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Best Personal Loans for Bad Credit - Apply Online

Don’t let bad credit stop you from getting the best personal loans.

Even if you have bad credit, a personal loan may still be an option for you.

While many banks and credit unions will not approve a borrower with a credit score below 660, a number of online lenders offer personal loans to consumers with credit scores as low as 600 - or even lower. In fact, there are some online lenders that specialize in bad credit loans to help consumers consolidate debt.

Takeaways on Bad Credit Loans

  • Personal loans might still be an option even with bad credit
  • Some online lenders offer personal loans to consumers with credit scores as low as 600
  • A bad credit loan can help consolidate debt and improve overall credit score
  • More online lenders are offering co-signing options for bad credit loans
  • You should not have to pay the lender an upfront fee for a bad credit loan
  • Make sure your lender does their homework before approving your bad credit loan

Bad credit loans and qualifications

By consolidating credit card debt with a personal loan, you will likely see an increase in your credit score. This occurs because your previously revolving credit card debt is now categorized as an installment debt, a type of debt many credit scoring models do not penalize you for having.

In order to qualify you'll need to have a reasonable debt-to-income ratio to reassure the lender you have the ability to repay the loan. If you are worried about qualifying, you may want to consider having a spouse or family member co-sign on the loan. More online lenders are making co-signing an option as part of their application process which often results in lower rates, larger loan amounts, and interest savings.

Are bad credit loans legit?

Yes, but you still need to be on the lookout for possible scams when shopping for bad credit loans. The most obvious sign is when a lender promises to send a loan after, first, receiving a fee. This is not the same thing as an origination fee which is money owed to a lender upon processing a loan agreement.

Are bad credit loans safe?

Some bad credit loans can be risky. This is especially true if the lender doesn’t do their homework such as checking your credit. In order to minimize the risk, make sure you discuss your ability to repay with the lender. They should also perform the necessary checks including your credit score and all possible repayment plans.

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