5 Places to Get a Loan with Low Credit Scores

Need a loan, but worried that your credit score could hold you back? This is a reality that many people face every day, and it’s important to know where to look.

You deserve access to the funds you need when you need them. If your credit score is less than stellar, you need to know that you have options. 

Today, we’re sharing five places where you can meet with lenders willing to look past low credit scores and weigh other factors when determining your eligibility for a loan. Read on to discover how to access these alternative lending sources. 

What Is a Low Credit Score?

Before we dive into places that offer a loan to applicants with a low credit rating, let’s answer an important question. What constitutes a low credit score in the first place and how do you know if you have bad credit?

If you don’t know your credit score, it’s time to find it out. You are entitled to one free credit report per month from each of the three major consumer reporting bureaus. These include:

• Equifax
• Experian
• TransUnion

Most lenders will reference your FICO score when determining your loan eligibility. These scores run between 300 and 850. If your score is on the lower end of the spectrum, it could signify poor money management, and financial institutions could consider it too risky to lend to you. 

While these categories can vary, most lenders will break down credit scores into three categories:

• 300 to 579: Very Poor Credit
• 580 to 669: Fair Credit
• 670 to 739: Good Credit
• 740 to 799: Very Good Credit
• 800 to 850: Excellent Credit

If your score falls into the “Very Poor” category, don’t worry. This doesn’t render you ineligible to receive a loan. You just need to know where to look! Let’s review five places that don’t base eligibility on credit score alone. 

1. Online Lenders

Most online lenders will have different approval terms than a traditional bank or credit union. This means they are more flexible when it comes to your application, and are willing to work with you to establish loan terms you can meet. 

The only issue? There are many different online lenders to consider, and not all of them are created equal. In fact, it’s easy to fall victim to a loan scam if you do not know which companies to trust. 

That’s where we come in. 

Fast Loan Direct is a network of reputable, experienced lenders looking to assist people just like you. Their loan terms are clear and concise and include detailed information about all payment requirements. This includes annual percentage ratings (APR) and repayment guidelines. 

When you work with one of our partners, you can rest assured that you’re dealing with a legitimate online lender who has your best interest at heart. Once you complete our easy sign-up process, we’ll connect you with a lender who can walk you through the steps required to receive a quick loan. 

2. Credit Unions

Some credit unions will use different loan qualification metrics to determine if you are eligible to receive a personal loan with bad credit. Before visiting the institution in person, you can check their requirements online. Or, call and speak to a representative for more information. 

Compared to traditional banks, credit unions tend to offer a little more leniency when it comes to credit ratings and may be willing to look beyond a poor or fair score. This is especially true if you can prove that you are actively working to lower your debts and improve your rating.

When comparing local options, give preference to federally-chartered credit unions. Here, you can typically find lower rates and more favorable repayment terms. Your APR will usually be capped at around 18%, which is lower than rates from other lenders, which can be as high as 36%.

3. Secured Personal Loan Lenders

A secured personal loan is easier to get if you have poor credit. This is a loan that you will back with a substantial asset, such as your home or your car. Then, if you default on your terms and fail to pay the money back by the agreed-upon timeframe, your lender can claim that asset as a form of repayment. 

While it might seem like a risky move, it does open the door to more lending opportunities. Even traditional banks can offer low credit score loans if applicants agree to secure them as such. One benefit of a secured loan is that it will typically carry a lower APR than a non-secured loan.

4. With a Co-Signer

Need a fast loan, but know that your credit score will hold you back? In that case, consider asking someone you know if they would co-sign on the loan for you. If they have good credit, they could help you qualify for better terms and lower interest rates. 

By signing on the dotted line, the co-signer agrees to take partial responsibility for the loan. This means they may be required to step in and repay the money to the lender if you fall behind on your payments. This can be a risky relationship to enter into, so only do so with someone you trust.

5. Traditional Bank

We can’t exclude traditional banks from our list. While these lenders are usually less than willing to negotiate with someone who has poor credit, this isn’t always the case. 

If you already have a working relationship with your bank and your accounts are in good standing with them, then it’s worth a call. Ask if they distribute loans to people with poor credit, and learn about the steps you would need to perform to receive one. 

Don’t Let Low Credit Scores Keep You From a Loan

There are many reasons why your credit score might be low. Instead of hyper-focusing on that scale, use your time and energy to find lenders who don’t base their entire decision on it. 

The five options above are smart ways to get started. If you’re looking for fast money and great terms, start with us. We offer loans for applicants with low credit scores, because we know you’re more than a number. 

We can connect you with a lender in as little as five minutes. Complete our online form to get started today!