How to Get A Personal Loan in Texas with Bad Credit?

Dome of the Texas State Capitol building in downtown Austin, Texas

Everyone needs a personal loan in Texas at one time or another. Emergencies arise, and projects become feasible, or someone in the family becomes ill and needs financial support. Sometimes family members or close friends need bail money.  It happens to the best of us. However, it can be challenging getting the funds you need when you have bad credit.

Bad Credit Personal Loan in Texas

Many lenders are scared to deal with people who have bad credit because they see them as a high risk. You can find a way to get the funds you need even if some lenders turn your down.

The following are some tips you can use to get a personal loan in Texas with bad credit.

1. Get a Cosigner

One thing you can do if you want to get a personal loan in Texas is to ask a cosigner to help you. The cosigner may be a family member, friend, spouse, or business associate. You might be able to convince the lender to allow you to borrow the money if a cosigner signs a contract with you. The cosigner’s signature on the document makes that person liable to repay the loan if you fail to do so. Not just any person can sign as a cosigner, however. This individual has to have a high enough credit score and a long enough history of timely payments for the creditor to accept his or her co-signature.

Once you get approved for a personal loan in Texas, you can prove your trustworthiness with each payment. You might not have to have a cosigner the next time you need a personal loan if you show them that you can handle yourself in this situation. Many debtors start off using cosigners, and then they move on to get personal loans, credit cards, auto loans, and other financial products on their own. The cosigner situation is not a permanent one. It’s only a temporary solution to get you the funds that you require immediately.

2. Boost Your Score Before Applying

You can get a personal loan in Texas if you raise your credit score a little bit before you apply. You can do a few things to give yourself a quick boost, and that quick boost might put you in an entirely different category of creditworthiness. The following are some things you can do to give your credit score a quick jolt.

2.1 Pay Your Smallest Account Off

One quick way to give your credit score a big jump is to pay at least one of your accounts off. If you can just pay the account with the smallest balance, you can give your credit score a huge push. It may take about 30 days to show up on your credit report, but it will be worth it if you want to get a personal loan in Texas. It may give you the boost you need to get approval, and you might get a much better interest rate, as well.

2.2 Dispute Something on Your Report

Another little trick you can use to get your credit score up a little bit is to order your credit report ASAP. Look it over for accounts that you don’t remember having. If you see something that you do not believe you owe, you can file a dispute and tell the credit bureau that you do not believe the account is yours. Once you file the dispute, the credit bureau will have 30 days to investigate the matter. They have to decide by the end of those 30 days. If they decide that the account is invalid, they will remove it and notify you of such removal. Your credit score will jump significantly, and you might be able to qualify for a personal loan in Texas based on the new score.

2.3 Fix the Errors on Your Credit Report

Errors are another element that can make a lender hesitate on giving you a personal loan for your poor credit. You need to ensure that your address information, job history, phone number, and name are correct. Contact the creditors or the credit bureaus to correct all the errors immediately. You may see a rise in your score after you do that. At the very least, your profile will appear more trustworthy, and the lender may be more willing to take a chance on you.

2.4 Settle Negative Items

You should also look over your credit report and search for negative items. Lenders see negative accounts as red flags. Therefore, you should try everything in your power to settle anything that has gone into collections on your account. You might be able to work out a debt settlement where the creditor will take a little less than you owe in exchange to notate the account as paid. Your score will improve if you can get that account marked off of your report or at least marked as paid.

2.5 Keep Your Utilization Down

Do not use any of your credit while you are trying to get a personal loan in Texas. You must keep your utilization down under 30 percent if you want your report to reflect positively to prospective lenders. You can do that by not using any additional credit and making some small payments on the accounts that you already have. That will work out well for you if you let it.

Those tips may help you to get in the position for approval on a personal loan in Texas.

3. Use Collateral

If you’re having trouble getting approved for a personal loan in Texas, you may want to consider using collateral. Many companies will take collateral from people who have a poor credit score or a negative history with lenders.

You can use a variety of items that you own as collateral for a personal loan in Texas. One of the most popular items that people use for this type of loan is the title of their vehicle. Some people use their home deeds, as well. Lenders use other items as collateral, too. Stocks, CDs, and precious metals are some other assets that you may be able to give to a provider for a personal loan in Texas. Your collateral will not be in jeopardy unless you fail to repay the cash advance. The lender will put a temporary lien on your property for the duration of the loan. Then, it will release the lien so that you are once again the only owner after you have settled your debt.

The good part about using collateral to get a personal loan is that you can gain clout with the lender when you’re finished paying them back. They may be willing to provide you with additional loans in the future if you make good on the first one. The next time, you might not have to supply them with collateral or a cosigner or anything else. They will trust you to repay the advance, and they might even make you eligible for a higher loan amount.

4. Get on a Debt Management Program

A debt management program might be just what you need to get your financial profile healthy again. If you don’t know what that is, we’ll explain it. A debt management plan is a debt recovery program that involves the work of credit counselors. These credit counselors will give you a free initial consultation so that they can look at your credit profile and talk to you about the products and services you desire. Once you decide that you want to use their services, they will start reshaping your profile.

