Do you have bad credit and have difficulty getting a loan? The reason is that you still don’t know about bad credit loans for low-income earners, which are great alternatives, especially for those who have less than 580 points.
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When we think about getting a loan with a low credit history , we are faced with the negative of the banks. However, there are several options on the market, where you get your approval.
We will show you all the bad credit loans for low-income earners, highlighting their interest rates, repayment terms, and additional benefits. In addition to the requirements for its approval. That is, everything you need to know your chances of approval. Let’s go!
4 tips to get a loan even if you have bad credit
First of all, let’s go to the tips you should follow to increase your chances of being approved. Let’s go!
- Check your score: Before applying for the loan, check your credit report, also called a score. You can consult it on Experian. If you have an overdue debt, the chances of being approved decrease. Therefore, we recommend that you pay overdue bills before ordering.
- Have a Guarantor: If possible, find someone with good credit willing to be your guarantor. This drastically increases your chances of approval. Remembering that the guarantor will pay the bill if he defaults.
- Apply for a Smaller Loan: If you have bad credit, avoid applying for a loan that is too large. Instead, try applying for a lower amount, such as a loan-building loan or an option with smaller installments. That way, you will have a better chance of approval;
- Offer Collateral: Collateral loans, whether it’s a car, real estate, jewelry, or other valuables, increase your chance of approval.
5 Main bad credit loans for low-income earners
1. Universal Credit (Bad Credit Loans for Low-income Earners)
Universal Credit has interesting features for those looking for loans with low credit requirements.
The annual interest rate (APR) ranges between 11.69% and 35.99%, depending on your credit analysis.
The loan amount can range from US$ 1,000.00 to US$ 50,000.00 with repayment terms of 36 to 60 months.
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In principle, to be approved, you must have a minimum credit score of 560, which makes this loan affordable for those who have bad credit.
In addition, Universal Credit charges an origination fee of 5.25% to 9.99%, depending on your financial profile.
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You can get the amount on the next business day, which helps if you need the money to pay your bills.
2. One Main Financial
One Main Financial offers loans with an annual interest rate (APR) ranging from 18.00% to 35.99%.
Loans can be utilized for various purposes, including debt consolidation, larger expenses, and emergency costs.
In fact, the loan amount can range from US$1,500.00 to US$20,000.00 with repayment terms between 24 and 60 months.
In addition, the origination fee varies between US$ 25.00 to US$ 500.00 or from 1% to 10% of the loan amount, depending on the state where you live.
An added advantage is the possibility of pre-approval with a soft credit check, with no negative impact on your credit score.
3. Oportun (Bad Credit Loans for Low-income Earners)
Oportun offers personal loans with an annual interest rate (APR) of up to 35.99%, depending on the analysis of your financial profile. This service is ideal for those who need quick cash, for home improvements, deposits and other purposes. Loans range from $300 to $10,000 and have repayment terms between 12 and 54 months.
An important feature of Oportun is that it does not require credit history for approval, which makes this option accessible even for those who have limited or no credit. However, the institution may charge an administrative fee of up to 10% on the principal amount of the loan, depending on the specific conditions of the contract.
A relevant advantage is the absence of penalties for early payment, which offers flexibility for those who manage to pay off the debt before the deadline. However, the late fee varies depending on the terms of the loan, so it is important to check these conditions before signing the contract.
Oportun is a good alternative for those looking for a loan with little bureaucracy and affordable conditions, especially for those who do not have a robust credit history.
4. Upstart
Upstart offers best personal loans for people with low credit, with interest rates (APR) ranging from 7.8% to 35.99%, depending on your score.
As a rule, they are indicated for different purposes, such as:
- Debt consolidation;
- Credit card refinancing;
- Weddings;
- Changes;
- Medical expenses.
As far as values are concerned, you can ask for from US$1,000.00 to US$50,000.00 and have terms of 36 or 60 months.
By the way, even those who have a credit score of only 300 on one of the reports or do not have a credit score at all can be accepted.
Attention! While Upstart does not charge fees for early repayment, it does charge an origination fee of 0% to 12%, depending on the amount of loan requested.
Additionally, if there is a delay in payment, a fee of up to 5% of the amount owed or $15, whichever is greater, will apply.
5. Avant
Avant offers personal loans with an interest rate (APR) ranging from 9.95% to 35.99%, a rate considered average.
In addition, loan amounts range from US$2,000.00 to US$35,000.00 to be repaid in 24 to 60 months.
This loan is a great alternative for those who have bad or fair credit. In addition, Avant has the prequalification with a soft credit check. Through it, you can know if you will be approved without it affecting your credit score.
It is worth noting that Avant does not charge fees for early payment, allowing you to repay the loan ahead of time without penalties.
Conclusion (Bad Credit Loans for Low-income Earners)
Getting a loan even with bad credit and a low income may not be easy. However, as we have seen, there are several alternatives for those who are in a difficult financial situation.
Institutions such as Universal Credit, One Main Financial, Oportun, Upstart and Avant have more flexible credit solutions. Thus, you will have access to the necessary funding for emergencies or important projects.
It is always important to review the terms and fees involved, such as origin fees, balance transfers, late fees, and early payment penalties, to ensure that you do not incur any unexpected costs.
In addition, by choosing the most suitable option, considering your profile and needs, you can obtain a loan that meets your expectations without further harming your financial health.