The average American carries around $38,000 in personal debt. While that’s not great, debt doesn’t necessarily translate into bad credit.
Only a third of Americans have what’s considered a bad credit score. And a bad credit score is anything lower than 601.
A bad credit score makes it difficult to obtain a loan. Unfortunately, that’s when someone needs additional funds the most.
Thankfully, there are short term loans for bad credit available. You just have to know where to look.
If you need a little extra cash, keep reading. We’re sharing with you the best short term personal loans for people with bad credit.
One Main Offers Some of the Best Secured Short Term Loans for Bad Credit
OneMain provides both unsecured and secured short term loans. But a secured loan works best for customers with a credit score of 601 or lower.
However, keep in mind that a secured loan requires you using something like your car as collateral. But, if you’re approved, you can get short term personal loans ranging between $1,500 and $10,000.
APR typically ranges between 16.05% to 35.99%. And the term lengths can be anywhere from 24 months up to 60 months. OneMain has 1,600 branches but you can also apply online.
Money Mutual Has Great Loans Up to $2,500
If you’re looking for short term personal loans for bad credit, consider Money Mutual. One reason is they have a great track record. Over two million consumers have used Money Mutual to find the best short term loans available.
And they’re fast. You can get up to $2,500 in as little as 24 hours if you set up a direct deposit with them.
Credit scores of any level are encouraged to apply. However, you’ll need an income of at least $8,000 per month in order to qualify. Also, it’s not available to NY residents.
Avant is Perfect for Credit Scores Between 600 and 700
If you’re looking for short term loans online that give you the money quickly, Avant is a great choice. Once approved, it often only takes one business day to receive your funds.
And as Finance Fox points out they’re willing to even go as low as 580 on some credit scores.
Loans typically range between $2,000 and $35,000. The loan term ranges between 24 and 60 months. APR ranges between 9.95% and 35.99%.
However, Avant charges an administration fee between 1.50% to 4.74%. Also, it’s only available in 46 states, including DC so check first before you apply.
Upstart Offers Loans Based on Future Income Prospects
Former Google employees founded Upstart in 2012 as a peer-to-peer marketplace whose primary borrowers have little to no credit history. Lenders here are okay if your credit score is as low as 620 but you do have to prove your creditworthiness in other ways such as your education or career.
You must have a source of income or at least have a full-time job offer that starts within six months. Another option is to enroll in a coding boot camp with one of their partners and have plans to look for work upon graduation.
You can get a loan anywhere from $1,000 to $50,000 that can be used to cover medical expenses such as IVF treatment costs, and often you can have your money in a day or two. The term of the loan ranges anywhere from three to five years.
Co-signers are not an option here.
Personal Loans Offers Great Short Term Installment Loans
Unlike other loan companies, PersonalLoans.com is available in all 50 states. You can get loans from $500 to $35,000. You can usually get the money within one business day.
The length of the loan ranges from three to 60 months. The APR ranges from 5.99% to 35.99%.
Another huge difference PersonalLoans.com offers is that it’s a consumer site that’s not a bank but instead a lender network. They partner with reputable lenders around the United States who are willing to loan their money to applications with poor credit.
And since they provide short term loans online, you can find multiple lenders in your area to give you a loan 24 hours a day.
Lending Point Gives Short Term Loans Based on Your Merit
If you’re focused on rebuilding your credit, Lending Point is a great place to obtain some of the best short term loans available. They provide loans to people with credit scores between 520 and 720.
Since they opened their doors in 2014, Lending Point has funded over $100,000 million in personal loans. And if you don’t qualify for a loan with this company, they also offer credit-builder loans.
However, it’s only available in 34 states. Their interest rates are also fairly high and they offer no discounts or incentives to help you lower your interest rate.
Also, you can only obtain loans in the amounts between $2,000 to $25,000.
Try Bad Credit Loans If Your Credit Is Truly Bad
If you can’t find a loan because your credit rating is really, really bad, try BadCreditLoans.com. This site connects with a network of lenders willing to take a chance on those with really bad credit.
Once you fill out the application online, you’ll have to wait to receive offers from lenders. Unfortunately, if your financial situation is bad, you may not receive any offers.
Those who receive an offer can get a loan ranging from $500 to $5,000. The APR ranges from 5.99% to 35.99%. Repayment terms range from three to 36 months.
Do Your Research First
Before you decide which short term personal loans you should consider, do some homework. Find out what your credit score is. You’re entitled to get your credit score for free once per year.
Lending companies also need you to provide other information such as your income and employment. Make sure you have all your documents with you when you go to apply.
Every company offering short term loans has its own set of criteria to provide and abide by. It can get really confusing if you’re doing it on your own.
Companies like Bonsai Finance can help match you to the perfect lender.
You may also want to look into getting some advice or coaching to help you eliminate your debt and raise your credit score. Try talking to a financial counselor, accountant or even a life coach.
Spend Your Money Wisely
No matter what reason you have to apply for short term loans for bad credit, make sure you spend the money wisely. If you need the money to make a purchase, do some research to make sure you get the most bang for your buck.
Especially if you’re using the loan to pay for a vehicle for transportation such as a motorcycle. You want to ensure you purchase a reliable vehicle that lasts a long time.
We can help. Click here to learn how to buy a used motorcycle.