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The best lenders for bad credit of May 2022

You may think finding a loan if you have bad credit is a massive uphill road to climb, and while it isn’t easy, we have the best starting points for your search.

In assembling this list, we only considered lenders willing to make loans to people with credit scores below 600, or credit that’s considered “very poor,” or on the low end of “fair,” according to FICO. Since many lenders require higher credit scores than that to borrow, that narrowed the list considerably.

This list doesn’t include many big, national banks like Chase or Bank of America, simply because their credit score requirements are typically above 600.

Since lenders prefer to work with people who have good or excellent credit, they usually offer higher interest rates to applicants with lower scores. Getting a loan when you have bad credit can be difficult and the terms can be less than ideal, but sometimes it’s the best — or only — option available.

Here are the companies offering the best loans to people with bad credit right now.

Avant: Best personal loan

Interest rates: Avant Personal Loans

Minimum credit score: 580

Minimum loan amount: $2,000

Why it stands out: While many other lenders only offer personal loans to those with the best credit scores, Avant offers personal loans to those with a minimum credit score of 600. Avant makes them available to many more borrowers, even those with lower credit scores. The online lender offers personal loans up to $35,000.

What to watch out for: An administrative fee of 4.75% adds to the cost of borrowing. In general, personal loans have higher interest rates compared to other types of borrowing. This is true for any company offering personal loans, not just Avant. 

Read Insider’s full review of Avant. 

Other personal loan companies we considered:

LendingClub: This popular online peer-to-peer lender has APRs similar to Avant, but has no clearly defined credit score minimum and potentially a higher origination fee ranging from 2% to 6%.

OneMain Financial: Interest …read more

Source:: Business Insider

      

The best loans for people with bad credit of May 2022

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