Getting a loan with bad credit

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So you have bad credit? You’re doing whatever you can and taking steps to improve your credit score, but in the meanwhile you need to take out a loan. Your score might mean you keep getting denied by lending institutions. Luckily, all is not lost! It is still possible to borrow the money you need; however, you might just need to get a little more creative in finding borrowing alternatives. Here are a few options you might consider.

  1. Apply to a credit union

Credit unions are similar to banks, but they are usually smaller and they are owned by their members. Credit union members usually have something in common, for example, living or working in the same area. Credit unions are non-profit organizations. Unlike traditional banks, they pass along earnings to members via lower fees and higher customer service. At a local credit union, they will generally look at your overall situation when considering whether to loan you the money. To them you are more than just a credit score. As with bank loans, it’s important you shop around and call several institutions to compare loans and make sure you’re getting the lowest interest rate possible.

  1. Get a peer to peer loan

Peer to peer (P2P) lending networks have grown immensely over the past decade. Peer to peer loans are a great way to avoid the traditional loaning process involved when borrowing from a bank.  The platform allows people to borrow directly from other individuals, instead of a bank. Borrowers post a loan listing including the amount of money they want and why they want it. Then peer investors can make bids for the loan with interest rates they feel are fair when considering the risk in lending to a low credit borrower. Your application gets screened by the lenders, so your credit score will be a part of your loan listing. Unlike traditional banks, individual investors may be more understanding of your situation and more likely to give you a loan.

  1. Ask friends and family

After being denied by banks, many people with low credit scores will turn to their family and friends to borrow money. Family loans are a common occurrence. Last year seven percent of homebuyers and 14 percent of business owners borrowed money from family and friends to help pay for their expenses.

Loans from family and friends shouldn’t be taken lightly. Make sure you treat it like a serious business transaction that is legally and clearly documented and signed. In order to avoid problems later on, it is important you have a written agreement that includes payment terms, the interest rate, collateral put up for the loan and what will happen if you fail to pay it back.

When borrowing from or lending to family members it’s important that both sides take the agreement seriously and realize the risks they are taking. Unlike banks, you will be seeing this lender on a regular basis. Sharing the dinner table with someone you owe money to can be difficult, so make sure you are both comfortable with the situation before you dive in.

  1. Find a co-signer

It’s not always easy to find a friend or family member who is willing or able to lend us money. Another option is finding someone to co-sign for a loan instead. If you find a friend with good credit who trusts you to pay back the loan on time, they can help you qualify for the loan by signing it with you. This way when you apply for a loan the bank will look at both your credit scores. However, this also means that your co-signer will be responsible if you fail to pay back the loan. At the same time, if you make late payments or default on the loan, this will also have serious consequences for your co-signer’s credit. Make sure you both understand the risks before you sign off on this type of loan.

  1. Use a line of credit or home equity loan

If you own property, this can be a simple way to borrow more money at lower interest rates than some of the options listed above. A home equity loan is a type of loan where the borrower uses the equity, or value, or their home as collateral. The loan amount is determined by the value of the property. There is a significant risk associated with home equity loans, in that your failure to pay back your debt can result in losing your home.  If you are responsible and consistent about paying back the loan, this is a good option for borrowing.

  1. Personal loans for bad credit

Getting a personal loan is certainly not out of the question if you have bad credit, some loans are specifically designated for people with poor credit scores, so seek those loans out or find them here on our site.

 

Hopefully one of these lending options will meet your needs. If not, the best thing you can continue to do is boost your credit score. Remember bad credit is not a life sentence, it’s something that can and does continually change.

 



Online Personal Loans Up To $3,000. Even if you’ve filled out their online form and received an offer from one of their lenders, you are not obligated to accept any offer if it doesn’t work for you.

Max loan amount:
 $3000
Min Credit Score:
Age:
 18 years
A good personal loan:

– Fill Out a Simple Form
– Get Connected with a Lender
– Money is Deposited Directly

Payday Loans up to $1,000. You will be connected with one lender and receive your loan decision. Super easy!

Max loan amount:
 $1000
Min Credit Score:
Age:
 18 years
A good personal loan:

– Fill Out a Simple Form
– Get Connected with a Lender
– Money is Deposited Directly

You are more than your credit score. On Upstart your education and experience help you get the rate you deserve.

Max loan amount:
 $50000
Min Credit Score:
 620
Age:
 18 years
A good personal loan:
  • Good for those with little credit history
  • Origination fee: 1% to 6% of loan amount, depending on borrower’s grade
  • Late fees: Greater of $15 or 5% of payment amount
  • Personal-check processing fees: None

    • Are you paying more than 10% interest on your credit cards? SoFi Personal Loans could help you save thousands. With low personal loan interest rates and a fixed monthly payment, you can get loans to pay off credit cards, pay off high interest debt, or make a major purchase. It only takes minutes to apply.

