Finding a loan can be tough if your credit isn’t so hot.
But, loans are often a useful way to get out of a tight financial spot. Personal loans can help you reduce credit card balances and other forms of debt more quickly if the payments and interest are getting out of control.
With the average American now carrying around more than $6,000 in credit card debt, it’s no surprise that these types of loans are becoming more common.
If your credit isn’t great, personal loans can be tough to get though. Many lenders require excellent credit for these types of loans.
So how do you find personal installment loans when you have bad credit? Read on for a closer look at how these loans work and some of the best loans available.
What are Personal Installment Loans?
If the term “installment loan” doesn’t sound familiar, you’re not alone. But you’re probably familiar with some of the most common types of installment loans.
Installment loans are simply loans that are made at a set amount with a specific payment. This means that both car and home loans are considered installment loans.
Many lenders also offer personal installment loans. These loans are for a specific amount of money with set payments. Personal installment loans can be used to pay off debt or make other purchases.
The Best Personal Loans for Bad Credit
The question is … can you get a installment loan if you have bad credit?
The answer is yes, it’s just a little more difficult and you need to know where to look.
Here are some of the best places to look for personal installment loans right now if you don’t have the best credit.
Avant connects borrowers and lenders. This means you do not borrow directly from this company, Avant simply finds the best lenders for you. Options are available for lower credit borrowers.
Lending Club is another interesting choice for borrowers with bad credit.
Anyone can invest with Lending Club, so your loan will come from investors in this online lending platform rather than through a traditional bank. This allows Lending Club to offer more borrowing options.
Payoff is another newer online lender that only offers loans to pay off credit cards. An application can be filled out quickly and won’t affect your credit score.
Similar to Lending Club, Prosper draws loan funding directly from investors. Prosper provides lots of options for borrowers with bad credit in an easy to use platform.
Payday loans can be risky, but Earnin has created an online payday loan platform that actually charges no interest. With Earnin, you can borrow up to $100 per day and just pay the lender what you think is fair.
Marcus by Goldman Sachs
The name Goldman Sachs probably isn’t one you’d typically associate with lower credit loans, but this bank is now offering loans to borrowers with bad credit through Marcus by Goldman Sachs.
Payday loans aren’t the best option out there, but if you need money quickly it’s very easy to borrow from these lenders. Just be careful.
Finding a Loan That’s Right for You
Personal installment loans can be tough to get if you have lower credit.
Options are available though. You just need to be patient and be willing to look at a few different lenders.
Check out the rest of our articles for more on personal finance and managing your life.