Having bad credit can make it difficult to obtain a loan, but it is not impossible. There are lenders who are willing to work with people who have poor credit scores, although they may have higher interest rates than those with good credit. One option is to apply for a loan with an endorsement. Acorn Finance partners with lenders who accept all types of credit.
Alternatively, you can prequalify for a loan to see if you meet the lender's requirements. It is important to be aware that personal loans for bad credit often come with higher interest rates than those for good credit. To learn more about this type of loan, read our full reviews of Personify, Oportun, NetCredit, and Possible Finance. If you need money quickly or have been denied a personal loan due to your credit score, you may be tempted to try a payday loan.
However, these loans come with high interest rates and should be avoided if possible. Instead, you should make sure that you have the necessary credit score before applying for a loan from a lender. Hanneh Bareham specializes in student loans and can help you finance your next educational effort. While bad credit can limit your options, there are still ways to find lenders willing to work with you.
After narrowing down your selections to the best terms available, you can see if any of the lenders offer prequalification. This will allow you to check your eligibility without a hard inquiry on your credit report. A hard inquiry, which is visible to others and can affect your credit score, only appears on your credit report when you are issued a loan. Applying for a personal loan is similar to applying for a credit card. It is possible to get an unsecured personal loan with a poor credit score, although such a loan is likely to have an opening fee. Whether you want to consolidate high-interest debt, finance a home improvement project, or cover an emergency cost, a personal loan can help.
Payment history accounts for 35% of your FICO credit score, so making payments on time can help improve your score as you repay the loan. If you have friends who work at the lender's company, they may be able to help you find outlets that will approve your application. However, lenders usually do not base their decisions on relationships. The marketplace will then direct you to the lender's page where you can complete your application and finish applying for the loan. The cost of repaying the loan depends on the amount borrowed, the interest rate, and how long it takes to repay the loan.