Getting a loan for individuals with bad credit in 2017 is like finding a lender who is very transparent about his rates and fee. Flexibility on the terms and treating the customer well despite his bad credit history is another thing that is very important. There are many lenders who trick people who have taken loans and trap them in a cycle of debts. Interest rates on loans, poor credit ones, will obviously hit an individual hard, which can go above 20%. The capping may be lowered because of the bad credit history, and the collateral might also rise. Although taking a loan won’t solve all the problems, if utilized properly loans can help in getting breathing room in the budget and improve the credit scores. Let us take a look at some of the best loans for poor credit:
OneMain: OneMain is one of the best options for borrowers with bad credit. They offer loans ranging from $1,500-$10,000. The annual percentage rates (APR) vary from 25% to 36%. Depending on the credit history of the borrower, the loan can be higher with lesser APR. Although the company is specialized in providing secured loans, they also offer unsecured loans. OneMain has over 1,800 branches across the states, but one can apply for loans online too. It’s a good option for borrowers with credit score lesser than 600. OneMain has a history of 95 years and is an excellent service provider. Although the website doesn’t provide a clear idea of the APRs, it is a good option for people looking for loans.
Peerform: Peerform has more liberal credit standards and is a peer to peer lender. They offer loans to people whose credit scores are as low as 600. Loans can be extended till an impressive $25,000. The website provides detailed information about the fee and the APRs which give no scope for ambiguity. The only drawback could be the time for the loan to be sanctioned. It takes around two to three weeks for the lender to fund the loan and there is no guarantee that the borrower will receive the entire amount (peer to peer lending risk). Peerform loans have a fee which can go up to 5% of the borrowed amount. The APRs are low ranging from 7.12% to 28.09% with a high borrowing limit as mentioned above. It does not offer secured loans.
Avant: Avant target the borrowers with a credit between 580 and 700. Avant has its one lending system unlike a peer to peer lending system where the money is funded from individual investors. Avant is a good option for instant funds. Borrowers usually get their loans within 24 hours. The borrowing range is from $1,000 to $35,000. Avant doesn’t provide loans to people with credit score lesser than 580. The APRs range from 9.95% to 35.99%. It is available in 47 states and District of Columbia. Avant does not offer secured loans.
BadCreditLoans.com: It is not a lender alone who also tries to connect the borrowers to people who are willing to lend money. Anyone above the age of 18 years is free to apply online if they have a valid phone number, email address, residency proof and is able to show that he or she was employed for a minimum 90 consecutive days. If a borrower receives several loan offers, he or she can opt for a suitable one taking the APR into consideration. The APRs vary from 230% to 2,330%, and the borrower is us not under any obligation to accept these offers. The APRs are high because of the short payback periods. Borrowers with very bad credit scores can also avail a loan of $1,000. Majority of the offers get pre-approved in five minutes, and the borrower gets the money within 24 hours. Borrowers should stay away from renewing the loans if they do not wish to get trapped in a debt cycle.
NetCredit: Borrowers who have a credit score lesser than 550 can opt for NetCredit. They offer long-term, unsecured loans up to $10,000. NetCredit offers flexibility in payback time and repayment options. The websites provide all the details of APR and fee. There is no extra fee other than the interest. APRs range from 35% to a whopping 150% for people with poor credit scores. NetCredit is a new establishment, and people who are not in a situation to pay their loans quickly should look somewhere else.
PersonalLoans.com: Multiple lenders lend money, unlike a single funding system. There are several types of loans with varying APRs with loan amounts as high as $35,000. The fee, APRs may vary from lender to lender.
It’s best to improve the credit scores as quickly as possible because even the most sympathetic lender won’t offer a reasonable APR if the borrower has a bad credit score. Improving a bad credit is a slow and steady process and can be achieved by following some steps like, understanding the credit report, making payments on time, not using most of the available credit and not closing the accounts.
