Small Personal Loans for Bad Credit: How to Get the Financing You Need

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Bad Credit Loans for Small Personal Loans

Small personal loans for bad credit are a financial product that are specifically for borrowers with low credit scores or those that have had a history of credit problems. If a personal loan is not accessible or doesn’t pencil, you may also want to consider a guaranteed hardship loan for bad credit.

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How to Get a Small Personal Loan with Bad Credit

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Helping You Find Your Small Personal Loans with Bad Credit

When a financial emergency pops up, your options can be limited —especially if you have bad credit. A small personal loan for bad credit can be the financial lifeline you need to get out of a stressful situation. 

Acorn Finance understands that credit issues can leave you feeling discouraged by the personal loan process. That’s why our platform is designed to save you hassle and time by giving you one place to check offers with no credit impact. 

Curious about personal loans for borrowers with bad credit? Keep reading to learn more.

Small Personal Loans for Bad Credit: Frequently Asked Questions

Credit score requirements can vary for  loans. If you opt for a personal loan, some lenders can work with borrowers with credit scores as low as 560. However, offers will be more likely to be returned for borrowers with fair, good, average, or excellent credit. Most lenders on the Acorn Finance platform have a credit score cutoff of 600 or above.

Are small personal loans for bad credit worth it?

Each individual will have to decide for themselves if it’s worth it. Consider what you need the loan for as well as how it will benefit you. Of course, you’ll want to consider the drawbacks too. As you compare offers, pay attention to the total loan cost as this can help you determine just how worth it the loan is. 

How do you find the best small personal loan if you have bad credit?

Having bad credit shouldn’t automatically disqualify you from getting a small personal loan. However,  it can create some hurdles.

To find the best personal loan, you should first really understand your credit score since that can largely impact your odds of approval. Then, just take the time to research multiple lenders, so you have a good idea of your options. The good news? You can check offers at Acorn Finance with no credit impact. 

Why choose Acorn Finance for small personal loans with bad credit?

Acorn Finance is here to help you navigate your options when it comes to small personal loans and bad credit. We understand that each borrower has a unique financial journey. That’s why we work with top-ranked national lenders to make it easier to compare offers in one place. 

Our user-friendly platform offers a safe and secure environment to check offers from top national lenders with no credit impact. Money is stressful enough — you shouldn’t have to stress over shopping and comparing your options for a personal loan. Lean on Acorn Finance today to find the right personal loan. 

How to apply for small personal loans with bad credit:

Determine your needs and budget: The first step to applying is understanding how much money you need to borrow and, of course, how much you can afford. 

Check offers: Compare offers to see what you qualify for. 

Get approved: Once you’ve chosen an offer you can undergo the approval process.

Once approved you can receive funds in as little as 1-2 business days, although funding times can vary!

If bad credit is stopping you from getting approved, try taking the time to improve your credit score! While that might be hard in an emergency, improving your credit score can really help your chances of approval.

Compare and Shop Small Personal Loans for Bad Credit at Acorn Finance

Small personal loans for bad credit are a financial product that are specifically for borrowers with low credit scores or those that have had a history of credit problems. If a personal loan is not accessible or doesn’t pencil, you may also want to consider a guaranteed hardship loan for bad credit.

Learn More About Small Personal Loans for Bad Credit:

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Getting a small personal loan is really no different from other personal loans. You just might need to pay closer attention to the fine print and requirements to qualify beforehand. 

The process should start with doing research and comparing different offers to see what you’re eligible for. Once you’ve prequalified and accepted an offer, you can expect funds to be funded as a lump sum. Review the fine print to understand what you’re agreeing to. Check for mentions of spending restrictions or fees. Most personal loans will require repayment in the form of a fixed monthly installment with interest. If you have bad credit, the lender may require you set the loan to autopay or grant them access to deduct the payment from your account. 

Even with smaller lending amounts, you should only borrow what you really need so you don’t get into financial trouble. 

Can I get a small personal loan with bad credit?

Sure, there are many small personal loan options out there on the lending market that are designed for borrowers with bad credit. A small personal loan generally is for a few thousand dollars and they usually cap out around $3,000. Small personal loans will generally have a shorter repayment period as well. If you are looking for a small personal loan with bad credit, you may have to take a little extra time to find a lender. Some lenders do not offer small personal loans of $1,000 or $2,000. Some lenders may have a minimum loan amount starting around $3,000 or $5,000. That being said, there are still plenty of lenders out there that will make smaller loans of $1,000 or $1,500.At Acorn Finance you can check personal loan offers between $1,000 to $100,000, depending on credit score.

Depending on where your credit score sits on the credit score rankings, you may have to pay some of the higher interest rates available for personal loans. Additionally, usually, interest rates are higher on small personal loan amounts that are to be paid off in a short time. The reasoning behind this is that for lenders to make a small loan amount worth their time and effort, they need to increase the profit margin on their end. Keep this in mind when shopping for a small personal loan, because sometimes it might be worth your while to take a little larger loan in order to enter into a much better range of available APRs.

How can I get a small personal loan with bad credit?

