Legitimate Loans for Bad Credit: A Guide

Getting a loan when you have bad credit or no credit history is hard.

You have to share how much money you make and let the lender check your credit.

Lenders like working with people who always pay their bills on time and earn enough money.

If your credit score is less than 670, it might feel like you can’t get a loan.

Some lenders do work with people like you.

They can help you with money for emergencies, refinancing your debts, or combining your debt payments.

But be careful because these lenders might charge you more interest or extra fees.

It’s important to check all the details before you decide.

This article will discuss legitimate loans for bad credit for individuals with poor or no credit history.

Learn about lenders who specialize in providing funds for emergencies, refinancing, or consolidating debt.

Understand the potential risks and benefits before applying.

An Image Representing Credit Loans
Bad Credit Loans. Photo Source (Freepik)

Best for auto-secured loans: OneMain Financial

Auto-secured loans from OneMain Financial have lower interest rates than their unsecured loans.

But they have extra costs like origination, late, and insufficient funds fees, which can make your total repayment amount higher.

There’s no penalty for paying off your loan early.

The loan amounts range from $1,500 to $20,000, and you can choose to repay them in two to five years.

Best for co-signers: Mariner Finance

Mariner Finance lets you apply for a personal loan with someone else who has good credit.

This might help you qualify for the loan or get a lower interest rate.

They also consider applications from people who have declared bankruptcy, as long as they meet certain requirements.

You can borrow between $1,000 and $25,000.

Best payday loan alternative: OppLoans

OppLoans provides personal loans that report your payments to credit bureaus, which is different from payday loans.

You can pay back the loan over nine to 18 months, and although the interest rates are lower than payday loans, they are higher than traditional lenders.

Loan amounts range from $500 to $4,000, and there are no fees for starting the loan or paying it off early.

OppLoans considers factors other than just your credit history when deciding to give you a loan.

Best for building credit: MoneyLion

MoneyLion gives you a loan of up to $1,000 to help build your credit.

They report your payments to the credit bureaus, which can improve your credit score if you pay on time.

You pay a $19.99 monthly fee, but you can earn rewards to cover this cost.

Unlike other loans, MoneyLion gives you some money upfront and holds the rest until the end of your loan term.

Best for quick loans: Possible Finance

Possible Finance lets you borrow up to $500 right away and pay it back in four parts.

They usually send the money in a few minutes, but it could take up to five days.

Before you apply, check if Possible operates in your state because it’s not available everywhere.

Best for no-interest loans: Earnin

Earnin is an app that lets you borrow up to $750 from your paycheck without fees or interest.

It doesn’t affect your credit score. To use it, you need a regular paycheck, direct deposit, and a fixed work location.

If approved, you can get the money on the same day or within three business days.

The app then deducts the borrowed amount from your account when you get paid.

Best for short-term loans: Afterpay

Afterpay is an app that lets you buy things and pay for them in four parts over six weeks without interest.

Using Afterpay might involve checking your credit, but it won’t affect your credit score.

If you pay on time, there are no extra fees, but if you’re late, you might have to pay a fee of up to 25% of what you owe.

How much you can spend with Afterpay depends on how long you’ve used the app, how often you use it, and how you’ve paid in the past.

Best for financial resources: NetCredit

NetCredit offers a range of resources to help you manage your money better and achieve your financial targets.

Their loans range from $1,000 to $10,000, with repayment periods spanning from six to 60 months.

While there are no application or prepayment fees, late fees may apply, and depending on your state, you might have to pay an origination fee.

Key Points About Personal Loans for Bad Credit

Considering a personal loan with bad credit? Here’s what you need to know.

Compare loan terms

If you have bad credit, getting a personal loan might cost more because lenders see you as a bigger risk. It’s important to compare loan terms to find the best deal. Here are some key things to look at:

  1. APR (Annual Percentage Rate): This is the total cost of the loan each year, including interest and fees. A lower APR means a cheaper loan, but loans for bad credit often have higher APRs.
  2. Loan Repayment Terms: This is how long you have to pay back the loan. Longer terms mean more interest paid.
  3. Monthly Payments: These should fit your budget based on your loan amount, interest rate, and term.
  4. Loan Minimum and Maximum: Make sure the lender offers the amount you need.
  5. Loan Fees: Check for fees like origination, prepayment, and late fees.

It’s also important to check the lender’s reputation, especially if they specialize in bad credit loans.

You can research this with organizations like the Better Business Bureau and the Consumer Financial Protection Bureau.

Legitimate Loans for Bad Credit FAQs

Is it a good idea to get a personal loan with bad credit?

Should you get a personal loan if you have bad credit?

It can be tough to qualify, and the loan might be expensive.

But in some cases, it could make sense.

The main thing to consider is whether the loan will help you now and in the future.

This depends on the loan terms, amount, and what you need the money for.

For example, if you have high-interest credit card debt, a personal loan might help you pay it off and save money on interest.

It could also be useful for unexpected expenses, as it might be cheaper than using a credit card or payday loan.

But the cost of the loan is important.

If the interest rates are too high, the loan might not actually save you money in the long run.

Should you consider a payday loan?

If you need money quickly, a small loan, or were turned down for a personal loan because of your credit, you might consider a payday loan.

A payday loan is a short-term loan for a small amount, usually between $100 and $500.

You typically give the lender a post-dated check or allow them to withdraw money from your bank account when the loan is due, which is usually your next payday.

The lender charges fees, usually $10 to $30 for every $100 you borrow.

Payday lenders often don’t check your credit, making it easier to get a loan if you have bad credit.

However, the high fees can make it hard to pay back the loan.

Some states don’t allow payday lending, while others have limits on how much you can borrow and how much you can be charged.

Before getting a payday loan, consider other options like borrowing from a credit union, using overdraft protection, or working with a credit counseling service to manage your debts.

An Image of Payday Loans
Payday Loans. Photo Source (Freepik)

What types of personal loans are available for people with bad credit?

The kind of loan you can get with bad credit depends on various factors like your credit score, income, and employment history.

Some options include personal installment loans, cash advances, payday loans, and buy-now, pay-later apps.

Each lender has different rules, so you won’t know what you qualify for until you apply.

What is the easiest type of loan to get with bad credit?

It depends on your money situation and the lender.

Here are a few types of loans to think about if you have bad credit:

  • Installment loan: Some lenders offer this to people with bad credit. You might pay more interest, but it’s usually less than a payday loan.
  • Cash advance: Apps like Earnin or Dave give you cash without checking your credit. You need to meet their rules to use them.
  • Buy-now, pay-later apps: These apps let you buy things and pay later. Only use them for important buys.
  • Payday loans: They’re easy to get but very expensive. The high cost and short time to pay can make it hard to get out of debt.



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