    Max loan amount:
     $100000
    Min Credit Score:
     0
    Age:
     18 years
    A good personal loan:
  • Good for those with little credit history and high income
  • No origination fee
  • SoFi offers networking events and career development advice to borrowers
  • Late fees: 4% of payment due or $5, whichever is lower
  • Personal-check processing fees: None

    • Loans for your life. Consolidate your high interest loans and save. Although that you can’t borrow your way out of debt, consolidating all of your high interest loans into one debt consolidation loan through Prosper could save on the amount of interest you’re charged each month.

    Max loan amount:
     $35000
    Min Credit Score:
     640
    Age:
     18 years
    A good personal loan:
  • Suitable for those with good credit profiles
  • Origination fee: 1% to 5% of the loan amount, depending on the borrower’s Prosper grade
  • Late fees: Greater of $15 or 5% of the payment amount
  • Personal-check processing fees: None

    • Fill out a 5-minute application and have funds directly deposited into your checking account as early as the next day.

    Max loan amount:
     $25000
    Min Credit Score:
     600
    Age:
     18 years
    A good personal loan:
  • Ideal for borrowers with average credit who want to complete the process online
  • Origination fee: Varies, but typically 5% of loan amount
  • Late fees: Varies by state

    • Is a personal loan for me?

    /in /by

    Life doesn’t always go the way we expect and sometimes we may need a sudden chunk of change to manage until the next month. Or perhaps we have a big event like a wedding or an awesome vacation planned that could really use the extra boost. Maybe some of our home appliances are on their last breath and it’s time to upgrade. Whether we like it or not, we need money to achieve a lot of our life goals. Usually we can make do with our monthly paychecks, but sometimes a little extra cash flow will help us reach our spending goals. This is where personal loans can be helpful.

    A personal loan is often borrowed to meet emergency personal needs, but can also be used for many other purposes. Personal loans are taken from banks or organizations, which lend loans after making a clear agreement about when to make repayments, including specific payment due dates and the number of installments.

    There a variety of personal loans to fit many unique needs. Usually personal loans are unsecured short-term loans. These loans charge a monthly fee and interest rate, which vary and depend on multiple factors, including your credit score. Personal loans offer flexibility and let you use the money for whatever purpose you choose, whether it’s home improvements, debt consolidation or purchasing big ticket items. Sometimes you might be asked what you intend to use the money for when you apply for the loan, which may factor into the lender’s decision. As long as you plan to use the money for a legitimate purpose, you should be fine. If lenders have specific rules about what the loan can be used for, then you should be able to read about that before applying.

    How much can I borrow?

    Unsecured personal loans are usually offered from as little as $1000, to up to $50,000. Loans vary from vendor to vendor, in regard to interest rates and fees, so it’s important to read the fine print before taking a loan. Some loans only have monthly fees, whereas others also include establishment fees and annual fees.  Interest rates also vary greatly, some being fixed, while others are variable.

    One thing to be aware of is that most personal loans require the borrower to have a good credit score, 680 or higher, to be approved. Borrowers with good credit are usually approved quickly without having to wait for days. However, there are also many loan options for low-credit borrowers. (link)

    Before you apply for a personal loan, make sure you know your credit score. You can check your credit score from websites online that give credit reports. Most people make the mistake of applying for personal loans without a clear picture of their loan status. Find our your credit score from one of the three major credit bureaus: Equifax, Experian, or TransUnion. If you have bad credit, make sure you take steps to improve your credit score.

    How do I pay back my loan?

    Unsecured personal loans are usually paid back between one and seven years. The amount you pay in each installment is a combination of the principal amount borrowed, in addition to interest that has been accumulated, according to the terms of the agreement. You will be required to make the payment every month to the lending institution or bank that you borrowed money from. The amount that you receive will be approved according to your credit score or and to the lender’s assessment of your capacity to pay back the loan.

    Another detail to pay attention to is if there are any repayment restrictions. Some lenders allow borrowers to make extra payments to pay back their loans earlier; whereas other loans may not allow this, or charge penalties to do so.

    What is an unsecured loan?

    An unsecured loan is a loan that is given without any collateral. In other words, it is supported solely by the borrower’s creditworthiness. Other types of loans use things such as property as collateral for the loan, so borrowers usually must have high credit ratings to be approved for many unsecured loans. Unsecured loans are also referred to as signature loans or personal loans.

    Because the lenders take more risk, unsecured personal loans usually have higher interest rates. This way if a borrower fails to pay back their loan, at least the lending institution will have received more interest from the loan.

