Those with bad credit know the struggles that come with availing the necessary financing services. Most of the time, there is a stigma surrounding having bad credit, therefore creating a challenging landscape for individuals to reach out to the right institutions.
Thankfully, there are some financing services that are dedicated to catering to individuals with bad credit. With some research, you might even be able to find the one that fits your needs.
If you are one of these people, fret not. There are loans and lines of credit designed to address your concerns. Read on and take a look at some of these in this list we have prepared for you.
What Does it Mean to Have Bad Credit?
Bad credit refers to individuals who have had a history of failing to keep up with their required payments. This also takes into account the person’s likelihood of failing to make payments on time in the future.
Bad credit is often synonymous with having a low credit score based on your past and current financial situation. Instances such as declaring bankruptcy may also factor in having bad credit.
Those who have bad credit often find it challenging to obtain financial aid or funding at competitive interest rates. Credit bureaus and lending establishments typically lump those with bad credit as part of those groups or individuals that are more at risk compared to others.
Those with bad credit generally have credit scores under 580 on a scale of 300 to 850. When you fall into this category, lenders are less likely to provide you with access to loans and other similar lines of credit.
Those who get approved, however, may experience a relatively high-interest rate. Having bad credit goes beyond your financial standing.
This also affects your daily life, particularly with landlords and even utility service providers asking individuals to provide a higher security deposit or may turn you down for the service they provide.
Financing Services Geared Towards Addressing Bad Credit
If you have had bad experiences with getting loans and other lending options, you might not be looking in the right place. Below are some offerings from financing services geared towards those with lousy credit.
Avant Personal Loan
Avant is one of the best online lending platforms that provides those with bad credit access to funding in a fast and easy manner. There is no minimum credit score for those planning to apply for personal loans, but as a rule of thumb, the higher the score, the better.
What makes this preferable for those with lousy credit is that Avant extends fixed-rate loans. This means that there are no surprise surges or payments, allowing borrowers to build their credit and prove their creditworthiness.
At the same time, Avant has repayment terms of 2-5 years, with loan amounts available from $2,000 to $35,000. Bear in mind, however, that Avant’s personal loans also come with a higher administrative fee and higher interest rates.
The appeal of OneMain Financial is that it offers a number of loans to people with bad credit and can even conduct same-day funding. It even offers unsecured personal loans, meaning this lending institution does not have anything to take should a borrower stop his or her payments.
In addition, OneMain Financial provides borrowers with numerous repayment terms, allowing them to pay at a more affordable and attainable monthly rate. There are also fixed interest rates available to prevent payment shocks.
Like Avant, the institution poses no minimum credit score for interested applicants. However, there are also high-interest rates that go up to 35.99%, as well as origination fees depending on your state.
Last but certainly not the least is Peerform. Best for individuals who are consolidating their debt, Peerform is designed to help those who have bad credit to improve their creditworthiness.
Loans under this platform go for three or five years, with no prepayment penalties. Compared to other lending institutions, Peerform only requires applicants to have no delinquent payments for the past 12 months.
This institution offers fixed interest rates from 5.99% to 29.99% with loan amounts from $4,000 to $25,000.
The Bottom Line
As you can see, having bad credit isn’t the end-all-be-all of things. There are several institutions that have dedicated themselves to serving those in need.
With these financing services, you can help boost your creditworthiness and get funding in no time.