5 Personal Loans for Poor Credit in 2021

Drowning in debt? Need quick cash to pay your bills, a wedding ceremony, or a vacation, but your credit score isn’t quite high, and you’re short on time? Our picks for the best personal loans for poor credit are here to lend a helping hand.

When all your debts are catching up with you, a poor credit score is the last thing you need. In such a situation, obtaining a loan from a bank is next to impossible. However, a poor credit score (300-629) shouldn’t immediately rule you out from obtaining the personal loan you desperately need.

There are numerous loan companies that cater specifically to clients with poor credit scores. We have reviewed some of the lenders that are willing to help you out. Getting a loan with bad credit isn’t impossible, and this is where you can find your prospective lender.

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Top 5 Personal Loans for Poor Credit - 2021

1. Credible

Credible is an excellent alternative for those who seek multiple refinancing choices. It’s free, fast, easy to use, and it doesn’t affect your credit score. Full Review

  • APR: 4.99%–35.99%
  • Loan amount: $600–$100,000
  • Loan term: 1–7 years

Credible is an excellent alternative for those who seek multiple refinancing choices. It’s free, fast, easy to use, and it doesn’t affect your credit score. Full Review

2. Upstart

Upstart is an excellent choice for borrowers with a high earning potential that are looking for the best loans for poor credit. One of its greatest advantages is that it accepts applicants with limited credit history. Full Review

  • APR: 7.98%–35.99%
  • Loan amount: $1,000–$50,000
  • Loan term: 3–5 years

Upstart is an excellent choice for borrowers with a high earning potential that are looking for the best loans for poor credit. One of its greatest advantages is that it accepts applicants with limited credit history. Full Review

3. LendingClub

LendingClub is a satisfactory alternative for borrowers who seek to consolidate their debts with the best personal loans for poor credit this platform offers. Applicants have the option of applying with a co-borrower, which increases the chances of getting approved for a loan. Full Review

  • APR: 10.68%–35.89%
  • Loan amount: $1,000–$40,000
  • Loan term: 3–5 years

LendingClub is a satisfactory alternative for borrowers who seek to consolidate their debts with the best personal loans for poor credit this platform offers. Applicants have the option of applying with a co-borrower, which increases the chances of getting approved for a loan. Full Review

4. LendingTree

Founded back in 1996 and launched in 1998, LendingTree has been helping people get loans for bad credit for over 20 years. The platform covers an array of financing issues, ranging from credit card to mortgage loans. Full Review

  • APR: 6.99%–35.99%
  • Loan amount: $1,000–$50,000
  • Loan term: 0–60 months

Founded back in 1996 and launched in 1998, LendingTree has been helping people get loans for bad credit for over 20 years. The platform covers an array of financing issues, ranging from credit card to mortgage loans. Full Review

5. LendingPoint

LendingPoint personal loans are excellent personal loans for poor credit borrowers, not payday loans. They’re a particularly good choice for those who have a low credit score but few options. The lenders provide acceptable interest rates and are available throughout the USA. Full Review

  • APR: 9.99%–35.99%
  • Loan amount: $2,000–$25,000
  • Loan term: 2–4 years

LendingPoint personal loans are excellent personal loans for poor credit borrowers, not payday loans. They’re a particularly good choice for those who have a low credit score but few options. The lenders provide acceptable interest rates and are available throughout the USA. Full Review

Detailed Reviews

Credible
Credible

BEST FOR

student loans and personal loans

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  • APR: 4.99%–35.99%
  • Loan amount: $600–$100,000
  • Minimum credit score: Varies by lender
  • Loan term: 1–7 years
  • Origination fee: None
  • Type of collateral: Varies by lender
  • Funding time: 1–7 business days
  • Credit check: Soft pull

Credible is a San Francisco-based lending platform founded in 2012. Its mission is to secure a range of loans that will help borrowers refinance their credits or debts. Credible LOANS aggregates lender information, making it easier for borrowers to browse their offers and pick the right lender for their needs.

This is an excellent choice for personal and student loans, as well as credit cards and mortgage refinancing. Its primary clients are people who would have no chance whatsoever to get credit from a bank. In other words, Credible focuses on helping people get the best personal loans for poor credit.

What you should keep in mind, though, is that you can’t borrow money directly from Credible, as it isn’t a direct lender. It’s only a platform that allows you to find and compare a range of lenders.

The concept is quite straightforward. Once you’ve entered the financing requirements into the form, Credible will recommend an adequate lender according to your personal circumstances.

