Bad Credit Loans: 6 Online Options for 2019

The average FICO score in America is around 704, according to 2018 data analysis by credit scoring company FICO. However, many people have credit scores well below this. If you have bad credit, you may be financially limited, especially when it comes to getting certain types of loans.

Fortunately, you might be eligible for certain personal loans with bad credit, but you will likely have a higher interest rate—sometimes significantly—based on your credit history.

While there are risks associated with personal loans, sometimes it’s the only choice you may have. You might use a personal loan to pay off credit card debt or other debts, but that only makes sense if you’re paying more in interest on that debt than you would be on a personal loan.

On this page:

• Compare Bad Credit Loans
• Full Reviews of Bad Credit Loan Lenders
• How to Qualify for Bad Credit Loans
• Bad Credit Loan Interest Rates
• Resources to Help Improve Your Credit

Compare Companies Offering Personal Loans for Bad Credit

If you’re looking for a lender that offers bad credit loans, here are some companies to consider.

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Find a Bad Credit Personal Loan

• Get up to $4,000 by tomorrow
• Easy online application, quick decisions, and funds as soon as the next day
• Rates ranging from 99% to 199% APR

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• Fixed rate personal loans between $2,000 to $35,000
• Checking your loan options won’t impact your credit score
• Rates from 9.95% to 35.99% APR

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• Check your eligibility for up to $10,000
• See your personalized loan options and choose the terms that work for you
• Rates from 34% to 155% APR

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• No early payoff penalty
• Fast, simple, secure application process
• Flexible repayment schedule with no hidden fees

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6 Bad Credit Personal Loan Companies

The following are brief reviews of personal loan companies that might offer funding to someone who has fair or bad credit. You have options for short-term and long-term repayment.

LendingPoint Review

LendingPoint is an online lender that advertises personal loans for people with fair credit scores. According to the company’s marketing, you can “get the credit you deserve,” and they will look beyond applicants’ credit scores. You may also see offers without doing a hard credit check.

Overview

LendingPoint offers personal loans that are designed for customers with credit scores in the 600s. It may be possible to get a personal loan with LendingPoint if your score is lower than that, but approval is less likely. The application process takes only a few minutes and is done online, and you can receive an offer and payment options immediately. The loans are often funded as soon as the next business day when someone is approved.

Rates, Terms, & Fees

Loans are available in amounts of anywhere from $2,000 to $25,000. The annual percentage rates range from 15.49% to 35.99%. Loan terms vary from 24 to 48 months, and there is an origination fee charged on loans. Monthly payments can be made online or automated to simplify the process.

To be approved with LendingPoint, you should have in most cases at least a 600 credit score, at least $20,000 in yearly income, and a debt-to-income ratio of less than 35 percent.

The Verdict

Overall, LendingPoint fares pretty well in terms of third-party and customer reviews. One of the biggest perks of this company is, of course, their willingness to work with people who don’t have perfect credit. These loans might work well for someone who wants to combine multiple debts into a single debt consolidation loan if they can get a lower interest rate and favorable terms. Payment terms are flexible, and you can make payments every week, every 28 days, or every month.

As far as downsides, of course there are potentially high interest rates with LendingPoint. LendingPoint also isn’t available in every state. It’s currently available in 43 states and Washington, D.C. Among lenders that do consider applicants with lower credit scores, the requirements at LendingPoint tend to be comparatively high as well.

Avant Review

Avant is an online financial services company that says it has provided loans to more than 600,000 people. Avant-branded products are issued by WebBank. The online loan application process is simple, and typically all Avant needs to make a decision is your full name, address, income information, and Social Security number.

Overview

In a few minutes, Avant customers can submit their information online and check their loan options, even without having it affect their credit score. If someone does find a loan that works for them and they’re approved, they can e-sign a loan contract. According to Avant, money can be directly deposited into an applicant’s bank account the next business day.

Rates, Terms, and Fees

Fixed rate personal loans are available from Avant in amounts ranging from $2,000 to $35,000. Personal loans from Avant can be used for debt consolidation, and they also offer loans specifically geared toward home improvements and emergencies.

