Getting approval for a loan when you have no credit history or bad credit is challenging. Like several other financial products, the borrowers will have to provide for an application for bad credit loans, which lists their income detail. At the same time, you must agree to a credit check before the bank approves your application. This is because the lending institution wants to associate with customers who have a greater likelihood of returning their money in time. But this does not mean that you cannot get a loan if you have bad credit. Although this will keep you from finding loans with decent interest rates, you can still find loans with interests lower than payday loans.

Here are some of the best bad credit loan providers in the market.

LendingClub
It is one of the leading online lenders that can help people with bad credit secure a loan. LendingClub has been around for a while and makes a huge loan volume. They have not explicitly stated their minimum credit score requirement on their online platform. However, if you have a bad credit score, the interest rates applicable for you can be pretty high, ranging from 8.05-35.89%. Also, whatever interest rate is fixed will remain the same throughout the loan term. You will have to bear an origination fee that could be around 3-6% of the approved loan amount. The loan term can be five years or three years, resulting in low monthly payments. With LendingClub, the minimum amount that you can borrow is 1000 USD. However, there are a few downsides associated with LendingClub. First, when you receive the credit for the loan amount, the origination fee is already deducted from it. Second, they have a penalty on late payments – 5% of the loan amount or 15 USD, whichever is greater.

Upstart
Upstart is another one of the best lending agencies for people with bad credit seeking a loan. Over the years, it has developed a reputation for providing people with fair and fast unsecured personal loans. Typically, most of the loan applications are approved based on credit score and years of credit. However, Upstart does not base its decision solely on these two metrics. They also factor in the borrower’s education, study area, and job history. The interest rates chargeable on their loans may vary from one state to another but typically are between 7.68 to 35.99%. You can avail an amount as little as 1000 USD and as high as 50000 USD with them. The loan term can be three or five years.

One of the most significant advantages of availing of a bad credit loan from Upstart is their quick disbursal of the loan amount. In most cases, the proceeds will be credited a day after the approval. Further, Upstart does not have any prepayment penalties.

However, Upstart does have an origination fee, which can be as high as 8% of the loan amount. In addition, there are fees for receiving paper copies of documents, returned check fees, and late payments.

OneMain Financial
With OneMain Financial, you can avail several kinds of loans. From bad credit loans to unsecured personal loans, they have it all. One of the best things about OneMain Financial is that they do not have any minimum credit score requirement. However, the interest charged is high, typically between 18-35.99%. OneMain Financial also charges an origination fee, which varies from one location to another, and ranges from 25-400 USD or 1-10%. The borrowing maximums and minimums also vary by state but can be between 1500-20,000 USD. OneMain Financial can be a good pick for people who appreciate in-person service as they have over 1500 branches located in forty-four states across the country.