The easiest personal loans to get don't come from a bank, especially for people with bad credit. For high-risk borrowers, alternative sources that specialize in helping them get financing can make it easier to borrow money with minimal requirements. USAA and Wells Fargo are two banks that offer personal loans with lenient requirements. SoFi and LightStream are two lenders that offer low rates and no fees for good credit consumers.
BillShappen, CreditLoan, CashAdvance, MoneyMutual, and Marcus are seven companies that help borrowers get approved for unsecured personal loans, even for someone with a poor credit score. USAA does not disclose a minimum credit rating requirement, but its website states that they consider people with scores below the fair credit range (below 640). So, even people with bad credit can qualify. SoFi is a solid option for good credit consumers, offering low rates, no fees and flexible payments.
LightStream is aimed at borrowers with strong credit with no fees and with low rates that vary depending on the purpose of the loan. Online lenders usually offer the fastest way to get a personal loan, with some loans approved and financed in a day or two. Most online lenders also allow you to pre-qualify and see your rate and term before you file a formal application. The pre-qualification process involves a smooth credit check and allows you to compare loans from multiple lenders without affecting your credit.
Online loan search services can be a good starting point. They work with a network of lenders and can offer you multiple options soon after submitting a free online form. BillShappen has simple requirements for borrowers such as identifying information, such as your driver's license and mobile phone number, having a bank account, a job, and a home address. A quick personal loan can be approved very quickly after submitting your information.
We especially like CreditLoan because of its wealth of information on how a small personal loan can be affected when you have anything other than excellent credit and how it can improve your chances of getting a loan. As with other networks of lenders with bad credit, your lenders do not require a guarantee for a small personal loan, and applicants will not be denied a loan because they have a poor credit history. A stable income and a current account are the only guarantee required. Paying your bills on time and keeping your debt levels low are the best ways to increase your credit score.
One measure that lenders use is the debt-to-income ratio or DTI. It measures your debt payments against your income, and most lenders prefer your DTI to be no higher than 36%. That is, your monthly debt payments do not exceed 36% of your income. CashAdvance and MoneyMutual offer repayment terms of up to years.
The company reminds customers that installment loans are somewhat expensive compared to other loan products. They are not recommended as a long-term financial solution, such as debt consolidation, and should only be contracted for emergency financial needs. LightStream does not allow co-signers, but prospective borrowers can file a joint application. Marcus does not disclose this information but offers APRs between 6.99% and 19.99% with a discount of 0.25% for those enrolled in autopay.
And, like other major lenders, Marcus does not charge any fees.