Looking for loans options for lower credit score? We offer you the better choices!

If you have less than perfect credit, you may think that getting a personal loan with favorable terms is out of reach. However, there are major lenders who understand your situation and offer personal loans designed for individuals with credit scores in the poor range. These lenders are here to help you finance emergency expenses, medical bills, debt consolidation, and more. In this article, we will explore four of the top personal loan providers that welcome applicants with credit scores of 580 or lower, giving you a solid chance of approval.

Payoff: Best for Few Fees

Payoff, also known as Happy Money, offers bad credit loans specifically aimed at helping borrowers eliminate credit card debt. While you may not qualify for their lowest interest rates, their personal loan rates could still be better than what you currently have on your credit card. If approved, you can expect the funds to be deposited into your account within three to six business days, which might be slower compared to other lenders.

Pros

• No application or late fees
• No prepayment penalties
• May offer lower interest rates than credit cards
• Transparent about eligibility requirements

Cons

• No joint applications available
• Not available to residents in Massachusetts or Nevada
• Loans can only be used for paying off credit cards
• Funding timeline can be slow

LendingClub: Best for Using a Co-Borrower

LendingClub operates as a peer-to-peer lending marketplace and offers loans up to $40,000 with funds available in as little as 24 hours. They also allow you to change your due date, either as a one-time occurrence or permanently, though this may affect your interest rates. LendingClub offers joint personal loans, making it easier for applicants with poor credit to qualify.

Pros

• 15-day grace period for late payments
• Allows co-borrowers
• Option to pay creditors directly if consolidating debt

Cons

• Not available to borrowers in Iowa and U.S. territories
• Charges late fees
• Charges an origination fee between 3.00% and 8.00%

Avant: Best for Both Secured and Unsecured Loans

Avant Financial has a loan amount cap of $35,000, making it suitable for those seeking bad credit small personal loans. Though their interest rates are higher, they may still be more favorable compared to other bad credit lenders.

Pros

• Offers both secured and unsecured loans
• Ability to change your payment due date
• No prepayment fees

Cons

• Charges origination fees
• Charges late fees
• Loans not available in Hawaii, Iowa, Massachusetts, New York, Vermont, or West Virginia

Upgrade: Best for Flexible Loan Amounts

Upgrade offers loan amounts ranging from $1,000 to $50,000 for qualifying applicants. The funds can be received as quickly as one business day after verification. They also provide an autopay discount, though be aware of origination fees and potential late payment fees.

Pros

• Can receive funds in as little as one business day
• Offers autopay discount
• Offers auto-secured loans

Cons

• Not available in West Virginia or Washington, D.C.
• Charges $10 late fees and $10 failed payment attempt fees
• Charges origination fee

While applying for loans with a lower credit score may mean higher interest rates, comparing offers from different lenders can help you find the best terms for your situation. It’s crucial to do thorough research, understand the loan terms completely, and make an informed decision. Remember, working on improving your credit score can lead to better interest rates and loan terms in the future. Consider adopting responsible credit card use, timely bill payments, and debt reduction practices to enhance your credit profile.

Written by

Claire Harrison