Having a credit score of 580 or lower can make it challenging to secure personal loans. However, several lenders specialize in providing loans to individuals with bad credit.
Personal Loans To Apply To If Your Credit Score Is 580 or Lower
Here are four personal loans that you can apply for even if your credit score is 580 or lower.
1. OneMain Financial
OneMain Financial offers personal loans tailored for borrowers with bad credit. They have a reputation for working with individuals who have low credit scores.
Loan Features
- Loan Amount: $1,500 to $20,000
- APR: 18.00% to 35.99%
- Loan Term: 24 to 60 months
- Fees: Origination fee (varies by state)
Pros
- Fast funding
- No minimum credit score requirement
- Secured loan options available
Cons
- High APR rates
- Origination fees
2. Avant
Avant is known for offering personal loans to those with less-than-perfect credit. They provide a straightforward application process and quick funding.
Loan Features
- Loan Amount: $2,000 to $35,000
- APR: 9.95% to 35.99%
- Loan Term: 24 to 60 months
- Fees: Administration fee (up to 4.75%)
Pros
- Quick funding (next business day)
- Flexible loan terms
- Low minimum credit score requirement
Cons
- High APR rates for lower credit scores
- Administrative fees
3. Upstart
Upstart uses artificial intelligence to assess loan applications, considering factors beyond just your credit score, such as education and employment history.
Loan Features
- Loan Amount: $1,000 to $50,000
- APR: 5.31% to 35.99%
- Loan Term: 36 to 60 months
- Fees: Origination fee (up to 8%)
Pros
- Soft credit check for pre-qualification
- Considers alternative data in the approval process
- Fast funding
Cons
- High origination fees
- Requires a minimum credit score of 300
4. LendingPoint
LendingPoint offers personal loans to borrowers with credit scores as low as 580. They focus on evaluating the overall financial picture of the borrower.
Loan Features
- Loan Amount: $2,000 to $36,500
- APR: 7.99% to 35.99%
- Loan Term: 24 to 60 months
- Fees: Origination fee (up to 6%)
Pros
- Fast approval and funding
- Flexible repayment options
- Low minimum credit score requirement
Cons
- High APR rates for bad credit
- Origination fees
FAQs
Can I get a personal loan with a credit score of 580 or lower?
Yes, several lenders specialize in providing personal loans to individuals with bad credit. Some notable options include OneMain Financial, Avant, Upstart, and LendingPoint.
Will applying for a personal loan affect my credit score?
Applying for a personal loan can affect your credit score. Many lenders perform a hard credit check during the application process, which can temporarily lower your score. However, some lenders offer pre-qualification with a soft credit check that doesn't impact your score.
What are the typical interest rates for personal loans for bad credit?
Interest rates for personal loans for bad credit are generally higher than those for borrowers with good credit. Rates can range from around 7.99% to 35.99%, depending on the lender and your overall financial profile.
How quickly can I receive funds from a personal loan?
The time it takes to receive funds from a personal loan varies by lender. Many lenders, such as Avant and LendingPoint, offer quick funding, often disbursing funds within one business day after approval.
Are there any fees associated with personal loans for bad credit?
Yes, many lenders charge fees for personal loans, including origination fees, administration fees, and late payment fees. It's essential to review the fee structure of each lender before applying to understand the total cost of the loan.
By exploring these options, you can find a personal loan that fits your needs even with a credit score of 580 or lower. Make sure to compare the terms, interest rates, and fees of each loan to make an informed decision.
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