A debt management plan is a consolidation of sorts. It doesn’t involve a personal loan, however. The credit counselor contacts your lenders to see if they will agree to take the balances down on some of your accounts. The counselor will do everything in his or her power to see to it that you owe as little money as possible. Once you have a fair ending balance, the credit counselor will develop a repayment plan for you. You will pay the counselor one monthly lump sum payment, and the counselor will use the funds to pay all of your creditors. Debt management plans typically last five years. However, you might see results in as little as one month.

5. Find Lenders Who Don’t Use Credit Scores

You can find a lot of lenders that will offer a personal loan in Texas without considering your credit score. It all depends on your needs and how much interest you are willing to pay. The following are three types of loans that you can get without having a good credit score. Sift through their descriptions and decide if you can use one of those.

5.1 Payday Lenders

Payday lenders are one type of short-term lender that can offer you a personal loan in Texas. A payday lender specializes in giving loans to hardworking people who need help. They do not base their decisions on credit scores. Instead, they use their clients’ paychecks as assurance that they will repay their advance.

To qualify for a payday personal loan in Texas, you must be 18 years of age because you have to sign a contract. Furthermore, you must have a Texas bank account, and it must be in good standing. “Good standing” means that you do not have a negative balance in the account, and you have not had such a balance for at least 90 days. You should also earn at least $1,500 a month and have your job for at least three months before you apply.

The payday lender will take its payments from your very next paycheck. It may not be the right loan for you if you’re looking for a longer term. However, it could be the perfect financial product for you if you’re in-between checks, and you need funds just to get by.

When choosing a payday lender, you have to make sure that you find a trustworthy provider who offers low interest and excellent customer service. Read the reviews to see what other consumers have to say about the company. Visit the website and see if the lender is transparent about its fees and so forth. If so, then you can go ahead and process your application. Alternatively, you can seek the guidance of a reliable financial company that has connections with reputable lenders. Our company is such a provider, and we can make sure that you’re headed in the right direction.

5.2 Installment Lenders

Installment loans have a lot of the same requirements that payday loans have. They are basically the same as payday loans except the lender gives the borrower much more time to repay the advance. Some installment loans have a three-month lifespan. Other installment products can have a repayment life that’s longer than 12 months. It all depends on which provider you go to for assistance. That’s why it’s important to have someone help you who knows all the lenders and how they work. We can definitely help you find a reliable company that will give you fast processing and a lot of time to get yourself back on track.

5.3 Title Lenders

You might be better off getting a personal loan in Texas from a title lender. Title lenders work with people who own cars. An applicant must be the owner of a vehicle, and he or she must have the title of the vehicle in his or her hands. This is necessary because title lenders use the title to the vehicle as collateral to make sure that the borrower will repay the funds. They place a lien on the title until the borrower pays off the advance. Then they release it within 30 days after the borrower meets his or her obligation.

The good part about title loans is that the borrower does not have to physically give up the car. If you get a title loan, you can continue to drive your car every day as usual. The title lender will only interfere with your rights as a car owner if you fail to repay the advance, and you fail to communicate with them and make arrangements.

The amount of money that you can get from a title lender will depend solely on the value of your car. The lender will assess the vehicle before it gives you an offer. They will base the assessment largely on the year, make, and model of the car. They will also conduct a physical inspection of the vehicle and check for mechanical and cosmetic damage and defects. And they will deduct the appropriate amount from the loan offer, and then they will offer you a percentage of that amount for your loan. The usual percentage is about 70 percent of the value of the car. You could get a large sum of money if you have a newer car with little to no damage to it.

Those are just a few of special loans you can get if you need a personal loan in Texas right now. You may have to pay back the funds in a brief amount of time, however. Therefore, you have to make sure that you are comfortable coming up with the money in as few as 14 days.

Contact Us to Find a Lender

We would love to help you find a bad credit personal loan. We are not a lender, but we network with some of the most prominent lenders in Texas. Our main goal is to link you up with lenders who will be willing to take a chance on you despite what your credit score might be. We can connect you with lenders that can give you personal loans, auto loans, mortgages, and more. We can find you lenders who will give you long-term loans, short-term loans, or installment loans. Also, we can assist you by connecting you with credit counselors and information so that you can improve your credit. We have a wide range of tools and services that we can offer you, and we’re here to serve your needs.

Just give a call and let us know what we can do for you. We’ll get some of our best agents on the case, and they won’t stop until you are 100 percent satisfied. You can reach us at any time to get the help you need and deserve.

In Conclusion

Finally, you can get a personal loan in Texas by searching for “bad credit personal loan lenders.” Bad credit lenders are a special class of lenders who purposely deal with people with damaged credit. They will still give you a personal loan in Texas if you have a bad history with lenders. However, there may be a catch to it such as an extremely high interest rate or additional fees that you don’t necessarily want to pay. It’s best to have a financial company work for you and find lenders that are suitable to help you. These lenders will have your best interests in their hearts, and they will truly want to give you the funds you need quickly.

What Bad Credit Lenders Don’t Want You to Know?

The banker handed the pen for signing in loan document and agreement.

