5 Long-Term Personal Loan Options for Individuals With Bad Credit
When you have bad credit, you can experience several effects — one of them being difficulty obtaining a loan. Although getting a personal loan with bad credit can be difficult, it is not impossible. Below are a few examples of long-term personal loan options for individuals with bad credit.
Table of Contents
CashUSA.com is an organization with a large network of reliable lenders that they connect borrowers to across the country. They have both state and Tribal lenders — each with different rates, fees, and application requirements.
CashUSA.com has security protocols in place to protect sensitive consumer information. They promise fast and convenient online processes, and they even offer custom educational resources on their site. You can apply for their personal loans online. The CashUSA.com personal loan overview is as follows:
- Loan amount: $500 to $10,000;
- Annual percentage rate (APR): 5.99% to 35.99%;
- Loan term: Three months to 72 months;
- Application requirements: At least 18 years of age, U.S. citizen/permanent resident, an income of at least $1,000 per month (after taxes), checking account, valid email address, and valid phone number.
BadCreditLoans.com is a site that helps consumers with bad credit find the right loan for their financial situation. They have a broad pool of lending partners to choose from when matching applicants with the best possible loan options.
There is no cost associate with requesting a loan, and it can all be done online. They have both state and Tribal lender options, privacy/security protocols, and you can contact them 24/7 with any questions or issues regarding your loan.
BadCreditLoans.com also offers useful articles such as tips on taking out a loan, how to spend funds responsibly, and how to budget to pay off loans quickly. The BadCreditLoans.com personal loan overview is as follows:
- Loan amount: $500 to $5,000;
- APR: 5.99% to 35.99%;
- Loan term: Three months to 60 months;
- Application requirements: At least 18 years of age, proof of citizenship, regular income, checking account, valid email address, valid phone number.
PersonalLoans.com specializes in quickly, efficiently connecting borrowers with lenders that offer loans that will work best according to the borrower’s financial situation — applying is free of charge.
They offer a great deal of flexibility, multiple types of loans, and satisfactory security. They have 24/7 support for any loan-related questions or problems, and they offer a variety of helpful articles on their page to assist borrowers with applying, borrowing tips, and loan-specific information.
The PersonalLoans.com personal loan overview is as follows:
- Loan amount: $500 to $35,000;
- APR: 5.99% to 35.99%;
- Loan term: Three months to 72 months;
- Application requirements: At least 18 years of age, recurring income, U.S. citizenship or permanent residency, bank account, valid email, valid phone number, and the ability to demonstrate a pattern of responsibility (cannot have recent/current bankruptcies, cannot exhibit a pattern of late payments, cannot have recently charged-off accounts, and cannot have debt that isn’t possible to cover by current income).
CashAdvance.com is a free service that helps borrowers find viable potential lenders through a large database network of creditors. You can submit your loan application for free, and the entire loan request is protected with 256-bit secure encryption — so your information is always kept safe. There are both state and Tribal lender options available.
The CashAdvance.com personal loan overview is as follows:
- Loan amount: $100 to $1,000;
- APR: 200% to 2,290%;
- Loan term: Varies;
- Application Requirements: At least 18 years of age, U.S. citizenship, an income of at least $1,000 per month, checking account, valid email, valid phone number.
5. OneMain Financial
OneMain Financial specializes in personal loans with longer terms for individuals with less-than-stellar credit. They use 256-bit SSL encryption to keep your financial information safe while applying, and they finance the loans directly.
They offer both unsecured and collateral-secured personal loans as well as personal loans for specific uses (debt consolidation, life events, recreation, auto, and home improvement). You can apply directly online, or search for a branch near you. The OneMain Financial personal loan overview is as follows:
- Loan amount: $1,500 to $20,000;
- APR: 18% to 35.99%;
- Loan term: 24 months to 60 months;
- Application requirements: At least 18 years of age, proof of residence, proof of income, valid email address, valid phone number.
Long-Term Personal Loans for Bad Credit Overview
Long-term personal loans are ideal loan options for individuals with bad credit scores, short credit history, or minimal income. These types of loans are either secured (through collateral) or unsecured. The interest rate, term lengths, and fees may vary between lenders. Most lenders use the FICO model, and the scale ranges from 300 to 850.
- A bad credit score is 579 or lower;
- A fair credit score is between 580 and 669;
- A good credit score is between 670 and 739;
- A very good credit score is between 740 and 799;
- An exceptional credit score is 800 or higher.
How Can I Get a Long-Term Bad Credit Personal Loan?
Getting a personal loan with bad credit may seem difficult, but the approach itself is fairly simple. The process for obtaining a long-term personal loan varies depending on the provider, but the general procedure goes as follows:
- Check your credit score — Even if you know you have bad credit, some lenders have credit score requirements (e.g. at least 500) so it can be helpful to know exactly where you stand. There are multiple ways to get a free credit report;
- Be sure that you have the income ability to repay the loan. If you don’t have enough recurring income, you will likely default on your loan, making you a less-than-ideal candidate for lenders;
- Compare a variety of lenders;
- Take advantage of prequalification information offered by lenders;
- Add a co-signer if needed;
- Gather documentation — Personal/contact information and financial documentation;
- Apply online or in-person;
- Wait for approval and collect funds.
How Do I Choose a Lender?
Choosing a lender ultimately comes down to what you can qualify for, what your financial situation looks like, and your personal preference. There are certain things to keep in mind when choosing a lender, these include:
- Comparing eligibility requirements: If you don’t meet the eligibility requirements, you can quickly determine whether the lender is the right one for you;
- Comparing interest rates and additional fees: Some lenders will offer different interest rates than others, and the higher the interest rate, the more you pay over the life of the loan. Make sure to compare the interest rate between different providers to get the lowest rate possible. You also should compare any additional fees like origination fees, or prepayment fees;
- Comparing repayment terms: Different lenders offer different term lengths. Shorter terms help you pay off debt sooner, but if you are unable to make large payments, you may want to go with an option with longer terms;
- Considering the type of lender: The type of lender you prefer generally comes down to personal preference. Online lenders allow you to apply and deal with finances from anywhere. Getting a personal loan from a bank or credit union allows you to come in and talk to a person face-to-face. Additionally, if you have an established relationship with your bank or credit union, you may be able to get better rates.
Image Source: https://depositphotos.com/