Quick Approval Personal Loans: Loans for People with Low Credit

Do you need a personal loan with quick approval? Are you in the need to get cash fast to pay off your debts or need a way to consolidate your debt? Check out our guide to personal loan offers below.

Millions of Americans struggle with the consequences that come from having low credit scores. This is because many people begin to use credit without understanding the requirements for maintaining a good or great score. People develop negative credit scores due to missing payments, making late payments, having too many inquiries on their credit reports, and also by allowing accounts to be sent to collections instead of paying them off before this action is taken. Luckily, many lending companies on the market are willing to take a risk on a customer with a low credit rating, in fact, some companies even cater to people who are a part of this community. This article will explore options for people who have low credit scores but need to borrow money for a certain purpose.

What is a credit score and how can I fix it?

First, it is important to determine what constitutes a bad credit score. Credit scores, also called the FICO Score, can range from 300 to 850. According to Experian, one of the three credit reporting agencies, a score of 669 is considered fair or bad. People with this score or below or also referred to as subprime because it means they will probably experience difficulty in repaying their loan. This can be thought of as making bad grades in school because students with lower grades are usually expected to perform at lower levels than everyone else. We have credit scores to tell companies how likely we are to hold up our end of the loan agreement. A person’s score can be increased with on-time payments, staying below credit limits, and not applying to too many loans and credit cards within a short period of time.

Companies that work with low credit scores

Banks and lenders can be quite different when it comes to their requirements for loan approval. Many banks have programs that customers who are challenged when it comes to their credit history can seek to become a part of, but many simply do not take the risk. Applying for loans can hurt your credit score, so it is important to know which companies you have a chance to be approved from and which ones would require a higher credit score than you have.

Upstart

Upstart is a great option for anyone who is looking for a loan but happens to have what is considered to be a low credit score. Upstart is great because they allow credit scores as low as 620 to apply. This means that they are willing to take a risk, so this should be one of the first options that you look into. The loan amounts from Upstart range from $1,000 to $50,000 and there is no prepayment penalty, which means paying off the loan early does not hurt you in the way it would with other companies.

Upstart is also great because it offers next-day funding. This is important because most people who have low credit scores and are seeking a loan have an immediate need for it, whereas people with high scores usually have enough savings where they do not need the funds right away. Upstart also offers debt consolidation loans, which means a customer would borrow one loan to pay off multiple debts. This route typically allows them to pay off their debt for a lower percentage rate than they had originally.

FreedomPlus

Like many companies, FreedomPlus does not list the scores that they work with, but we do know that “lower” credit scores are accepted and that loan limits are determined by the state rather than having a standard amount that they lend. FreedomPlus has a connivant online application and users can expect a response within 48 hours.

With FreedomPlus, the APR can go up to 29.99% and they do not offer loans in the state of Arizona. This is a great option for anyone who needs a loan but keep in mind that having a lower score will mean that your APR is near the 29.99% amount.

Lending Club

Lending Club is a well-known loan option for people who struggle with credit and are looking for a loan between $1,000 and $40,000 to help with their needs. It is the largest online lender in the US and it is easy to see why. The APR for a loan from Lending Club could range between 5.99% and 36.89%, which is determined by your credit score. Borrowers must have a credit score of at least 600 to be approved.

One thing that sets Lending Club apart from other loan options is that they rely on investors to fund loans and to make lending decisions. This means that lending club uses more than a formula to make decisions, which in some cases can make approval easier.

Peerform

Peerform is another loan option that uses investors to fund loans, which provides some flexibility in making lending decisions. The application process is quick and you will be notified within 48 hours if your loan has been approved. A great aspect of Peerform is that the loans are unsecured, which means they do not have to have collateral to be approved.

Peerform is another option that uses investors to supply loans, which means they do not have to focus as much on a credit score and can instead look into other factors like income, employment, and budget to make decisions. Peerform also offers debt consolidation loans.

Traditional loan options

Some traditional lenders will sometimes work with customers with low credit scores. One of these options is USAA bank. While they do not offer debt consolidation loans or student loans, they offer personal loans for any reason. The loans go up to $5,000 dollars.

Wells Fargo is another option of a traditional lender that can work with customers with lower credit scores. They do offer debt consolidation loans and the APR ranges depending on your credit score. You are not as likely to be approved for Wells Fargo with a low score, but it is still worth a shot.

Requirements for Loans

In order to be approved for a loan, you must have certain documents to verify both your identity and your ability to repay the loan. You will first need to have an official form of picture ID; most people use a driver’s license, but many will use a different form that has a photo. Besides an ID, you often will need a piece of mail with your name and address, proof of income, and in some cases, you will be asked about your budget. This is all done to prevent identity theft and to ensure that you will pay the money back. Getting a loan can help people in many ways; buying a car, repairing a home, or any other purpose, and these companies, and others, can help if you have a low credit score.