If you have bad credit and you need something, you may have to seek assistance from bad credit lenders. Bad credit lenders are companies that will issue loans to people who have sub-par credit scores. These lenders issue auto loans for bad credit, personal loans, and other products that consumers need to get by. You might have to talk to a bad credit lender if you’ve had trouble getting financial products from traditional lenders. However, you need to know some of the secrets that such lenders don’t want you to know about their practices and procedures.

Facts About Bad Credit Lenders

Make sure you read through our list and educate yourself before you take a credit card for bad credit or a loan from bad credit lenders. These are the top things that they don’t want you to know.

1. The Interest Rates Might Be High

One thing that you should know about bad credit lenders and their products is that they may be expensive. Bad credit lenders want to make sure that they will get their money back and make a profit, as well. They sometimes boost the interest rates on their loans to compensate for a person’s risky creditworthiness. It could put you in a real bind if you don’t research it first and find out the terms before you sign on the dotted line. Make sure you ask about the interest rate of the loan before you take it.

Some loans are good, but some are more trouble than they’re worth. You want to make sure you’re getting a loan that you can handle, and it doesn’t cost you three times the amount of the loan proceeds. It might be best to get some help from a company that has connections with fair lenders.

2. You May Have to Use Collateral

Another thing you have to watch out for when you deal with bad credit lenders is collateral. Some lenders will give you a loan if you have bad credit only if you agree to put up collateral. Collateral is something of value that you can offer the lender in case you default on the loan. It might be the deed to your home or the title to your car. Those are the most common collateral types. Lenders may also take other offerings such as stocks, bonds, CDs, precious metals, and the like. The goal is not to take your goods away.

The goal is to simply ensure that you repay the funds you borrow. The lender might feel more secure by placing a lien on your property until you pay your loan entirely. The lender will release the lien as soon as you pay all the funds back. It’s as simple as that. Keep this simple fact in mind when you consider getting bad credit loans to pay off debt.

3. The Term May Be Short

You may also find that you have a minimal amount of time to repay the advance you get from the provider. The amount of time you have to repay a loan from a bad credit lender will depend on what type of bad credit loan you get. An installment loan may provide you with 90 days to one year of leeway to repay the advance. On the other hand, a payday loan will only give you about 14 or 15 days to make the payment. If you go the way of a title loan, then you’re looking at about 30 days to return the funds to the lender. Don’t jump into any loan quickly or lightly. Make sure you review your options before you make a final decision on a financial product.

4. There Might Be Hidden Fees

The interest rate isn’t the only thing you have to worry about when you deal with bad credit lenders. Your “loan package” may also come with some hidden fees that you can miss if you don’t pay attention to the fine print and such. Examples of some charges that the lender might add to your loan are processing fees, approval fees, and late fees. There might even be some fees attached to the loan of which you’ve never heard. Again, research and patience are the keys to success when you’re looking for the right loan product for yourself. You should have a financial expert help you sift through the available lenders to find your perfect match.

5. They May Still Check Your Credit

Many bad credit lenders boast about their customers not needing good credit to get cash advances. However, some of them still check your credit. They may do a soft pull just to verify your identity and make sure that you are who you say you are. Other bad credit lenders will look at your credit score the same way a traditional lender looks at it. They may deny you a cash advance, as well. Bad credit lenders don’t guarantee that they will provide you with a loan. They just let you know that they have less stringent qualifying criteria than other lenders have. Some of them say that they approve over 99 percent of their applicants. While that is a high percentage, you still may fall into the percentage of people who don’t gain approvals. You never know.

We can help to connect you with a lender who is highly likely to accept your request and trust you with a loan. We’ve been networking with trustworthy lenders for many years. We will only connect you with legitimate lenders who have positive reviews and honest processes.

6. A Bad Credit Loan Can Still Affect Your Credit Score

Keep in mind that a bad credit loan can still affect your credit score even if the lender doesn’t use your score to qualify you. If you fall delinquent, a bad credit lender can still report your delinquency to a credit bureau. A delinquent loan can make your credit score go down significantly, and it can cause you more problems getting approved for the products you need in the future. The lender still has the right to do debt collections on you, as well. Your debt will subject you to the same harassment and negative profile notches that you could get from a traditional lender.

7. Some Bad Credit Lenders Are Better Than Others

The world did not create bad credit lenders equally. Some lenders care about the customers, and they do everything in their power to treat them fairly and give them the money they need for their emergencies. Other lenders, however, do not have the customer’s best interests at heart. These lenders behave like loan sharks. They do not work with their clients or give them the benefit of the doubt. They charge sky-high interest rates and give their clients no time to repay their loans. You don’t want that kind of lender. You want a lender that has a compassionate and caring nature. We can help you find such a lender.

8. Short-Term Loans May Be Limited

Many short-term loans for bad credit are limited in the loan amounts. For example, you may only qualify to receive $100 the first time you borrow something from a bad credit lender. That might not be anywhere near the amount of money you need for what you’re trying to do. The good news is that some other lenders may offer you up to $2,500. The even better news is that you can get much more than that if you own a new vehicle. A brief consultation with one of our agents can bring your needs to light. We can then get you in contact with some companies that are designed to meet those needs.

