Hey, what’s going on guys? Today, we’re going to talk about the best personal loan options if you don’t have the best credit.
Defining Bad Credit
Everyone has their own definition of what they consider to be bad credit. Some people consider anything under 750 to be bad credit, some people don’t think that anything under 700, some people think it’s anything under 600.
Regardless of what you think it is, there are banks that will give you an opportunity based on certain requirements.
Top Personal Loan Options for Bad Credit
If your score is anywhere between 520 to about 650, I would strongly suggest starting off with these few banks first:
- Avant.com
- Lendingclub.com
- Discoverpersonalloans.com
- Payof.com
- Sofi.com
Additional Options
If you’re not able to get approved with the above options, don’t worry, you still have some other options:
- One Main Financial
- Spring Leaf Financial
- Freedom Plus
- Upstart
- World Finance
Understanding the Application Process
Some companies may partner with other companies, and when you’re doing the application, it’ll say, “Hey, you didn’t get approved for this personal loan, but here’s our second suggestion.
Some lenders may require everything up front, and there may be some local options nearby.
Refinancing and Paying Off Loans
Remember, anything can be paid off by something else or refinanced. Don’t try to refinance a loan with only a few months left, as the numbers need to make sense.
If you improve your credit score and get a better interest rate, you can refinance your loan to pay off the old one.
When to Refinance
You want to refinance before you get to 30% of the loan left. For example, if you get a personal loan at 20%, improve your credit score, and get a new loan at 10%, you can refinance and pay off the old loan. This will give you a better interest rate, payment, and faster payoff.
Conclusion
Always remember to check the terms and conditions before applying for a loan, and make sure the numbers make sense before refinancing. Thank you guys so much, and have a great day.
