Individuals with a bad credit history often struggle to borrow money. Not only will many places not consider your application, but bad credit can also significantly increase your interest rate, making your total loan amount much more expensive when compared with the principal loan amount.
specializes in connecting borrowers with poor credit to online lenders that are willing to offer unsecured personal loans to individuals with a bad credit history.
Loan amounts vary between $500 and $10,000, which may not be enough to fund a kitchen renovation but could be enough to deal with an unexpected financial difficulty. The minimum APR is 5.99%, with a maximum of %. Payment terms depend on the lender, as do the loan term, fees, and penalties associated with the personal loan.
- US residency or citizenship
- 18+ years of age
- Valid bank account
- Steady income source
The application process for is relatively simple and requires filling in details on an online form. These include personal and banking details as well as the loan purpose and your employment information. The site then connects you with lenders that meet your criteria. These lenders can reach out with an offer that matches what you need.
The main appeal of loan aggregator sites is that they make comparison shopping for the best personal loan much easier. Instead of having to repeat the same process multiple times, brings the offers to you.
If you need to borrow money urgently and have bad credit, it’s a great place to start looking for an unsecured personal loan. We strongly recommend reading each offer’s terms and conditions carefully because they can differ in terms of origination fees, late fees, and prepayment penalties.
#3. SoFi: Best for Larger Personal Loans
SoFi offers unsecured, fixed-rate personal loans to most U.S. residents. It’s one of the better-known online lending platforms and has established its reputation as a leader thanks to its reliability, flexibility, and high maximum loan amounts.
Since its founding in 2011, SoFi has extended over $50 billion in personal and debt consolidation loans. The company has the necessary experience to make your loan application smooth and straightforward.
SoFi offers personal loans ranging from $5,000 to $100,000, though amounts are limited in certain states. Borrowers can get a wide range of repayment terms, from two to seven years, with relatively favorable APRs, from 4.99% to %.
One drawback of SoFi is its stringent application requirements. Potential borrowers must have a minimum credit score of 680 and have an annual income of at least $45,000 to qualify for a personal loan.
However, SoFi also has the benefit of not charging origination fees, late fees, or prepayment penalties, making it one of the most transparent online lenders. Most lenders will charge origination fees at a minimum, which can make SoFi one of the best personal loan providers for qualifying borrowers.
Many people use SoFi for debt consolidation. However, while SoFi does have debt consolidation loans, it transfers the money directly into the borrower’s account instead of to the borrower’s creditors. If you get a SoFi debt consolidation loan, you’ll need to use the borrowed money to pay off your other loans.
SoFi is dedicated to having its customers succeed in making their monthly payments. The platform has an extensive knowledge base and offers perks such as financial planning advice and unemployment protection. Borrowers can also change their payment due date once per year to adapt to any changing circumstances.
#4. LightStream: Best Loans for Excellent Credit History
LightStream is the online consumer lending division installment loans salem Alabama of Truist. The company formed after the merger of SunTrust Bank and BB&T and has used its extensive experience in the personal loan business to offer some of the best personal loans on the market.