There are numerous benefits to having good or great credit. Personal loans, for example, can offer cheap interest rates if you have a high credit score. However, there are some personal loans available to consumers that are flexible. In other words, even if your credit score isn’t ideal, you still have a high chance of getting approved.
Lenders accept applicants with lower credit scores (below 580) for emergency expenses, medical bills, debt consolidation, and other financial needs.
We’ve compiled a list of four of the best personal loan providers who still accept candidates with credit scores of 580 or lower. We investigated fees, interest rates, and flexible repayment choices for various credit scores.
There are a few things you can do to boost your credit score, some of which will have an immediate impact. Keep in mind that if you apply for loans or lines of credit with a poor credit score, you will most likely be charged higher interest rates since lenders will view you as a “riskier” consumer. Before signing, check rates with multiple lenders and do your homework to ensure you’re comfortable with your new loan terms. There are a few actions you may do to progressively increase your credit score.
Best personal loan lenders for people with a credit score of 580 or less
- Best for people without a credit history: Upstart Personal Loans
- Best for debt consolidation: Happy Money
- Best for flexible terms: OneMain Financial Personal Loans
- Best for quick funding: Avant Personal Loans
# Upstart Personal Loans
-
Annual Percentage Rate (APR)
4.60% – 35.99%
-
Loan purpose
Debt consolidation, credit card refinancing, home improvement, wedding, moving or medical
-
Loan amounts
$1,000 to $50,000
-
Terms
36 and 60 months
-
Credit needed
A Credit score of 300 on at least one credit report (but will accept applicants whose credit history is so insufficient they don’t have a credit score)
-
Origination fee
0% to 12% of the target amount
-
Early payoff penalty
None
-
Late fee
The greater of 5% of the last amount due or $15, whichever is greater
Our Reasons for Choosing It
Getting a loan with an APR that’s not in the high double digits or triple digits can be difficult if your credit score is in the “poor” range of 300 to 579.
This is where Upstart comes in. Upstart has the lowest minimum credit score of any lender on our list; it requires a minimum score of 300, which is the lowest possible. The loan funds can be disbursed within one day of approval, and you can borrow up to $50,000. Upstart. “Personal Loans: Apply Online, Quick Rate Check.”
# Happy Money
-
Annual Percentage Rate (APR)
11.25% – 24.50%
-
Loan purpose
Debt consolidation/refinancing
-
Loan amounts
$5,000 to $40,000
-
Terms
24 to 60 months
-
Credit needed
Fair/average, good
-
Origination fee
0% to 5% (based on credit score and application)
-
Early payoff penalty
None
-
Late fee
5% of the monthly payment amount or $15, whichever is greater (with a 15-day grace period)
Our Reasons for Choosing It
The minimum credit score required to apply for a Happy Money personal loan is 550, making the lender a good place to start if you have a poor credit score and are most concerned about debt consolidation. Applicants of Happy Money personal loans can apply for a minimum of $5,000 and up to $40,000. The loans can only be used for debt consolidation.
With a Happy Money loan, you can use financial literacy tools as well. In addition to getting free FICO score updates, a team will check in with you every quarter during your first year with Happy Money and tools to help members improve their relationship with money through personality, stress, and cash flow assessments when you accept a Happy Money loan.
# OneMain Financial Personal Loans
-
Annual Percentage Rate (APR)
18.00% to 35.99%
-
Loan purpose
Debt consolidation, major expenses, emergency costs
-
Loan amounts
$1,500 to $20,000
-
Terms
24, 36, 48, 60 Months
-
Credit needed
Poor/Fair
-
Origination fee
Flat fees start at $25 to $500 or percentage ranging from 1% to 10% (depending on your state)
-
Early payoff penalty
None
-
Late fee
Up to $30 per late payment or up to 15% (depending on your state)
Our Reasons for Choosing It
Those with poor credit and income may not have many options other than OneMain Financial. OneMain Financial does not have hard cut-off points when deciding whether or not to approve your loan based on your credit score, debt or income. Instead, it looks at your entire credit history and ability to repay a new debt obligation.
Applicants with lower credit scores can also secure their loan with collateral, which can lower the lender’s risk and help them qualify for a loan with OneMain Financial.
In reviewing your application, OneMain Financial does not disclose or impose a minimum credit score.
There is no minimum credit score for a OneMain loan, according to a OneMain Financial spokesperson. The ability to pay and credit history of a customer are among the factors taken into account by OneMain when evaluating loan applicants. In the end, we want to make sure borrowers don’t put themselves under undue financial strain by accepting our loans.”
Even if you have bad credit, you may be able to qualify for a loan with OneMain Financial, although you may be required to pay a high-interest rate.
# Avant Personal Loans
-
Annual Percentage Rate (APR)
9.95% to 35.99%
-
Loan purpose
Debt consolidation, major expenses, emergency costs, home improvements
-
Loan amounts
$2,000 to $35,000
-
Terms
12 to 60 months
-
Credit needed
Poor/Fair
-
Origination fee
up to 4.75%
-
Early payoff penalty
None
-
Late fee
Up to $25 per late payment after a 10-day grace period
Our Reasons for Choosing It
It is a great personal loan lender for those who want their money quickly. Our guide to the best debt consolidation loan companies and the best home improvement loans recommends it as the top pick for borrowers with lower credit scores. You’ll usually receive your funds the day after your application is approved.
You can borrow between $2,000 and $35,000. The minimum amount varies by state. Avant offers loans in all 50 states as well as Washington, DC.
As a result of your credit score and income, your APR may range from 9.95% to 35.99%, which is higher than some of its major competitors’. If you need a loan with a bad credit score, Best Egg’s range is 8.99% to 35.99%, and Marcus by Goldman Sachs range is 6.99% to 24.99%.
You can pay off Avant loans in full at any time without incurring an early payment penalty. Minimum loan terms are 24 months, and maximum terms are 60 months.
As soon as your information has been verified, the loan proceeds will be transferred to your bank account as requested, usually the next business day.
If Avant offers you a loan with a high interest rate, you may want to check out credit cards for people with bad credit and compare rates between a credit card and a loan — you might be eligible for a lower APR and better terms with a credit card. Getting the best financial deal is all about weighing the pros and cons.
In accordance with Avant’s website, funds are typically deposited the next business day if your loan is approved by 4:30 p.m. CT Monday through Friday. You can reach Avant by email or phone between 7:00 a.m. CT and 10:00 p.m. CT, or by 7:00 a.m. CT and 8:00 p.m. CT on weekends.
The Avant app has received 4.5 out of 5 stars in the Apple store, and 3.8 out of 5 stars in the Google Play store.
More Keywords Related To The Topic:
- credit score
- what is a good credit score
- free credit score
- credit score range
- credit score ranges
- good credit score
- credit score check
- check credit score
- check my credit score
- experian credit score