When your credit score is 580 or lower, it can be challenging to secure a personal loan. However, some lenders cater to individuals with poor credit.
4 Personal Loans to Apply For If Your Credit Score Is Poor
Here are four options to consider:
Avant Personal
Avant is a well-known lender that offers personal loans to individuals with lower credit scores. They focus on providing accessible credit solutions and have flexible terms.
Key Features:
- Loan amounts range from $2,000 to $35,000.
- APRs range from 9.95% to 35.99%.
- Terms of 24 to 60 months.
- No prepayment penalties.
Requirements:
- Minimum credit score of 580.
- Proof of income and employment.
- Age of majority in your state.
Pros:
- Fast application process with quick approval.
- Relatively flexible credit requirements.
Cons:
- High APRs compared to traditional lenders.
2. OneMain Financial
Overview: OneMain Financial specializes in providing loans to individuals with poor credit. They offer secured and unsecured loan options, which can be beneficial if you have a low credit score.
Key Features:
- Loan amounts range from $1,500 to $20,000.
- APRs range from 18% to 35.99%.
- Terms of 24 to 60 months.
- Secured loans may require collateral.
Requirements:
- Minimum credit score of 580.
- Proof of income and residency.
- Must be at least 18 years old.
Pros:
- Offers both secured and unsecured loans.
- Flexible payment options.
Cons:
- Higher interest rates compared to other lenders.
3. Upstart Personal Loans
Overview: Upstart is an online lender that uses a combination of traditional credit scores and other factors like education and employment history to determine loan eligibility. This can be advantageous if your credit score is on the lower end.
Key Features:
- Loan amounts range from $1,000 to $50,000.
- APRs range from 6.46% to 35.99%.
- Terms of 36 or 60 months.
- No prepayment penalties.
Requirements:
- Minimum credit score of 580.
- Proof of income.
- Must be at least 18 years old.
Pros:
- Uses alternative data to assess creditworthiness.
- Fast online application process.
Cons:
- May require a higher income or education level for the best rates.
4. NetCredit Personal Loans
Overview: NetCredit offers personal loans and lines of credit to individuals with poor credit. They focus on providing credit solutions to those who may not qualify for traditional loans.
Key Features:
- Loan amounts range from $1,000 to $10,000.
- APRs range from 34% to 155% (varies significantly based on state and credit profile).
- Terms of 6 to 60 months.
- Offers lines of credit with flexible access.
Requirements:
- Minimum credit score varies by state, generally around 580.
- Proof of income and employment.
Pros:
- Provides access to credit even with low credit scores.
- Flexible repayment terms.
Cons:
- High APRs, especially for lines of credit.
FAQs
Can I get a personal loan with a credit score of 580?
Yes, it is possible to get a personal loan with a credit score of 580. Lenders like Avant, OneMain Financial, Upstart, and NetCredit offer loans to individuals with lower credit scores, though the terms and interest rates may be less favorable.