Many lenders offer personal loans ranging from $1,000 to $50,000. If your credit is poor, the amount you qualify will depend on multiple factors.
You may also face higher fees with a bad credit loan. This can make monthly payments expensive. This makes it important to shop and find the best credit loan fees available. That said, there are lenders who work with you regardless of your credit history, but that may limit the amount you qualify for.
Factors that affect the amount of loan
The lower your credit score, the less likely you are to qualify for the lender’s highest advertising loan amount. However, the lender may consider you based on your credit history, current debt, and your income.
Credit scores and history
Your credit score is one of the most important factors for lenders when you apply for a loan. Most people consider bad credit scores to be FICO scores below 580 or Vantage scores below 601.
Once you apply, the lender will perform a hard credit check to check your credit report. Your credit report will contain all your repayment information and credit history, including missed payments, open accounts, debt-to-income ratios and more.
Lenders also measure credit scores to measure credit abilities. The higher your score, the more likely you are to receive a larger loan. If you apply for a bad credit lender, you may be approved with a low score of 550. Still, a higher credit score could mean access to more funds.
Debt to income ratio
Your debt to income (DTI) ratio is the percentage of how much you owe to your income. To calculate your DTI, add monthly debt payments such as student loans, car loans, mortgage payments, credit card balances, and other monthly gross income. If you don’t want to do math manually, you can also use a debt and income calculator.
Ideally, most lenders prefer DTIs below 36%, while some accept a 50% ratio. The lower your DTI, the more confident your lender is in their ability to take on more debts.
If your DTI is well above 50%, consider spending time paying off your existing debt before taking out another loan. If you need cash immediately, look for a lender who doesn’t have the DTI spec or accepts a higher ratio.
Income and other factors
Lenders who accept poor credit borrowers usually use non-traditional aspects of your finances to determine how much you can borrow. This can take the form of monthly or annual income requirements.
For example, startups offer unsecured loans of up to $50,000 and do not have credit score requirements. However, the minimum income requirement is $12,000. Additionally, startups and other lenders consider their education history along with their credit profiles.
Cosigner or Co-rower
Adding Cosigner with good or good credits may convince your lender to approve a higher loan amount. Cosigner shares legal liability with you to pay off your loan. If you have a Cosigner, the lender knows there are still alternative ways in which the payment will be due if you missed the payment.
Not all lenders can add Cosigner to their loan applications. Instead, they may allow you to apply only with a co-borrower. Unlike co-signers, co-borrowers are entitled to access personal loan funds. They also share the responsibility to pay off the loan.
If you are using a Cosigner or a co-borrower, please check the lender’s website or customer service before applying.
The easiest loan to get with bad credit
If you do not qualify for other options, there are alternatives to your personal loan. These can be the easiest loans if you have poor credit, but they do come with risk. You should be aware of the high interest rates and fees that are often associated with payday loans and credit check loans.
- Emergency loan: Many emergency loans often have high interest rates and fees when they have low credit scores.
- Payday loan: Due to minimal regulations, payday loans often have triple-digit interest rates and fees. They should be considered as last resorts.
- No credit check loan: Uncredit check loans are another final resort option. This type of loan is designed for people with poor credit, and the APR and fees can be very high.
Where to get a loan with poor credit
Even if you have a bad credit score, there are many places to get a bad credit personal loan. With the potential for high rates and high annual rates (APR), it is important to compare bad credit lenders and find the best possible loan terms.
You can find bad credit personal loans online. Lenders such as Upstart, Avant, and LendingPoint offer pre-qualifications. This allows you to preview possible fees without damaging your credit score. However, although the minimum fee is low, if you don’t try to improve your credit score before applying, you may receive a higher APR.
| Lender | APR Range | Loan amount | Loan period | Minimum credit score |
| New |
6.60%-35.99% |
$1,000-$50,000 | 3-5 years | There are no requirements |
| Avant Guard |
9.95%-35.99% |
$2,000 to $35,000 | 2-5 years | 550 |
| Loan Points |
7.99%-35.99% |
$1,000 to $36,500 | 2-6 years | 600 |
Conclusion
Loans for bad credit allow you to borrow from $1,000 to $50,000. Approving a poorly credited personal loan may be difficult, but it is not impossible. It increases the likelihood that you will be approved by poor credit borrowers or using a qualified co-signer.
It may seem like you’ll want to apply when you find a qualified lender, but first read the terms and conditions and check out any hidden fees or requirements that are not advertised online. Also, if your lender offers prequalification, try it before starting the application.