    Things to consider

    There are so many loans out there, so it’s good to know what you’re looking for and what factors are important to consider.

    You should always pay attention to the interest rate. Make sure you find a loan with a competitive interest rate and check whether it has a fixed or variable interest rate.

    It’s also important you check what the minimum and maximum loan amounts you can borrow from the lender are. Some loans are only for $1,000, whereas others can go up to $50,000. Make sure the amount you want to borrow is covered by the loan.

    Most loans also have fees and charges connected to the loan. Sometimes you will be charged upfront, and other times there are ongoing fees. The APR will have an overview of the cost, including any fees. Make sure you are aware of fees and charges because they can add up to a lot.

    You should also check if you loan has extra features that are important to you. This can include something like online access to managing your loan, or reminder emails about due dates.

     

    Taking out a personal loan is not a decision to take lightly. Adding more debt to your personal finances can become a burden. However, it doesn’t need to be. If you can responsibly borrow a loan and know you will have future capabilities to pay it back, a personal loan may be a good choice for you. The process is simple and borrowing a bit of extra money can make your life easier.

     

    

    Online Personal Loans Up To $3,000. Even if you’ve filled out their online form and received an offer from one of their lenders, you are not obligated to accept any offer if it doesn’t work for you.

    Max loan amount:
     $3000
    Min Credit Score:
    Age:
     18 years
    A good personal loan:

    – Fill Out a Simple Form
    – Get Connected with a Lender
    – Money is Deposited Directly

    Payday Loans up to $1,000. You will be connected with one lender and receive your loan decision. Super easy!

    Max loan amount:
     $1000
    Min Credit Score:
    Age:
     18 years
    A good personal loan:

    – Fill Out a Simple Form
    – Get Connected with a Lender
    – Money is Deposited Directly

    You are more than your credit score. On Upstart your education and experience help you get the rate you deserve.

    Max loan amount:
     $50000
    Min Credit Score:
     620
    Age:
     18 years
    A good personal loan:
  • Good for those with little credit history
  • Origination fee: 1% to 6% of loan amount, depending on borrower’s grade
  • Late fees: Greater of $15 or 5% of payment amount
  • Personal-check processing fees: None

    • Are you paying more than 10% interest on your credit cards? SoFi Personal Loans could help you save thousands. With low personal loan interest rates and a fixed monthly payment, you can get loans to pay off credit cards, pay off high interest debt, or make a major purchase. It only takes minutes to apply.

    Max loan amount:
     $100000
    Min Credit Score:
     0
    Age:
     18 years
    A good personal loan:
  • Good for those with little credit history and high income
  • No origination fee
  • SoFi offers networking events and career development advice to borrowers
  • Late fees: 4% of payment due or $5, whichever is lower
  • Personal-check processing fees: None

    • Loans for your life. Consolidate your high interest loans and save. Although that you can’t borrow your way out of debt, consolidating all of your high interest loans into one debt consolidation loan through Prosper could save on the amount of interest you’re charged each month.

    Max loan amount:
     $35000
    Min Credit Score:
     640
    Age:
     18 years
    A good personal loan:
  • Suitable for those with good credit profiles
  • Origination fee: 1% to 5% of the loan amount, depending on the borrower’s Prosper grade
  • Late fees: Greater of $15 or 5% of the payment amount
  • Personal-check processing fees: None

    • Fill out a 5-minute application and have funds directly deposited into your checking account as early as the next day.

    Max loan amount:
     $25000
    Min Credit Score:
     600
    Age:
     18 years
    A good personal loan:
  • Ideal for borrowers with average credit who want to complete the process online
  • Origination fee: Varies, but typically 5% of loan amount
  • Late fees: Varies by state

    • Consolidate your debt today!

    /in /by

    Getting out of debt can be overwhelming, especially when you have to keep track of bills from more than one creditor. Let’s say you have multiple credit card bills, a car loan, various personal or payday loans and hospital bills to pay off. Perhaps one bill is due at the beginning of the month and another at the end of the month. They all have different interest rates and must be paid back to a range of creditors. Keeping on top of things and paying your bills on time can be difficult and discouraging.

    A solution to this problem is debt consolidation. Debt consolidation means taking out a new loan, in order to combine multiple debts into one single, larger piece of debt. The new larger loan will usually have a lower interest rate and lower monthly payment, which can greatly benefit a borrowers financial situation.

    Why consolidate your loans?

    Putting all your debt in one place is not only smart financially, but it will also give you peace of mind as you pay off the loan. You won’t have to worry about which creditor to pay first, as now there is just one payment to one company.

