Most traditional companies, banks, and lenders run a background check on your online credit score before granting you a loan. Hence, people with a bad credit find it very difficult to procure loans that require a strong credit score.
Moreover, the big lenders do not disclose their preferred credit scores. If you have a very poor credit score, then the best option to procure poor credit loans for you would be to go for a payday loan. Remember, bad credit loans come with high interest and require a stable source of income in most cases. Evaluate your options properly to get the most affordable deal for yourself. Nevertheless, if you have a bad credit, not all hope is lost! The following are the top three lenders for poor credit loans:
OneMain Financial is one of the best platforms to procure a secured loan for consumers with bad credit. The process is very simple and you may get the loan even on the next business day, provided your loan is approved. All you need to do is complete the online application; meet a loan specialist; get your identity proof, income proof, and employment proof verified; and then go on to sign the agreement and receive funds.
Another great option for a lender which provides poor credit loans, Peerform is most preferred for debt consolidation. You may check your rate instantly on their online portal and even apply immediately for the rate you like. Since it is a peer-to-peer lending platform, the background check on credit score is much less stringent than the usual lenders.
Even though Avant does not mention a minimum credit score, it is known to be a lender to borrowers with a poor credit score. The average minimum score is around 580. It offers personal loans and is a good option for people looking for fast approvals online.
The average excellent score preferred by most lenders is somewhere between 750 and 850. However, favorable decisions are also made for people with a credit score ranging between 300 and 850. The higher the score, the better the chances for you to get approved and get the best of rates; however, the lower the score, the chances of securing great offers on unsecured personal loans reduce. Hence, maintaining a good credit is crucial so that you do not have to spend a lot on bad credit loans and end up paying high-interest rates.