If you are dealing with a bad credit score or have no credit history that doesn’t mean you can’t apply for a loan. It’s just that you won’t be able to qualify for a typical loan with lower interest rates but you can easily find lenders who help with loans for people with poor credit.
Bad credit loans come with some restrictions like there will be a borrowing limit or you’ll have to deal with a maximum loan term with higher interest rates. It’s all for the sake of the lender so that there’s less risk associated with the amount of money he will lend.
What’s best is that if you maintain your finances and manage to make your monthly payments on time without any issues then it can improve your credit score and you might as well qualify for any other type of loan in the future.
Things To Consider Before Applying For A Poor Credit Loan
If you are already under debt and want to take out some more loan, you have to be very careful or else you’ll end up in hot waters. Here are a few things you should consider before taking a loan for bad credit.
- Make sure that you are just borrowing the amount that you really need. The bigger the loan, the bigger the repayments will be so keep it as minimum as possible.
- Be careful about the time that you are borrowing the loan for. If you opt for the longer term, yes, it will reduce your monthly repayment amount but in the longer run, you’ll end up paying way more interest than you are supposed to.
- Compare the rates of different providers and do thorough research before borrowing. Choose the one that offers the lowest interest rates.
- Go through every single detail of the contract before signing up for it. Especially look for any additional charges added up and check the penalty of late or missed repayments.
Best Loans To Apply For In 2025 With A Bad Credit History
Here’s a list of some of the best lenders that deal with loans with bad credit;
1-Avant
Avant is probably one of the best platforms that specifically helps those with middle-income. What’s best is that it requires a credit score limit of just 580 which makes it easier for people to take bad credit loans. With Avant you can get a loan of $2000-$35000 and if you somehow pay off the loan early, there’s absolutely no penalty fee for it.
With Avant, you don’t have to worry about any hard inquiry of your credit and there’ll just be a soft check instead. On top of everything else, in case of late payments, you get a grace time period of 10 days without any penalty. It comes with a minimum term of 24 months to a maximum of 60 months which is quite flexible.
2-Oportun
Oportun is another great platform that helps people with bad credit loans. The main reason why Oportun comes second on this list is that it’s open to borrowers with absolutely no credit history too. With an APR of 35.99%, this platform is all you need to easily get a flexible repayment plan with terms ranging from 12 to 54 months.
Especially if you are someone who just needs a few hundred dollars to borrow then Oportun is the right option for you as it offers a minimum loan of $300 and a maximum of $10,000 with easy repayment plans. It’s always a good idea to raise your score a bit before applying for any loan so that you can get a l0wer interest rate loan. To improve your credit history, you should consider debt relief programs as they really can do the trick for you.
3- OneMain Financial
Looking for a platform that provides quicker funding? Try OneMain Financial and you sure won’t be disappointed as you’ll get your funds in just 1 or 2 days after loan approval. The reason why this platform stands out is that the borrower can choose his own date of repayments every month. Moreover, for lower interest rates, you can apply with a collateral and opt for a secured loan instead to make things easier.
As far as the amount you can borrow is concerned, the platform gives a minimum of $1500 to a maximum of $20,000 with easy repayment plans. Even if you have a poor credit score between 300 to 579, you can still apply for the loan and get your funds right away.
4- Lending Club
Looking for a credit card debt consolidation loan with a poor credit history? Try Lending Club as this platform will meet all your requirements. With an APR of 8.91%-35.99%, you can get an amount between $1000 to $4000 easily without any hard inquiry check of your credit history. The minimum credit score you need here is 600 and on top of everything else, you get a grace period of 15 days in case of late repayment.
You can even apply for a joint personal loan with another borrower to cut down the cost of your monthly repayments. As far as the loan term is concerned, it ranges between 24 months to 72 months but again, you should go for the shorter term to reduce the interest rate.
5- Universal Credit
Universal Credit is another great platform that requires a minimum credit score of just 560. You can easily get a loan of $1000 to $5000 without any hassle. The APR is around 11.69% to 35.99% depending on your repayment plan and the amount you are borrowing.
The reason why Universal Credit is in the list is that it offers quicker funding. After your loan is approved, you can get your funds the next business day and if you want to pay off the debt early, there’s no additional fee you’ll be charged.
Need help with debt consolidation loans to manage your finances? Try Mountains Debt Relief for an easier and more efficient journey. Contact Now!