Best Low-Interest Loans for Bad Credit

Personal Loans

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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  • Loan Amount
    Up to $5,000
  • Loan Term
    Varies
  • APR
    Varies

Features & Benefits

  • Application takes less than 5 minutes
  • Get a decision on your loan within minutes
  • Funds are available within 24 hours
  • Trusted by more than 2,000,000 borrowers

MoneyMutual is an online marketplace of lenders. They make it quick and easy to find a short term cash advance loan in as little as 24 hours.

One application can potentially get you multiple loan offers. MoneyMutual has been trusted by more than two million customers. They serve borrowers with bad credit from all 50 states except New York and Connecticut.

CashUSA

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Features & Benefits

  • Flexible borrower requirements
  • Loan request can be approved within minutes
  • Money deposited as early as 1 business day
  • All credit types accepted

CashUSA connects borrowers with lenders. Each application is sent to the lender most likely to lend to the borrower. Because it works with a variety of credit profiles, it is not only a poor credit loan broker.

Interest rates vary depending on the lender, so make sure you read through the terms for each emergency loan before you choose. Applying online only takes a few minutes, and funds are often available the next day.

BadCreditLoans.com

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  • Loan Amount
    $500 – $10,000
  • Loan Term
    3 – 60 months
  • APR
    5.99% – 35.99%

Features & Benefits

  • No cost to check loan approval
  • High approval rate despite credit history
  • Funds available as soon as next business day
  • Assisting people with bad credit since 1998

Bad Credit Loans is an online lender marketplace that allows you to connect with multiple lenders by filling out a single application. The service is 100% free.

Once you’re approved, your lender will provide you with the APR, loan fees, and other terms. Read through the terms, compare all the offers you’ve received, and only accept the loan you’re most comfortable with. You are not obligated to accept the personal loan from any lenders that you are matched with.

Credit Loan

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  • Loan Amount
    $250 – $40,000
  • Loan Term
    Varies
  • APR
    Varies

Features & Benefits

  • Funds deposited directly into your account
  • Get money as soon as the next business day
  • Loans for poor credit or good credit
  • More than 750,000 customers since 1998

CreditLoan works with many borrowers to find the best match for their situation. Although CreditLoan is not a direct lender, the platform can help you find a lender that is willing to work with you.

With CreditLoan, you might be able to secure a small loan to cover your needs. The company is generally successful in finding a lender match. With over 750,000 loans funded by CreditLoan, you have a great shot in finding the perfect match.

Avant

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  • Loan Amount
    $2,000 – $35,000
  • Loan Term
    24 to 60 months
  • APR
    As low as 9.95%

Features & Benefits

  • Fast approval
  • Funds available next business day
  • Trusted by over 600,000 satisfied customers
  • No prepayment fees

Avant is a direct lender that specializes in borrowers with bad credit. Loans are frequently used to consolidate debt, but Avant’s shorter-term loans also work for financial emergencies.

Most users report an average of a 12-point increase in their credit score within six months of taking out a loan. An installment loan that reports to the credit bureaus can be an effective way to repair your credit each month.

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 can typically 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 an auto loan with bad credit, then check out some of your best options below.

Carvana

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  • Loan Amount
    1,000 – $100,000
  • APR
    3.90 – 27.90%
  • Loan Term
    Varies

Features & Benefits

  • Minimum Credit Score: 450
  • Application process 100% online
  • Get pre-qualified with a soft credit check

Carvana saves you time by allowing you to get preapproved for financing before you even start searching for a vehicle. It takes just 2 minutes to get preapproved on their site and this has no effect on your credit.

While there is no minimum credit score to qualify you for a loan, you must choose a vehicle from Carvana’s inventory. Once you receive your financing rate from Carvana, it’s good for 45 days.

Auto Credit Express

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  • Loan Amount
    $20,000 – $45,000
  • APR
    3.99% – 29.99%
  • Loan Term
    Varies

Features & Benefits

  • Minimum Credit Score: 400
  • Helps car buyers who have low credit scores, bankruptcies, or repossessions.
  • Allows cosigners

Auto Credit Express has been issuing bad credit auto loans since 1999. They work with a network of dealer partners to help you find an auto loan quickly. You can find auto financing even if you’ve filed for bankruptcy in the past or have no credit history.

To qualify, you must have a full-time job and earn at least $1,500 per month. You can submit a prequalification form online in as little as 30 seconds. Same day approval is available for a loan.

Keep in mind that Auto Credit Express will match you with a local lender after shopping around to help you find the best financing deal. They also won’t work with any private sellers so you must consider financing a car from a dealer or legitimate car lot.

Car.Loan.com

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  • Loan Amount
    $7,500 – $45,000
  • APR
    3.0 – 25.00%
  • Loan Term
    36 – 72 months

Features & Benefits

  • Help individuals with little to no credit
  • No monthly income requirements
  • Get approved in less than 30 minutes

Car.Loan.com offers fast and easy approvals if you’re looking to finance a car with bad credit. They’ve teamed up with the nation’s largest network of auto dealers who are trained in special finance.

The online application only takes 3 minutes to complete and same-day approval is available. There is no minimum credit score requirement. However, each lender has their own requirements, so your dealer options may vary.

Still, this is a solid option to consider since Car.Loan.com is geared toward borrowers with bad credit or no credit history.

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 loan.

A final option is to seek 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.

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.