    Consolidating your debts will help you save a lot of money on interest. If you have a credit card with a 15% APR and a car loan with a 12% APR, you are losing a lot of money every month on interest. If you instead take out a larger personal loan at a 7% APR and use it to pay off the credit card and car loan, you will end up saving yourself a ton of money. Now that you have a lower interest rate and just one repayment to manage, you might even be able to erase your debt completely in a much shorter period of time.

    One important thing to check for is that the personal loan you apply for doesn’t have a higher interest rate than what you are already paying. You should never consolidate a loan into a new loan with a higher interest rate, so keep the low interest loan out of your new consolidated loan.

    

    Online Personal Loans Up To $3,000. Even if you’ve filled out their online form and received an offer from one of their lenders, you are not obligated to accept any offer if it doesn’t work for you.

    Max loan amount:
     $3000
    Min Credit Score:
    Age:
     18 years
    A good personal loan:

    – Fill Out a Simple Form
    – Get Connected with a Lender
    – Money is Deposited Directly

    Payday Loans up to $1,000. You will be connected with one lender and receive your loan decision. Super easy!

    Max loan amount:
     $1000
    Min Credit Score:
    Age:
     18 years
    A good personal loan:

    – Fill Out a Simple Form
    – Get Connected with a Lender
    – Money is Deposited Directly

    You are more than your credit score. On Upstart your education and experience help you get the rate you deserve.

    Max loan amount:
     $50000
    Min Credit Score:
     620
    Age:
     18 years
    A good personal loan:
  • Good for those with little credit history
  • Origination fee: 1% to 6% of loan amount, depending on borrower’s grade
  • Late fees: Greater of $15 or 5% of payment amount
  • Personal-check processing fees: None

    • Are you paying more than 10% interest on your credit cards? SoFi Personal Loans could help you save thousands. With low personal loan interest rates and a fixed monthly payment, you can get loans to pay off credit cards, pay off high interest debt, or make a major purchase. It only takes minutes to apply.

    Max loan amount:
     $100000
    Min Credit Score:
     0
    Age:
     18 years
    A good personal loan:
  • Good for those with little credit history and high income
  • No origination fee
  • SoFi offers networking events and career development advice to borrowers
  • Late fees: 4% of payment due or $5, whichever is lower
  • Personal-check processing fees: None

    • Loans for your life. Consolidate your high interest loans and save. Although that you can’t borrow your way out of debt, consolidating all of your high interest loans into one debt consolidation loan through Prosper could save on the amount of interest you’re charged each month.

    Max loan amount:
     $35000
    Min Credit Score:
     640
    Age:
     18 years
    A good personal loan:
  • Suitable for those with good credit profiles
  • Origination fee: 1% to 5% of the loan amount, depending on the borrower’s Prosper grade
  • Late fees: Greater of $15 or 5% of the payment amount
  • Personal-check processing fees: None

    • Fill out a 5-minute application and have funds directly deposited into your checking account as early as the next day.

    Max loan amount:
     $25000
    Min Credit Score:
     600
    Age:
     18 years
    A good personal loan:
  • Ideal for borrowers with average credit who want to complete the process online
  • Origination fee: Varies, but typically 5% of loan amount
  • Late fees: Varies by state

    • What kind of debt can be consolidated?

    Consumers can consolidate many different types of debts, from private student loans to car loans and credit card debt. If you have multiple credit cards, consolidating them might be a very smart choice. Many credit cards have high APRs, and you will also need to keep track of making payments on time.

    Combining personal loans into one new one is also a smart idea. If you have a decent credit rating, you can often qualify for a more competitive interest rate if you sign up for a debt consolidation loan.

    Student loans can also be consolidated, however this is more common with private student loans, rather than federal student loans, which often already have a lower or subsidized interest rate.

    If you have taken out business loans to help start a business or grow the one you already have, consolidating your loans can be very beneficial because it can help free up more capital and give you more cash, as now you’ll have one lower payment instead of multiple loans.

    How can I consolidate my debt?

    Many lenders offer specific debt consolidation loans, however you usually need to have a good credit score, and other meet other criteria, like a minimum annual income, minimum length of credit history and a low debt-to-income ratio.

    Alternatively, if you currently have credit cards with high interest rates, you could instead get a balance transfer credit card. This type of card charges little or no interest on balance transfers during an introductory period, which means you can easily consolidate your credit card debt into one low interest place.

    Another option is a secured loan or line of credit. Secured loans have much lower interest rates, due to the consumer offering the lender more security, in the form of home equity, car value or a deposit.

    If you have multiple student loans, student loan consolidation can be a good option for you. Some lenders have a specific focus on student loans and refinancing, including SoFi, SallieMae and Navient. If you have numerous private student loans, you can also see what options your private bank has for debt consolidation.

    What if I have bad credit?

