Grace Enfield, Content Writer
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To get a small personal loan with bad credit, you will need to focus on lenders such as Upstart, Avant and LendingPoint that offer loans to people with credit scores below 640. You should first check to see if you’re pre-qualified, then compare offers based on APRs, loan amounts, repayment periods and credit score requirements. After that, you’ll need to apply for the loan online, in person or over the phone. Each provider’s application will differ slightly, but they’re generally the same.
How to Get a Small Personal Loan with Bad Credit: 5 Steps
- Check your credit score. Checking your credit score will help you see which lenders you may qualify for, since some lenders will have a credit score requirement of at least 580. You can check your credit score for free on WalletHub.
- Pre-qualify if possible. Some providers allow you to pre-qualify before you apply for the loan. Pre-qualifying tells you if you’re likely to get approved and what your potential rates will be. You can pre-qualify with multiple lenders at once using WalletHub’s free pre-qualification tool. Checking to see if you’re pre-qualified has no impact on your credit score.
- Compare lenders. You should compare the best lenders for people with bad credit based on their personal loan APRs, repayment periods, fees and loan amounts. In addition to banks and online lenders, you should also consider credit unions, which may offer smaller loan amounts.
- Apply for the loan. You may be able to apply for the loan online, in person at a branch or over the phone. You’ll need to give the lender some personal information, like your name and date of birth. You’ll also need to give them some financial information, such as your income and employment status.
- Wait for a decision and funding. Once you apply, you’ll need to wait for a decision. You may receive a decision quickly or it may take a few business days. Then, if you’re approved, the lender will send you the funds by paper check or by bank transfer within a few business days.
After you get your funds, you’ll need to start repaying the loan. This may take several months to a few years to complete.
Lenders Offering Small Personal Loans for Bad Credit
| Lender | Dollar Amounts | Credit Score Required |
| $1,000 - $50,000 | 580 | |
| $2,000 - $35,000 | 580 | |
| $2,000 - $36,500 | 620 | |
| $1,000 - $50,000 | 620* | |
| $1,000 - $40,000 | 600 - 640* | |
| $2,000 - $50,000 | 640 | |
| $500 - $4,000 | None | |
| $2,600 - $10,000 | None |
*According to multiple third-party sources.
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