Many borrowers worry that they will not be able to take out a personal loan due to having a low credit score or not having a high-enough income.
However, even if you think that popular lenders may not see you as a responsible borrower and might deny you a loan, it may still be a good idea to consider applying for one anyway.
Why is that? For starters, you cannot be sure you will get denied 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 will 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. The best personal loan companies today include:
- Discover: Discover personal loans are a great option for those in search of a way to get cash quickly. Discover loans are perfect because they don’t come with upfront fees, they offer fixed interest rates, and they have flexible repayment terms. You can get a loan for up to $15,000.
- Money Mutual: Money Mutual is a network of lenders who provide some of the best personal loans if you have bad credit. If you need a small loan of around $2,500, this is the perfect company. You can compare the offers of multiple lenders within this network online to find the loan that works best for you.
- Lending Club: Lending Club is another great option if you’re looking for small personal loans. This reputable online lender offers loans for as little as $1,000. They also offer some of the best personal loan rates, which are typically fixed to make your repayment process hassle-free.
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.