Bad credit loans are a great option for people with low credit scores, usually 579 or lower. With these loans, you can expect a fixed interest rate and fixed monthly payments until the loan is repaid. Home equity loans are another option, as they are secured by housing and the interest rate is usually low. The interest you pay on a home equity loan is also tax-deductible.
Unsecured loans are high risk to the bank, so you can expect considerably higher interest rates and little flexibility in the rating or terms of the loans. When looking for a personal loan with bad credit, it's important to consider all your options before committing to a lender. Companies such as Avant, Upgrade, Lendingpoint and Upstart can provide you with your loan amount within the next business day after you are given the green light. Secured loans allow borrowers who want to use their car's equity to qualify for lower interest rates. Payday loans don't require a credit check, but they often come with triple-digit APRs and short repayment periods. The Upgrade Credit Heath tool makes it easy to track your credit score over the life of your loan.
If your goal is to get your financial house in order so you can take advantage of the historically low borrowing rates that are now available, call or go online to a nonprofit credit counseling agency and get started today. Some lenders are willing to extend funds to applicants with scores between 580 and 600. If you are a long-time customer of your bank and have a good track record up to some recent setbacks, you may be able to convince them of an agreement that will provide you with a short-term bad credit loan.