Skip the bank search and get funded in 1 business day with unsecured loans for bad credit from online direct lenders.
Bad credit can make it difficult to get any kind of loan. But with online lenders borrowers can expect more than a one-size-fits-all loan that traditional banks offer.
Online lenders look at your ability to repay the loan and at your broader financial picture—not just your credit score—to determine your eligibility. Some of the factors considered are:
- Overall financial commitments
- Bank account history
- Employment history
- Ability to repay
5 Unsecured Loans for Bad Credit
People with bad credit have options.
Upgrade offers personal loans are ideal for consolidating credit cards or managing debt consolidation. You can offset the origination fee with Upgrade’s deals and discounts — such as the autopay discount or opening a checking account with Upgrade.
- Minimum suggested credit score 580.
- APR range 9.99% to 35.99%.
- Loan amounts $1,000 to $50,000.
- Loan origination fee of 1.85% to 9.99%.
- Multiple rate discounts.
- Secured and joint loans.
- Repayment terms 3 to 5 years. 7 years on some larger loans.
Upstart loans are primarily designed for people with little to no credit but they will consider people with bad credit because they rely on more than just your credit to make loan decisions. Approval is based on several factors including education and employment history.
- Minimum suggested credit score 300.
- APR range 7.40% to 35.99%.
- Loan amounts $1,000 to $50,000.
- No loan origination fee.
- Must have a regular source of income and a U.S. bank account.
- Repayment terms up to 5 years.
- Suggested minimum credit score is 560.
- Loan amounts range from $1,000 – $50,000.
- Repay monthly, over 3 to 5 years.
- APR range 11.69% to 35.99%.
- Loan origination fee of 5.25% to 9.99% of the loan amount which is deducted directly from your loan funds.
- Reports payments to all three major credit bureaus.
- No prepayment fee.
OppLoans is a lending company that specializes in providing installment loans for bad credit. These loans are very expensive but typically cheaper than payday loans. Proceed with caution if you decide to accept a loan offer and keep in mind, you can pay this loan off early to save money on interest.
- No minimum suggested credit score.
- APR ranges from 160.00% to 195.00%.
- Loan amounts $500 to $4,000.
- Loan origination fee of 1.85% to 9.99%.
- Receive income through direct deposit.
- Repayment terms up to 18 months.
- OppLoans offers loans to all states except CO, CT, IL, IO, ME, MD, MA, NH, NJ, NY, PA, SD, VT and WV.
Basic Factors Online Lenders Consider
If approved for an unsecured loan for bad credit, expect to pay higher interest rates. Lenders off-set potential losses with higher rate loans when making these types of loans.
- Considers your ability to repay. Your ability to afford your loan is the single most important factor most lenders consider.
- Verifiable income. Online lenders will verify your income, look at your bank statements, and verify your sources of income.
- Performs a soft credit check. Online lenders checks your credit without impacting your credit score with soft pulls. Traditional banks hard pull your credit reports. When a hard credit check is run, it can remain on your credit report for up to two years and take several points away from your credit scores.
- Flexible terms and repayment plans. When seeking unsecured loans for bad credit bad credit loan, online lenders can offer longer terms which generally translate into lower monthly payments, and a more affordable loan that borrowers will be able to repay.
- Build a positive credit history. Online lenders that offer unsecured loans for bad credit will report payments to the major credit bureaus that can help improve your credit score over time.
Taking out a bad credit loan is a major decision. You may have bad credit today, but it can get better. Make your payments on-time to improve your credit scores.
If possible, paying your loan off early stops will save you money because you no longer have to pay the high interest.