Credible Loan Requirements

Credible’s specific requirements for a personal loan with bad credit depend on the direct lender. Those basic eligibility requirements are related to residency, income, and employment.

First and foremost, you must be 18+ to be eligible to apply for a loan. Second, you must hold U.S. citizenship or residency and possess a valid social security number. The minimum FICO score varies by lender, but the lower it is, the greater your APR will be. Last but not least, you must have full-time employment and a steady income to qualify.

A less than perfect credit report is the reason most applicants specifically look for the best loan for bad credit. Credible allows you to compare and choose lenders that accept applicants with a FICO score of 580 or even lower.

Credible Loan Agreement Terms

APR: Depending on the lender and its requirements, the APR (estimated rate) may range from 4.99% to 35.99%. Those who have a fair credit rating will be offered a minimum rate of 4.99%. But those seeking a loan with bad credit might have a colossal rate of 35.66%

Loan amount: Lenders Credible lists offer quite a wide range of amounts, starting from as little as $600 all the way to $100,000, based on what you need money for. Typically, upper limits range from $35,000 to $50,000.

Loan term: The loan term length ranges from 1 to 7 years, making Credible an excellent platform for individuals in need of long-term loans. Borrowers that want to pay off their bad credit loan in less than a year should look into short term loans.

As for an early pay-off, many of Credible’s partners won’t charge a fee (referred to as prepayment penalty) for paying off your loan before the term ends.

Origination fee: The origination fee is an upfront fee that lenders charge when processing a loan application.

Credible doesn’t charge any fees whatsoever. Though, some direct lenders may charge flat or percentage-based origination fees.

Type of collateral: Again, this varies by lender and type of the loan. While most won’t require collateral, others will.

In general, some lenders that provide bad credit personal loans with guaranteed approval require collateral from applicants with poor credit history.

Funding time: As soon as the application process is finished, lenders typically fund your loan by the following business day. However, some lenders take up to a week to complete this process.

Credit check: Credible performs soft credit inquiry as a part of the prequalification process. A soft inquiry, or a soft pull, is required to provide you with personalized prequalified rates. Bad credit lenders may perform a hard inquiry if you decide to proceed with the application, which may lower your credit score by 5–10 points.

Loan fees: Some lenders may charge late payment fees, as well as fees for insufficient funds on your linked bank account. To clarify: Credible does not charge a fee to match you with lenders. However, the lender should inform you of all of the fees you may: so read the loan agreement carefully.

What we liked & didn’t like

Credible is a great platform that will assist you in finding the best direct lenders for poor credit personal loans. What we liked is the fact that Credible partners with a range of different lenders, so borrowers might easily find the one that is the most convenient for them.

The search process is completely free. Thus, you won’t be charged for comparing the lenders. More importantly, only a soft pull is performed as a credit check, so your credit score won’t be affected. The borrower requirements are lenient, so even those with a bad FICO score can apply.

The application process is straightforward, and should you have any questions, customer support is at your disposal.

What we didn’t like is something that all online lending platforms do: bad credit lenders’ data is forwarded to third parties, i.e., the direct lenders. Online data transmission is never 100% secure.

Another drawback is that, by accepting Credible’s terms and conditions, you agree to receive its emails, phone calls, and advertisements. What’s more, depending on your phone plan, you may be charged for those phone calls. Luckily, you may opt out of these.

You should also keep in mind that it’s the direct lenders who make the final offer, so the pre-qualified offers aren’t final.

All things considered, Credible is among the top platforms you can use to view and compare your options for getting the best personal loans for poor credit online.

Upstart
Upstart

BEST FOR

fair credit borrowers with limited credit history

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  • APR: 7.98%–35.99%
  • Loan amount: $1,000–$50,000
  • Minimum credit score: 620
  • Loan term: 3–5 years
  • Origination fee: 0%–8%
  • Type of collateral: Not required
  • Funding time: 1–3 business days
  • Credit check: Soft pull

Upstart is one of the first online lenders to offer loans to individuals who have a limited credit history and doesn’t really think of itself as really offering bad credit loans. It boasts of its unique approval model that utilizes Artificial Intelligence to improve and facilitate access to affordable loans.

What’s more, when evaluating the borrowers, Upstart considers some non-traditional information such as higher education, place of residence, or job history, unlike other lenders who focus on income, assets, credit reports, or debts.