    If you have a bad credit rating, it is still possible to get a debt consolidation loan from some lenders. Another option is an installment loan. Installment loans have more relaxed eligibility criteria, and depending on how much debt you have, they may lend you enough to consolidate your debt into one place.

    How does debt consolidation effect my credit score?

    Another benefit to debt consolidation is that it will probably help improve your credit score. After consolidating your debts, you will likely be able to pay off your debt faster, leading to a decrease in your credit utilization ratio and an increase in your credit score. As you successfully pay your bills on time, you will also establish more payment history or even diversify your credit mix, which can both help improve your credit score.

    One thing to remember, however, is that your new lender will probably do a hard check on your credit report, before you get approved for a loan, which may cause a temporary dip in your credit score. After a short period of making your payments on time, the debt consolidation will only improve your score though.

    Boost your credit score

    /in /by

    Most people don’t think about their credit score until it’s too late. Your credit score dictates almost everything from whether you will be approved for a credit card to the rate you are offered on a mortgage. Today many employers use credit scores to determine whether you are fit for certain positions.Out of desperation, people end up seeking the services of a credit repair agency, which can become a costly mistake. Having bad credit can affect many things; credit scores affect not only how much money you can borrow, but also things such as your ability to purchase certain items and the price of insurance premiums. Insurers think that people with high credit scores are less risky, more responsible and a better investment. Get more affordable premiums and give yourself more borrowing options by raising your score. With a little effort you can make some changes that will raise your credit score fast.

    #1: Pay down your credit cards

    The biggest thing that can impact your credit score, after bankruptcies and foreclosures, is past due credit accounts. So, paying off your debts as quickly as possible will make a huge impact on your credit score. If you are unable to completely pay off your credit card debts, luckily there are some strategies you can implement to start making progress. Paying off some of the debt and shifting the rest of it around will help your credit score go up.

    Strategy A: Pay off the highest interest cards first

    The high interest cards are the ones that cost you most in the long run since interest payments can financially ruin you by themselves. If you have one card at 25% and another at 15%, you make only your minimum payments on the 15% card and put all your resources into eliminating that 25% one as soon as possible.

    This is probably the best long-term financial strategy if you consider debt in a vacuum, but raising your credit score in and of itself gives you several opportunities to become financially stronger, which could give you a better chance of getting out of debt more quickly.

    Strategy B: Pay off the cards closest to their limits
    This strategy is designed to provide an immediate boost to credit scores. As you get closer and closer to your credit limit on a card, your score drops lower and lower. The idea, then, is to start with a card approaching the limit or at the limit and pay that one down until it is beneath the amount owed on another card.

    For example, if one card has a $3000 and you owe $2800, start paying that one before you pay the one that owes $500 on a limit of $2000. Essentially, you are just prioritizing the ones that are close to the limit.

    Once you get a card comfortably beneath its limit, then move on to another card.

    Keep in mind that even reducing your balance to one-third of your credit limit will increase your credit score significantly.

    #2: Continue Using Older Cards

    A good credit score is about a well established history. So, the longer you use a card, the higher your score will be. Use your oldest card for purchases and then pay it off before you have to pay interest. Even doing this for $100 a month will add ten or so points onto your score in no time.

    #3: Avoid Heavy Spending

    Even if you pay it off very quickly, filling up a large chunk of your credit card limit will really hurt your score.
    Charge lightly, not heavily.

    Credit bureaus look at your monthly spending, so even if you pay it off, they see how high or initial balance is and will hit you right where it hurts: your credit score.

    #4: Correct credit report errors

    Credit scores are mainly determined by your credit report. Credit reports contains data that is used to calculate the score and it may sometimes contain inaccuracies. A recent report proved that there were inaccuracies found in the credit reports of 40 million Americans, which can create huge problems for loan applicants. If you have not, request a copy of your credit report to insure there are no late payments listed incorrectly and the amounts owed for every account are correct. If you find any errors, dispute them with the credit bureau. If you clear up mistakes from your credit report, it can lead to a huge boost in your credit score.

    #5: Pay your bills on time

    Making your bill payments on time is one of the major contributing factors to your credit score. Some lenders offer payment reminders by sending text messages or emails when the payment is due. You can also enroll in automatic bill pay where payments are automatically debited from your bank account.

    #6: Pay your bills twice a month

    You may think that paying your card every month even if it is maxed out is a good thing. The problem with this is that lenders only report balanced to the credit bureau once a month. Therefore, if you run up a big balance, it will look like you are overusing your credit.

    To alleviate this problem, make one payment before the closing date and the second before the due date. The first reduces the balance that the credit bureaus see and the second ensure that you do not pay a late fee.

