[ad_1] If you need to borrow money but your credit is less than stellar, it’s possible you’ll wind up with a bad credit loan. These loans are geared toward individuals with imperfect credit histories who can prove their income and ability to repay the loan. As a result of their bad credit, however, consumers who use bad credit loans typically pay much higher interest rates and loan fees. Bad credit loan customers may also be limited in how much they can borrow as well as the terms of their loan’s repayment. What To Do If You Think You Have Bad Credit Step 1 — Get Your Actual FICO Score The only way to find out if you have bad credit is to take a look at your FICO score, which isn’t difficult since many companies offer online access for free. While your FICO credit score isn’t the only credit score you have, it’s the one used by most lenders that offer personal loans. According to myFICO.com, the credit score ranges are as follows: Exceptional: 800 and up Very Good: 740 to 799 Good: 670 to 739 Fair: 580 to 669 Poor: 579 or below If your credit score falls below 579, there’s a good chance you could only get approved for a bad credit loan. If your credit is just “fair,” on the other hand, there’s still a chance you’ll wind up with a loan for bad credit. Get My FICO Scores Step 2 — Compare Multiple Offers Once you have determined your credit score, you’ll want to start comparing offers from different lenders to see what fits your needs. You can use this tool to start that process. Continue reading to find out how Good Financial Cents breaks down the best loans for bad credit and what you should watch out for. Best Bad Credit Loans of 2021 If you feel you’re a candidate for a bad credit loan, it still makes sense to compare loan options to find the best deal. Loans for bad credit may come with higher interest rates and more fees, but some are still better than others. For the purpose of this guide, we compared all the bad credit lenders to see how their loan products stack up. The following loans are the best of the best when it comes to loans for poor credit: Avant LendingPoint OneMain Financial Upstart Bad Credit Loan Reviews Before you apply for a loan with one of the bad credit lenders above, it helps to have a basic understanding of their loan offerings, interest rates, and any other important details they offer. The following individual loan reviews can help you determine which lender offers loans that might work for your situation. #1: Avant Avant is another lender that often extends personal loans to consumers with low credit scores. With Avant, your interest rate will fall somewhere between 9.95% and 35.99% and you can repay your loan from 24 to 60 months. A loan funding fee of up to 4.75% of your loan amount is required as well, which will push up the cost of borrowing. Avant claims that they have loaned $4 billion dollars to more than 600,000 consumers so far and that they have a 95% customer satisfaction rate. You can apply for a personal loan through Avant online, and you can even check your rate without a hard inquiry on your credit report. Pros: No minimum credit score requirement; you can check your rate online without a hard inquiry on your credit report Cons: High APRs and loan fees for bad credit Borrow Better and Faster with Avant #2: LendingPoint LendingPoint is another bad credit lender that offers personal loans to consumers who are willing to pay whatever APR it takes. Loans from LendingPoint come with APRs between 15.49% and 35.99%, and your loan origination fee can be as high as 6% of your loan amount. You can repay your loan for anywhere from 24 to 48 months, and loans are offered in amounts up to $25,000. LendingPoint also lets you check your rate online without a hard inquiry on your credit report. You do need a minimum credit score of 585 to qualify for one of their loans. Pros: Check your rate without a hard inquiry; low minimum credit score requirement Cons: Pricey APRs and loan origination fee; loans not available in every state Sign Up Today with LendingPoint #3: OneMain Financial OneMain Financial offers personal loans in amounts between $1,500 and $20,000 (min and max amounts depend on state of residence), and repayment terms from 24 to 60 months*. Interest rates range from 18.00% to 35.99%, and an origination fee may apply as well. Origination fees can either be a flat rate ($25-$400) or a percentage of the loan amount (between 1% to 10%). *Example Loan: A $10,000 loan with a 20.19% APR that is repayable in 60 monthly installments would have monthly payments of $266 with an estimated origination fee of $150. You can apply with OneMain Financial online, and if you are approved, fast funding options may be available. You can even check to see if you are prequalified without a hard inquiry on your credit report. Finally, note that OneMain Financial has 1,500 physical locations in 44 states. Pros: Proprietary underwriting without use of traditional credit score; borrow up to $20,000 Cons: Potential for pricey APR and loan origination fee Get Started with OneMain Financial #4: Upstart Upstart is a unique online lender that makes it easier for borrowers with poor credit to qualify for a loan. This company considers more than your credit score when approving you for a personal loan, meaning they may give more weight to additional factors like your income and how much education you have. Borrowers who qualify can access between $1,000 and $50,000 in loan funds with a repayment period of 3 or 5 years. Interest rates range from 5.69% to 35.99%, however, depending on creditworthiness and other factors. Fortunately, loans from Upstart don’t
