Saturday, 10 August 2019

How To Get A Personal Loan With A Bad Credit Score Below 620

In this article, I am going to show you how to get a personal loan when you have got bad credit. Bad credit is considered any score below 620, bad credit loan is expensive, the first question you should be asking is why you want to get a bad credit loan. Because we need to be sure that you absolutely need the money,

The good reason for getting a bad credit loan is to pay some emergency expense like
  1. Medical bills
  2. Pay rent for your family when you are likely to be evicted.
  3. To pay off even worse debt like Payday loans

If you roll your payday loan or high-risk lands into a single loan, you can save a lot of money. This is called debt consolidation, you will need to qualify for a debt consolidation loan that has an interest rate less than the average rate on your existing loans which isn't always possible, also you will need to change your spending habits to make sure you don't end up with any payday loans again. Otherwise, you are going to end up with the same payday loan payments and personal loan payment. Your finances will just keep getting worse, so if you do end up consolidating make sure you change your spending habits first. 

Bad Reason For Getting a Personal Loan with a Bad credit score
  1. Going on vacation 
  2. Buying a car
  3. Buying any asset

If you want money for any of these reasons you should consider improving your credit score before applying for money. When you are looking to get a loan, it is important to note each state has different laws when it comes to high-interest lending.  New York, for example, doesn't allow loans of more than 16% APR, now, no one will lend to you if you have got bad credit and the most in charge of 16% interest.

Bad credit loan in new york is basically impossible to find.

Let's talk about 3 great companies that won't turn you down outright because your credit score is below 620. Most of the other companies won't even consider lending to you unless your credit is above the 650, 680 range.

All 3 of the companies only do unsecured loans, so having collateral won't help you with these lenders. the first lender is 

1. Peerform

A peer-to-peer lender. When you think of personal loans and especially peer-to-peer loans, you are probably going to think of a company like a prosper or lending club, but there is a third peer-to-peer loan called peerform. These guys are great because they will loan to credit score down to 600 and their rates are capped at 29.99%. That might seem high for a personal loan but it is moderate in the bad credit would. They also lend up to 25%, which again is more than most bad credit lenders and they don't charge any prepayment penalties. When it comes to bad credit having no prepayment penalties is important, you really don't want to carry these high-interest loans longer than you need to, and you want to pay them down early, unlike a lot of the other company peerform doesn't have these fees, as with most online lenders applying it is totally straightforward.

A Big DownSide Of Peerform For Bad Credit Is The Origination Fees.

They charge 5% origination fees for bad credit customers, which will end up costing you an extra $250 on a $5,000 loan. It will also take them a little longer to fund loans than other options because they are a peer-to-peer lender. If you can qualify with these companies and sure you need the money they are a strong contender.

2. Opploans

This is a company that specializes in debt consolation of payday loans, their rates are high up to 199% APR. They offer terms from 6 months to 36 months and they don't charge prepayment fees, they also don't charge origination fees, which will save you big money compared to other bad credit lenders. It's obvious that interest of 199% is extremely high for a regular personal loan, which is why we highly recommend you work on improving your credit before applying for financing.

3. Bad Credit Loans

Their slogan is "we can help when others can't" and that is pretty telling about the product they provide, we recommend bad credit loans when you need a loan for an emergency, the thing about badcreditloans is they are not actually a lender, instead they connect you with over a hundred other lenders who can choose to lend to you or not. Within their lender pool, interest rates start at 5.99% and go up to 35.99%. They lend anywhere from $500 to $5,000, but if your credit is very low as in less than 600, the most they can lend is $1,000. With terms ranging anywhere from 6 months to 36 months. Payments may be hot, but you really do have the best chances of getting qualified with these guys. 


If you don't absolutely need the money don't get a bad credit loan. Be very sure that you can afford the payments for these loans, and if you are consolidating debt, be sure to change your spending habit before you close on the consolidation loan to avoid taking on more debt than you can afford.

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