A final thing to watch out for is the transparency of the lender and the quality of customer service. For this list, we at NextAdvisor ruled out lenders who did not make essential information easily accessible. A lender that is transparent about basic information does not guarantee they’ll be transparent about everything. And a lender that hides important information or appears misleading is never a good sign.
Getting a sense of the quality of customer service before you sign with a lender can also be helpful. The lending and repayment process can be long and complicated, and working with a lender that’s helpful when issues arise can save you a lot of headache in the long run. You can check out customer reviews and complaints – as well as how the company responded to them – on consumer review websites like the Better Business Bureau (BBB).
If you want to increase your credit score to better your chances of getting a loan, here are some ways to do it:
With a secured loan, you put down an asset – such as a house or a car – as collateral, and the lender can seize that asset if you don’t make your payments. An unsecured loan does not require putting down collateral. Unsecured loans are considered riskier for the lender, and because of this, unsecured loans will typically have higher interest rates, lower loan amounts, and stricter credit requirements than secured loans.
Even if you don’t have assets on the line, defaulting on an unsecured loan still has serious consequences. It will seriously damage your credit score, and lenders may take legal action against you.
The amount you can borrow will depend on the lender you choose and your credit application. The loan amount offered by the lenders we included here range from $1,000 to $50,000. In general, the higher your credit score, the larger the loan amount you’re likely to be approved for. The APR you pay on the loan will also vary depending on the loan amount. Larger loan amounts will also typically have longer loan terms.
Having bad credit will make it harder for you to get a loan, but it is possible. All the lenders we included on our list have minimum FICO credit score requirements in the “fair” range, which includes scores from 580 – 669. Keep in mind that the lower your credit score, the higher your APR will likely be. Be wary of payday loans or other predatory lenders who may offer loans to those with poor credit at the cost of extremely high APRs and fees.