Don't waste your time. Get a loan online.
You have limited options when it comes to qualifying for an Online loans for poor credit.
Struggling with bad credit can be one of the most stressful experiences, no one here in this world wants to experience. yet everyone at some point of life comes across financial crises, If a financial emergency strikes or you want to consolidate your debt, you might believe it’s impossible to qualify for a personal loan without turning to predatory payday lenders. In most circumstances, that’s not true.
Online loans for poor credit options can be more limited as your credit isn’t in good shape, but that doesn’t mean you have no options. It means you still left with few options, There are lenders who may be willing to offer you a personal loan even if you have a poor credit rating.
Bad Credit Loans of June 2021
- Best Online Loan: Avant
- Best Maximum Loan Amount: First Tech Federal Credit Union
- Best For Small Loans and Veterans: Navy Federal Credit Union
- Best Post-Bankruptcy Personal Loan: LendingPoint
- Best In-Person Loan Experience: OneMain Financial
- Best Credit Union: PenFed Credit Union
- Best for Fast Funding: Motive Loans
- Best Peer-to-Peer Lending: LendingClub
- Best Personal Loan With a Co-signer: Upgrade
Avant
Avant offers the best overall personal loan to borrowers with credit challenges. If you qualify for funding, you could receive up to $35,000. Interest rates start as low as 9.95%. Although Avant charges an administrative fee, the maximum amount it charges (4.75%) could potentially be lower than what you may see from some lenders.
Don't waste your time. Get a loan online.
Pros
- Lower starting interest rate among subprime lenders, but you might pay more if your credit score is on the low end of Avant’s approval range
- No prepayment penalty for paying off your loan early
- Soft credit inquiry performed when you check your loan options online
Cons
- Higher interest rates compared to the rate you might receive elsewhere with better credit
- Low maximum loan amount of $35,000—higher loan amounts available with other lenders
- An administrative fee up to 4.75% may be taken directly out of your initial loan amount
Other important information:
- Minimum/maximum amount you can borrow: $2,000 to $35,000
- APR range: 9.95%–35.99%
- Fees: Avant may charge an administrative fee up to 4.75% that comes directly out of your loan. The lender charges late fees and dishonored payment fees as well.
- Recommended minimum credit score: 600
- Other qualification requirements: Besides checking your credit score, Avant will review your income to see if you qualify for a loan and how much you can borrow.
- Repayment terms: 24 to 60 months
- Time to receive funds: Loan funds may be deposited in your account as soon as the next business day.
First Tech Federal Credit Union
Founded in 1952, First Tech Federal Credit Union is geared towards major technology-geared companies (though anyone can join the Financial Fitness Association for $8).
Interest rates start as low as 6.70% and they offer personal loans up to $50,000.Pros
- Higher maximum loan amount compared with other lenders in this category
- Longer loan terms than other personal loan companies
- No prepayment penalties if you decide to pay off your loan early
Cons
- A co-borrower may be needed to qualify for a lower interest rate
- Access for members only, though qualifying as a member can be done through the Financial Fitness Association
Other important information:
- Minimum/maximum amount you can borrow: $500 to $50,000
- APR range: Starts at6.70%
- Fees: None
- Recommended minimum credit score: Reported to be 580, but not stated on website
- Other qualification requirements: You should be at least the age of majority in your state, a U.S. citizen or living in the U.S. with a valid visa, have a valid email address and have a verifiable bank account.
- Repayment terms: Terms range from 24 to 84 months (two to seven years).
- Time to receive funds: As soon as the same business day.
Navy Federal Credit Union
This credit union offers some of the best rates for those with less than stellar credit and one of the only financial institutions that offer such a low loan amount — starting at $250. You can also secure a co-signer to help you qualify for a better rate.
To be eligible for membership, you need to have ties to the Department of Defense, the armed forces, or the National Guard. Otherwise, you’ll need to be a veteran or have an immediate family member who has a Navy Federal membership.
Pros
- Joint applications available: members can apply with a co-borrower to secure a more competitive interest rate
- Low minimum loan amount: At $250, this amount is the lowest among the lenders on our list
Cons
- Credit union membership required
- No soft credit inquiry: There is no prequalifying option, meaning members have to submit a full application
- Higher APR for certain terms: Borrowers with terms of 36 months or more will receive a higher rate, starting at 14.79%
Other important information:
- Minimum/maximum amount you can borrow: $250 to $50,000
- APR range: 7.49% – 18%
- Fees: No prepayment or origination fees
- Recommended minimum credit score: 580
- Other qualification requirements: Need to be an existing Navy Federal member
- Repayment terms: Up to 60 months
- Time to receive funds: As soon as the same business day
LendingPoint
Qualifying for a personal loan can be especially tricky if you’ve filed bankruptcy in the past. But if your bankruptcy has been discharged for at least 12 months, LendingPoint might be willing to work with you.
LendingPoint offers loans to borrowers in 48 states and Washington, DC with credit scores as low at 585. Qualified applicants can borrow up to $36,500 and interest rates start at 9.99% up to 35.99%.
Pros
- Lower credit scores accepted if you satisfy other qualification criteria
- Past bankruptcy isn’t necessarily a deal killer as long as it was discharged at least 12 months ago
- No prepayment penalty applies if you want to pay off your loan early
Cons
- Lower maximum loan amount compared with other lenders
- Origination fees can be as high as 6%, depending on the state where you live
- Higher interest rates compared to the APR you might be offered elsewhere with better credit
Other important information:
- Minimum/maximum amount you can borrow: $2,000 to $36,500
- APR range: 9.99%–35.99%
- Fees: LendingPoint charges origination fees as high as 6%.