    #7: Increase your credit limit

    Increasing your credit limit can make a drastic changes in your credit score. After all, a credit score is just a formula used to figure out your credit paying capabilities. One of the parameters is your credit utilization percentage. For example, if you have a credit limit of $10,000, but only use $5,000 a month, then your credit utilization percentage is 50%. If you ask for an increase in your credit limit and get it increased to $20,000, while still only using $5000 a month, your credit utilization percentage will be 25%.

    Improving your credit utilization rate will definitely help your credit score. Call the creditor and request a credit limit increase. However, if you get a limit increase, make sure you don’t spend any of the new credit, or it won’t help your score at all.

    

    Online Personal Loans Up To $3,000. Even if you’ve filled out their online form and received an offer from one of their lenders, you are not obligated to accept any offer if it doesn’t work for you.

    Max loan amount:
     $3000
    Min Credit Score:
    Age:
     18 years
    A good personal loan:

    – Fill Out a Simple Form
    – Get Connected with a Lender
    – Money is Deposited Directly

    Payday Loans up to $1,000. You will be connected with one lender and receive your loan decision. Super easy!

    Max loan amount:
     $1000
    Min Credit Score:
    Age:
     18 years
    A good personal loan:

    – Fill Out a Simple Form
    – Get Connected with a Lender
    – Money is Deposited Directly

    You are more than your credit score. On Upstart your education and experience help you get the rate you deserve.

    Max loan amount:
     $50000
    Min Credit Score:
     620
    Age:
     18 years
    A good personal loan:
  • Good for those with little credit history
  • Origination fee: 1% to 6% of loan amount, depending on borrower’s grade
  • Late fees: Greater of $15 or 5% of payment amount
  • Personal-check processing fees: None

    • Are you paying more than 10% interest on your credit cards? SoFi Personal Loans could help you save thousands. With low personal loan interest rates and a fixed monthly payment, you can get loans to pay off credit cards, pay off high interest debt, or make a major purchase. It only takes minutes to apply.

    Max loan amount:
     $100000
    Min Credit Score:
     0
    Age:
     18 years
    A good personal loan:
  • Good for those with little credit history and high income
  • No origination fee
  • SoFi offers networking events and career development advice to borrowers
  • Late fees: 4% of payment due or $5, whichever is lower
  • Personal-check processing fees: None

    • Loans for your life. Consolidate your high interest loans and save. Although that you can’t borrow your way out of debt, consolidating all of your high interest loans into one debt consolidation loan through Prosper could save on the amount of interest you’re charged each month.

    Max loan amount:
     $35000
    Min Credit Score:
     640
    Age:
     18 years
    A good personal loan:
  • Suitable for those with good credit profiles
  • Origination fee: 1% to 5% of the loan amount, depending on the borrower’s Prosper grade
  • Late fees: Greater of $15 or 5% of the payment amount
  • Personal-check processing fees: None

    • Fill out a 5-minute application and have funds directly deposited into your checking account as early as the next day.

    Max loan amount:
     $25000
    Min Credit Score:
     600
    Age:
     18 years
    A good personal loan:
  • Ideal for borrowers with average credit who want to complete the process online
  • Origination fee: Varies, but typically 5% of loan amount
  • Late fees: Varies by state

    • Using a personal loan to pay off credit card debt

    /in /by

    Learning how to pay off credit card debt is one of the best things you can do for yourself and your family. Once your credit card debt is paid down, your quality of life will increase since you won’t have to worry about bills, calls from debt collectors or a poor credit score. Here are some tips for the best ways to accomplish your goal of learning how to pay off credit card debt:

    Debt Reduction Tips Anyone Can Follow

    1: Develop a plan that allows you to pay off your debt. For example, you should pay down the debt with the highest interest rate first, paying as much as possible off on that card before moving on to the next (when the original card is paid off). Keep up on all cards by paying the minimum except for the highest interest rate, which you will pay the most on.

    2: Balance transfers can be a big help. If you get a credit card offer with a 0% introductory period for balance transfers, look at your budget and figure out how much you could spend on that each month in a realistic context. Move enough from your highest interest rate card to the balance transfer card to exactly match that payment schedule, and run that debt down.

    3: Consider borrowing against your home. This tip for how to pay off credit card debt is one you should think closely about. If you have equity in your home, you could take out a loan from the home and use the proceeds to pay down your credit cards. If you do this, you must commit to not having this amount of debt again since it could allow you to end up with twice as much debt and therefore twice as much trouble. On the other hand, if you can control your spending, you could pay off credit card debt quickly and very affordably in this manner.

    4: Spending habits are important. If you don’t make a monthly budget, do it now. Do it for three months, and tally up every penny you spend. You’ll see how much you’re spending on credit cards, and on things that are invisible leeches on your funds, like getting your morning latte. Four dollar cups of coffee add up to significant money over a typical work month. You should still leave room for some fun items in your budget though; otherwise, you’ll splurge on something you shouldn’t do and undo most of the good you’ve done. Good spending habits will whittle down debt quickly.

