However, there are still predatory loan companies out there taking advantage of people who believe that their credit is not good enough to secure a traditional loan. Many of these predatory companies will charge high interest rates and may trap you into a cycle of debt where you are taking out new loans to pay off old ones.
Fortunately, there are plenty of good lending companies that work with those who have less than ideal credit to help them secure the loans they need.
How to Find the Best Lenders for Bad CreditThe first place to start is with your own credit score and ability to pay off a loan. This is important because in working with a lender you’ll need to be honest about what you can and cannot do in terms of paying back the loan.
Here are a few lenders that specialize in bad credit loans and offer excellent services for those who have a less than ideal credit score. However, if your credit score is less than 640, then here are the lenders that you should consider.
However, if your credit rating is below 600 then they will not accept you nor do they accept secured loans. So, you will have to fall into the 600 and above category to get a loan from Avant.
PeerformThis is a peer-to-peer lending service that offers better credit standards compared to most other traditional lending institutions. Credit scores as low as 600 may be accepted and loans up to $25,000 are available. However, it can take up to two weeks to secure the loan, so this is for something long term rather than immediate.
SpringleafThis is a company excels in providing secured loans for borrowers with low credit scores. They also offer unsecured loans and are accredited with the BBB. However, their average APR is 25.5% which is very high and they can only provide loans in 27 states so they may not be available in your area.
For those with low credit scores, there are bad credit loans available at reasonable cost and terms. If you are looking for secured or unsecured bad credit loans, then the three lending institutions mentioned should be a good starting point.