A bad credit score is becoming common among many Americans with more than 30% of Americans having a bad or terrible credit score. There are others who have no credit at all. This means it will be impossible for them to get a loan for anything whether it is to consolidate debt or to make a purchase.
For individuals with bad credit scores looking for a loan, the opportunities are limited. There are few lenders and banks that are willing to offer borrowers with bad credit scores a loan especially if that loan is an unsecured loan.
Unsecured loans do not require collateral which means lenders have to take your word to pay back the loan. For borrowers with bad credit scores, it is more difficult for lenders to predict if they would pay back in the loan within the loan period or ever complete the payment. This is why many lenders shy away from offering loans to such borrowers.
Fortunately, there are a good number of lenders who offer bad credit loans online. They are also ready to take borrowers with no credit at all. When applying for a loan from these companies, make sure you go through their requirements and loan terms carefully to ensure that it suits your need.
In this article, we are going to list several companies that offer online installment loans for bad credit. These loans include mortgage loans, student refinancing loans, boat loans, and auto loans.
Companies that Offer Bad Credit Mortgage Loans Online
Vylla offers mortgage loans to borrowers with a credit score above 500. This is great news for borrowers with a bad credit score especially for those below 600.
Vylla’s loan amount, loan period and interest rate are determined by the credit score and credit history of the borrower. So you will need a good credit score before you can apply for a loan amount up to $3 million.
Vylla allows a maximum loan period of 30 years making it easier for borrowers to repay the loan. It also requests for a down payment of 3% of the loan amount.
Although Rocket Mortgage has a higher minimum credit score requirement. Its minimum credit score is just at 580 and like most lenders, it will determine the loan amount, loan period and the interest rates attached to the loan.
You will be required to make a down payment of 2 to 5% of the loan amount before closing the loan. The amount you pay will depend on the type of loan you go for as the company offers both conventional and government-backed loans.
Companies that Offer Bad Credit Furniture Financing Loans Online
FlexShopper is a great choice for furniture financing, however, you will have to make repayments weekly. The company provides an option for monthly payments but that is only available to some type of borrowers especially those with a good credit score.
FlexShopper’s requirements for qualifications are not strict. It should be easier for borrowers with bad credit to meet up with them and get approved.
Jack Warehouse has a higher credit score requirement of 600 but it is still a great option for borrowers with bad credit.
To qualify for a loan, you are required to be employed for at least 6 months and a have checking account in your name. Jack Warehouse makes it easier for you to repay your loan by not charging interest for the first 90 days of the loan period.
Typically loan periods are around 12 months which is enough for borrowers to completely make payment. Unlike Flexshopper, payment is made on a monthly basis which is more convenient.
Companies that Offer Bad Credit Boat Loans Online
For borrowers with a credit score at 550 or higher, My Financing USA could be the best option to consider for a boat loan. Loan amounts start from $10,000 up to $75,000 with varying interest rates that depend on the credit score of the borrower.
There are several restrictions and other requirements you have to adhere to if you want your loan to be approved.
My Financing USA doesn’t accept borrowers with a high debt ratio and multiple bankruptcies. It also has a restriction on the maximum length of the boat to be purchased which is pegged at 28 inches.
CashUSA offers loans as high as $10,000 with interest rates ranging from 5.99% to 35.99%. However, if you are applying with a terrible credit score you will find yourself paying really high-interest rates.
Requirements for qualification include a minimum monthly income of $1,000 and proof of that you are a U.S citizen or permanent resident.
It is important to note that CashUSA is not actually a lender. The company acts as a middle man and links you to lenders based on the information you provide.
Companies that Offer Bad Credit Auto Loans Online
Finding a lender that accepts a credit score below 550 with minimal requirements, restrictions and low-interest rates is near impossible. Fortunately, you can get these options when you apply for a loan with Capital One.
Capital One accepts borrowers with a credit score higher than 500 with interest rates as low as 3.79%. Its main requirements for qualification include its minimum credit score and minimum monthly income of $1,500.
The company places several restrictions on the kind of vehicle that can be purchased limiting the options of borrowers. It does not charge any application or origination fees, however, you might be charged a late payment fee.
My Auto Loan has one of the best interest rates and it is quite surprising that its minimum credit score is pegged at 500.
Interest rates start as low as 2.7%, however, this rate is only available for borrowers with a high credit score. Loan amounts start from $8,000 up to $100,000 with a loan period of 2 – 7 years.
My Auto Loan also places restrictions on the kinds of vehicles that can be purchased. These restrictions do not allow borrowers to purchase vehicles older than 10 years or those with mileage above 125,000 miles.