Our last article focused on lenders who are more than willing to work with sub prime borrowers, that is borrowers with rather poor credit scores, either due to past credit mistakes or through no fault of their own, such as losing a job and having to let go of paying off certain debts on time. Everyone deserves a second chance, including you if you have bad credit. No one should be shut out of financial products and services for a life time due to past mistakes. If you have had trouble finding a personal loan and you just happen to have bad credit, you are not alone.
To better assist you with finding that personal loan that you might need, and deserve, I am going to feature some reviews of lenders willing to look past select borrowers with bad credit. When I say select borrowers, this is simply because there is no such thing as a “guaranteed loan”, no lender is obligated to make a loan available simply because you apply. That being said these lenders have a proven track record of looking past many credit mistakes and credit blunders. These lenders are often times willing to give borrowers a second chance. Second chances do come at a cost, your APR will not be as good as an APR given to someone with a credit score of say 720 or higher. Yet these lenders I will review below are often times a better alternative than racking up credit card debt which will just result in a maxed out credit utilization and lower credit score. Also these lenders below are a much better alternative than going to a payday loan lender, where you could face an APR of 700% or higher. Lets review some of these bad credit lenders.
This is not a lender, but rather a loan referral service. One application allows this company to solicit multiple lenders on your behalf. Lenders get to look at just one application, and if any lenders are willing to work with you, you will receive an offer or offers from multiple lenders. The better your credit score and credit report is, the more lenders will compete for your business. They have competitive APRs and several different type of loan options available. The down side is you won’t know the terms, fees, and APRs until an offer is presented to you. The plus side is instead of multiple hard inquiries, which can result in a lower credit score, you will only have one hard inquiry. They offer loans as low as $500 and as high as $35,000, which makes this service ideal if you need just a small amount.
If your credit score is really low, say 550, you might feel your chances at obtaining a personal loan is hopeless. Alcane FCU is an online lender that specializes in second chance loans to people with abysmal credit scores. People with credit scores as low as 550 can obtain unsecured personal loans of up to $10,000. While that max amount may not seem very high, for someone with a credit score as low as 550, a $10,000 loan is uncommon and very generous. This lender is very very transparent about their fees, rates, and terms, and they offer a variety of repayment options. Loan terms are very flexible. That being said the APR range is rather insane with this lender, starting as low as 35% but it can go as high as 299%, yet this is still lower than any payday loan lender, hence I am including this second chance lender in my reviews. I should also point out that this lender is new to the lending business and as of today still lacks BBB accreditation. On the plus side, you can check to see if your eligible or not without affecting your credit score.alcanefcu.org
OneMain Financial is another option open to you. This is the online lending branch of CitiBank, and the parent company has been doing business since 1912, so you know this company has a history of good service behind them. This lender works with borrowers with a credit score as low as 630, allowing for personal loans of up to $15,000. They offer both secured and unsecured personal loan options, so the range of APRs they offer varies to greatly to cover here. They offer personal loans in 43 of our 50 states, and they have well over 1000 branches throughout the nation. The down side is that their customer service is rather lacking, and this lender is not transparent at all about their fees and APRs.https://www.onemainfinancial.com/