Having a low credit score can make securing a personal loan challenging. However, several lenders specialize in providing personal loans to individuals with bad credit. Below are four personal loan options for those with a credit score of 580 or lower, along with a comprehensive guide on each, and answers to frequently asked questions.
Personal Loans To Apply To With 580 Credit Score:
1. OneMain Financial
OneMain Financial offers personal loans for borrowers with credit scores as low as 580. They provide both secured and unsecured loans, which gives you flexibility depending on your financial situation and assets.
Key Features
- Loan Amounts: $1,500 to $20,000
- APR Range: 18.00% to 35.99%
- Loan Terms: 24, 36, 48, or 60 months
- Funding Time: As soon as the same day
Requirements
- Minimum credit score: 580
- Valid government ID
- Proof of income
- Proof of residence
Application Process
You can apply Apply Here through OneMain Financial's website or visit a local branch. The process involves filling out a simple form, and you may need to visit a branch to finalize the loan.
2. Avant
Avant is another lender catering to those with lower credit scores. They offer unsecured personal loans with a straightforward application process.
Key Features
- Loan Amounts: $2,000 to $35,000
- APR Range: 9.95% to 35.99%
- Loan Terms: 24 to 60 months
- Funding Time: As soon as the next business day
Requirements
- Minimum credit score: 580
- Valid government ID
- Verifiable income
- Active checking account
Application Process
The application is entirely Online and can be completed within minutes. Avant also provides a prequalification process that doesn't affect your credit score.
3. LendingPoint
LendingPoint specializes in lending to borrowers with fair to bad credit. They use a proprietary algorithm to assess your creditworthiness beyond just your credit score.
Key Features
- Loan Amounts: $2,000 to $36,500
- APR Range: 7.99% to 35.99%
- Loan Terms: 24 to 48 months
- Funding Time: As soon as the next business day
Requirements
- Minimum credit score: 580
- Annual income of at least $20,000
- Valid government ID
- Proof of income
Application Process
LendingPoint's application process is Online and quick. You can receive prequalification with no impact on your credit score.
4. Upgrade
Upgrade offers personal loans with competitive rates for borrowers with low credit scores. They also provide access to free credit monitoring and educational resources.
Key Features
- Loan Amounts: $1,000 to $50,000
- APR Range: 7.99% to 35.97%
- Loan Terms: 36 or 60 months
- Funding Time: Within one business day of approval
Requirements
- Minimum credit score: 580
- Valid government ID
- Verifiable bank account
- Proof of income
Application Process
You can Apply Here through Upgrade’s website. The process involves a soft credit check for prequalification, and you receive a decision in minutes.
Frequently Asked Questions (FAQs):
Can I get a personal loan with a credit score of 580?
- Yes, you can get a personal loan with a credit score of 580. Several lenders, such as OneMain Financial, Avant, LendingPoint, and Upgrade, offer loans to individuals with low credit scores.
What are the typical interest rates for personal loans with bad credit?
- Interest rates for personal loans with bad credit typically range from 18% to 35.99%. The exact rate you receive will depend on the lender, your credit profile, and other factors.
How can I improve my chances of getting approved for a personal loan with bad credit?
- To improve your chances of getting approved, ensure all your documents are in order, consider applying for a secured loan if possible, and try to reduce your debt-to-income ratio. Additionally, review your credit report for errors and work on improving your credit score over time.
Are there any fees associated with these loans?
- Yes, many personal loans come with fees such as origination fees, late payment fees, and prepayment penalties. It's essential to read the terms and conditions carefully before accepting a loan offer.
How fast can I get the money after approval?
- Funding times vary by lender. Many lenders, such as Avant and LendingPoint, can disburse funds as soon as the next business day after approval. OneMain Financial and Upgrade also offer quick funding, often within the same or the next business day.
Related Article: Get a Business Loan Credit From $1,000 - $250,000 in the USA: Business Credit Up To $250,000
Conclusion
Applying for a personal loan with a low credit score can be daunting, but it is possible with the right lender. Make sure to compare the terms and conditions, understand the fees involved, and choose the option that best fits your financial needs.