It’s usually a bad day when you need a loan while having a bad credit history. Lenders would like to help, but most will always turn you down because they think you will not pay back on time. Anyway, they are just taking precautionary actions with their money, so you don’t have to pressure them.
Do you know that you are not the only one with emergencies? It’s like everyone has got their share of uncertainties, even the likes of Bill gates and other wealthy men in the world. Therefore, there has to be a solution for any emergency regardless of your bad credit history.
Those lenders are always there to help you out (with your bad credit) with a loan. Can you imagine having someone who comes through in a time of need? Now we will talk about the five best places you can get emergency loans while having bad credit.
1. Upstart
Upstart is a lending platform with lenders who give you loans with average APRs ranging from 6.76% to 35.99%. The APR on Upstart is low compared to payday loans which go over 400%. The loan limit on this platform ranges from $1,000 to $50,000.
The good thing is that you will probably get a loan on Upstart with your bad credit history. In addition, those without credit history can also get loans from Upstart.
Once you accept the Upstart loan offer, you will automatically receive the funds after one business day.
The payment terms are reasonable such that the borrowers can adjust repayment dates to a more convenient one. However, Upstart charges an origination fee before you get a loan.
Upstart accepts those with a minimum credit score of 580, which is daily good. To determine the qualification, Upstart uses borrowers’ information like education, employment history, and residence.
If you need to manage your loan with a mobile app, then Upstart is not your choice because it does not have a mobile application.
2. Avant
Avant is an excellent option for emergency loans for bad credit. For example, if you have a credit score of as low as 600, you can get a loan from f2,000 up to $35,000, which is a good amount of money. In addition, Avant reports your payment to credit bureaus, so you can rebuild your credit score if you make responsible payments.
Avant is suitable for emergency loans because you will get the money in your account after one business day. Moreover, it has a good APR starting from 9.95% to 35.99%, making it one of the best online lenders.
If you happen to repay your loan earlier than the agreed time, Avant doesn’t charge you any early payment fees. However, Avant has an administration fee of 4.75%.
Avant has a flexible repayment period of 24 to 60 months.
3. LendingClub
LendingClub is a peer-to-peer lending platform that links borrowers with potential lenders. With Lending Cluj, you can get loans up to $40,000. The low minimum amount of loan you can get is $1000.
The APR for the LendingClub lenders ranges from 8.05% to 35.89%, and you can repay from 36 t0 60 months.
LendingClub accepts co-borrowing, which involves you getting another person to help you get a better loan. However, it would help if you were more careful with this feature. If you are the co-signer, make sure that the actual borrower can repay the loan. Otherwise, you will be joking with your credit score.
The LendingClub loans people with bad credit scores, but it should not be lower than 600. Unfortunately, it may take you four business days to receive the funds in your checking account.
In addition, there is usually an origination fee of 2% to 6%, which the lenders include in the final APR, but it’s better that way instead of them denying you a loan with bad credit.
The LendingClub is not available in the whole nation because the U.S residents cannot access the loan.
Late payments will automatically result in a fee of 5% on the remaining loan balance, so you must be sure that you will repay the loan in the first place.
4. OneMain Financial
If you would prefer a face-to-face loan application, then you may have to consider OneMain Financial. OneMain Financial has almost 1600 branches scattered over 44 States.
The good thing about OneMain Financial is that you can even get a loan in OneMain Financial with lousy credit. The interest rates of OneMain Financial loans start from 18% to 35.99%, and you can borrow from $1,500 up to $20,000.
You don’t need a minimum credit score for you to qualify for a loan in OneMain Financial. In addition, you can repay the loan in 2 to 5 years.
OneMain Financial charges origination fees but does not charge any prepayment fees.
5. PenFed
PenFed is an online credit union where you can get emergency loans with bad credit. In terms f APR, PenFed starts at 5.99% up to 17.55%, which is better than other platforms where the APR goes up to 35.99%.
PenFed does not deduct an origination fee before you can access the loan. In addition, PenFed does not charge any application fees or early repayment fees.
The credit unions offer a small loan from $600, so those in need of little money can consider it. However, you cannot borrow if you are not a PenFed member. Co-borrowing is also allowed in PenFed, but you should always be careful with that.
The loan limits range from $600 to $35,000, and you can repay up to 60 months. After the credit union approves your loan, you will receive the money in your account within 1 to 2 business days.
If you have a minimum credit score of 580, you can get a loan from the PenFed Credit union, a fair rate.
My Take
If you want a better experience in borrowing, you should focus on improving your credit score. You can do that by taking loans that you can comfortably repay on time.