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6 Personal Loans You Can Get If Your Credit Score Is Less Than 700

With a credit score less than 700 you may believe that your chances of getting a loan are bleak. Contrary to what you may believe, availing a loan with low credit scores is entirely possible. The percentage of borrowers with a low credit rating is quite high, and private lenders never fail to capitalize on such a huge market, of course, without charging the borrowers exorbitantly.

However, before you apply for personal loans with such institutions, you can try the following to address your urgent financial needs.

Applying does NOT affect

your FICO® credit score!

Help From Family and Friends

Talk to your family and friends about your financial distress. These are the people who love you and believe in your ability to succeed and hence will do their best to get you out of the mess. While such loans mostly carry nil interest, have the transaction documented committing yourself to the due date. It will keep you motivated to pay back on time and prove their trust is not misplaced.

Sell What You Don’t Need

Selling furniture and equipment for which you have minimal use will fetch you some money. It may not help to clear a big debt but it will be useful to pay a part of the loan. Various online businesses serve as a platform for the buyers-sellers to meet. Make use of such websites for selling your unused or minimal used items. Before committing to a rate, check what the local rate is and fix a competitive price.

Get Home Mortgage Loan

If you own a home, you can avail of home mortgage loans even with a poor credit rating. Since your loan is secured, you will be favorably considered by financial institutions and the rate of interest will be comparatively lesser than what you are charged for in case you seek an unsecured loan.

If all these fail, you can always avail of personal loans in spite of your low credit score. Here are 6 personal loans you can get with a low credit score.

Applying does NOT affect

your FICO® credit score!

1) Prosper

Prosper offers money starting from $2000 to $35000. Benefits of availing loan from Prosper include:

  • No hidden costs
  • Low-interest rates
  • No prepayment penalty
  • Fixed monthly repayments
  • No collateral required

Here are the qualifications expected of you to get your loan sanctioned:

  • The minimum credit score should be over 640
  • Nil bankruptcies filed in the past year
  • Debt to income ratio is expected to be below 50%

Prosper runs a soft credit check and hence your credit score is not affected. One of the few disadvantages of taking a loan from Prosper is that the interest rate will be higher. The repayment can also be comparatively higher.

2) Lending Club

Lending Club, a peer to peer company and one of the best in the industry offers money up to $40,000.

The benefits of getting a loan from Lending Club include:

  • Clear terms and conditions; no hidden pricing
  • Cheaper interest rates
  • Fixed repayments
  • No prepayment penalty

To qualify for a loan with Lending Club:

  • You need to be employed
  • You must have a credit history
  • Your credit score should be at least 600
  • You should not have hard credit inquiries in the recent past

Since Lending Club goes for soft credit pull, your credit score stands unaffected. The disadvantage of taking a loan from Lending Club is that the processing time may be as long as a week.

Availing loans from Lending Club to close credit card loans or to consolidate debts saves more money otherwise spent on interest. Your credit score also increases when you consolidate debts.

3) Best Egg

Best Egg offers funds up to $35,000. The benefits of availing money from Best Egg include:

  • Quick processing
  • Competitive rates of interest
  • No penalty for prepayment
  • Loans available for credit score as low as 640

Qualifications for availing Best Egg loan include:

  • High income
  • Should be 18 years of age to be eligible for a loan
  • Should have a bank account

One of the best advantages of Best Egg loans is that the processing is real quick. It also employs soft credit pull to check your rate. However, you will find that the repayment terms are not flexible with the loan term being only 3 or 5 years. You are also charged an origination fee and the APR can be up to 29.99%.

Applying does NOT affect

your FICO® credit score!

4) Avant

Avant offers personal loans ranging from $1,000 to $35,000. In most cases, borrowers will be funded for the next business day.

The benefits of availing cash from Avant include:

  • Those with a credit score of 580 are also sanctioned loan
  • Application is processed very quickly
  • Fixed repayment terms
  • No prepayment charges

To qualify from Avant, you need to:

  • Have a bank account
  • Submit proof of income

With Avant, you are charged an origination fee. Interest rates can be higher as well. Avant uses soft credit pull to see your rate, which works to your advantage. Avant also refunds late payment fees if the concerned borrower honors the subsequent 3 repayments on time.

5) FreedomPlus

FreedomPlus offers cash up to $35,000 and offers it really fast. Loans are generally sanctioned within the day and funds are available to borrowers the following business day.

The benefits of getting a loan from FreedomPlus include:

  • Quick processing
  • No prepayment charges
  • Phone screening is done which helps to influence the lender

To qualify from FreedomPlus:

  • You need to be 18 or above
  • Your credit score must at least be 640
  • You must possess a valid id
  • The previous two years should not have bankruptcy issues
  • Your verifiable income should be a minimum of $25,000

Apart from the origination fee, FreedomPlus may charge APR up to 29.99%, which is definitely on the higher side. The fee structure is not transparent and hence you may be in for an unwanted surprise when the repayment is due. The loan options are not clearly stated. It also does not give a clear picture of fees related to late payment. However, where checking your rate is concerned, FreedomPlus does a soft pull and hence your rate remains unaffected.

6) OneMain

OneMain offers funds from $1,500 to $10,000 and is an ideal choice for those with poor credit rating. The most favorable aspect for borrowers is that funds are available the same day. The duration of loan is 2 to 5 years.

Benefits of availing loans from OneMain include:

  • Quick processing
  • Funds available within 24 hours
  • No prepayment charges

To avail money from OneMain you need to meet the following qualifications:

  • Should be above 18 years of age to be eligible for the loan.
  • Have verifiable income
  • The minimum credit score should be 600
  • No bankruptcy issues

Unlike in other financial institutions, by applying with OneMain, you can get your rate only with hard credit pull, which will adversely affect your FICO score, though minimally. Also unlike other lenders, OneMain needs your presence at one of its branches to complete the formalities. APR charged up to 35.99% is yet another disadvantage of this lender. Still, it gains ground in the sector as it caters to those with poor credit ratings.

Applying does NOT affect

your FICO® credit score!

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