This direct lender doesn’t only offer a solution to those looking for the best personal loans with bad credit, but it also considers borrowers who have little to no credit history. Its loans might be used for various purposes: wedding or medical expenses, paying off debt, or credit card consolidation, home improvement, and college or university tuition.

Upstart Loan Requirements

To apply for a personal loan with Upstart, you must meet the typical borrower requirements.

First of all, you must be a U.S. citizen with a permanent address (unless you’re in the army). However, you should keep in mind that Upstart doesn’t accept applicants from Iowa or Virginia.

To be eligible for low credit loans, you must be 18+ (or 19+ if you come from Alabama or Nebraska). Understandably, you must have a Social Security Number and a valid bank account. Lastly, you must be fully employed and have a FICO of at least 620.

Upstart Loan Agreement Terms

APR: Upstart has rates that are among the highest on the market. All rates are fixed and determined according to an applicant’s FICO, income, loan purpose, education, etc. The average APR for a three-year loan is 21%.

Loan amount: The minimum amount Upstart offers for online personal loans for poor credit is $1,000, while the maximum is $50,000. However, the minimum amount that can be borrowed in Massachusetts, New Mexico, and Ohio is $7,000, $5,100, and $6,000, respectively.

Loan term: The payoff period is 3 to 5 years, though you can repay your loan earlier. Upstart won’t charge a prepayment fee.

Origination fee: Upstart may charge an origination fee of up to 8% of the loan amount based on your creditworthiness, which might be a sort of a drawback.

Type of collateral: Since the lender provides unsecured loans for bad credit, no collateral or cosigner is required.

Funding time: Upstart is quite quick when it comes to the time needed to fund your account. Namely, 99% of applicants received their funds within one business day after loan approval. However, sometimes it may take up to 14 business days to get approval.

Credit check: Upstart performs a soft pull only to check whether you qualify for personal loans for poor credit, as well as to determine your rate. This doesn’t affect your credit score.

Loan fees: Besides the origination fee of up to 8%, which Upstart charges once your loan is approved, the lender charges a late payment fee of $15 or 5% of the due balance. But, the lender also offers a grace period of 10 days before charging the fee.

What we liked & didn’t like

As a direct lender of personal loans for poor credit, Upstart stands out from other lenders thanks to its unique underwriting method and factors for loan approval. Also, funding time of 1 to 3 business days is undoubtedly a plus, as is the lack of prepayment penalties. The maximum loan amount offered is decent, though you can find other lenders that offer significantly more (up to $100,000).

Nevertheless, Upstart has possibly the highest APR in the market. Additionally, the origination fee of up to 8% might deter applicants in favor of lenders who don’t charge so high a fee.

All in all, Upstart’s quick funding time and acceptable loan amounts might be suitable for borrowers with little to no credit history.

LendingClub
LendingClub

BEST FOR

debt consolidation

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  • APR: 10.68%–35.89%
  • Loan amount: $1,000–$40,000
  • Minimum credit score: Not specified
  • Loan term: 3–5 years
  • Origination fee: 2%–6%
  • Type of collateral: Not required
  • Funding time: 4–11 business days
  • Credit check: Soft pull

LendingClub is a lending platform whose goal is to help borrowers seeking the best bad credit loans find the right creditor.

This San Francisco-based lending platform was established back in 2007. What makes it different from other platforms is that it allows borrowers to file a joint application, i.e., you have the option to apply for a loan with a co-borrower to increase the chances of loan approval.

The minimum FICO score required is 600, making LendingClub suitable for most borrowers, though the ones with the higher scores will be offered more favorable rates and loans.

LendingClub Loan Requirements

To qualify for bad credit personal loans, prospective borrowers must meet all the typical terms that lenders require.

The basic requirement is to be over 18 and a U.S. citizen or a resident with a long-term visa. You must be employed full-time and have a valid bank account. Lastly, you must possess a Social Security Number.

LendingClub classifies its borrowers into two groups according to the score: prime (660+) and near-prime borrowers (600-659). To apply for a loan with bad credit, you must have a minimum FICO score of 600.

LendingClub Loan Agreement Terms

APR: Possibly one of the main drawbacks of LendingClub is its APR rates that range from 10.68% to 35.99%. Your rate depends on a range of factors, the primary of which is your credit score—the better the score, the lower the rate.

