Although it may seem like a three-digit number that has no impact on your life, your credit score can dramatically affect your financial position. Bad credit can lead to big financial consequences.

As you seek out new loans with bad credit, you may find that you are stuck with higher interest rates and less favorable terms. However, different lenders have the ability to offer different terms that could reduce the burden of your bad credit. With that, it is incredibly important to shop around for the best possible rates.

We will take a closer look at some of the best options available for you if you are seeking out a loan with bad credit.

Personal Loan Options for Low Interest Rates with Bad Credit

Personal loans are known for high interest rates when you have a bad credit score. In fact, it is not uncommon for your interest rate to be above 30% for this type of loan. And that’s if you can even qualify for a personal loan with bad credit.

However, you still have options. Consider the following options below as you seek out a personal loan with bad credit.

MoneyMutual

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on MoneyMutual's secure website

Loan Amount

Up to $2,500

Loan Term

Varies

APR

Varies

With MoneyMutual, you can fill out an online application in less than 5 minutes and receive your decision almost immediately.

If you are approved, then you can secure your funds as quickly as 24 hours. The focus of this company is short-term loans. With that, it may not solve a major financial crisis, but it can tide you over until your next paycheck.

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CashUSA

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on CashUSA's secure website

Loan Amount

$500 - $10,000

Loan Term

6 to 72 months

APR

Varies

CashUSA is an online lending portal. After you select your pertinent details, the service can match up with their lending partners. Although the income and credit requirements are fairly flexible, you will need to bring in at least $1,000 after taxes in order to qualify.

If you are matched to a lending partner, then you could receive funding as quickly as the next business day. With the wide range of funding available, you may be able to find a match that can help to solve your immediate financial problems.

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BadCreditLoans.com

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on BadCreditLoan.com's secure website

Loan Amount

$500 - $5,000

Loan Term

3 to 60 months

APR

Varies

BadCreditLoans.com is another online lending marketplace that will help match your situation to the best lending partners. After filling out one application, your details will be shared with many lenders to find the best possible match.

The company has a high rate of approval for borrowers with a wide range of credit histories. It could be the perfect place to look for a personal loan with reasonable terms.

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Credit Loan

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on Credit Loan's secure website

Loan Amount

$250 - $40,000

Loan Term

Varies

APR

Varies

CreditLoan works with a variety of credit scores to fund borrower’s needs. However, if your credit score is below 630, then you will only be able to qualify for loans within a range of $250 to $5,000.

CreditLoan is not a lender, but it can help you find a lender that is willing to work with you. Generally, they are successful at finding a match. In fact, over 750,000 loans have been funded with the help of CreditLoan since 1998.

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Avant

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on Avant's secure website

Loan Amount

$2,000 - $35,000

Loan Term

24 to 60 months

APR

As low as 9.95%

Avant is a lender that works specifically with borrowers that have bad credit scores. Typically, the borrowers are using large personal loans to consolidate debt. However, it is possible to secure a smaller, short-term loan that will help you survive a financial emergency.

After taking out a loan with Avant, most borrowers report an increase in their credit scores. In fact, the average increase is 12 points in the first 6 months. If you choose to repay your loan with Avant early, you will not be required to pay a prepayment penalty.

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Auto Loan Options for Low Interest Rates with Bad Credit

An auto loan is a type of debt that is secured by your car. Since the loan is secured by your vehicle, you are typically able to secure lower interest rates even with bad credit. However, bad credit car shoppers should still expect higher than average interest rates.

If you are seeking out an auto loan with bad credit, then check out some of your best options below.

CarsDirect

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Loan Amount

Loan Term

APR

CarsDirect works with borrowers that have bad credit scores. With a brief application, you will be connected with dealers that are willing to work with you within 24 hours. After being matched with a deal, you can shop for new and used cars at that dealership based on the financing plan they offer you.

If you have a credit score below 640, then you would be an average customer at CarsDirect. Even if you have a recent bankruptcy, CarsDirect can help you get on the road. They are experienced in helping people like you find a car with the financing you need.

Auto Credit Express

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on Auto Credit Express's secure website

Loan Amount

Varies

Loan Term

Varies

APR

3.99% - 29.99%

Auto Credit Express is a company that helps consumers get into a car regardless of their credit score. If you have no credit, bad credit, or a bankruptcy, then Auto Credit Express may be able to help you secure an auto loan. Even if you are looking for an older vehicle with high mileages, Auto Credit Express can help you find a loan.

You may only need to put down between 0 and $500 to secure your loan. However, you will need a monthly income of at least $1,500. The application process will dial into your employment status, but it only takes three minutes to complete the entire application.

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car.Loan.com

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on car.Loan.com's secure website

Loan Amount

Varies

Loan Term

Varies

APR

Varies

Whether you have no credit or poor credit, car.Loan can help you get into a vehicle. Although car.Loan is not a lender, it can match you with lenders that are willing to work with you. You can be pre-approved online before you head to the car lot to start shopping.

After filling out the application, you may receive your approval in as little as 24 hours. So you can start car shopping ASAP.

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Mortgage Options for Low Interest Rates with Bad Credit

If you have bad credit, then you will have trouble finding a lender that is willing to fund your home purchase. Additionally, you may have a difficult time receiving an affordable interest rate.

When you are buying a home, the interest rate can make a big difference over the long-term. Since home loans are secured by the property you purchase, the interest rates are typically much more affordable than some personal loans. However, the costs of a higher interest rate can add up quickly over a 30-year mortgage term.

Take a look at some of your best options for a low interest home loan with bad credit.

LendingTree

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Apply Now

on Lending Tree's secure website

Loan Amount

Varies

Loan Term

Varies

APR

Varies

LendingTree is not a direct mortgage lender. However, the company can help you find the best mortgage offers for your situation in a single application. With a quick online process, you can find up to five mortgage offers from different lenders at one time.

Even if you have bad credit, LendingTree can help you find the best lender for you. Plus, you be able to compare multiple offers in a single application.

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CitiMortgage

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Loan Amount

Loan Term

APR

CitiMortgage offers home loans to borrowers with a wide range of credit. Although the home loans must be for houses that are in good shape, you may be able to secure your dream home with affordable financing.

Even if your traditional credit score is less than stellar, CitiMortgage considers other nontraditional credit types. For example, they may factor in that you always pay your rent on time.

A final positive feature of CitiMortgages is that they don’t require a large down payment. You can put down just 3% of the purchase price to avoid paying private mortgage insurance.

How to Secure a Lower Interest Rate with Bad Credit

If you have a bad credit score, then it will be more difficult to obtain favorable financing. However, it is not impossible to find a good deal.

If you want to qualify for better terms, then you should work to improve your credit score. You can start by paying down your high interest credit card debt. Another option is to offer collateral for your loan. For example, if you increase the size of your down payment then you might qualify for a better interest rate on your home loan.

A final option is to seek out a cosigner with good credit. Generally, a cosigner is a family member or friend that is willing to sign on your loan. If you default on the loan, then they agree to repay it for you. Before you ask this of a friend, consider the potential for a strained relationship. Nothing is worth jeopardizing your relationships, so make sure to think about this option before moving forward.

The Bottom Line

Bad credit can lead to tangible financial impacts. You may find that you have to pay more in fees and interest than borrowers with good credit scores. At some point, you may want to consider improving your credit score. Start by getting a handle on your debt and making on-time payments. You might be surprised at how quickly you can build a better credit score.