Traditional bank loans are typically reserved for people with ideal credit. A bank may immediately reject a loan application if they see the applicant has poor credit, no credit, or a history of bankruptcy. So, if you have a high credit score and a clean financial history, there’s a good chance you will be able to get a loan from just about any bank. But if you don’t have perfect credit, don’t worry. There are plenty of bad credit personal loan options to choose from!
Private direct lenders may be able to offer you a personal loan much more easily than a bank could. Since direct lenders aren’t all strict traditional lenders like a bank, they can offer a wider variety of personal loan products to a broader range of people. People with credit scores on the lower side often turn to direct lenders for personal loans when they need quick and convenient funding.
Since personal loans from a direct lender are so versatile, they usually come with benefits like:
- Industry-wide competitive interest rates.
- Fast approval and funding time.
- Flexible payback terms (with convenient refinancing options as well!)
- All credit scores considered.
Another option to consider for personal loans is going through a credit union. Credit unions are non-profit organizations that provide loans to their members. Keep in mind that if you want to get a loan with a credit union, you will have to become a member. Some credit unions may require that members live within a certain area or work within a particular field in order to get approved. So make sure you meet the requirements before applying with a credit union.
You may also be able to get personal loans in the form of payday loans or car title loans. Payday loans are a special type of loan designed to provide people with money while they are in between paychecks. Car title loans involve using your free-and-clear vehicle title as collateral to secure loan funding.
While the funding time on payday loans and title loans are quick, they both usually come with high-interest rates and short payback periods. If you are looking for higher loan amounts or a more flexible repayment plan, you are probably better off going with a direct lender.