Low Credit Score Loan Options are options for those who need credit, but face restrictions due to the low score.
We have selected the best Low Credit Score Loan Options, with platforms that offer personal loans with easy approval, competitive rates, flexible terms, and even assistance programs for those who are facing financial difficulties.
We will cover the Low Credit Score Loan Options in detail, understanding how each alternative works and which one may be the most suitable to help reorganize your financial life.
1. LendingClub
LendingClub offers personal loans with an APR rate between 7.90% to 35.99%, catering to borrowers with credit scores starting at 600.
It gets from $1,000 to $40,000, and repayment terms can range from 24 to 72 months.
Additionally, origination fees range from 0.00% to 8.00%, depending on the terms of the loan and the borrower’s profile.
One of the advantages of LendingClub is the 15-day grace period for late payments. Thus, borrowers have more flexibility.
You can apply for a joint personal loan with a co-borrower. This can make it easier to get credit if you have a bad score.
Additionally, LendingClub allows borrowers to use loan funds for debt consolidation and can pay lenders directly if needed.
To qualify for a personal loan with LendingClub, you must be at least 18 years old, a U.S. citizen or permanent resident, have a verifiable bank account, and meet the minimum credit score requirement.
2. Avant (Low Credit Score Loan Options)
At first, Avant offers personal loans with an APR range between 9.95% and 35.99%, making it a great option for those with up to 550 score.
Loan amounts range from $2,000 to $35,000, and repayment terms can be as long as 60 months.
The origination fee for Avant loans can be as high as 9.99%, depending on the borrower’s profile.
One of the advantages of Avant is that there are no fees for repaying the loan early, providing borrowers with flexibility in managing their payments.
Contractors can receive their funds the next day after approval. Avant also considers family income in addition to individual income, which makes it easier to obtain credit.
Avant’s minimum loan amounts and state availability may vary, as some states, such as Hawaii, Iowa, Maine, Massachusetts, New York, Vermont, Washington, and West Virginia, are not eligible for Avant loans.
To qualify for a loan with Avant, applicants must meet a few criteria, namely:
- Be a resident of the U.S. (excluding the states mentioned above);
- Have a bank account and documents such as pay stubs, bank statements, or tax records to verify income.
In addition, Avant may call your employer for employment verification.
This makes Avant a viable option for borrowers who may not have a good score but need quick funding and flexible repayment options.
3. Prosper
Prosper is an online peer-to-peer lending platform that offers personal loans with an APR range of 8.99% to 35.99%. You can get up to $50,000, and you can pay it off in up to 60 months. On the other hand, the origination fee for loans with Prosper ranges between 1.00% and 9.99%.
One of the standout features of Prosper is its low credit requirement, since with a score of 560, it already gets approval.
You can also apply for a loan with someone else, which increases your chances of approval and helps you qualify.
Additionally, Prosper has a hardship relief program, which provides assistance to borrowers who are struggling to make their payments.
In addition, Prosper has a 0.50% to 1.00% discount on the loan if you open an account with Teachers Federal Credit Union during your application.
To be eligible for a Prosper loan is simple, you must be at least 18 years old, a US citizen, have a bank account and Social Security number.
4. Upstart (Low Credit Score Loan Options)
Upstart is an alternative that stands out for being one of the best options for people with bad credit.
The platform is known for its fast funding process and low requirements.
Unlike many traditional lenders, Upstart doesn’t just focus on credit scores to determine loan eligibility.
Instead, they consider factors such as work history and educational background. Which opens up opportunities for people with little or no credit history.
The APR range fluctuates between 6.70% and 35.99%, with loan amounts reaching up to $50,000. Although the score is not important, it is a relevant factor, and to be approved you must have at least 300 score points.
5. Best Egg
Best Egg is another alternative, having both secured and unsecured personal loans.
In secured loans, you can use the assets in your home, rather than the entire property, as collateral. This makes it easier for those with bad credit to get approved for the loan.
Best Egg offers unsecured loans to individuals who prefer not to use collateral, at APRs ranging from 6.99% to 35.99%. You must still pay the origination fee, which varies from 0.99% to 9.99%.
As a rule, he can ask for up to US$ 50,000, to be paid in up to 84 months. In addition, you can postpone up to two payments during the deadline to repay the credit.
6. Happy Money
Happy Money has personal loans designed to help consumers consolidate high-interest credit card debt.
Furthermore, the APR range fluctuates, reaching 17.48%, Happy Money offers a more affordable alternative compared to many competitors that charge fees of up to 35.99%.
The amounts released range from $5,000 to $40,000, with loan terms of up to 60 months.
The company also offers the convenience of paying directly to your credit card company.
While the loan approval process is slower than some other lenders, with the amount being released within six business days, Happy Money is an interesting option for those looking to reduce credit card interest rates and consolidate debt.
Conclusion (Low Credit Score Loan Options)
Now you know all the low credit score loan options, knowing all the details, from amounts, rates and even payment terms.
Options such as LendingClub, Avant, Prosper and Upstart are affordable solutions, also considering income, professional history and education.
Best Egg and Happy Money, on the other hand, expand the range with secured loans and debt consolidation programs, ideal for reorganizing finances with lower rates.
Now, if you want to know about credit options in the future, we recommend that you follow the best ways to improve credit score.