Debt is affecting 8.3 million adults in the UK. 

Having debt can lead to bad credit if not managed properly. And when you’re suddenly in need of funds or you need to consolidate your debt, where do you turn? With bad credit is it really possible to get a loan?

Fortunately, there are ways to secure personal loans for bad credit. A number of companies are willing to work with people who have less-than-perfect credit. 

If you’re in need of a personal loan, but you’re worried that your credit score is standing in the way, keep reading to find a lender that will work with you!

What Is a Personal Loan?

A personal loan is a loan that’s used for personal reasons. Typically they’re used for large home repairs, education, or debt consolidation. The life of a personal loan can be anywhere from one to five years. 

The interest rate is fairly low (for those with good credit scores), and you often choose the amount you want to borrow. Personal loans are unsecured, which means there’s no collateral involved in the loan. 

What Counts as Bad Credit?

Credit is classified as excellent, good, bad, poor, or fair credit, though the numbers can vary slightly when it comes to what exactly counts as bad credit. In general, anything ranging from 300-600 (or in some cases, 620) can be categorized as bad credit. 

Creditors determine your score in a variety of ways. The bulk of your score is calculated by payment history and how much you owe. Smaller percentages are reserved for types of credit you use and how long you’ve had credit.

The good news is that bad credit can be temporary. There are many ways to boost your credit score, such as making payments on time and keeping your debt-to-income ratio low.

The Good and the Bad with Bad Credit Personal Loans

Unfortunately, bad credit can follow you for years. When you start applying for a loan without first looking to improve your credit, this makes it all the more difficult. 

For starters, you could end up with a higher interest rate compared to those with a better credit score. In general, the rate could be in the high twenties or sometimes thirties, depending on your score.

Some lenders, after reviewing your credit history, will see you as risky, and you could get rejected numerous times.  

However, bad credit is subjective to the lender. Not every lender takes into account the same qualifications when people apply for loans. And, personal loans are far cheaper than payday loans, which often have an interest rate of 300-400%. 

There are possibilities for those whose credit is littered with negatives!

Personal Loans for Bad Credit in 2019

When you suddenly find yourself in need of funds or finally decide to take the plunge and wipe away all your high-interest debts in 2019, you could be considering a loan.

But a bad credit score could be keeping you from even applying. 

Thankfully, you can get a loan with bad credit. Here are a few lenders that rank high in 2019 who work with individuals with less-than-perfect credit. Some lenders allow you to apply for personal loans online, which makes the process less stressful.

BadCreditLoans.com

As the name suggests, this lender specializes in loans for those with bad credit. BadCreditLoans.com is more of a marketplace; once you’ve applied on their website, they send out your information to other lenders while you wait for a lender to accept your application. 

Loan amounts range from $500-$5,000 with interest rates from single digits to 35% depending on the lender, with the life of the loan being as short as three months or as a long as five years. There’s no credit score requirement. 

NetCredit

Although NetCredit has sky-high interest rates (could over 100%!), if you’re looking to rebuild your credit you might want to consider this lender.

NetCredit’s loan amounts are higher, ranging from $1,000 to $10,000. These higher amounts can help you pay off multiple debts that hold high-interest rates, combining them into one payment. NetCredit looks at other elements to determine credit-worthiness beside credit score.

OneMain

For those with bad credit, especially if you need a high loan amount, you could need a secured loan. This means being willing to offer something as collateral to obtain a loan with a large amount. 

If this is the route you want to follow, OneMain could work for you. They offer both secured and unsecured loans and will accept individuals with bad credit, like those with credits scores below 600. Loan amounts range from $1,500 up to $10,000, with a life of 24, 36, or even as much as 60 months. 

Looking for a personal loan for bad credit? Bonsai Finance works with people from all walks of life, with all credit scores. Their online process is safe, with fast results so you’re not left guessing!

Peerform

Peerform works similarly to BadCreditLoans.com. However, their qualifications boot out those with a credit score below 600. But they offer loans up to $25,000 making them ideal for those looking to consolidate their high-interest debt. 

With lower interest rates reaching 29%, the one downside to Peerform is the amount of time it takes to receive the loan. Sometimes payment can take up to two weeks, so Peerform isn’t great if you’re looking for fast cash.

PersonalsLoans.com

Apply with PersonalLoans.com and you can receive offers from multiple lenders willing to work with you. 580 is the credit score requirement, as well as a few other stipulations, but the loans could jump as much as to a healthy $35,000 if approved. 

Because PersonalLoans.com sends out your application to other lenders, the loan amounts and interest rates will vary. Your loan life could be anywhere from a few months to six years. Again, this varies on which lenders approve your application.

Bad Credit? Never Fear.

Just because you have bad credit doesn’t mean you’re out of options. Personal loans for bad credit are still available to you, meaning you could be closer than ever to healthier finances.

Interested in more about finances? Visit our page to learn everything you need!