9. You Might Have to Have a Bank Account

Some bad credit lenders will require you to have a bank account in good standing. That means that it should be active for at least three months before you can use it to secure a bad credit loan. Also, your bank account will have to have a positive balance, and you cannot have any insufficient funds transactions or anything like that. The reason they ask for a bank account is that they will use it to disburse your funds. When it’s time for you to make your first payment, they will use that same bank account to deduct it. Bank account transfers make loans and repayments easy and hassle-free for everyone involved.

10. You Still Need a Qualifying Income

Even though you are applying for a bad credit loan, you still have to meet certain criteria. One of the qualifying factors might be your income. Generally, bad credit lenders like to see an income of at least $1,500 a month before they will consider giving you loan proceeds. You will most likely have to submit four pay stubs for them to review so that they can make their decision.

11. You Might Qualify for a Fair Credit Loan

Before you look into getting help from bad credit lenders, you may want to see if you can get help from a fair credit lender. Your credit score might be right on the line of bad credit and fair credit. It’s worth a try to see if you can get assistance from fair credit lenders because they can offer you a much better interest rate for the loan you get from them. We have a database of a variety of lenders, and we’re equipped to connect you with ones that are likely to respond to your request with an approval.

12. You May Have to Pay a Penalty if You’re Late

Bad credit lenders often have stiff penalties for late payments. You might end up having to pay a hefty penalty for being only a day late. That’s why it’s smart to read the fine print and ask all the questions you can think of before you get involved. You won’t want to find out when it’s way too late that you have to pay dearly for late payment.

13. You Could Lose Your Collateral

If you put up collateral for your bad credit loan, you have to make sure that you can repay the advance on time. Bad credit lenders will put liens on your property, and the liens will give them the right to take your property as a means to get their funds back. For example, you can keep driving your car while you’re paying your loan if you have a title loan. The lender can repossess your vehicle if you default on the loan, however. You must think long and hard before you decide to put your items up for collateral. Only take a loan from a bad credit lender if there’s no other way you can get it, and you need it immediately.

14. Not All Lenders Have a License

It will do you well to investigate all lenders you consider. That means you need to check to ensure that they have licensure to give loans in your state. You should also visit their website and look for accolades and affiliations with reputable companies and organizations. That will provide you with a better idea of whether you can trust the new lending company or not. Go with your instincts if you feel that a particular provider won’t be a good fit for you.

Do your research and go with a reputable lender. Our partner Fiona may have some suggestions for you. Put in your information below for potential offers:


 

15. You May Need a List of References

If you desire to take a bad credit loan, you may have to provide the bad credit lender with a lot of information. They are taking a chance by giving you a large sum of money. Therefore, they will want to be 100 percent sure that they can retrieve their funds if need be. They may request that you provide the names and telephone numbers of three to six people they can contact about your loan worthiness. They may call these individuals before they approve you, or they may wait and see if you make your payments on time and only use your references if that happens.

16. Bad Credit Loans Are Best for Emergencies

Because of the fees and interest rates involved with bad credit loans, they are best used in emergencies. You should first see if there’s any other way you can get your hands on the funds you desire. Try talking to family and friends. See if your employer is willing to offer you an advance. Try some applications that can help you get funds from your paycheck. If you can’t solve your issue with any of those solutions, then you may proceed to the bad credit lenders and complete an application.

17. You Should Read Reviews

You should always read consumer reviews before you sign up for anything, including a bad credit loan. Consumers are very honest about the experiences they have with lenders, and they are willing to tell the stories. Read through a large number of reviews to see if you come across any repetitive complaints. This can be very helpful if you want a loan for your new car or to travel somewhere. Be suspicious of any company where you read a lot of negative comments.

18. Some Loans Roll Over

Be mindful of your payment date, and do your best to take care of the payment at that time. Some loans automatically roll over when you don’t pay them on time. The rollover might add fees that you are not prepared to pay. Again, this information will always be in the fine print.

19. The BBB Score Tells a Lot

Check with the Better Business Bureau and see if the company you’re considering has an account with them. The BBB score measures the number of complaints and complaint resolutions each company has, and it comes up with a grade score based on that information. You should only consider doing business with a provider that has a rating higher than a C.

20. You Should Review Your Budget

Most importantly, you must review your budget before you take a loan from bad credit lenders. Let’s say that you need a bad credit loan to cover your wedding expenses. It is important to calculate your disposable income and make sure that you will have the funds to repay the provider after you calculate the interest and fees. If everything looks good, you can feel confident completing an application and asking for help from the provider.

In Conclusion

Now you know a lot of the truth about bad credit personal loan lenders. They are not all bad by any means. Some lenders are very kind and courteous to debtors, and they genuinely want to help those people get the products they need. Our company works with a variety of lenders. We connect people with all credit scores with the lenders that match their needs and their situation. We have been assisting consumers for many years and have helped a multitude of people. Contact us by telephone or short form. We would love to assist you if you need a loan, and you think you have a bad credit score.