APRs range from 9.95% to 35.99%, and loan lengths range from 24 to 60 months. There is an administration fee of up to 4.75%. There is no penalty for prepayment.

To be eligible, applicants should have a minimum credit score of at least 580 and have at least $20,000 in gross annual income.

The Verdict

Avant might be a good personal loan option for someone who needs debt consolidation or emergency funding. There are a few pros to going with Avant over other companies. First, the lowest APR is lower than most other companies’ lowest rate. Also, the minimum credit score of 580 is lower than the typical score range of what you’ll find with other companies that cater to applicants who have bad credit.

Overall, there are some good customer reviews regarding Avant personal loans, but there are negative ones as well. For example, numerous customers have complained to the Better Business Bureau about billing errors and credit reporting errors.

BadCreditLoans.com Review

BadCreditLoans.com has a history going back to 1998, and they aren’t a direct lender. Instead, BadCreditLoans.com connects people with lenders that may offer them financing based on the information they submit on the website.

Overview

To use BadCreditLoans.com, first borrowers enter the requested amount of money they need, and then their contact information. The request is then sent to a network of lenders and financial services providers. Eligibility requirements include being at least 18 years old, having proof of citizenship and proof of income, and having a checking account in your name.

The loan process requires submitting the necessary information, and then a lender might reach out with a loan offer. You don’t have to accept an offer, however. You can accept the contract and e-sign it, and if so, you will receive a direct deposit of loan funds.

Rates, Terms, & Fees

According to BadCreditLoans.com, loan amounts vary from $500 up to $5,000, and repayment terms range from three to 36 months.

The Verdict

The biggest perk of using BadCreditLoans.com is the fact that you can submit your information once and potentially receive multiple offers from lenders. This makes it easy and efficient to compare terms.

There are downsides to BadCreditLoans.com as well. First, the maximum loan amount is only $5,000, which is lower than what you’ll find with other companies. Also, if you provide your personal information to BadCreditLoans.com, you might leave yourself open to third-party solicitation.

OppLoans Review

OppLoans is a company that provides personal loans and markets them as a better alternative to payday loans. According to OppLoans, they offer fast and affordable online installment loans, and they have more than 100,000 customers.

Overview

OppLoans markets their products as an alternative to payday loans, as mentioned above. As a result, they highlight how they do things differently from payday lenders, such as offering lower interest rates and longer term options.

Loan amounts are available from $1,000 to $4,000. No collateral is needed for a loan from OppLoans. To be eligible, a person should either be employed or have benefits, and they can’t be self-employed. Applicants should receive paychecks through direct deposit, have a bank account that’s been open for at least 40 days, and have $1,500 in gross monthly income.

Rates, Terms, & Fees

The APR range for a loan through OppLoans is anywhere from 99% to 199%. The repayment schedule ranges from five months to 36 months, and payments can be made weekly, biweekly, or monthly. Refinancing is available for on-time payments, and customers can go online to change their payment date. Payments made on an OppLoans product are reported to the three major credit bureaus.

The Verdict

A personal loan from OppLoans should only be obtained in an absolute emergency. While it’s potentially cheaper than a payday loan, it’s still a very expensive way to borrow money. It is simple and easy to qualify, but the APR is very high. Also, loan limits are fairly low, although they are higher than what’s typically available with a payday loan.

OneMain Financial Review

OneMain Financial offers online personal loans as well as auto loans. They have been a lender for over 100 years, and in addition to extensive online services, OneMain also has more than 1,600 locations throughout the country. OneMain advertises fixed rates and fixed payments.

Overview

OneMain offers multiple personal loan options, and applicants qualify for loans and rates based on a variety of factors, which include the size of the loan, credit history, income, expenses, and term length.

Collateral may also be used to approve personal loans from OneMain. While customers can complete the initial personal loan application online, if they are approved, they do have to visit a OneMain branch to verify things like their identity and income. It should be noted that almost half of OneMain loans are secured loans, meaning collateral was used. Funding may occur same-day.

