Half of Americans have “poor credit”, 60 percent of Americans have less than $500 in savings and have poor credit scores. However, the lenders offered to customers irrespective of their credit score. What are the personal loans for poor credit? How to do get them?

Personal loans for poor credit
What are the personal loans for poor credit?

The bad credit loans have been born which were provided by credit unions or other institutions. In the previous articles, our readers are understood about some loans such as low-interest credit loans, payday loans bad credit… Now, let’s see “What are loans for people with poor credit?”

PERSONAL LOANS FOR POOR CREDIT

Just like the previous posts, this article includes the main four parts which are: “What Are the Loans for poor credit?” , “How to get personal loans for poor credit”, “Advantages and disadvantages of the personal loans for poor credit” and “Interest of the personal loans for poor credit”

1. What are the personal loans for poor credit?

Personal loans for poor credit are personal loans available for people with very bad credit or no credit history. This loans can be used for any purpose and help a person who has experienced  repossessions, bankruptcy,… to re-establish or establish a good credit history. Credit is considered bad or poor if score falls between 300 and 630. The lower the score, the worse a borrower’s credit.

In the United States, a credit score is a number based on a statistical analysis of a person’s credit files. FICO is the most widely used type of credit score.

FICO SCORE RANGE

FICO RANGE QUALITY
720-850 Great Credit
680-719 Good Credit
630-679 Fair Credit
550-629 Subprime Credit
300-549 Poor Credit

People can qualify for these type of loans with bad credit by meeting the following criteria:

  • They have a credit score and provide bank documents to verify your source of regular income
  • Reside in the United States
  • Be between the ages of 18 and 65 years old
  • Supply a debit or credit card as a backup payment for the loan

2. How to get the personal loans for poor credit?

2.1. Get a loan from national banks

The Advantages when getting loans from national banks:

  • Give customers tons of options(fees, incentives, and more)
  • These banks are set up for convenient features when people get loans online and online bill pay;
  • They have 24/7 customer service to assist their customers.

The disadvantages when getting loans from national banks:

  • The customer might talk to an inexperienced bank agent;
  • If you have bad credit, you sometimes find it harder and cannot get personal loans.

2.2. Get a loan from credit unions

With a simple and secure application process from any device, first-time customers can have $500 – $2,600 cash in their pocket as soon as the next business day.

The Advantages when getting loans from credit unions:
  • Lower rates than banks.
  • The huge plus is the location (you can stop by your branch to sit down face-to-face with an expert when having any question about loans)
  • The degree of flexibility when making loans.
  • Shop smarter with personalized loan rates
  • Easy compare custom personal loan rates
  • All without affecting the credit score.

The disadvantages when getting loans from credit unions:

  • There might be limits to products and services offered by smaller credit unions.

2.3. Get a loan from online fast-money lenders

The advantages when getting a loan from online fast-money lenders:

  • It’s fast, easy,
  • People need to put in their information and wait for approval.
  • The lenders are set up to work with bad or no credit.

The disadvantages when getting a loan from online fast-money lenders:

  • Maybe charge insane interest rates.
  • People could find paying 400.00% APR or more.

2.4. Peer-to-peer (P2P) loans

The advantages when getting P2P loans:

  • Rates for P2P loans are reasonable and are attractive to different borrowers.
  • Terms usually range from three to five years
  • People can pay off quickly and painlessly.

The disadvantages when getting P2P loans:

  • They still have a credit underwriting system.
  • High-interest rate.
  • You could end up getting none of the money if not enough people decide to help you by funding the loan.

2.5. Retirement plans

The advantages when getting retirement loans:

  • It’s your money and when you pay it back (within five years), you pay back interest to yourself.
  • Interest rates are competitive;
  • The lenders are set up to work with bad or no credit.

The disadvantages when getting retirement loans:

  • It’s your retirement so you won’t benefit from compound growth.
Where can I get a loan

2.6. Cash advances

The advantages when getting cash advances:

  • It’s an efficient method to get cash.

The disadvantages when getting cash advances:

  • The interest rate on a cash advance is higher than the purchase rate.
  • People might be charged an additional fee.

2.7. Private businesses

The advantages when getting privates businesses:

  • You’re already purchasing from them and get the loan on site.
  • These lenders may also offer discounts on your price or no interest for extended periods of time if you qualify.

The disadvantages when getting privates businesses:

  • You might be able to get a better deal elsewhere.
  • The person you’re dealing with is most likely not a loan expert, but a salesperson.

2.8. Payday Lenders

The advantages when getting payday loans:

  • Limited options usually under $1,000

The disadvantages when getting payday loans:

  • The outrageous fees and interest charged.
  • The loan term is two weeks with a 400 percent APR or more
Personal loans for poor credit
Personal loans for poor credit

3. The interest of the personal loans for poor credit

  • Personal loans for poor credit can range from $1,500 to $10,000
  • APR also ranges from 9.99% to 35.99%
  • Typical term lengths can be 24, 36, 38, or even 60 months.
  • Personal loans for poor credit can also visit one of their 1,600 branches in person or handle the entire application process online.

4. The advantages and disadvantages of the personal loans for poor credit

4.1. The advantages of the personal loans for poor credit

  • Borrowers are not worried about their credit history (bad credit or poor credit or no credit history)
  • Quick loan approval
  • Can help people in improving your credit
  • Borrowers can get large amounts of money

4.2. The disadvantages of the personal loans for poor credit

  • High-interest rate
  • Stringent terms and conditions
  • Easy to land on unscrupulous lenders
  • Easy to cripple individuals without financial discipline

To share your thoughts about anything you have read in this article or any articles before, please e-mail: [email protected] and include your mailing address and telephone number.

Hillary (Team Content) – Infocreditfree.com