- APR: 5.25% to 12% fixed
- Loan amount: $2, 000 to $50, 000
- Loan terms: 1 to 3 years
- Minimum credit score: None
- Time to funding: 2 to 3 days for notification, up to a week for funds
- Fees: None
- APR: 4.66% to 29.99% fixed
- Loan amount: $3, 000 to $35, 000
- Loan terms: 3 years
- Minimum credit score: 640
- Time to funding: Next business day; 3-day waiting period for education-related loans
- Fees: 1% to 6% loan origination fee depending on loan grade, included in APR. Late fee is the greater of 5% of the payment due or $15; $15 returned-payment fee.
Lenders that help with credit card debt
If your score is low because you have trouble keeping up with credit card bills, consolidating your payments with a personal loan may be a good option. All lenders will let you borrow money to pay down debt, but one lender, Payoff, focuses exclusively on those who want to pay off credit card debt.
Payoff has a minimum score requirement of 660, and it charges an origination fee. But it also offers each borrower a point person who will learn their financial habits, help them stay disciplined and manage their credit card debt. Even those who don’t qualify for a Payoff loan can use Lift, a free consultation program provided by the company to improve credit by building good financial habits.
- APR: 8% to 22% fixed
- Loan amount: $5, 000 to $25, 000
- Loan terms: 2 to 5 years
- Minimum credit score: 660
- Time to funding: 2 to 5 days
- Fees: 2% to 5% loan origination fee depending on loan length; $15 unsuccessful payment fee
Lenders that accept co-signers
Vouch lets those with bad credit seek help from a sponsor to get lower rates on a personal loan. But instead of one co-sponsor, Vouch rewards borrowers who have many sponsors who co-sign for amounts as low as $100. The number and creditworthiness of co-signers results in higher loan amounts or lower interest rates for the borrower. Vouch’s minimum credit score requirement is 600.
Other lenders, such as OneMain, also allow co-signers on a loan, but limit it to one person.
- APR: 10.68% to 29.99% fixed
- Loan amount: $2, 000 to $15, 000
- Minimum credit score: 600 for borrower.
- Time to funding: Applications are approved within 1 to 2 business days, with loans funded 1 to 2 days after that.
- Fees: 1% to 5% origination fee, included in APR. Late fee is 5% of payment due, with minimum of $15.
A personal loan should be part of a solution to your debt problems rather than delaying the inevitable.
If you can consolidate more expensive debt or pay it off more quickly, a personal loan for bad credit might be a good idea. But in the long run, improving your credit score will give you the kind of financial flexibility that provides many more options.
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