Loan amount: LendingClub secures poor credit loans ranging from $1,000 to $40,000. Not all borrowers can obtain the maximum sum. Those with the lowest required FICO may qualify for up to $10,000. The sums are a bit lower compared to other platforms and lenders that can secure you up to $50,000 or even $100,000.

Loan term: Borrowers are expected to repay the loan within 3–5 years after the approval of their personal loans with bad credit. However, they can repay it earlier free of charge as LendingClub doesn’t charge a prepayment fee.

Origination fee: Another drawback of the platform is its origination fee, which amounts to 2%-6%. It is charged upon the loan approval, and it is deducted from the loan amount.

Type of collateral: Since LendingClub is only a platform that seeks to direct you to the lender, it doesn’t require any collateral. The lender, however, may require collateral to secure the loan.

Funding time: Compared to other platforms, LendingClub’s funding time is somewhat slow. Namely, upon the approval of bad credit loans online, it takes approximately four business days for the funds to be deposited into your bank account. Sometimes, however, loan approval might take longer, so the transfer may last up to 11 business days.

Credit check: As a lending platform, LendingClub will perform soft pull only to determine your prospective rates and loan amount. This check won’t affect your credit score as opposed to the hard pull that may be performed by the lender.

Loan fees: Borrowers who are 15 days late paying their installment for loans for bad credit will be charged a fee of 5% of the unpaid payment or a $15 fee, whichever is greater.

 What we liked & didn’t like

Possibly the best LendingClub’s feature is the joint loan option that allows for a co-borrower when applying for low credit score loans. LendingClub is also great when it comes to credit card consolidation as it offers to pay the debts directly to creditors. The minimum FICO score of 600 is great for borrowers struggling to get a loan with regular banks.

There are a few drawbacks, though. For one, borrowers with bad credit scores are limited to a sum of only $10,000. APR rates are higher for those with lower FICO scores. Besides, lenders charge origination fees upon approval of loans for bad credit, which vary from 2% to 6%, as well as a late payment fee of 5% or $15.

Some may be discouraged by the slow funding time: it takes 4 to even 11 business days to get the funds transferred to your bank account. Compared to other platforms that deposit funds within 1–3 business days, LendingClub is not the best option for those in need of emergency funds.

LendingTree
LendingTree

BEST FOR

online loans for bad credit

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  • APR: 6.99%–35.99%
  • Loan amount: $1,000–$50,000
  • Minimum credit score: Varies by lender
  • Loan term: 0–60 months
  • Origination fee: None
  • Type of collateral: Not required
  • Funding time: 1–7 business days
  • Credit check: Soft pull

Launched in 1998, LendingTree is among the oldest lending platforms that connect borrowers to large authorized lenders. Its mission is to match loan borrowers with lenders and secure the most convenient loans without submitting a bundle of individual applications. As LendingTree has partnered with some of the dominant lenders on the market, it brings borrowers various alternatives regarding personal loans.

A LendingTree personal loan can be used for an array of purposes such as debt consolidation, medical or wedding expenses. Even those with a poor FICO score may apply for a loan. The platform also offers the possibility of a joint loan.

LendingTree Loan Requirements

To be eligible for low credit loans, you must meet a few basic requirements set by all lenders and lending platforms. First, you must be a U.S. citizen or resident of 18+ years of age with a steady source of income. You must have an active bank account, and while there’s no set minimum FICO score, most lenders expect a score of at least 585.

LendingTree Loan Agreement Terms

APR: LendingTree personal loan rates range from 3.99% to 35.99%. The exact figure, however, depends on the direct lender and your credit score. Those with a higher FICO score will have a lower APR rate.

Loan amount: LendingTree’s borrowers may get personal loans for bad credit amounting to $1,000–$50,000. The final amount depends on the direct lender and the applicant’s credit score.

Loan term: Applicants can apply for short-term personal loans with no specified loan term or long-term personal loans for poor credit borrowers, which may be extended up to 60 months. What you should keep in mind is that your monthly expenses are typically higher with short-term loans.

Origination fee: As a lending platform, LendingTree itself doesn’t charge any origination fee. However, some direct lenders that LendingTree matches you with may charge an origination fee of up to 6% of the amount borrowed. 

Type of collateral: Since LendingTree isn’t a direct lender but only a platform that partners with creditors, it won’t require any collateral. But, some of the lenders may require a cosigner or some sort of collateral once you apply for the loan.

Funding time: Typically, it takes one business day for your bank account to be funded once your personal loan with bad credit has been approved. Nevertheless, some lenders might take more time so that you may end up waiting for funding up to seven business days.

