How to Get a Personal Loan with Bad Credit

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Learn How to Compare & Apply for Personal Loans with Bad Credit

If you are a borrower with bad credit, typically considered a credit score of 629 or lower, then you will want to do your research before taking out a loan. You will want to make sure to shop around to find the best lenders who will work with you, without taking advantage of your situation.

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How Acorn Finance Works

1 Pre-qualify

Fill out easy online form to check for pre-qualified offers with no impact to your credit score

2 Select offer

Compare terms and payment options to select offer that’s best for you

3 Finish application

Complete application process on your selected lender’s website*

4 Receive funding

After loan approval, your funds should arrive within 1-2 business days*

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FREQUENTLY ASKED QUESTIONS

Learn more about financing

By looking for a personal loan through an online lender, you can work to ensure you are finding a loan that is right for your financial situation. You should also be able to lock-in an interest rate that is more fair and reasonable when compared to the 300% or 400% APRs that PayDay loan centers are known for charging.

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Can I get a personal loan with bad credit?

If you are a borrower with bad credit, typically considered a credit score of 629 or lower, then you will want to do your research before taking out a loan. You will want to make sure to shop around to find the best lenders who will work with you, without taking advantage of your situation. Some predatory lenders like PayDay loan centers and cash title loan companies love to work with people with bad credit who think that they have no other options. However, with bad credit, you may still have some avenues for financing. As we mentioned earlier, do your research.

By looking for a personal loan through an online lender, you can work to ensure you are finding a loan that is right for your financial situation. You should also be able to lock-in an interest rate that is more fair and reasonable when compared to the 300% or 400% APRs that PayDay loan centers are known for charging.

Depending on your credit score, you may still have to pay a higher interest rate than someone with good credit, but know that many lenders exist out there who specialize in working with people with bad credit situations. The higher interest rate is due to the fact that you may still be seen as a risk by a lender. If you want to get a better idea of what kind of interest rates may be required to pay in exchange for a personal loan while having bad credit, then you may want to try to prequalify. One you are prequalified, you can begin to shop lenders to see what kind of interest rates and loan terms and conditions lenders are willing to offer you. If you do not like what you see, then you may want to consider taking immediate steps to build up your credit score. A boost in your credit score of even 20 or 30 points may be enough to save you hundreds or even thousands of dollars over the life of the loan.

How can I get a personal loan with bad credit?

If you are looking for a personal loan with bad credit, you may have many options at your disposal to find a lender that is willing to consider loaning you money. Depending on how bad your credit score is, you may be able to ensure your approval for a personal loan by using an asset you own as collateral. If you have an extra vehicle, own any stocks or bonds, or have something that contains tangible financial value, you may be able to improve your chances of being approved for a personal loan by using it as collateral to secure the loan. If you have really bad credit, like a credit score in the 500s, you may also want to consider using a cosigner to increase your chances of qualifying. A cosigner with a good to exceptional credit score will go a long way to helping you find a personal loan with bad credit. At Acorn Finance, you can check personal loan offers without affecting your credit score. Most lenders on the Acorn platform have a credit score cutoff of 600 or above. If you don’t qualify with an Acorn Finance lending partner you may want to look into other online lenders or a local bank or credit union.

What are the requirements to get a personal loan with bad credit?

If you are looking at personal loans with bad credit, you will not only have to meet the minimum credit score requirements a lender may have, but they may also be looking at a few additional factors before giving you a personal loan. They will likely want to see your income information and your employment history. They may prefer that you have been in a particular job for some time and that you have a steady income stream coming in. They may also want to see that you do not already have a high level of existing debt. Do you already have other personal loans out? Do you have a mortgage and a car payment? Do you have thousands of dollars in credit card debt? The requirements for obtaining a personal loan when you have bad credit are going to be a little more strict, but it is still possible for you to get a personal loan with bad credit.

Can you get a personal loan with a credit score of 550?

If you are looking for a personal loan with a credit score of 550, you may find it extremely difficult to find an unsecured personal loan. With a credit score of 550, you may be required to provide some sort of collateral or to have a cosigner with good to excellent credit to sign onto the loan with you.

If you have a credit score of 550, you may be able to look into an installment loan or a no credit check personal loan through an online lender. These types of loans usually come with a higher interest rate, but they could be a possible option for someone with a credit score of only 550.

How much money can you borrow with bad credit?

If you have bad credit, you may not qualify for a large loan, unless you have a cosigner or collateral. While some lenders may offer personal loans up to $100,000, large personal loans are usually reserved for borrowers with good credit and plenty of income. This brings us to our next point. The amount you qualify for does not always solely depend on credit score. Lenders usually consider debt-to-income ratio and income as well to determine how much you can afford to borrow. To truly identify how much you can borrow you will probably need to start the prequalification process.

What interest rate can I expect if I have bad credit?

If you have bad credit, you may be required to pay some of the highest interest rates currently available on the personal loan lending market. Personal loan interest rates can range anywhere from 2.49% to 35.99% depending on your credit score. If you have bad credit, you should expect that you will be paying interest rates somewhere between 28% and 35.99% depending on your credit situation.

Where can I get a personal loan with bad credit?

One of the best places for finding a personal loan when you have bad credit is through an online lender. Online lenders have become extremely popular for all types of borrowers. They have become popular due to their efficiency, convenience, and their flexibility when it comes to working with individuals with less than ideal credit.

Can I get a personal loan with bad credit online?

Yes, you can find a personal loan with bad credit online. Many online leaders have built solid reputations when it comes to helping individuals with bad credit find the financing that they need. By shopping for a personal loan online, you may be able to find loans with lower interest rates than if you looked for a loan at your personal bank or another traditional financial institution.

Why choose Acorn Finance for personal loans?

Acorn Finance can help borrowers find the best personal loan offer while saving them time, money, and hassle too. With a network of top-rated national lenders, borrowers can check offers within 60 seconds or less without impacting credit score. After comparing offers, you can choose the one that works best and complete the process with the lender. Once your loan is approved, funds may be deposited in as little as 1 to 2 business days, although funding times may vary.

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