- Recommended minimum credit score: 585
- Other qualification requirements: You should be 18 years or older, provide a state or federal ID and Social Security number, and have a bank account in your name. You also need a minimum annual income of $35,000.
- Repayment terms: 24 to 60 months
- Time to receive funds: Once you’re approved, you can receive funds as soon as the next business day.
- Restrictions: If you live in the states of Nevada or West Virginia you cannot receive a loan through LendingPoint.
OneMain Financial
If you prefer to do business with a lender face-to-face, OneMain Financial may be a good fit. The lender has almost 1,600 branches in 44 states where it offers unsecured personal loans to borrowers with less-than-perfect credit. Interest rates start at 18% and qualified applicants may be able to borrow up to $20,000.
Pros
- Numerous branches available for borrowers who prefer to meet or pick up funds in person
- No prepayment penalty if you opt to pay off your loan early
- Soft credit pull used to check for prequalified offers
Cons
- High starting interest rate compared with some other subprime lenders
- Maximum loan amount of $20,000 is low compared with other personal loan providers
- Origination fees and late fees may be charged on top of interest costs
Other important information:
- Minimum/maximum amount you can borrow: $1,500 to $20,000
- APR range: 18%–35.99%
- Fees: Origination fees can be a flat fee from $25 to $400 or 1% to 10% of your loan amount, depending upon your state of residence.Late fees also vary by state and can be as high as $30 per late payment or 15% of the size of your monthly payment.
- Recommended minimum credit score: 580
- Other qualification requirements: OneMain Financial will consider the following when you apply for a loan: your credit history, income, debts, and any collateral you wish to provide.
- Repayment terms: The term length maybe 24, 36, 48, or 60 months.
- Time to receive funds: You could receive your funds the same day you’re approved if you opt to pick them up in person. Direct deposit may take one to two business days.
- Restrictions: If you’re pre-qualified for a personal loan with OneMain Financial, you’ll need to connect with a loan specialist in-person to complete the application process.
PenFed Credit Union
In addition to a myriad of banking products and services, PenFed Credit Union offers personal loans for members who have a minimum credit score of 580. Plus, rates are competitive, starting at 5.99%.
Pros
- No prepayment penalty if you opt to pay off your loan early
- Co-borrower may help you qualify for a more competitive rate
Cons
- Maximum loan amount of $35,000 could be considered low compared with other personal loan providers
- Membership required in order to receive a personal loan
Other important information:
- Maximum amount you can borrow: $35,000
- APR range: Starts at 5.99%
- Fees: None
- Recommended minimum credit score: 580
- Other qualification requirements: PenFed will consider your credit history, income and debts when applying for a loan, plus your co-borrower if applicable.
- Repayment terms: Term length may be up to 60 months.
- Time to receive funds: As soon as the next business day
- Restrictions: You need to become a member of the credit union in order to get a personal loan.
MotiveLoans
Motive Loans offers online loans for poor credit. Applicants can check their initial rate without affecting their credit score
Pros
- Potential to receive loan proceeds within the same or next business day
- Soft credit inquiry when checking initial rate
- No prepayment penalties
Cons
- Lender changes an origination fee that’s deducted from final loan amount
- No cosigners allowed
- Late payment and insufficient payment fees
Other important information:
- Maximum/minimum amount you can borrow: $2,000 to $45,000
- APR range: 5.99%–35.99%
- Other qualification requirements: Applicants need to be the age of majority in their state and a U.S. citizen or permanent resident.
- Repayment terms: 36 or 60 months
- Time to receive funds: Can be as soon as the same or next business day
- Restrictions: Individual applications only
LendingClub
LendingClub is one of the most reputable peer-to-peer lending companies, helping to facilitate more than $60 billion in personal loans since 2007. The lender offers a pre-qualification option for applicants to check their rates without affecting their credit score, which starts at 8.05%.
Pros
- Personal loan amounts starting at $1,000 is a great option for those looking to borrow less money
- LendingClub offers joint loan applications for those who want to boost their chances of being approved for a more competitive rate
- No early prepayment penalties
Cons
- Loans aren’t available nationwide
- LendingClub has longer funding times—can be several days—compared to other online lenders
- Borrowers are subject to origination fees
Other important information:
- Maximum/minimum amount you can borrow: $1,000 to $40,000
- APR range: 8.05%–35.89%
- Fees: 3% to 6% origination fee; $15 late fee or 5% of unpaid balance (whichever amount is more)
- Minimum recommended credit score: 600
- Repayment terms: 36 or 60 months
- Time to receive funds: May be up to several days depending on form of payment
- Restrictions: Loans not available for U.S. territories and Iowa residents
FAQs
What Is Considered Bad Credit?
The credit scores used by most lenders range from 300–850. If you have a FICO score under 670, you’re considered a subprime borrower with a “fair” credit rating, according to Experian. The credit reporting company classifies a FICO score of less than 580 as “very poor.”
It’s important to understand that taking out a personal loan with bad credit can be quite expensive. Interest rates can often climb into the upper-30% range, based on your credit rating. Other obstacles you could face when you try to borrow with bad credit include lower loan amounts and shorter repayment terms. To help you compare the best loan options available, we’ve researched more than a dozen personal loans for bad credit. We compared interest rates, fees, qualification requirements, and other loan features.
How Do You Know What Credit Score Range You Are In?
- Excellent Credit: 800 – 850
- Very Good Credit: 740 – 799
- Good Credit: 670 – 739
- Fair Credit: 580 – 669
- Poor Credit: under 580