Let one of our agents know that you’re looking for loan products for low credit scores. The agent will join you in your journey to find a reliable lender who will most likely approve your request. We will try our best to help you, but you have to reach out to us to get the process started.

Installment Loans for Bad Credit: Available Options

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Whether you know it or not, credit controls most things for you. Your credit dictates whether or not you can qualify for a loan, mortgage, or a car. It can also impact whether or not you can get insurance and sometimes, even jobs. When you have bad credit, you probably begin to feel like you do not have any options when you need money.  You simply have to have the right information and know where to look. Continue reading to find out more information.

Top Installment Loans For Bad Credit

When you are looking for installment loans for bad credit, there are some lenders that you should consider first. They may be more friendly bad credit personal loan lenders and willing to approve you.

What Are Installment Loans?

An installment loan is the same thing as a personal loan. The two terms are often used interchangeably. You borrow the money from an installment loan is a specific amount of money that you borrow all at once. You make a promise to repay the loan plus interest by making a certain number of payments. These payments are called installments, hence the name of the loan. The interest on the loan can be fixed or variable If it is fixed, then it remains the same for the life of the repayment period. If it is variable, it can change. If the interest rate is fixed, then your payments also remain fixed. If the interest rate is variable, then your monthly installment amount may change.

Installment loans may have fees that come off of the amount of money you receive. There are installment loans for bad credit available to you. Installment loans can be secured or unsecured. Lenders of these types of loans can be traditional lenders such as banks or credit unions. Lenders can also be online lenders.

What Is Bad Credit?

You may be thinking, “I think I have bad credit, but how do I know for sure?” Well, if you think you do, there must be some reason why you think that. Have you been turned down for credit in the past? Has someone told you that you have bad credit? The best way to find out is to pull your credit report. Your credit score is prominently displayed on your credit report.

I am going to spend a few moments talking about credit scores. If you are looking for installment loans for bad credit, it is important to understand what bad credit is. Bad credit usually falls between 580 and 669. Anything below 579 is considered poor credit. A credit score ranges from 300 to 850. The higher the number is then the better your credit score is. The better your credit score, then the better interest rate you can get on any type of installment loan. It takes time to build up good credit, but only a few missed or late payments and your credit score begin to decline. That is not the only thing that causes your score to go down. If you have too much revolving credit, your credit score goes down. Revolving credit typically refers to credit cards. They are considered revolving credit.

When you pay off what you owe, your available balance goes up. If your debt to income ratio is too high, then your credit score also goes down. Your debt to income ratio is the amount of debt you have compared to your income.

Best Lenders for Bad Credit

You may feel like you do not have anywhere to turn because you do not think you can get approved. Have no fear, there are lenders who have installment loans for bad credit available to you.

OneMain Financial

OneMain financia logoThis is a lender that has different kinds of loans, including options that are secured and unsecured. Their loan amounts vary from $1,000 to as high as $20,000. The better your credit score then they are more willing to lend you money. They prefer to give higher personal loan amounts to those with better credit. They offer interest rates that range from 18 percent to 35.99 percent, all based on credit. They offer repayment terms of 2, 3, 4 or 5 years, so they are incredibly flexible. You can visit one of their many branch offices, or you can handle all of your business online.

Avant

Avent LoansAvant is a great choice for those with bad credit. They will give loans to those who have credit scores as low as 580. They will even approve your loan if you have a low income because they do not have income requirements. Their loans range from $2,000 up to as much as $35,000. Their loan terms are flexible at 2, 3, 4 or 5 years. They have interest rates that range from 9.95 percent to 35.99 percent. They do have an origination fee of as much as 4.75 percent of your loan amount.

There are a few more lenders that you should consider if you are interested in installment loans for bad credit. Keep in mind that there are so many lenders available to you, so you do not have to accept just any offer. Make sure that you pick the offer that is right for you and one that you can afford to pay back. While you are researching your options, be sure to consider these lenders:

Upstart

Upstart LoansIf you have a low credit score because you do not have much credit history, this is a great option for you. They are willing to loan money to those who have a credit score of 580. They do require that you have an income of at least $12,000 per year. You can borrow from $1,000 all the way up to $50,000 with terms of 3 and 5 years. The origination fee can be anywhere from 1 to 6 percent of the total loan amount. They do require you to have a debt to income ratio of less than 45 percent.

LendingClub

Another great lender for those with bad credit. LendingClub is a peer to peer lending facility. This means that individuals are loaning money to you through this site. You fill out the application and they send out your information and loan request to those they think will be willing to lend you money. The loan amounts can vary from $1,000 up to $40,000, with loan terms of three or five years. Lending Club has a high origination fee that can be anywhere between 1 to 6 percent of your loan amount. Their interest rates range from 6.95 percent to 35.89 percent. They do require that you have a credit score of at least 600. They want you to have a credit history of at least 3 years and your debt to income ratio to be under 40 percent.

Will An Installment Loan Make My Credit Worse?

The short answer is it depends completely on you. That is good and bad. It is good if you are able to begin to be responsible with your credit and make all of your payments on time. Then, slowly over time, your credit score will increase. It is bad if you cannot afford to repay the loan, or if you are not able to be responsible with your payments. There are other ways an installment loan can impact your credit score. If you do not have a long credit history, you could take out a loan to help build up your credit score.