Credit check: LendingTree will perform a soft pull in order to match you with a lender. Soft pulls have no impact on your credit score. If you proceed with the application, the lender may perform a hard pull.

Loan fees: The lending platform itself doesn’t charge any late payment fees. Yet, direct lenders may charge a fee of 5% or $15 or even more, whichever is greater.

What we liked & didn’t like

As one of the oldest platforms, LendingTree has the greatest number of partner lenders offering you better chances to get poor credit loans even if your FICO isn’t great. Using the platform to compare offers is free, so there won’t be any charges. Also, since LendingTree performs soft pull only to find the perfect offer, your credit score won’t be affected.

Regarding fees and penalties, LendingTree doesn’t charge any. However, some lenders you’re matched with may have origination fees and late payment penalties.

What we didn’t like is the fact that LendingTree requires a lot of personal information that is then forwarded to third parties. LendingTree may use your info for marketing purposes. Thus, you may end up spammed with numerous emails and phone calls.

LendingPoint
LendingPoint

BEST FOR

fair credit borrowers

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  • APR: 9.99%–35.99%
  • Loan amount: $2,000–$25,000
  • Minimum credit score: Not specified
  • Loan term: 2–4 years
  • Origination fee: 0%–6%
  • Type of collateral: No
  • Funding time: 1–2 business days
  • Credit check: Soft Pull/Hard Pull

LendingPoint is a Georgia-based direct online lender that provides some of the best loans for people with bad credit. The lender is worth taking into consideration if your FICO score is poor to fair as the lender doesn’t weigh FICO scores as strongly as other factors. But in case your credit score is higher, you might want to look for another lender whose fees are not as high.

What you should keep in mind is that LendingPoint accepts only individual applications—there is no option to submit a joint application.

LendingPoint Loans Requirements

To qualify for personal loans online for poor credit, you must be 18 or older. Also, you must be a U.S. citizen or resident, have a Social Security Number and have an ID issued by the U.S. government. Additionally, you must have a steady stream of income of at least $35,000 annually and a valid bank account.

LendingPoint is among the lenders who provide unsecured loans to people with bad credit scores. Even people with very low scores may apply as the lender focuses on other factors more when considering the loan.

Note that LendingPoint doesn’t operate in all U.S. states. Therefore, if you live in West Virginia, you won’t be eligible to apply for a personal loan.

LendingPoint Loans Agreement Terms

APR: As LendingPoint focuses primarily on providing fair to bad credit loans, it has an APR rate ranging from 9.99% to 35.99%. Just like with other lenders, the FICO score affects the ARP—you are offered higher rates if you have bad credit.

Loan amount: Compared to other lenders and fintech companies, LendingPoint provides rather small sums. Again, this is excellent for people looking for small personal loans amounting to $2,000–$25,000.

Loan term: Borrowers are expected to repay their loan within 2–4 years after the approval. They also have an option to repay it earlier, as LendingPoint doesn’t charge a prepayment fee.

Origination fee: LendingPoint charges an origination fee of 0%–6% for its personal loans for poor credit rating borrowers. The fee is taken from the overall amount upon approval.

Type of collateral: Since it provides unsecured loans for bad credit, LendingPoint doesn’t require loan collateral or a cosigner.

Funding time: This online lender boasts an extremely fast deposit time. Namely, as soon as your loan is approved, the funds will be transferred to your bank account within one or two business days.

Credit check: LendingPoint performs a soft pull to determine the rate and amount you’re eligible for. But, once you accept the offer, it will conduct a hard pull that will drop your credit score by a few points.

Loan Fee: The lender allows its customers to form their own payment plan for their personal loan for bad credit that involves a 28-day payment schedule. But, those who are 15 days late with their payments will have to pay a $30 fee.

What we like & don’t like

LendingPoint is the best option if you are in dire need of an emergency-cash immediately and have a bad credit rating, given the time it takes to deposit money to your bank account (only one business day).

However, this lender has quite a few disadvantages. The loan terms aren’t that great for clients who have better credit scores; the lowest APR of 9.99% isn’t that great. Furthermore, LendingPoint charges an origination fee of up to 6% (depending on the state) upon the loan approval: the amount is deducted from the total amount you will be borrowing. Lastly, late monthly payments are charged with an additional $30 fee.

How to Choose the Best Personal Loans for Bad Credit

There are no perfect lenders or perfect lending platforms. Thus, the very first step you should take when choosing a lender is doing thorough research on all available options.

