Having a credit score of 580 or lower can make it challenging to secure a personal loan. However, there are lenders who specialize in offering bad credit loans to help those in need. Here are four personal loans that are available for individuals with poor credit in the USA.
Personal Loans To Apply To If Your Credit Score Is 580 or Lower
1. OneMain Financial
OneMain Financial is a reputable lender that offers personal loans to individuals with a wide range of credit scores, including those with poor credit. They have over 1,500 branches across the country, making them accessible to many borrowers.
Loan Terms:
- Loan Amounts: $1,500 to $20,000
- APR: 18.00% to 35.99%
- Loan Term: 24 to 60 months
Requirements:
- Minimum credit score: No specific minimum, but caters to those with poor credit.
- Proof of income and employment.
- Valid ID and Social Security number.
Pros:
- Quick funding, often the same day.
- Multiple branch locations for in-person service.
- Flexible loan amounts and terms.
Cons:
- High APR compared to other lenders.
- Origination fees may apply.
2. Avant
Avant is an online lender that provides personal loans to individuals with bad credit. Their user-friendly online platform makes the application process quick and straightforward.
Loan Terms:
- Loan Amounts: $2,000 to $35,000
- APR: 9.95% to 35.99%
- Loan Term: 24 to 60 months
Requirements:
- Minimum credit score: Typically 580.
- Regular income.
- Checking account.
Pros:
- Fast approval and funding.
- No prepayment penalties.
- Transparent fee structure.
Cons:
- High APR for borrowers with lower credit scores.
- Administrative fees up to 4.75%.
3. LendingPoint
LendingPoint specializes in offering personal loans to borrowers with credit scores as low as 580. They focus on providing quick funding and flexible repayment options.
Loan Terms:
- Loan Amounts: $2,000 to $36,500
- APR: 7.99% to 35.99%
- Loan Term: 24 to 60 months
Requirements:
- Minimum credit score: 580.
- Annual income of at least $20,000.
- Valid ID and Social Security number.
Pros:
- Fast approval and funding, often within one business day.
- Flexible repayment options.
- No prepayment penalties.
Cons:
- High APR for lower credit scores.
- Origination fees up to 6%.
4. Upstart
Upstart uses an AI-driven model to assess loan applications, considering factors beyond credit scores, such as education and employment history. This approach can benefit those with poor credit.
Loan Terms:
- Loan Amounts: $1,000 to $50,000
- APR: 5.22% to 35.99%
- Loan Term: 36 or 60 months
Requirements:
- Minimum credit score: 580.
- No recent bankruptcies or delinquent accounts.
- Proof of income.
Pros:
- Competitive APR for qualified borrowers.
- Quick approval and funding.
- Considers alternative data in loan approval.
Cons:
- High APR for borrowers with lower credit scores.
- Origination fees up to 8%.
FAQs
Can I get a personal loan with a credit score of 580 or lower?
Yes, there are several lenders who offer personal loans to individuals with credit scores of 580 or lower. These lenders specialize in bad credit loans and often consider other factors such as income, employment history, and overall financial stability.
Will applying for a personal loan affect my credit score?
Yes, applying for a personal loan can impact your credit score. When a lender performs a hard inquiry to review your credit report, it can cause a slight decrease in your score. However, this is usually temporary and should not have a significant long-term effect if you manage your credit responsibly.
What can I do to improve my chances of getting approved for a personal loan with bad credit?
To improve your chances, ensure that you have a stable income and can provide proof of it. Additionally, paying off existing debts, reducing your debt-to-income ratio, and checking your credit report for errors can help boost your approval odds.
Are there any fees associated with bad credit personal loans?
Yes, many lenders charge fees such as origination fees, late payment fees, and sometimes prepayment penalties. It's important to read the terms and conditions carefully to understand all the fees involved before accepting a loan offer.
How can I avoid predatory lenders when looking for a personal loan with bad credit?
To avoid predatory lenders, research potential lenders thoroughly, read reviews, and check their Better Business Bureau ratings. Look for transparent terms and conditions, and be wary of lenders who guarantee approval without checking your financial background.
By understanding your options and carefully choosing a lender, you can secure a personal loan even with a credit score of 580 or lower, helping you manage your financial needs more effectively.
Also Read: 4 Personal Loans To Apply To If Your Credit Score Is 580 or Lower - Bad Credit Loans in USA