Personal Loans for Bad Credit: Compare and Apply
Share this article:
What Is a Personal Loan for Bad Credit?
Credit Score Ranges and Categories
How Does Coronavirus Affect Bad Credit Loans?
How to Get a Loan with Bad Credit
Will Taking a Loan with Bad Credit Affect My Credit Score?
How to Choose the Best Bad Credit Loan Company
APR and Lender Fees
Types of Bad Credit Loans
Secured Personal Loans: Securing a loan means you use some type of personal asset as collateral for the loan. If you default, the lender can then take that asset as repayment for the loan funds. You might be able to borrow more money or nab a lower interest rate with a secured loan, since the lender is taking on less of a risk. Unsecured Personal Loans: Also known as a signature loan, an unsecured personal loan doesn’t require any collateral. The lender primarily looks at your creditworthiness to decide on your approval. It may be more difficult to get approved for an unsecured personal loan than for a secured personal loan. Payday Loans: A payday loan is a type of small personal loan for bad credit that is both risky and expensive. The average APR for a payday loan is typically 4000% or more and you usually only have a short period of time to repay the funds, usually between 15 and 90 days. If you can’t pay, you may be able to roll over the loan for another period, but you’ll just be tacking on more interest and costly fees. Cash Advances: You may be able to get money from an ATM by charging the withdrawal as a credit card cash advance. Be aware that there might be a lower limit than your full credit limit. Also, cash advances usually have a higher APR than your normal credit card rate. You may also have to pay ATM fees. Interest charges start immediately and your creditor can put your payments toward your lower-interest balance before paying off the more expensive cash advance. Bank Agreements: Home Equity Loans for Poor Credit: A home equity loan could still be attainable with bad credit, especially if you have substantial equity in your home and enough income to handle the payments. Also known as a second mortgage, a home equity loan uses your property as collateral, so you could potentially qualify even with bad credit. HELOCs for Poor Credit: Like a home equity loan, a home equity line of credit (HELOC) uses a variety of factors to determine eligibility—not just your credit. Your income, current levels of debt, and amount of equity in the property could help you qualify even if your credit score is less than stellar. Small Business Loans for Bad Credit: If you’re an entrepreneur and need help with your company’s cash flow, there are some options for small business loans for bad credit. Your business may need to meet revenue requirements and be in business for a certain amount of time.
How to Spot a Bad Credit Loan Scam
Advance Fee Loans
Frequently Asked Questions
About the Author
Share this article: