Connect with us

Bad Credit

How to Get a Personal Loan With Bad Credit

Published

on

When you have bad credit and need a loan, you might have a hard time finding one with favorable terms. You’ll generally need a score above 600 to get approved for an unsecured personal loan.

However, there are certain lenders that specialize in loans for borrowers with bad credit. And you might want to consider the alternatives, like secured personal loans and cosigned loans, before you open an unsecured loan for bad credit.

Personal loans for borrowers with bad credit

Personal loans can help you consolidate debt and reclaim control of your finances. Unfortunately, borrowers with a poor credit history might have a harder time qualifying for an unsecured personal loan. However, your first step should be to get know what kinds of terms lenders offer. You can do that by checking out our table below.

See personalized loan offers

Advertiser Disclosure

Student Loan Hero Advertiser Disclosure

Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print to help you understand what you are buying. Be sure to consult with a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time.

Advertiser Disclosure

Student Loan Hero Advertiser Disclosure

Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print to help you understand what you are buying. Be sure to consult with a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time.

RATES (APR) loan amount
6.53% – 35.99% $1,000 to $50,000
6.98% – 35.89% $1,000 to $50,000
6.95% – 35.89% $1,000 to $40,000
9.95% – 35.99% $2,000 to $35,000

NMLS #1136: Terms & Conditions Apply

What to do if you need a personal loan for bad credit

Get quotes from lenders who offer loans for people with bad credit

Don’t apply for a personal loan from the first lender you find. Shop around to see which lender may offer you your best possible APR for your situation. Call up lenders or visit their websites to see if you can get prequalified with a soft credit check, which won’t affect your credit.

A prequalification isn’t a guarantee that you’ll get the personal loan once you formally apply. However, it can reveal what kind of terms you may qualify for. This is a great way to compare lenders beyond reviewing their fee structure and APR ranges.

To kickstart your search, here are a few lenders that accept bad or fair credit borrowers:

  • Avant
  • OneMain Financial
  • LendingPoint
  • Peerform
  • Upgrade
  • Upstart

Beware payday lenders

There’s really no such thing as a bad credit loan with guaranteed approval, but there is such a thing as predatory lending. Some lenders will offer you a high-interest loan while holding your paycheck as collateral. If you miss your payment, the lender could garnish your wages.

Financial institutions that practice this kind of lending are common, so look out for these signs of predatory lending:

  • Excessively long or short repayment terms
  • APRs of nearly 400% on payday loans
  • Unspecified APR or loan length
  • “No credit check” advertisements

Applying for a personal loan

Whether you’re applying to consolidate debt, pay for a major expense or cover another need, the application process for a personal loan is pretty much the same, and it isn’t labor-intensive.

Here’s how to get a personal loan:

  1. Check your credit report. Make sure there are no errors, and address any mistakes that you find. Equifax, TransUnion and Experian are required to provide you with a free credit report every 12 months through AnnualCreditReport.com.
  2. Know your credit score. Once you have a copy of your credit report, you’ll have a clear idea of your potential as a borrower. Knowing your score will further help you determine whether you’re likely to prequalify with certain lenders.
  3. Determine how much money you need to borrow. Make sure you nail down just the right amount. If you take out a loan that’s bigger than you need, then you could end up paying interest on funds you didn’t use.
  4. Get prequalified. This involves sending your information – income, debts, assets and credit score – to lenders, which will then determine if you may qualify. If it’s a good fit, the lender will send you a quote with an estimated APR and loan amount.
  5. Compare offers, and accept one. When you find the offer that’s best for your needs, then you’re ready to receive your money. Finalizing the loan requires a hard credit check, which will have an effect on your score.

While a lender is finalizing your loan, they may also ask for supporting documentation such as a driver’s license, proof of income and proof of residence.

Can’t get a personal loan? Consider these options

Start by building your credit

If you can’t get the terms you’d prefer on a personal loan, work on building your credit so you can reapply as a more favorable borrower. Here are steps on how to build your credit so you may be able to qualify for better terms on a personal loan:

  1. Request a copy of your credit report, and address any big issues you find.
  2. Open a secured credit card or loan. Make sure you spend within your means, and pay it off on time every month. You’ll build a healthy payment history, which can improve your credit.
  3. Give it time. While rebuilding your credit, it’s vital that you don’t miss any payments. You’ll also want to keep balances low and avoid opening any new accounts.

Open a secured personal loan

If you’re having a hard time qualifying for an unsecured personal loan, you could consider a secured loan that uses an asset, such as your house or savings, as collateral. These loans may be easier to qualify for or offer lower APRs, though you run the risk of repossession of assets if you default on your loan.

