Looking to take out a personal loan, but worried about denial due to bad credit? You’re not alone. But the truth is that there are many lenders out there willing to loan money to applicants who might be struggling financially.
Of course, you’ll be required to repay the loan in full, plus any interest. But there may be options to pay smaller amounts over a longer period of time. No matter your own financial situation, it may still be a good idea to consider applying for one anyway.
You don’t know if you will get denied a personal loan until you actually try. If you will be using the personal loan to pay for an emergency, such as a sudden issue with your home’s plumbing or an essential car repair, then you want to be sure you exhaust all your options.
Since lenders will run a “hard” credit check when you apply for a loan, you may want to try pre-qualifying first. Pre-qualifying for a personal loan just requires a soft credit check, which means your credit score will not be affected.
This can give you a sense of how much you might be able to receive. You can then decide if applying for the loan will be worth it.
Plus, keep in mind that there are several companies that work specifically with applicants who have a low income or a lower credit score.
Here are some popular loan companies to consider:
- SoFi: SoFi’s personal loans are one of the most popular choices for various reasons. First, there’s no impact on your credit score, which means you can explore rates without getting dinged. Plus, SoFi offers loans between $5,000 and $100,000.
- Discover: Discover’s personal loans offer flexible rates between 7% and 24.99%. Loan amounts range between $2,500 and $40,000, though you’ll likely need a credit score of 660 or above to qualify.
- Upstart: For borrowers with excellent credit and income, Upstart offers personal loans with interest rates as low as 6.40%. However, even those with poor credit may still be able to snag a loan since the company typically has very low minimum credit score requirement (sometimes as low as 300).
By doing some research beforehand and being honest on your pre-qualification, you can decide if applying for the loan will be a good idea or not. Just don’t count yourself out before you try.
By Admin –