There are a few different ways to get a small personal loan with bad credit. You could visit your personal bank and see if you can qualify through them for some sort of small personal loan that is more like a cash advance. They can give you a small loan with the guarantee that you will pay it back through automatic payments that are tied to your direct deposits from your place of employment. You could also explore a pawn shop, cash title center, or a Payday loan option, but those are often risky and they can often contain APRs as high as 300% or 400%.

If you are looking for a small personal loan with bad credit, it may be a better option to explore the current offerings that online lenders are willing to make. If you don't qualify at this time, work on rebuilding your credit score. If you are unfamiliar with your credit score or report, you may want to start by checking your credit. If you use an app such as Credit Karma, they can help you identify ways to improve your credit score, free of charge.

What is the minimum credit score for a small personal loan with bad credit?

Minimum credit score requirements vary by the lender as well as by the loan type. If you are going for an unsecured personal loan with no collateral and no cosigner, then you may need a fair or good credit score than if you are looking at secured personal loans. An unsecured personal loan lender may require someone to have a credit score between 610 and 640. You still may be able to qualify for an unsecured personal loan with a credit score below 610 if you surpass all other expectations. For example, if you have a credit score of 590, but you received a significant promotion at work, and with it, a hefty increase in salary. Additionally, if you paid off some other significant debts recently, this combined with the new surge in cash flow may convince a lender to take a chance on you, even with such a low credit score. High income and low debt payments equal a low debt-to-income ratio, which may look good to lenders. If none of this is the case, then you may need to consider a secured personal loan if you have bad credit.

A secured personal loan is a loan that is secured by some sort of collateral being used as collateral. Some people use a vehicle like a car or a boat, or some people may use any stocks they own, or gold and/or jewelry. The idea is to give the lender access to something that has some significant financial value that they can repossess from you in the event you are unable to pay the loan. A lender may consider someone with a credit score in the mid to low 500s for a personal loan if it is secured with an asset of considerable value.

How much can I borrow with a small personal loan for bad credit?

The amount you qualify for can depend on several factors. Before applying you should check minimum and maximum loan amounts that a lender can offer. If they can offer an amount that you need, apply. In most cases, lenders will either completely deny the loan or counter with revised terms or loan amount. Borrowers with bad credit should have stable income and a low debt-to-income ratio to have a chance at qualifying. A small personal loan usually is for a loan amount of somewhere between $1,000 and $3,000 and may be easier to qualify for if you have bad credit. In some cases you may need collateral or a cosigner to qualify for a loan.

What are the typical loan amounts for small personal loans?

Small personal loans are generally classified as amounts ranging from a few hundred to several thousand dollars. For bad credit borrowers, it can be more reasonable to pursue a small personal loan. The intent should be to access the funds you need while being able to effectively manage the loan responsible. 

How long is the repayment period for small personal loans?

Repayment periods can really vary for small personal loans. Generally, repayment periods range from a few months to up to 2 years. As you compare offers, pay attention to the repayment period as it can impact the total loan cost as well as the monthly payment. 

What interest rate can I get for a small personal loan with bad credit?

Small personal loans usually already come with higher interest rates to make them profitable and worth the time and effort of a lending institution, however, if you have bad credit, they can be in the top percentage range of APRs. Currently, interest rates seem to top off somewhere near 35.99%. If you have bad credit, you may want to prepare yourself for loan offers with potential interest rates anywhere from 26% to 36%. In some cases, your credit may not be as bad as you think. Before applying for a loan you may want to check your credit score.

Where can I get a small personal loan with bad credit?

As we discussed before, there are plenty of places to find a small personal loan with bad credit, however, some may be better than others. You will want to try to avoid Payday loans, pawn shops, and cash title loan centers, if at all possible. The best place to find a personal loan with bad credit is through an online lender.

Can I get a small personal loan with bad credit online?

Yes, not only can you get a personal loan with bad credit online, but it may be the quickest and cheapest option available to you. Many online lenders can have you approved and have the funds in your personal account in as little as 24 hours, although funding times can vary. Online lenders usually have less strict requirements than traditional banks. Ultimately though, if you have bad credit, you should seriously consider improving your credit score before applying for a loan. Doing so can increase your chance of approval and should help you qualify for a lower interest rate and maybe even higher loan amount.

Pros and cons of small personal loans financing with poor credit:

As with anything, make sure you take a minute to review the pros and cons before getting a personal loan, especially when you have bad credit.

Pros

  • An opportunity to improve your credit score – With responsible borrowing and on-time payments, you can improve your credit score by getting a small personal loan, which can open up better financial opportunities in the future.
  • Quick financial help – Most online banks will get you your funds within a few days of approval, making it a fast way to get the money you need — if you can qualify.

Cons

  • Smaller funding amounts – If you’re needing a large amount of money, this type of loan won’t work for you since most funding amounts are a few thousand dollars at most.
  • Added debt – When you have bad credit, the last thing you need is to get into more financial trouble. If you can’t manage the repayments responsibly, the cycle of debt could continue.

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Kentucky | HVAC

I am adding a hot tub and other patio enhancements to my house. My experience using Acorn Finance was excellent.

Tracey E.

Kentucky | Patios & Decks

I am extending my patio. My contractor informed me of possible financing and the Acorn Finance experience was awesome, very easy.

Monica L.

Texas | Patios & Decks

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