Rates, Terms, & Fees

Loan amounts can range from $1,500 to $30,000, and the APR may range from 16.05% to 35.999% in most cases. There is a 9.99% APR minimum for secured loans. There are origination fees, but they vary by state. Repayment terms are usually anywhere from two to five years.

The Verdict

OneMain might be a worthwhile option if you can’t be approved for a personal loan elsewhere, if you’re considering a secured loan, or if your financial needs require quick access to money. Some people may like the personal service that comes with visiting a OneMain branch, but other people might see that as a negative of this personal loan company.

Peerform Review

Peerform is a bit of a different option for someone looking for bad credit personal loans. Peerform is a peer-to-peer lender. To apply, people can go online and fill out an application. They can receive an offer within two minutes without it affecting their credit score.

Overview

Peerform is a marketplace lender. The loans come from people who invest their money through the platform. Accredited investors can open Peerform accounts and then provide loan funding to people who are searching for personal loans.

Loans available range from $4,000 to $25,000. Peerform might be a good fit for someone with a low credit score because the minimum required score is only 600. To be eligible, borrowers only need one year of credit history. Lower interest rates and higher loan amounts are available for people who want to use Peerform to consolidate their existing debt.

Rates, Terms, & Fees

For three-year loans offered through the Peerform platform, APRs typically range from 5.99% to 29.99%. For debt consolidation loans, the range is 5.99% to 25.05% APR. There are origination fees, which can be anywhere from 1% to 5% of the amount of the loan, and it usually takes around a week for a loan to be funded. Repayments occur monthly over either three years or five years.

The Verdict

Peerform might be a good option for someone who wants a debt consolidation loan, since they do offer more favorable terms for these. Peerform is also good for someone who doesn’t have a lot of credit history, and they only require $10,000 gross annual income for approval in many cases. Overall, Peerform is fairly comparable to other personal loan lenders, and the money is expensive.

Qualifying for Bad Credit Loans

Unfortunately, it is more difficult to qualify for a personal loan if you have bad credit. That’s because lenders will be wary of lending to you since your low credit score will make them uncertain of whether or not you’ll be able to pay them back.

Whether you have bad credit because you have a very thin credit file or you’ve done something in the past that has caused your credit to go down, such as being delinquent on other credit accounts or filing for bankruptcy, many lenders will be unwilling to take a risk and lend to you. In fact, most banks and credit unions do not lend to people who have bad credit. In addition, many online lenders refuse to give personal loans for bad credit.

However, that doesn’t mean you can’t get a loan – it just means you have to seek out lenders who specifically lend to borrowers who have bad credit. You also need to realize that you will likely have to pay a higher interest rate in order to get a loan from these lenders since they will be taking on more risk and therefore price that into the cost of your loan.

Interest Rates on Loans for Bad Credit

If you’re shopping for a personal loan, you might be see personal loan interest rates that are much lower than those offered to you. This is because borrowers with bad credit are considered more risky when it comes to repayment. Lenders try to make up for that risk by raising the interest rate on the loan offered to you.

Resources to Help You Improve Your Credit Score

If you have bad credit, it’s not the end of the world. You can still qualify for loans from some lenders, but you might decide to wait and improve your credit if you are rejected for a loan or want better interest rates. There are a lot of ways that you can improve your credit, but not all of them are quick fixes. The best way to improve your credit is to borrow responsibly and repay your debt over time.

Here are some helpful articles to get started on raising your credit score:

• ​How to improve your credit score
• 8 Ways to rebuild credit
• How to build good credit
• How to check your credit score for free

Bottom Line

Just because you don’t have good credit doesn’t necessarily mean you can’t get access to loans. However, getting a personal loan can be expensive, and you might pay high interest rates to get this form of fast funding.

On the flip side, if you do need access to money quickly, a personal loan may be your only option, and some lenders might approve you even if you have bad credit. If none of the lenders on this list work for you, consider checking with your current bank or credit union to see what financial products are available to you. In any case, be sure to comparison shop so you get the best personal loan for your needs.