If you’re currently struggling with bad credit, it may feel like there aren’t any affordable options for personal loans. Bad credit and high interest rates seem to be synonymous. But if you do plenty of research, you might be able to find low-interest bad credit loans.
There are many reasons why your credit score may be low. For instance, maybe you’ve had a hard time making payments on time in the past. Or maybe your credit card debt has become unmanageable. Regardless of the reason, a low credit score tells borrowers you may not be trustworthy. And this often leads to higher interest rates.
Read on to learn more about getting an affordable loan even with bad credit!
Best Loans for Bad Credit
Having poor credit means you’ll have to do some extra work to find a good, affordable loan. The loan options below are tailored to borrowers with less-than-perfect credit scores. Check them out and see if any of them are right for you!
Personal Installment Loans
A personal installment loan is also a good alternative to other loans for people with bad credit. These loans are unsecured, meaning that you won’t need any collateral.
Additionally, they range in amounts from several hundred dollars, up to several thousand. How much you get will depend on where you live, and your borrowing history.
While many bad credit loans (like title loans and payday loans) tend to have short repayment periods, installment loan repayment is usually longer. For example, borrowers make monthly payments over the course of several months, or even up to a couple of years.
Interest rates also tend to be lower for personal installment loans, compared to other short-term loan options. If you have poor credit and need quick cash, check out CreditNinja’s personal installment loans.
Credit Union Loans
A credit union is similar to a bank, but they tend to have better rates and terms for their members. Becoming a member of a credit union will depend on each one’s specific requirements. You may be able to join if you live or work near a credit union, or if you have a family member that’s already a member.1
Credit unions are nonprofit organizations, so they usually have better offers for personal loans than other short-term borrowing options. If you’re in need of a low-interest personal loan for bad credit, we recommend reaching out to credit unions in your area to inquire about their rates and terms.
A peer-to-peer loan, or P2P loan, is one that a borrower gets from an individual. These investors offer loans as a way to make money from the interest. There are several websites that offer P2P loans, where borrowers can shop for a good interest rate.
Some people on these sites may offer loans to borrowers with poor credit. The rates they offer may be more affordable than some other personal loan options like payday or title loans.
Bad Credit Loans Online
Nowadays, it’s nice to know that you don’t even need to leave your house to get a personal loan. For instance, some lenders like CreditNinja offer a fully-online experience from the application to repayment.
CreditNinja’s low-interest personal loans for bad credit are designed for borrowers who are struggling financially. So we make the process quick and easy by allowing customers to apply, get a decision, get funding, and make payments all from the comfort of their home. Applying for a personal installment loan with poor credit has never been easier.