Getting a loan is not an easy process, especially if your credit score is below 570 marks. Lenders often prefer borrowers with outstanding credit ratings of above 700. But this does not mean there are no easy loans for bad credit.
Before you continue reading, you can check out these top lending platforms that provide easy loans for all credit types. You can do the application process entirely online at the comfort of your home. But before applying, make sure you meet the following criteria;
- You are a legal US resident or citizen, and you are 18 years or older.
- Currently employed or have a steady after-tax monthly income of at least $1200.
- Your Debt-To-Income Ratio shouldn’t be more than 39%. (Debt-To-Income Ratio = Your current debt divided by your gross monthly income).
- You have valuable collateral. (In the case of a secured loan).
- You have a government-issued identification document. (Your ID, or Driver’s License)
- You know your Social Security Number (SSN).
- Lastly, you need an active checking account.
If you meet the above criteria, you can apply for any of these easy loans for bad credit below;
Loan Comparison Table
What is the easiest loan to get with bad credit?
In general, there are two types of loans, secured and unsecured loans. If your credit score is below 570, the easiest loan you could get are secured loans.
With secured loans, you have to use your valuable property against the amount you want to borrow. The lender will use this property as collateral which they will repossess if you default on the repayment. The properties you could use as collateral are; automobile(cars, trucks, boats, and trailers), precious metals (diamonds, gold, etc), your house, and other valuables.
Let’s look at these collaterals and see how much money lenders are willing to lend you.
Automobile:
As previously mentioned, automobiles are assets like your car, boat, trailer, or truck. The loans you could quickly get from these assets are also known as title loans.
The maximum amount you can get for this type of secured loan depends on the automobile’s market value. You should note that the lender checks the current value of your automobile and offer you an amount of no more than 60% of the present value of your asset.
Let’s say you own a car whose current market value is worth $7000. The maximum amount any lender can offer you is $4200. This amount may vary depending on different metrics a particular lender might use.
Although your car is the collateral, you can continue driving the car while repaying the loan. You only have to submit the car title to the lender to get back once you finish repaying the loan. Failure to repay this loan will lead to the repossession of your car by the lender.
Precious Metals:
If you own precious metals like diamonds, gold, or any other valuable germ stone, you can easily get a secured loan no matter your credit score. Depending on the value of a particular precious metal, some lenders could even offer a loan amount of more than 60% of the current value.
The most common place to get a secured loan using precious metals as collateral is a pawnshop. But beware of shady pawnshops who will want to repossess your diamond or gold at all cost. Only use pawnshops that you know or were recommended by a friend or family member.
Precious metals like diamond earrings and gold bars can easily get you a loan even with bad credit. Why should you sit on a $13000 diamond earrings or gold bar if you have an emergency cash situation?
Your House as collateral:
If you already own a house, you can use it to borrow money no matter your credit score. Mortgage loans are the easiest-low-interest secured loans you could ever find. The interest rate is around 2.9% to 5% since lenders consider these loans less risky.
The loan term is usually longer than all other forms of secured loans. Generally, repayment is between 15 to 30 years. So, you have ample time to repay the loan with ease.
You can use your house as collateral to take a secured loan for business financing, home refinancing (take a loan to refinance a current home equity loan). You can also use the loan for any other purpose, but be aware that you can become homeless if you default multiple times.
Unlike other secured loans, you can renegotiate the repayment if you can’t meet up with the current schedule.
Other Valuables:
Another type of secured loan is using other valuables you own as collateral to get the amount you need. These valuables are jewelry, antiques, house whole electronics, expensive branded clothes, furniture, etc.
The interest rate is about 15%, and it is usually a short-term loan. The Loan-To-Value amount you can get with these kinds of collateral is relatively low compared to other forms of collateral. So don’t be surprised if the lender or pawnshop only offers you a loan amount equivalent to no more than 30% of the current value of your collateral.
Unless you have a better high-demand valuable like a Rolex watch, heavy equipment, or machinery, the LTV will be lower.
Other easy loans you can get with bad credit that are unsecured.
Although secured loans are the easiest to get with bad credit, you can also get unsecured loans quickly with poor credit. These are payday loans and small personal installment loans.
With payday loans, you can borrow from $100 to $1000, and the repayment is on your next paycheck. The interest rate is the highest, especially if you have bad credit. But in general, these loans are easy to get.
Other easy unsecured loans to get are small personal loans. You can borrow from $500 up to $10,000 depending on your Debt-To-Income Ratio. Unlike payday loans, you can repay personal loans in installments.
How to get easy loans for bad credit?
Nowadays, getting a bad credit loan is easy. All you need to do is to prequalify using an online prequalification form. You only have to fill out your name, email address, employment status, the amount you need, and why you need the loan.
Once you complete the prequalification form, you will only receive loan offers that are easy to get, no matter your credit score. So you can compare these offers and choose the one that is suitable for you.
Once you have selected an offer, carefully review the terms and conditions before finalizing the process. Make sure you are comfortable with the interest rates, origination fee, and loan term.
Never pay any upfront fee because legitimate lenders will deduct the origination fee from the amount you borrow before crediting your account. So beware of scams out there.
If you want to receive easy loans for bad credit offers, kindly complete the prequalification form below. You will receive tailored offers that you can get as early as tomorrow.
Prequalification Loan Form
Bottom-Line:
Although you can quickly and effortlessly get a loan with bad credit, you won’t get any low-interest offer apart from home loans. Try to gradually repair your credit to get better rates in the future.
If you want to repair and increase your credit score, consider using the following offers below. These offers are specifically designed for building your credit.
Credit repair Loans
