Bad Credit Lenders

If you have ever tried to get loans for people with bad credit, you already know that while there are lenders that offer relatively lower interest rates and flexible payment terms, there are also so-called bad lenders who will only lend you money if you pay an interest rate that is in the realm of ultra-high typically  30%. But here’s something we would like to share with you – there are actually lenders out there that would be willing to give you lower interest rates, to meet you halfway so to speak, provided you meet certain conditions. And what are these conditions? Read below to know.

Loans for people with bad credit are for people with low credit scores. While there’s disagreement on how low of a score constitutes a bad credit, there is no doubt on what constitutes a low credit score. If you have a credit score of less than 640, you have a low credit score and for some lenders, you have bad credit. But the good thing about is that there are lenders who would be more than willing to meet you halfway. If you have a credit score of 540 and above, you will find lenders like Avant that offer APRs that start at 9.95%  for their borrowers. But Avant is not the only lender out there that will meet you halfway. There are lenders out there that will charge you lower interest rates if you have a relatively higher credit score among the people with bad credit. The only thing you need to is to look for them online. And when you do find them, make sure to compare their interest rates and their terms and conditions.

Bad Credit Lenders

But even if your credit score is below 540, you can still find a lender that will meet you halfway if you have something in the way of collateral. In general,the higher the value of your collateral,the higher the loan amount and the lower the interest rate. But if the collateral is your house, you would be better off getting a bank loan rather than go for bad credit loans.

Aside from lenders that offer secured and unsecured loans, you also have an option in peer-to-peer lenders. What are peer-to-peer lenders? They are people that are willing to lend money to other people. The best thing about P2P lenders is that the interest rates and terms of payment are negotiable, however, you may not able to get the full amount that you need. This really isn’t surprising considering that the lenders at P2P loan sites are people, and they would more averse to lending money to people with low credit scores.

In any case, even if you’re down to your last option, you need to make sure that you will be getting a reasonable interest rate and terms of payment by getting a quote from at least three lenders. Don’t just compare their interest rates, also compare the terms of their loan.