact your ability to cover your monthly living expense.