Enlist the help of a cosigner

If you can, ask a family member or significant other to cosign on the loan. There are a few things to consider here, since a cosigner is legally obligated to meet the terms of the loan. If you miss payments or default on the loan, both you and the cosigner will be on the hook, which means the two of you could suffer a blemish on your credit reports.

Further, a cosigned loan will be calculated in both of your debt-to-income ratios, and any assets that are put up as collateral could be repossessed and sold by the bank.

Meet with a certified credit counselor

Credit counseling is available to consumers who need help with controlling their finances. If you have debt that’s out of control or a credit score that’s too low to qualify for a loan, then you may be eligible to meet with a certified credit counselor for a free session.

A credit counselor may:

  • Go over your credit report with you
  • Advise you on budgeting and money management
  • Help you come up with a debt management plan

If you want to take a closer look at your credit score and how to improve it, credit counseling is the place to start. Visit the National Foundation for Credit Counseling website to find a credit counselor near you.

If there’s no other option, look into bankruptcy

It’s easy to get into a tough spot financially, especially if you’re starting out with bad credit and you don’t have access to the capital you need. You might consider filing for bankruptcy if:

Filing for bankruptcy lets you hit the reset button on your finances. However, it will have a lasting negative effect on your credit score, so sit down with a bankruptcy lawyer to see if this is the best path for you.

FAQ

Where can I get a loan when I have bad credit?

Some lenders offer personal loans to borrowers with less-than-stellar credit. Try lenders that offer personal loans to borrowers with bad credit. You might also consider opening up a secured personal loan or enlisting the help of a cosigner with good credit.

What is a minimum credit score for a personal loan?

There’s really no minimum credit score for a personal loan, but the lower the score, the harder it will be to qualify for a loan with favorable terms. You might be able to secure a loan with a credit score that’s less than 600, but you’ll end up paying much more money in interest than a prime borrower would for the same loan.

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

You may be able to secure a personal loan with a credit score of 550, but you’ll be paying much more in interest than most borrowers with higher credit scores. Instead, you could consider waiting until you’ve improved your credit score, enlist the help of a cosigner or seek out a secured loan.

Can I get a loan without a credit check?

Maybe, but these loans typically come with astronomically high APRs. Traditional lenders will want to get a clear picture of your credit history, so they will require a credit check. However, there are some services which offer payday loans without conducting a hard credit inquiry. If you default on the loan, then the lender could garnish your wages.

How can I find legit online loans?

With so much misinformation on the internet, searching for a bad credit loan online can seem like a daunting task. Do your research before committing to a lender. Student Loan Hero produces personal loan lender reviews that you can trust.

Source link

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Bad Credit

Warner Robins GA Credit Repair Finance Score Improvement Service Launched

Published

on

New credit repair services have been launched by the expert team at Fresh Start Consumer Services. They work with clients in Warner Robins, GA and the surrounding areas.

New credit repair services have been launched by the expert team at Fresh Start Consumer Services. They work with clients in Warner Robins, GA and the surrounding areas.

Fresh Start Consumer Services has launched a new credit repair service for clients looking to improve their financial future. Interested parties can sign up for credit consultations, in-depth credit analysis, credit recommendations and more.

Full details can be found at: https://freshstartconsumerservices.com/index.html

The newly launched services are designed to ensure clients can repair bad financial credit history, track their improvement campaign in measurable ways, and secure a better future for themselves and their family.

Clients can work with Fresh Start Consumer Services to clean up their past. This is achieved by working with the major credit bureaus and creditors to challenge the negative report items that affect the credit score.

Based in Warner Robins, GA, the expert team at Fresh Start Consumer Services is passionate about helping citizens to improve their credit score to give them more buying power. As a result of this, clients are able to secure more options in life.

The team understands that sometimes bad things happen to good people, and their services are designed to ensure that clients can get the most out of life. They also realize that a bad credit score can harm clients’ quality of life – and can be a difficult situation to get out of.

Fresh Start Consumer Services offer courses in credit repair and restoration, budget management, credit education and purchase assistance. Clients get easy access to their account 24/7 for live status updates on improvements, allowing them to fine-tune the management of their credit score.

Service options include personalized dispute options to fit each clients’ exact credit repair needs, an experienced case analyst and case advisor working personally with them throughout the process, custom dispute letters, and more.

For clients, there are a number of reasons to work with a credit repair specialist. Clients are able to secure significant savings on interest rates, attain better terms on loan products, and get access to the best credit card deals. They also gain access to more housing options.

The team states: “Fresh Start Consumer Services offers a unique combination of services that gives our clients the quality of life they deserve. We specialize in helping our clients achieve qualifying credit and the financial health they desire.”

Full details can be found on the URL above.

Source link

Continue Reading

Bad Credit

Is it Possible to Trade In a Car Early?