    5: Evaluate your options. One potential option is consumer credit counseling. Sometimes, you might have dug yourself in so deep that there’s no easy way out. Learning to pay off credit card debt might take more than you can handle at the moment. Consumer credit counseling can help. They can teach you how to better manage your spending and budget, they can intervene and get you balances, and interest rates adjusted, or spread out your payment timescales, or even get a consolidation loan to reduce your monthly payments to a sustainable level.

    A critical skill many people have to learn is how to pay off unsecured credit card debt. It’s a commitment to making a better life for yourself and for your children. Once you’ve made the commitment, you’ll be surprised at how quickly the benefits come to you, and eventually, you’ll live your life debt free.

    

    Online Personal Loans Up To $3,000. Even if you’ve filled out their online form and received an offer from one of their lenders, you are not obligated to accept any offer if it doesn’t work for you.

    Max loan amount:
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    Min Credit Score:
    Age:
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    A good personal loan:

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    – Money is Deposited Directly

    Payday Loans up to $1,000. You will be connected with one lender and receive your loan decision. Super easy!

    Max loan amount:
     $1000
    Min Credit Score:
    Age:
     18 years
    A good personal loan:

    – Fill Out a Simple Form
    – Get Connected with a Lender
    – Money is Deposited Directly

    You are more than your credit score. On Upstart your education and experience help you get the rate you deserve.

    Max loan amount:
     $50000
    Min Credit Score:
     620
    Age:
     18 years
    A good personal loan:
  • Good for those with little credit history
  • Origination fee: 1% to 6% of loan amount, depending on borrower’s grade
  • Late fees: Greater of $15 or 5% of payment amount
  • Personal-check processing fees: None

    • Are you paying more than 10% interest on your credit cards? SoFi Personal Loans could help you save thousands. With low personal loan interest rates and a fixed monthly payment, you can get loans to pay off credit cards, pay off high interest debt, or make a major purchase. It only takes minutes to apply.

    Max loan amount:
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    Min Credit Score:
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    Age:
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    A good personal loan:
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  • SoFi offers networking events and career development advice to borrowers
  • Late fees: 4% of payment due or $5, whichever is lower
  • Personal-check processing fees: None

    • Loans for your life. Consolidate your high interest loans and save. Although that you can’t borrow your way out of debt, consolidating all of your high interest loans into one debt consolidation loan through Prosper could save on the amount of interest you’re charged each month.

    Max loan amount:
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    Min Credit Score:
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    Age:
     18 years
    A good personal loan:
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  • Origination fee: 1% to 5% of the loan amount, depending on the borrower’s Prosper grade
  • Late fees: Greater of $15 or 5% of the payment amount
  • Personal-check processing fees: None

    • Fill out a 5-minute application and have funds directly deposited into your checking account as early as the next day.

    Max loan amount:
     $25000
    Min Credit Score:
     600
    Age:
     18 years
    A good personal loan:
  • Ideal for borrowers with average credit who want to complete the process online
  • Origination fee: Varies, but typically 5% of loan amount
  • Late fees: Varies by state

    • The ABCs of borrowing money

    /in /by

    Amortization– the paying off of debt with a fixed repayment schedule in regular installments over a period of time for example with a mortgage or a car loan

    APR– Annual Percentage Rate- the interest rate for a whole year (annualized), rather than just a monthly fee/rate, as applied on a loan, mortgage loan, credit card, etc.

    Assets– any item of value that a person owns

    Bankrupt– a financial situation in which a court declares one’s debts to be greater than the total value of one’s assets

    Borrower–  A person or company that has received money from another party with the agreement that the money will be repaid. Most borrowers borrow at interest, meaning they pay a certain percentage of the principal amount to the lender as compensation for borrowing.

    Cash Value– the amount that an insurance policy is worth if canceled before maturity. An insurance company will lend to a policyholder based on his or her policy.

    Co-applicant, Joint applicant, Co-signer– someone who signs a loan with the borrower, thus accepting legal responsibility for paying the debt if the borrower default or does not pay

    Collateral– a property or other asset that a borrower offers as a way for a lender to secure the loan. If the borrower stops making the promised loan payments, the lender can seize the collateral to recoup its losses.

    Cooling off period– a period of time after the loans origination when the borrower may cancel the loan without any penalties, or the period of time that must pass before a borrower is allowed to request a second loan from the same lender

    Co-ownership– joint ownership between two or more persons

    Creditor– lender; one to whom money is owed

    Credit References– people who will recommend the credit applicant as a good credit risk.

