Personal Loans aren’t a fun topic. When you take out one, you are essentially giving yourself a boatload of debt that could take years to pay off.
Shit happens though, and with that, we’ve worked with the best personal loan services online. Here are some intriguing personal loan apps that you should consider when applying for a loan, even if you have bad credit, or if it’s a stupid project like adding LED lighting to your toilet.
How to Get a Personal Loan with a Poor Credit Score
When loans are needed to pay certain things like Medical Bills or other significant life events, it’s nice to have a good credit score. But what about for people with bad credit? Are there loans out there for them? Well, it depends on the loan provider of course. Credit scores are provided to show if you could pay off debt previously. People who have never even tried a credit card or loan will likely have a bad credit score. It’s the chicken or the egg theory but with a credit score.
Check Your Credit Score First
There are a few ways to get a credit score. We’ve partnered up with Credit Sesame to provide you a free score with a sign-up. You’ll need some personal information like a Social Security number, as this is how most bankers and institutions identify your previous records. Here are the general rules when it comes to how good your credit is:
- 400 – Poor
- 500 – Poor
- 600 – OK
- 700 – Great
- 800 – Awesome
You Can Get a Loan EVEN with Bad Credit
So you’ve found out you don’t have that high of a credit score. It’s OK. There are so many ways of improving your score, but one thing is for sure: It will take time to rebound. Some have claimed to increase credit scores rather quickly, and it’s certainly possible, but you’ll need to pay off debt. Think of debt being the goal in hockey. If you’ve paid off the debt or “scored on the goalie,” you’ll receive a point.
If you need a loan now, there are a few options. One we recommend is using a service called EVEN. By applying through EVEN you’ll be sending your application out to several personal loan providers like Best Egg, Prosper.com, Payoff, and Lending Club (a few others). In doing this, you’ll open up more opportunities and spend little time and effort applying to institutions.
Why a Personal Loan may be of interest
Loans are borrowing money. Plain and simple. However, for life’s many choices and burdens you’ll likely encounter expenses that far exceed what you may currently have in your bank account. For example, when you finance a car, you may not have the upfront costs to pay for the car outright. A loan may be a good option. Here are some other examples of significant expenses:
- Debt Consolidation
- Car Loans
- Student Financing
- Home Improvements
- Wedding and large events
What are your options for a lender?
Receiving a loan does require a few things. For one, you’ll need to have a decent credit score. That means, over time you have been responsible when paying back approved loans before, or you have paid credit card balances on time. Credit scores are essential in financing, and if you are new to the concept, try a secured credit card first to get your credit score up. If you have decent credit, you are ready to apply. However, there are no restrictions on credit requirements for an application. Visit our partner page at EVEN Financial for more info.
What does EVEN do and how does it help me?
EVEN has worked with the web’s top lenders including, for example, Prosper.com, a well respected and funded operator. With several other reputable options, place your information on our EVEN partner page, and this will be sent to the loan operators, you’ll then have them compete against each other for the best loan rate that fits your needs! What a fantastic concept and deal!
Remember, when you submit your information, you’ll be fielding offers, but the deal isn’t official until you sign. Your credit score may be affected, but you won’t be obligated to pay until the deal is done on both ends…so no worries in collecting more offers.
Still Not Approved? Try Credit Counseling!
Many people have had debt and credit issues, so no worries! There are many credit and debt counseling companies that will help you get on the right track in not only improving your credit score but overall financial outlook. Try our partner Debt.com (Consolidated Credit) for more information there.
Peer to Peer Marketplaces
Have faith in other’s ability to pay off loans? Take advantage with Peer to Peer Lending options. Quite simply: Get a Loan and other People Will Invest In It.
This can be done through multiple solutions including, Lending Club and Prosper. With these two options, you’ll be able to see a wide array of loans.
On the investment side, you can invest in different portions of loans, like investing $25 in one loan and, another $25 elsewhere. The lower the credit rating, the higher investment return, but also the greater risk.
Which one should you use?
Both options are reputable when it comes to the P2P side of things, but if you prefer to help people with their projects, educational pursuits, and a bit more personal touch Prosper is the place for you. If you prefer a wider selection of both borrowing and investment options, Lending Club is the solution for you.
Peer to Peer Apps
There are several Peer to Peer options starting to open, given that the lender comes from people themselves and not banks. Here are some other options:
Real estate also offers a similar investment opportunity with Peer to Peer Mortgage Investing. You’ll find more info here.
What About Prosper.com
Prosper is a peer-to-peer lending website, which means that the site allows people to borrow and lend money from anyone. One of its unique features includes no interception of any bank or other financial institution, yet the loan and investment options are vast and secure.
One great reason investors like to choose Prosper.com is that there are real people involved, and that motivates not only the investor but the loan originator.
However, not everyone is eligible to get a loan, and the approval process for the loan does need several requirements like your employment, and social security for example, but most other loan operators do require this as well.
Prosper works on two different platforms, that is the fractional loan investments and whole loan borrowing platforms. The fractional loan platform is meant for those who are looking for significant investments. You are free to invest in small fractions of loans, and one of its primary advantages is that investors can quickly open an account with a small amount of just25 dollars. By investing in such parts, investors can create their whole portfolio of loans, by taking little fractions of each loan. So basically, you can invest in someone’s loan which could be for wedding expenses, college tuition, and more for just $25+.
Choose Prosper as a Loan or Investment Service
- Minimum Investment— One of its unique advantages is that you can invest with just $25 and your account is opened within seconds. But we recommend you to invest at least $2,300 to be adequately diversified.
- Secondary Market — If you need to undo your investments amounts it can be feasible to do so through the third-party services like Folio Investing.
- Quick Investment — This website has an automated Quick Invest feature, which is a decent option for the beginners also.
- Improved Search Filters — This feature assists you in getting the loans that will best suit your criteria. This is much better than Lending Club’s search, which still has a restricted version of filtering options.
- Previous Prosper Loan History – Anyone can find his prior Prosper history which is statistically useful, and you can keep a close watch on your past so you cannot be easily duped.
- Compact Amount of Diversification — You need only 100 notes (or $2,500) to be adequately diversified.
- No Fixed Increments to Invest — Notes require at least $25 to invest but can be any amount past this minimum, unlike Lending Club in which you invest in $25 increments.
- Be Motivated as a Loan Originator — When you have other’s invest in your loan, you feel empowered extra motivated to pay off the loan
- Competitive Loan Rates — Amongst the best in the Peer to Peer lending space and offering quick approval for those who are eligible
Whether you want to get a respectable loan, we recommend the services above since they are innovative and secure places to get a competitive rate.