Published

on

Yes, early trade-ins are possible when you finance a vehicle. In fact, there’s no set time frame on trading in a car. Most dealers won’t take a trade-in that’s too fresh, though, and it’s best to wait until there’s equity in your vehicle before you try to trade it in.

What’s a Trade-In?

When you trade in a car, you’re essentially selling it to a dealership and financing something else from their lot, without the hassle of selling and buying with separate transactions. There are no hard-and-fast rules about how and where you have to trade in your vehicle.

However, it’s beneficial to shop around and see which dealers can give you the best price, but you shouldn’t just head to a car lot and ask what they’re willing to offer you. When the time comes, there are several steps you may want to take to get ready for the trade-in process, especially if you’re looking to trade in early before you’ve had the chance to close the equity gap.

Trading In Early and Equity

Are Early Trade-Ins Possible When You Finance a Car?When you’re trading in a vehicle soon after you’ve financed it, you’re more likely to be in a negative equity position – owing more on your auto loan than the car is worth.

This is especially true if you financed a new vehicle, or a certified pre-owned car. Newer vehicles depreciate faster than used ones, which have typically already seen their biggest drop in value.

Depreciation is the loss of value over time and it can’t be stopped. It can be slowed, though. The best way to do this is by using a large down payment when you finance. This reduces the amount you have to borrow, and leaves you owing a price closer to what the car might cost after you drive it off the lot. New vehicles typically lose around 10% of their value as soon as they touch the road.

If you don’t have the equity to recoup your investment in a car, you have to make up that difference out of your own pocket. It’s much easier to trade in a vehicle that can pay for itself, but this isn’t always possible when you’re trying to do so early.

Preparing Your Early Trade-In

When you know that you’re starting with a deficit on your trade-in, it’s a good idea to be prepared to get the most you can. Clean the car thoroughly, both inside and out, and make sure to fix any minor damage that may have occurred in the short time since you took out your loan.

Getting the vehicle detailed and fixing major mechanical issues isn’t likely to result in a worthwhile increase to the cash in your pocket, so don’t go overboard. Remember, you want to make as much money on this trade as you can, and it’s probably cheaper for the dealership to fix any large issues.

Before you set foot in a dealer to get your trade-in appraised, it’s a good idea to know approximately how much your car is worth. You can find this out by going to online valuation sites such as Kelley Blue Book or NADAguides. Be sure to be honest when you’re inputting information, since it’s the only way to get an accurate estimate of possible value.

Shopping for Trade-In Values

Once you have the estimates (which you should print or save to your phone), it’s time to take your trade-in to get looked at. Taking it to a few different dealerships is a good way to find the best deal you can.

We recommend taking your early trade-in to at least three different dealers, making sure at least one of them is a franchised dealership that sells your vehicle’s brand. A franchised dealer that sells your car’s brand may be more likely to offer a higher price.

Depending on your credit situation, it’s likely a good idea to ensure you’re trying to trade in your vehicle to a dealership that can work with your situation, especially if you have poor credit. And that’s where Auto Credit Express can come in handy.

We have a nationwide network of special finance dealers that are signed up with subprime lenders who can help people in many different types of credit situations, including bad credit, no credit, and even bankruptcy.

The process is easy to get started – just fill out our free auto loan request form. We’ll match you to a local dealership that can get you started on the financing you need after your early trade-in.

(function(d, s, id){ var js, fjs = d.getElementsByTagName(s)[0]; if (d.getElementById(id)) {return;} js = d.createElement(s); js.id = id; js.src = "http://connect.facebook.net/en_US/sdk/debug.js"; fjs.parentNode.insertBefore(js, fjs); }(document, 'script', 'facebook-jssdk'));

Source link

Continue Reading

Bad Credit

Jackson receives financial reporting award

Published

on

JACKSON, Mich. (WILX) – The City of Jackson is getting international recognition for its transparency in financial reporting.

The Government Finance Officers Association of the United States and Canada (GFOA) awarded the Certificate of Achievement for Excellence in Financial Reporting to Jackson for its Comprehensive Annual Financial Report (CAFR) for the fiscal year ending June 30, 2019.

The CAFR was judged by an impartial panel to meet the high standards of the program. Standards include demonstrating a constructive “spirit of full disclosure” to clearly communicate the financial story of the City and encourage users and groups to read the CAFR. The Certificate of Achievement is the highest form of recognition in the area of governmental accounting and financial reporting.

“This is great for the City as a whole because it improves our bond rating,” said City Manager Jonathan Greene. “We believe this award will help our residents understand the work we do to make the City’s finances transparent and easy to understand.”

Bond Ratings are letter grades assigned to bonds that indicates good or bad credit for an entity like the City of Jackson. By having a strong bond rating cities are granted opportunities to pay back interest at lower rates.

The CAFR can be viewed HERE.

Copyright 2020 WILX. All rights reserved.

Source link

Continue Reading

Trending