However, you must remember to make all the payments on time. This shows that you can be responsible with your credit. Taking on an installment loan helps you to diversify the debt you have. Lenders like to see that you have a varied credit history where you have used various types of credit in a responsible manner.

Now, I want to talk about how installment loans for bad credit can hurt you. Anytime you apply for any type of credit, it causes a hard hit to your credit report. Too many of these inquiries in too short a time period are negative for your credit score. When you take on a loan, it increases the amount of debt that you have. Even if it is your only debt, it still increases your debt to income ratio. These are just some points of which you should be mindful when you take on an installment loan.

Can I Find A Loan Online?

Yes, the great news is you can find installment loans for bad credit online. There once was a time where the only online lenders were for those with bad credit. Times have changed and online lenders offer loans to those in all credit score ranges. The good thing about online lenders is you can shop around from the comfort of your home. There are many bad credit personal loan options available to you, so you do not have to accept the first loan offer you receive.

There are some major benefits to applying for a loan online. The first being that you do not actually have to talk to a human being to get your loan processed. I do not know about you, but that sounds like perfection to me. I just do not want to talk to people. I prefer to chat and text than to talk, so an online option is amazing to me. The application process is streamlined online, so it is fast and easy. I am not sure why traditional banks have not done the same thing with their applications, but they have not. Once you apply online, you typically have a response in 24 hours or less. Then, the money is usually in your bank account in 24 hours after that.

The process is simple and painless. When you apply for a loan online, you can upload any documents the lender requires right on the same website where you applied for the loan. The process could not be any easier.

Debt Consolidation Loans

Another type of installment loans for bad credit that you may want to consider is a debt consolidation loan. If your credit is bad because you have too much debt and you just do not know how to pay it off, this type of loan might be right for you. This type of loan allows you to pay off high-interest debts by combining everything into one debt. This includes debt such as medical expenses, credit cards, personal loans, and any other debt.

You determine the amount you owe to all of your creditors and you get a loan in that amount. Sometimes, the lender will issue checks directly to your creditors so you do not have to take that step. Not all lenders do that, so you may have to send them all separate checks. Hopefully, you can get an interest rate that is lower than what you are paying for all your other bills.

Be informed about dangers before you take a debt consolidation loan

Before you consider a debt consolidation loan, you must be aware of the dangers. This loan does not change the amount of money you owe. You still owe the same amount, you just owe it to one lender instead of several. If all of your debts total $15,000 and you take out a $15,000 loan, after you pay off your original debts, you still are paying back $15,000. If you use debt consolidation to pay off your credit cards, but you keep the credit cards open, you may end up using them and racking up a large amount of debt all over again. There is a theory that you should keep them all open to improve your debt to income ratio, but that leaves you open to the temptation of using them. You must be aware that this can happen.

Other Loan Options

When considering installment loans for bad credit, there may be other loans that are available to you. There are payday loans and fast cash loans. Consider these options carefully because they can be a great way to get yourself into a world of trouble. These lenders give you quick access to fast money, but it comes with a hefty price. There is a limit to how much you can borrow, usually it is a small amount. You also have to pay incredibly high interest.

If you do not repay the loan on time, you have to pay heavy fees. You usually have a short window, a few weeks to a couple of months, to repay the loan. If you do not pay back the money when it is due, you have to take out a new loan to cover the first loan and the fees. You could easily find yourself in a vicious cycle. However, if you know that you absolutely will have the money to repay the loan when it is due and you do not care about the high interest, then this might be the way to get access to the money you need right away.

A Few Items To Consider

When you are interested in installment loans for bad credit, there are some details that might help you get approved. You can ask to speak with the loan officer. Your credit history shows missed and late payments, but it does not tell the story as to why. When you talk to the loan officer, you can paint a picture and explain why things happened when they did. This may help you get approved.

You should be prepared to submit the last five years of tax returns, bank statements, and pay stubs as proof of income. You can also provide proof of any alimony or child support you receive, however, you do not have to mention it at all. You should be prepared to show proof of any dividends or payments you receive. You can write down your entire employment history to show that you have always (hopefully) been gainfully employed. You could provide a list of valuable assets.

Conclusion

There is a lot of information about installment loans for bad credit in this article. Hopefully, the information was helpful and did not put you into overload. I would like you to keep in mind that just because you are looking for installment loans for bad credit, that does not mean you should limit yourself. Make sure you find the best personal loan offer you can. Most importantly, make sure that you can afford to repay the loan that you accept. If you are not able to make the monthly payments, then you should stop looking and to not sign any paperwork. A loan is only as good as your ability to repay it. Choose wisely and make smart financial decisions.

Advertising Disclosure: Some of the offers that appear on this website are from companies which Loanry receives compensation. This compensation may impact how and where offers appear on this site (including, for example, the order in which they appear). The site does not review or include all companies or all available products. For more information please see our Advertiser Disclosure.

