People discussing personal loan options
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Got Bad Credit? These Companies May Still Offer You a Personal Loan

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May. 10 2022, Published 9:46 a.m. ET

When you have bad credit, getting a personal loan can be difficult. Some lenders may view you as a risk, which can decrease or even eliminate your chances of getting approved. The good news is that there are some lenders out there that may be willing to give you a second chance. Here’s a look at some personal loans you can apply for if your credit score is considered bad or even fair.

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Certain lenders offer personal loans to people with bad credit.

OneMain Financial may give loans to people with poor or fair credit
Source: Twitter (@OneMain)

Before we jump right into an overview of the loans you can apply for, let’s first establish what a bad credit score is. Credit scores typically range from 300 to 850, and there are different types. Companies will usually look at your FICO score to determine if you qualify for lending. If your credit score is 579 or less, it's considered poor, according to Experian.

Anyone with a FICO score that falls between 580–669 has a fair score and those that fall within the 670–739 range are good. If your credit score is between 740–799, that means it's very good, and 800 and higher is exceptional. Now, if your credit score is poor or fair, you may be able to secure a personal loan from these companies:

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OneMain Financial

OneMain Financial doesn’t list a minimum credit score to apply, though you will need to have proof of income and have a vehicle available to put up for collateral. Under rare circumstances, the company will offer you a small personal loan without putting up a vehicle title as collateral.

The process to apply for a loan is rather simple and you can upload all the documents the lender will need to make a decision on your application online. OneMain Financial offers loans that range between $1,500 and $20,000 with an APR that ranges between 18 percent and 35.99 percent.

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The company is also flexible with its loan terms, which can be 24, 36, 48, or even 60 months depending on the borrowed amount. You can get prequalified for a loan from OneMain Financial without impacting your credit.

Avant

Avant is another lender that offers personal loans. With a credit score of 550 or higher, you could get approved for a loan between $2,000 and $35,000. Of course, the lender will consider other factors aside from your credit score to determine if you qualify. Avant’s loans carry an APR that ranges between 9.95 percent and 35.99 percent, and the loan lengths range from 24 to 60 months.

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Avant also allows you to check if you prequalify without harming your credit score.

Lending Club

While Lending Club doesn't disclose the minimum credit score the company requires you to have, it does offer loans that range between $1,000 and $40,000, with payback terms ranging between 3 years and 5 years. The company also allows you to see if you prequalify before submitting an application, essentially allowing you to keep your credit score protected.

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SeedFi

You may be able to get your hands on some much-needed cash from SeedFi with a credit score of 520 or higher. SeedFi’s Borrow & Grow program “is a lower-interest loan with a built-in savings account.” A SeedFi personal loan provided through the company’s Borrow & Grow program will carry an annual percentage rate of 7.42 percent to 29.99 percent, and payments are withdrawn twice a month.

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Unlike the other companies mentioned, SeedFi only allows you to access up to $4,000.

Upstart

Upstart is a lender that offers personal loans to people with poor and fair credit scores. Loans range between $1,000 and $50,000 and you can repay your loan over the course of three or five years. While Upstart’s APR starts low, at 5.25 percent, it can reach as high as 35.99 percent.

*Most of the lenders discussed above offer approval decisions within minutes.

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One thing you will want to pay close attention to when applying for and accepting any loans is the APR. Personal loans for bad credit typically carry high APRs, sometimes reaching 100 percent and higher. Be leery of companies that charge you high interest rates because that can sometimes make you fall deeper into debt.

A cellphone with apps
Source: Pexels
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These apps will determine your loan approval rating, which can help you save time and avoid getting frustrated.

In addition to trying to get prequalified for a personal loan, which rarely impacts your credit score, there are certain apps that can help you find the right loan to meet your needs. Experian and Credit Karma are two apps you can download that will use your personal information to determine what loans are the best match for you.

Once you create an account with either company, your information will generate loan matches you are likely to qualify for and even those you don't qualify for.

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