If you have poor credit, you are already paying a hefty chunk of interest on any financial product you use. From credit cards to mortgages to personal loans, creditors levy a hefty APR on you. This is especially true when it comes to personal loans. Yet what if you could reduce your overall APR, even if the interest itself is still high? Your APR is more than your interest rate, it also includes any fees that your lender charges you. Guess what? You can reduce those fees when it comes to personal loans, but avoiding some of them all together.
One of the fees you can avoid 100% is the origination fee. The origination fee is the fee that the lender charges for processing and funding your loan. Some personal loan lenders charge as much as a 6% origination fee. You should not have to pay a fee to borrow money on top of the interest your lender is already charging you, and it is bad enough that with poor credit you are already paying a hefty sum of interest. With this in mind, we thought it might be useful to highlight some lenders who work with those with poor credit, yet charge no origination fee whatsoever.
This lender has loan terms of up to 60 months, and a max loan amount of $25,000. They only require a credit score of 550. Their online application only takes mere minutes to fill out, and if you submit all the required documents by either email or fax, your loan can be funded in as little as 24 hours. The down side to this lender is you need to pick up your funds from one of their physical branch locations, so do make sure that there is one near by, before filing out any application with them, as you do not need a hard inquiry on your credit report if it is impossible for you to pick up you funds. This lender has been around for over 90 years, and has a rock solid reputation. The other down side is that with poor credit, you might have a high interest rate with this lender, the APR ranges are 15.99% to 39.99%, someone with a credit score of only 550 can expect to pay that 39.99% which for all intents and purposes is a 40% interest rate. The good news is no origination fee.
This lender is the perfect option if you happen to have a below average credit score. Besides not having an origination fee, their APR ranges are from 16.99% to 35.99%. They also offer generous loan terms, anywhere from 36 months to 6. months They offer loan funding in as little as 24 hours, provided that you can submit your documentation in a timely manner. You only need a credit score of 600 with this lender, and I know they have a high loan acceptance rate. They only allow a max loan of $10,000 however, so if you need more than this you may need to look elsewhere for a loan. OneMain Financial is the online lending branch of CitiBank, so you know you are dealing with a reputable lender with a solid reputation. The downside to this lender is they tend to have a high APR even if you have perfect credit. If you do get a loan through OneMain Financial, do not let them sell you on the various insurance policies they have, as this is for all effects, a rip off.
This lender charges no origination fee on personal loans, and only requires a credit score of 580. The APR range currently sits between 9.95% to 36% APR, with loan terms of up to 60 months, and a minimum of 24 months. What is great about Avant is that you can check your rate without affecting your credit score, making this lender well worth a look, since merely looking will not harm your credit. This lender can fund your loan in as little as 24 hours, via ACH which is a direct transfer of funds to your bank account. They have funded to date over 300,000 personal loans, so this lender has been around for sometime, and 9 out of 10 borrowers would recommend doing business with them. Avant loan amounts range from $1,000 to $35,000.