The 9 Top Personal Loans For Poor Credit

Is it just me, or does it seem like the cost of everything has gone through the roof? I understand inflation. Also, I understand that as the cost of materials goes up, so does the cost of the final product, but wow, I feel like costs are at a ridiculous level. I cannot be the only one feeling that right now. If people are feeling the squeeze from the rising costs, I know the need for money is increasing.

What do you do when you find yourself staring at a stack of bills you know you do not have the money to pay? Or when some expenses pop up that you have to pay? It happens every day to more people than you can imagine. Times are tough and you may find yourself needing a loan. You may find yourself in bad financial shape and needing a loan. Have no fear, it may be harder but you can find a loan to meet your needs. Continue reading to find out more about personal loans for poor credit.

Nine Best Personal Loans for Bad Credit Borrowers

I would like to focus on what you really need, which is personal loans for poor credit. I want to break that down into smaller segments, so how about we start with the basics about a personal loan. A personal loan has some complexity when you start talking about the details, but at its core, it is money you borrow and promise to repay. You are promising to repay the dollar amount you borrowed, which is the principal amount, plus the interest that the lender charges. The lender charges you interest as a fee for allowing you to borrow money. The amount of the interest you are charged is based on your credit score. Personal loans can be secured or unsecured, but most personal loans are unsecured loans.

You have looked at your budget and you know your number. Now, you are ready to look for personal loans for poor credit. I am going to help you out by giving you the top 9 loans that you should consider during your search for a personal loan.

OneMain Financial

OneMain financia logoThis lender provides various types of loans, including secured and unsecured options. They offer loans in varying amounts from $1,000 to $20,000. The better your credit is, the more they are willing to lend you. They offer repayment terms of 2, 3, 4 or 5 years, so they are incredibly flexible. Of course, they reserve the higher amounts for those with better credit. They offer interest rates ranging from 18 percent to 35.99 percent, based on credit, of course.  They have branch offices you can visit, or you can handle all of your business online. It is up to you.

Opploans

This lender is a fantastic option if you have poor credit. They specialize in providing loans to those who are often declined elsewhere. Opploans gives you access to funds without putting you in the payday lending trap even if you have poor credit. You apply through their site and customers say things like “I got the loan right away”. Like any lender, there are still some loan shoppers who may not get offers back. It is not a guarantee. The loan amounts range from $500 to $4,000. The repayment period can be as long as 36 months and there are no hidden fees. You have no obligation, so you can decline all the offers.

Avant

This lender is another great choice for those with poor credit. They will give you a loan when your credit score is as low as 580. They even approve your loan if you have a low income as they have no income requirements. Their loans range from $2,000 up to $35,000. Their loan terms are also flexible at 2, 3, 4 or 5 years. Interest rates range from 9.95 percent to 35.99 percent. They do have an origination fee of as much as 4.75 percent of your loan amount.

LoanMe

This lender offers loans in limited states, but is known for fast funding and excellent customer service. You fill out the application on their site and they claim they can fund as soon as 30-4 hours. Interest also tend to be on the higher side, but they often are able to fund those within a lower credit grade. According to their website, interest rates vary from  They all may be different, so may sure you know what they have to give you. The loans start at $600 and go up as high as $100,000 for those with prime credit. LoanMe is also a good payday loan alternative with an option for more if needed. A great place for a quick turnaround loan.

PeerForm

Peerform logoThis is a peer to peer lender. That means lenders and borrowers are matched together while removing traditional banks from the process. Individuals are willing to lend money to help others. However, you must have a credit score of at least 600. Loans range in amounts from $4,000 to $25,000 with interest rates of 5.99 percent to 29.99 percent. This lender takes a little longer to get the money to you, up to 2 weeks. There is an origination fee of 1 to 5 percent.

Upstart

Upstart is a great lender if you do not have much credit history. They may loan money if you have a credit score of 580. You must have an income of at least $12,000 per year. You can borrow $1,000 to $50,000 with terms of 3 and 5 years. The origination fee is from 1 to 6 percent of your loan amount.

LendingClub

This is another peer to peer lending facility. The loan amounts can vary from $1,000 up to $40,000. The loan terms are three or five years. Lending Club has a high origination fee of anywhere between 1 to 6 percent of your loan amount. Interest rates range from 6.95 percent to 35.89 percent. You must have a credit score of at least 600. They want you a credit history of at least 3 years and your debt to income ratio to be under 40 percent.

Prosper

Prosper logoThis lender accepts credit scores of 640 and wants a credit history of 2 years. They do not have a minimum income requirement. You can have a debt to income ratio of 50 percent maximum, but no bankruptcies within the past year. They offer interest rates of around 6.95 to 35.99 percent.

NetCredit

NetCredit logoWhen looking for personal loans for poor credit, this may not be the best one, but you can consider it, if you are out of options. Interest rates start at 34 percent (ouch) and can go up to 155 percent (double ouch). They accept credit scores as low as 550. You even have a day to change your mind about borrowing the money. Loans range from $1,000 to $10,000.

Where Can I Find A Personal Loan?

