Where can I get a personal loan with bad credit?
If you have a bad credit score and want to apply for a personal loan, it may be a bit difficult, but in no way impossible. To find a personal loan you can either: Apply online for a personal loan; Visit a local loan provider; Get a personal loan at a bank.
How credit scores affect personal loans:
Because online unsecured personal loans do not need the borrower to present any collateral in exchange for the loan, said borrower's credit score is used to determine his/hers eligibility. This means that borrowers with bad credit scores are immediately at a disadvantage.
Credit scores affect personal loans in two ways. The first is the chance of approval. Borrowers with perfect credit scores will be considered as the perfect borrowers and will get the loan almost all of the times but borrowers with less than perfect scores can still be approved, however their chances are greatly reduced.
The second way in which credit scores affect personal loans is by affecting the interest rate of the loan. Lenders interest rates are not fixed, they can vary from borrower to borrower, with the lower rates being offered to those with good credit scores. If you want to get a personal loan with a bad credit, expect to get a higher interest rate.
Getting a personal loan with bad credit:
While personal loans may be more suited for prime borrowers, they can still be accessed by subprime borrower's but at higher interest rates. It will be more difficult for someone with bad credit to find a lender willing to take the risk, but finding the right lender can be done if you take the time. We also recommend you check your credit score online before applying for a personal loan. For reference, a prime credit score is in the 640 - 740 range. Anything below is subprime.
How to apply for a personal loan with bad credit:
Once you've found a lender that issues personal loans to borrowers with bad credit you need to start the lending process. In most cases the process is somewhat similiar and looks like this:
Fill out the form and let the lender know how much you need to borrow.
If you are found eligible, your loan will be approved by a lender.
Get the Loan.
If approved the funds will be wired ot will need to be picked up personally.
Key features of personal loans:
Personal loans are some of the best solutions for getting financing online. Here are just some of their key features:
Online personal loans are most of all unsecured so there is no need to provide any collateral. That means there is no risk of losing any personal belongings.
It takes just a few minutes to fill out an application for a personal loan.
Borrow from $1000 to $25,000 depending on your current financial needs.
Loans repayment in easy installments over a period of up to 36 months.
Online personal loans with bad credit are easy to access but should not be used unless for an emergency as the interest rate will be high interest rate.