Best Loans for People With Bad Credit

by on November 9, 2018

Not all of us are gifted with the ability to make good financial decision, and I am not going to lie, I definitely fall into that category. If you are someone who may have made a few mistakes with credit cards when you were younger, or if you have just been hit with some bad times, then, more than likely, you are in the same boat as many other people: you just can’t seem to get a car loan with bad credit.

And sometimes, that one loan is all you need to keep you afloat, to keep you from living paycheck to paycheck, to get out of that vicious cycle where you’re making the tough choice between a bottle of soda or a box of cereal.

Never fear, though, we have gone through the wilds of the internet, and we have found a few sites where you have a decent chance of getting your hands on the best installment loans for people with bad credit.

Avant is a lender who typically gives loans to people with that tenuous middle ground credit score of 600 – 700, which a lot of us fall into. Because Avant tends to focus on this area, they can offer loans for anywhere from $2,000 to $5,000. But, like any other financial institution, they are not doing this because they are good and kind. They want to see a profit, and when they give out a loan, they’re expecting to see one. That being said, this is what you can expect if you do get a loan:

1. A single business day to decide if they think you’re an acceptable risk.
2. Anywhere from 24- to 60-month loan repayment timeframe.
3. Handling fees of up to 4.75%.
4. And APRs (of course) that start at 9.95% and can get as high as 35.99%.

So, definitely make sure you need that loan before you apply for it.

Peerform is a lender who requires a minimum qualifying score of 600, but because of this requirement, the lender can offer you anywhere from $4,000 to $25,000 dollars. But, like everything else, there are facts to consider:

1. Unlike Avant, it can take upwards of one week to get a response and decision on your loan request. If you’re desperate for cash, then this definitely isn’t the company for you.
2. However, Peerform has APRs that start at 5.99% and only get to 29.99%, which is a huge difference from Avant.
3. In addition to the basic APR, Peerform also has several fees, some of them which run as high as 5% of the borrowed amount.

Depending on your need, Peerform might be the better option for you.

OneMain is a lender who is the best choice for people with bad credit. If your score is below 600, then you’re definitely going to want to check out OneMain. For someone with bad credit, OneMain can offer loans from as low as $1,500 to $10,000. However, OneMain also offers secured loans, which means there is an additional step:

1. OneMain wants collateral for a secured loan, either a vehicle or something else worth enough money to cover your loan if you can’t repay it.
2. The APR generally runs somewhere between 16.05% and 39.99%.
3. OneMain has 1,600 physical locations so you can sit down and chat with someone.

Last Resort
If all else fails, there is still one option that may be viable. If you own your car free and clear, you may qualify for a title loan. A car title loan is a collateral loan that utilizes the equity in your vehicle to secure an advance. Simply put, the title to your car is what get’s you approved for this loan, not your credit. This option is the last resort because of the sky-high interest rates and fees that you will have to pay when the loan is due. It’s also not a secret that many lenders in this space are outright shady. If you interested in this type of financing, check out the “Top 10 Online Title Loans” list curated by Plunged In Debt.

Remember, bad credit isn’t the end of the world, but you will have to work hard to get a loan.

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