Even with bad credit, it’s possible to get a personal loan. You may need one to cover an unexpected medical bill, repairs for your car or vocational training to advance your career. Having bad credit shouldn’t stop you from doing the things you need to do, so here’s how to get a bad credit personal loan

1. Check your credit score:

 Look over your credit score for any discrepancies or inaccurate information that might be negatively affecting your credit. If you find anything that looks wrong, investigate the issue and correct it as soon as possible. Furthermore, knowing your credit score will help you understand what lenders will accept your application and give you the best rate on a bad credit loan.

2. Get your information together: For almost all bad credit loan applications, you’ll need your Social Security number, income information, state-issued ID or driver’s license and other personal information. Make sure that all of this is set and ready to go when you sit down to apply so the process is easier.

3. Shop and apply: Take the time to shop around for a loan to find the one that’s best for you. When you’re ready to apply, get ready for a credit pull. Some lenders will perform a hard pull that impacts your score, and some will only do a soft credit check that will not.

4. When approved, carefully review terms: This is the final step before that funding can hit your account; make sure that you fully understand the caveats and strings attached to a bad credit loan, including monthly payments, due dates, penalties, fees and more.

Best Secured Bad Credit Loans: OneMain Financial

OneMain specializes in all types of personal loans, but they’re a great option for those looking for secured or unsecured loans. Generally, if your credit falls within the less than perfect credit range, you’ll need to either decrease the loan amount or look for a secured loan — which means putting something up for collateral to offset the lender’s risk, such as a car, truck, or motorcycle.

While loans for people with less than perfect credit can range from $1,500 to $10,000, those with better credit could be eligible for loans as high as $20,000. APR also ranges from 18.00% to 35.99%, and typical term lengths can be 24, 36, 48 or 60 months. You can also visit one of OneMain Financial’s 1,600 branches in person or handle the entire application process online.

Reasons to Avoid

  • Ideal for borrowers with credit scores lower than 600.
  • Both secured and unsecured loans are available.
  • There are more than 1,600 branches.
  • Received an A+ rating from the Better Business Bureau.

Best Unsecured Loans: Avant

Avant focuses on loans for borrowers with average credit — customers with a credit score between 600 and 700. If you fall in that range, Avant is good if you need your funds quickly, as you may get your loan as soon as the next business day after you apply. Avant also makes its customer support team available seven days a week, meaning customers can reach out and ask questions, even on a Sunday morning.

Loans from Avant range from $2,000 to $35,000 with APRs between 9.95% and 35.99%. Furthermore, the loan terms offered are between 24 to 60 months. However, you should also be aware of an administration fee charged for loan origination that is 1.50% to 4.75% of the loan itself.

Reasons to Avoid

  • Loans are available in 46 states including the District of Columbia.
  • Mobile app available for on-the-go loan management.
  • Payment terms as short as two years or as long as five years are available.
  • Received A+ rating from the Better Business Bureau.

Best for Really Bad Credit: Bad Credit Loans

When it comes to getting a loan with really, really bad credit, your options are limited. But BadCreditLoans.com is a site that connects borrowers with poor credit to a network of willing lenders. Once you apply, you’ll receive offers from a network of lenders. You can choose which offer is best for you and your financial situation before moving forward in the process.

Keep in mind that depending on your situation, you may not receive any offers. On the other hand, you can reject any offer that doesn’t fit your needs. Once you accept an offer, typical loan amounts range from $500 to $5,000 with an APR of anywhere from 5.99% to 35.99%, according to its website. The repayment terms generally range from three to 36 months.

Although the 35.99% APR can seem daunting, it’s better than a predatory payday loan.

Reasons to Avoid

  • Borrowers with poor credit may still qualify for a loan of up to $1,000.
  • Offers are solicited on your behalf, making it easy for you to choose the best terms.
  • Applying is free and there’s no obligation to accept any offers.
  • Most applicants can be pre-approved in as little as five minutes, according to the company.

Best Peer-to-Peer Loans: Peerform

If you need a bad credit loan option and your credit score is poor but not outright terrible, Peerform is a lender you may want to consider. It’s a peer-to-peer lending platform, meaning borrowers are matched with individuals willing to lend money. It’s an interesting concept that takes traditional banks out of the equation and can sometimes offer lower fees because there’s less overhead.

Be mindful of the fact that Peerform will decline any application with a credit score below 600, which is all the more reason to raise your credit score). Because of this criteria, Peerform is able to offer loans ranging from $4,000 to $25,000 to potential borrowers with APRs ranging from 5.99% to 29.99%.

One of the downsides to using Peerform is that it can take up to two weeks to receive funding. So, if you need cash fast, this may not be the best platform for you. Additionally, there is a 1% to 5% origination fee attached to the loan.

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