There are a few things you should take into consideration while selecting a lender: qualification requirements, fees, and interest rates, and repayment terms.

Qualification requirements

To qualify for the best low interest personal loans for poor credit, borrowers must meet lender’s requirements. The typical ones include legal age—you must be at least 18 years old (in Alabama, the minimum age is 19), and you must be a U.S. citizen or a permanent visa holder. Furthermore, you must possess a valid Social Security Number. A steady flow of income and a valid bank account are also required in order to apply for the loan.

Other factors that may affect your loan approval include payment history and maximum debt-to-income ratios. Payment history is the second most significant factor when it comes to applying for personal loans for poor credit (or any kind of loan) as it significantly affects your credit score; in fact, it comprises 35% of it. Lenders will always investigate your history to make sure that you don’t have records of missed payments.

A debt-to-income ratio is obtained by dividing the debt payments per month by your gross income per month. It’s expressed as a percentage of your income that goes into paying your debts and lenders use it to determine if you can afford to pay off your loan. The lower the value, the better terms you’ll be able to get.

Some lenders that provide the best loans for bad credit will require collateral or a cosigner if your FICO is not quite good. A cosigner is a person with a stable income and good FICO that applies for the loan with you. In case you fall behind with your payments, they’re accountable for paying them instead. Collateral, on the other hand, is typically your home, car, or savings that guarantee that you will repay the loan in due time.

It’s always recommended investigating the lenders meticulously. You want to find the one that will not only accept your financial background but also the one who meets your requirements.

Fees and Interest Rates

An APR or interest rate is among the primary factors you should consider before deciding to apply for a loan. Lenders use various criteria for calculating and determining your  APR rate, and that’s why it’s important to shop around in your search for the top personal loans for poor credit.

Repayment Terms

Typically, repayment terms range between 1 and 10 years. Note, though, that loan terms may affect your APR. In other words, the shorter the length of the loan, the lower the interest rate.

Wrap Up

Sometimes, due to specific circumstances, you may be in urgent need of quick cash. But, if your FICO score is low, or your credit history isn’t great, banks will be hesitant to lend funds to you. Luckily, various online lenders will give you a chance and provide you with low interest loans for bad credit.

Online lenders are more convenient than ordinary banks as the procedures for obtaining the loan are a bit simpler. Plus, your credit score won’t be affected when they perform soft checks for loan eligibility. Application and approval procedures are straightforward and quick, so you can have your loan deposited on your bank account within a day or two.

Online lending platforms help you find the lender that is best for you according to your needs and credit score. Since not all lenders have the same requirements and interest rates, it’s advisable to research them meticulously. Don’t rush, devote some time to your investigation, and you will undoubtedly find your perfect loan.

FAQ

Can you get a personal loan with a credit score of 550?

To apply for a loan or credit, lenders and creditors will commonly require FICO of 660 and above. In fact, the better your score is, the greater your chances are to get a loan.

However, having a poor credit score doesn’t mean you can’t get a personal loan at all. There are lenders that provide loans to applicants with bad credit history, though the loan agreement terms aren’t as favorable as those offered to people with an excellent credit score

How can I get a personal loan with poor credit?

If you’re struggling with a poor credit score and need a loan, the best way to obtain it is to find a lender that offers personal loans with bad credit. Online lending platforms are an excellent tool for that as they will match you with lenders you’re eligible to apply with.

Another way is to get a personal loan is to have a cosigner, i.e., a person with a higher FICO and stable income who will apply for the loan with you. If you can’t find a cosigner, you can put up a collateral.

What are the average loan rates for a loan with poor credit?

Individuals with an excellent credit score may get an APR ranging from 4% to 7%. This is the absolute minimum that lenders set. Those with fair or good scores will get something in between, neither too low nor too high.

But applicants who have poor FICO won’t get rates below 25% to 36%. Typically, the rates for personal loans provided by federal credit unions amount to 18%.

Which loan company is best for bad credit?

The lending platforms we have reviewed are excellent for people with bad credit scores. They allow borrowers to view and compare lenders. As these lending platforms perform a soft pull only, applicants can even check their eligibility without impacting their FICO.

When researching lenders that will provide the best personal loans for poor credit, always check for APR rate, minimum and maximum loan amount, and funding terms. Also, make sure whether the lenders charge an origination fee and late payment fees, as these are all factors that may affect your loan.