    Debt– money owed

    Debt Balance– amount still owed on a debt at a given time

    Default– failure to fulfill the terms of the loan agreement, failure to continue making loan payments

    Dependents– those who rely on a person for support

    Finance Charge– the total cost to use credit, including interest, loan fees, and credit insurance

    Foreclosure– is the legal process by which a mortgagee, or other lien holder, usually a lender, obtains a court ordered termination of a mortgagor’s equitable right of redemption

    Interest– the amount paid for the use of borrowed money

    Interest Rate– the percentage of the principal that a borrower pays for the use of borrowed money

    Lender– an individual, a public group, a private group or a financial institution that makes funds available to another with the expectation that the funds will be repaid, in addition to any interest and/or fees.

    Liabilities– financial obligations, or money owed

    Long-Term Loans– Loans for larger purchases, such as a home or a car

    Mortgage– a loan for purchasing real estate. If the borrower does not repay the loan according to the terms of the contract, the lender can legally force the sale of property to pay off the loan.

    Mortgage Holder– person or institution that made the mortgage loan

    Payment amount–  The amount a borrower must pay in full each due date

    Payment due date– The date a borrower is required to make a payment toward the balance of their loan

    Personal Loans– short-term or intermediate-term loans that are relatively small

    Principal– the original sum of money borrowed in a loan, or the part of the amount borrowed which remains unpaid (excluding interest), here also called principal amount.

    Proceeds– the amount of money a borrower receives from the loan

    Real Estate– land and property attached to the land

    Repayment term– The period of time in which a borrower must repay the money borrowed

    Repossess, Reclaim– to take back what was sold on an installment plan or loan if payments are not made as agreed

    Secured loan– a loan in which the borrower pledges some asset (e.g. a car or property) as collateral for the loan, which then becomes a secured debt owed to the creditor who gives the loan

    Securities– stocks and bonds

    Unsecured loan– a loan that is issued and supported only by the borrower’s creditworthiness, rather than by any type of collateral. An unsecured loan is one that is obtained without the use of property as collateral for the loan, and it is also called a signature loan or a personal loan. Borrowers generally must have high credit ratings to be approved for certain unsecured loans.

    

    Online Personal Loans Up To $3,000. Even if you’ve filled out their online form and received an offer from one of their lenders, you are not obligated to accept any offer if it doesn’t work for you.

    Max loan amount:
     $3000
    Min Credit Score:
    Age:
     18 years
    A good personal loan:

    – Fill Out a Simple Form
    – Get Connected with a Lender
    – Money is Deposited Directly

    Payday Loans up to $1,000. You will be connected with one lender and receive your loan decision. Super easy!

    Max loan amount:
     $1000
    Min Credit Score:
    Age:
     18 years
    A good personal loan:

    – Fill Out a Simple Form
    – Get Connected with a Lender
    – Money is Deposited Directly

    You are more than your credit score. On Upstart your education and experience help you get the rate you deserve.

    Max loan amount:
     $50000
    Min Credit Score:
     620
    Age:
     18 years
    A good personal loan:
  • Good for those with little credit history
  • Origination fee: 1% to 6% of loan amount, depending on borrower’s grade
  • Late fees: Greater of $15 or 5% of payment amount
  • Personal-check processing fees: None

    • Are you paying more than 10% interest on your credit cards? SoFi Personal Loans could help you save thousands. With low personal loan interest rates and a fixed monthly payment, you can get loans to pay off credit cards, pay off high interest debt, or make a major purchase. It only takes minutes to apply.

    Max loan amount:
     $100000
    Min Credit Score:
     0
    Age:
     18 years
    A good personal loan:
  • Good for those with little credit history and high income
  • No origination fee
  • SoFi offers networking events and career development advice to borrowers
  • Late fees: 4% of payment due or $5, whichever is lower
  • Personal-check processing fees: None

    • Loans for your life. Consolidate your high interest loans and save. Although that you can’t borrow your way out of debt, consolidating all of your high interest loans into one debt consolidation loan through Prosper could save on the amount of interest you’re charged each month.

    Max loan amount:
     $35000
    Min Credit Score:
     640
    Age:
     18 years
    A good personal loan:
  • Suitable for those with good credit profiles
  • Origination fee: 1% to 5% of the loan amount, depending on the borrower’s Prosper grade
  • Late fees: Greater of $15 or 5% of the payment amount
  • Personal-check processing fees: None

    • Fill out a 5-minute application and have funds directly deposited into your checking account as early as the next day.

    Max loan amount:
     $25000
    Min Credit Score:
     600
    Age:
     18 years
    A good personal loan:
  • Ideal for borrowers with average credit who want to complete the process online
  • Origination fee: Varies, but typically 5% of loan amount
  • Late fees: Varies by state