It is one thing to know you need personal loans for poor credit, but where to get a loan may be a more difficult question for you to answer. You may be surprised to find that finding a lender is not as difficult as you might think. The internet puts everything right at your fingertips. One quick search and you will have a list of many different lenders. There are many from which you can choose, so I hoped the list I provided will help you with your choice.  I will list those later on in the article. Do not just go to the bottom of the article, stick with me for a little longer. I have some good information to share but do not worry, I will be brief.

You can find a personal loan through a traditional lender, such as a bank or credit union that has an actual brick and mortar location that you can walk into and speak with someone. You can find personal loans online. Once upon a time, there was a stigma associated with online lenders. They were only for those risky lenders with bad credit. That is no longer the case. You can find really good loan options online, so do not count them out. There are many bad credit personal loan lenders, however, not all of them have loans that will benefit you. Keep in mind that all lenders will look at certain criteria for personal loans before they decide to lend you money.

Some lenders prey on your emotional state knowing that needing money right now can make you feel stress and anxiety. Do not make an impulsive decision because that will hurt you in the long run. Make sure your decision is thought out.

Influence of Bad Credit on Loan Terms

Your credit matters and I would be lying to you if I told you something different. Your credit score directly impacts the interest rate a lender is going to offer you. When you are looking for personal loans for poor credit, you should understand that you will have higher interest rates. Poor credit does not mean you will not find a loan. It does mean you will pay more money in the long run. If you have poor credit, you may have better luck getting a loan from an online lender, so you might want to start looking there first. Online lenders have easy application processes and it goes much faster than when you go into a bank. You often get your approval in 24 hours or less. Then, the money is usually in your bank account in about 24 hours after your approval. It is a fast process.

I want to highlight for you how bad credit impacts your loan repayment. When you have poor credit, the lender sees you as a risk. They think you will make late payments, or perhaps not make payments at all. Your credit history shows them what you have done in the past and they believe you will continue to behave that way. Your credit history does not tell why things happened the way they did, so some lenders will ask you. They want to understand why you missed payments, especially if it seemed to occur during a specific time. If you have a reasonable explanation, they may be more willing to lend you money.

Your Bad Credit Impact on Your Interest Rate

Back to the interesting part of your loan. You already know interest it piled on top of the amount of money you borrow. Let’s say you borrow $20,000. If you had good credit, you might get a loan with 10 percent interest. That means you are paying $2,000 in interest for that loan. The total amount you pay back to the lender is $22,000. The Same scenario but with bad credit looks like this…you borrow $20,000 but you have to pay 25 percent interest because of your credit score. That means your interest amount is $6,000. The total amount you pay back is $26,000.

Let me show you how that impacts your monthly payment. When you pay back $22,000 over 3 years, your monthly payment is $611. When you are paying back $26,000 over 3 years, your monthly payment goes up to $722 per month. That is a huge increase.

How Can I Improve Poor Credit?

Those are some scary numbers, right? I know and that is why you want to protect your credit as best you can. We all know that things happen that are outside of our control and you may see your credit score slipping. The good news is what goes down can always come back up and you can repair your credit. It will take time and perseverance, but you can do it. One of the benefits of personal loans for poor credit is that personal loans can help you improve your credit. When you take out personal loans for poor credit and you make your payments on time each month, it begins to improve your credit score.

You should pull your credit report. I know you probably do not want to look at it. But, you cannot bury your head in the sand. That is not going to help you fix your credit. Pull your head out and look at your credit report. Look for errors and fix them. That is a quick and easy way to improve your credit score. You should also eliminate your debt as quickly as you can. You need to focus on paying down your debt, which will bring your credit score up. Paying down your debt helps you in many ways. The most obvious is that you do not owe as much money, which relieves stress for you. The less debt you carry means the higher your credit score will be. This decreases your debt to income ratio, as well as your credit utilization. These are all good things.

Should I Get A Personal Loan If I Have Bad Credit?

I mentioned that personal loans for poor credit can improve your credit score. Does that mean you should run right out and get a personal loan? Not so fast. A personal loan has advantages and disadvantages, remember that. You need to determine IF a personal loan is right for you and is going to improve your financial outlook. If the answers are yes, then proceed, but with caution. You need to determine if you can afford to make the payments. You are borrowing money that you must repay every month. A loan is not a gift. You cannot let it slide and miss a few months. Remember, you must repay it every month.

You should take a look at your budget and determine how much money you can afford to repay each month. This is an important step that many people skip. They look at the amount of money they have to pay each month and they think “that’s not too high, I can handle that”. Can they really, though? If they do not have a budget, they have no way of knowing if they can actually afford it. You need to know how much money you are paying out each month and how it compares to your income. Once you see what is left over after all of your expenses, you are better able to determine how much you can afford to repay each month. You should know that number before you even apply for a loan.

Conclusion

As you can read, there are many personal loans for poor credit options available to you. Some are pretty good offers while others are not great. You should obtain the best possible loan that you can find. Remember, you do not have to take the first offer. You should take the best offer you can find. Do your research and make a good choice.

Advertising Disclosure: Some of the offers that appear on this website are from companies which Loanry receives compensation. This compensation may impact how and where offers appear on this site (including, for example, the order in which they appear). The site does not review or include all companies or all available products. For more information please see our Advertiser Disclosure.