Bad Credit Loan Reviews: Best Loans To Choose & to Avoid

July 07, 2021

Bad Credit Loan Reviews

Bad credit loan reviews: best loan to chose and to avoid.

Bad credit makes difficult many common financial activities.

It also makes you have lower credit limits and high interest rates.

Additionally, having bad credit will prevent you from even getting a job.

What is a bad credit loan?

A bad credit loan is a fixed loan rate for borrowers having low credit scores.

If you are wondering what a low credit score is, a low credit score is between 300 and 579 using the FICO system.

Additionally, a bad credit score has a high cost. It will be harder for you to open a new credit card, rent an apartment or get a mortgage.

Furthermore, lenders will be scared of giving out loans or other credits to people with low scores. And if they are willing, their interest will be exorbitant.

So, in today’s article, we will be looking at bad credit loan reviews: best loan to chose & avoid.

You can repay a bad credit loan by paying monthly in installments, it usually takes one to five years. You can use the funds for any purpose, to rent an apartment, to cover large expenses, or whatever.

Best Bad Credit Loan Company

Best credit lenders each have something different to offer their borrowers. The credit bureau gets the loan payment reports from the lenders.

Furthermore, you can rebuild your credit by paying your loan on time. When looking for a bad credit loan, endeavor you look for one that will help you build credit.

Note: before you get a bad credit loan, try to consider cheaper alternatives like getting a side job, or borrowing from family.

1.Upgrade:

Upgrade offers personal loans up to $50,000, they are a credit line, they offer no-fee checking with cashback. They have a customer base of more than 500,000, they have given out more than $5 billion. The upgrade is best for consolidating debts. The loan amount is from$1000 to $50,000. The minimum credit score is 580. Origination fees are 2.9 to 8%.

Earn 1.5% cashback on upgrade card purchases when you payback.
Enjoy the flexibility of a credit card with the low cost of a personal loan.
Fixed-rate with predictable payment
Allow secured, co-signed, and joint loan
Discount rate for autopay.

Con is

It charges a late fee
Charges Origination fee.

To Qualify

Have a minimum credit score of 580
$35,000 as a minimum annual income
A minimum credit history of 3years
$800, as a minimum monthly cash flow
$10,000 average loan amount.
40 months average repayment loan
55% and 65% maximum debt to income ratio including the loan you are applying for.

2.Upstart:

Upstart is best for limited credit history, the minimum credit score is 580 and the loan amount is from $1000 to $50,000. It is good for those that have a promising financial future.

pros

Upstart accepts a borrower that is new to credit.
Fund loan within one business day
Offer direct payment to creditors

Cons

They have only two repayment options
Charge origination fee

To Qualify

580 as minimum credit score
No minimum credit history
Gross income of $12,000
Must be employed
Must be 18years old
Personal banking with US routing number required.
Must have a US residential street address, unless you are a military.

Three to five years available term length with 0 to 8% origination fee. A late fee of 5 or 15% is due to the amount.

3.Avant:

Best for Flexible payments and refinance options, loan amount is $2,000 – $35,000. The minimum credit score is 550.

Additionally, it is suitable for borrowers with low income and credit scores due to its low starting rate.

pros

Find loans the next business day
You have the option to change your payment date
Soft credit check with pre-qualification.
Secured loan option.

Cons

Charge origination fee
Do not offer payment directly to creditors with debt consolidation loans.
No joint or co-signed loan.

To Qualify

550 minimum credit score.
$25 late fee
$15 for unsuccessful payment loan.

4.Lending Club:

Best for Consolidating credit cards. Loan amount is $1,000 – $40,000. The minimum credit is 600. 3 to 5 years is the available term length.

pros

600 minimum credit
Offer direct payment to creditors even with a consolidation loan
Soft credit check with pre-qualification.

Cons

Have only two repayment option
Rates are high compared to others.
Charges an origination fee.
An origination fee of 1% to 6%.

To Qualify

600 minimum credit
Minimum credit history of three years.
40% for single, 35% for joint debt to income ratio.

5.Oportun:

Best for Small loans. The loan amount is $300 – $10,000, it has no minimum credit unit. 6 to 46 months is the available year term.

pros.

Soft credit check with pre-qualification
Offers co-signed, joint, and secured loan options.
Accept borrowers new to credit

Cons

Available in a limited number of States.
Borrowers cannot change their payment date
Report payment to two of the three major credit bureau.

To Qualify

Valid identification
Proof of income
Have up to four referrals
18 years of age and above
Proof of address

6.One Main Financial:

Best for Secured and co-signed loans. The loan amount is $1,500 – $20,000. It has no minimum credit unit.

7.Universal credit:

Best for Credit building tools. The loan amount is $1,000 – $50,000. The minimum credit is 580. They are options for high credit borrowers with high debt-to-income ratios. But their rate is on the high side compared to others.

pros.

Offers rate discount with direct payment to creditors on the debt consolidation loan.
Option to change the payment date
Offer free credit score access
Accept high debt to income ratio.

Cons

Charges origination fees
No joint, cosigned, or secured loan option
Rates are high in comparison to others.

To Qualify

580 minimum credit score
2 minimum number of account credit history
75% maximum debt to income ratio
2 years minimum credit history.

When comparing bad credit loans and to chose the best some factors to look out for include:

Affordable rates.
Fast funding
Credit reporting
Easy application.

From the previous review, we have just read, you can make the best decision on the loan to go for, the one that will suit your needs best.