Applying for a personal loan with a credit score of 580 or lower can be challenging, but there are options available that cater to individuals with less-than-perfect credit.
List of 4 Personal Loans To Apply To If Your Credit Score Is 580 or Below
Here are four personal loan options to consider:
1. Avant
Avant is a reputable online lender that offers personal loans to borrowers with lower credit scores. They specialize in providing loans to those who may not qualify with traditional banks.
Key Features:
- Loan Amounts: $2,000 to $35,000
- APR Range: 9.95% to 35.99%
- Loan Terms: 24 to 60 months
- Credit Score Requirement: Minimum 580
- Funding Time: As soon as the next business day
Pros:
- Fast funding
- No prepayment penalties
- Soft credit check for prequalification
- Higher APRs for lower credit scores
- Administrative fee up to 4.75%
2. OneMain Financial
OneMain Financial has a long history of providing personal loans to individuals with poor credit. They have physical branches, allowing for in-person consultations.
Key Features:
- Loan Amounts: $1,500 to $20,000
- APR Range: 18.00% to 35.99%
- Loan Terms: 24 to 60 months
- Credit Score Requirement: No minimum, but typically for lower credit scores
- Funding Time: Same-day or next-day funding
Pros:
- Secured and unsecured loan options
- Personalized customer service
- Same-day funding available
Cons:
- Higher interest rates
- Possible origination fees
3. Upstart
Upstart uses artificial intelligence to assess loan applications, which can be beneficial for borrowers with lower credit scores. They consider factors beyond just credit scores, such as education and employment history.
Key Features:
- Loan Amounts: $1,000 to $50,000
- APR Range: 5.31% to 35.99%
- Loan Terms: 36 or 60 months
- Credit Score Requirement: Minimum 300
- Funding Time: As soon as one business day
Pros:
- No minimum credit score requirement
- Fast funding
- No prepayment penalties
Cons:
- Higher APRs for lower credit scores
- Origination fee up to 8%
4. BadCreditLoans.com
BadCreditLoans.com is a loan aggregator that connects borrowers with a network of lenders willing to provide loans to those with poor credit.
Key Features:
- Loan Amounts: $500 to $10,000
- APR Range: 5.99% to 35.99%
- Loan Terms: 3 to 60 months
- Credit Score Requirement: No minimum, caters to bad credit
- Funding Time: Varies by lender, typically next business day
Pros:
- No minimum credit score requirement
- Easy online application process
- Multiple loan offers from different lenders
Cons:
- Potential for high interest rates
- May receive multiple loan offers, which can be overwhelming
Tips for Applying
When applying for a personal loan with a credit score of 580 or lower, it's important to:
- Check Your Credit Report: Ensure there are no errors that could be negatively impacting your score.
- Compare Lenders: Look at various lenders to find the best terms and interest rates.
- Consider a Co-Signer: If possible, having a co-signer with a better credit score can improve your chances of approval and getting a lower interest rate.
- Evaluate Fees: Be aware of any origination fees, late payment fees, or prepayment penalties.
What are some lenders that offer personal loans to people with a credit score of 580 or lower?
- OneMain Financial: Known for offering personal loans to people with less-than-perfect credit. They provide both secured and unsecured loans.
- Avant: Offers personal loans to borrowers with credit scores as low as 580. They have flexible repayment terms and relatively quick approval times.
- Upgrade: Provides personal loans to those with poor credit and also offers tools to help improve your credit score over time.
- LendingPoint: Specializes in lending to individuals with credit scores in the 580-700 range, offering competitive interest rates and flexible loan terms.
FAQs
What are the typical interest rates for personal loans with a credit score of 580 or lower?
Interest rates for personal loans with a credit score of 580 or lower tend to be higher than those for borrowers with good credit. Typically, you can expect annual percentage rates (APRs) ranging from 20% to 36%. However, rates can vary widely depending on the lender, loan amount, and other factors.
What should I consider before applying for a personal loan with a low credit score?
Before applying for a personal loan with a low credit score, consider the following:
- Interest Rates and Fees: Compare offers from different lenders to find the most affordable loan. Pay attention to APRs, origination fees, and any other costs associated with the loan.
- Repayment Terms: Ensure that the repayment terms are manageable for your budget. Longer repayment terms can lower your monthly payments but may result in higher overall interest costs.
- Loan Amount: Only borrow what you need and can afford to repay. Avoid overextending yourself financially.
- Lender Reputation: Research lenders to ensure they are reputable and have positive customer reviews. Be wary of predatory lenders who may take advantage of borrowers with poor credit.
- Improving Your Credit: If possible, take steps to improve your credit score before applying. This may help you qualify for better loan terms and lower interest rates in the future.
Conclusion
While a low credit score can limit your options, lenders like Avant, OneMain Financial, Upstart, and BadCreditLoans.com offer personal loans that can help you access the funds you need. Always review the terms carefully and choose a loan that fits your financial situation and repayment ability.