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How To Get High-Risk Loans
High-risk loans help people with a bad or poor credit history get much-needed financing without providing collateral. They can help you get extra money for your personal needs when traditional options don’t work. However, these loans usually come with high interest rates, less favorable terms due to the risks lenders take on. All this involves potential risks of getting into a cycle of debt.
We will help you look deeper at high-risk loans and find a suitable option for your situation, check our top and see what companies offer reliable high-risk loans.
Top Loan Offers For High-Risk Borrowers
- Be at least 18 years old
- Prove your US citizenship or permanent residence
- Provide your bank account information
- Show your monthly income by providing pay stubs, tax forms, or bank statements
- Provide an active email address and phone number
- Origination fees up to 12%
- $15 late fee
- $15 NSF fee
- Quick access to loan funds
- No prepayment penalties
- Flexible monthly payments
- Soft credit check when prequalifying
- Flexible loan amounts
- Origination fees up to 12%
- High maximum annual percentage rate
- Co-signers aren’t allowed
- Hard credit checks for final approval
- Limited repayment loan terms
One business day (same-day funding available)
Poor credit borrowers who can’t qualify for traditional personal loans
Upstart is a financial platform that enables borrowers with low credit to get personal loans with flexible payback options. Its key advantage is same-day funding.
Upstart does not do hard credit checks when you prequalify. In addition, customers can apply in the morning and receive their personal loan by the end of the day.
- Quick funding (same-day deposit available)
- Available to borrowers with poor credit
- Soft credit checks when viewing your rate
- Be a U.S. citizen, a permanent resident, or living in the U.S. on a valid visa
- Be at least 18 years old (19 in Alabama and some other states)
- Give a working email address
- Provide valid bank account details
- Confirm a sufficient monthly income to cover your loan payments
- Origination fees: 1.85% to 9.99%
- Late payment fees: $10
- Non-sufficient funds fees: $10 per payment returned
- No prepayment penalties
- Multiple rate discounts
- Next-day funding
- The due date may be changed
- Direct payments for debt consolidation
- APRs may be high
- Origination fees are charged
- Late fees may be applied
As soon as one business day after clearing verification
Fair-credit borrowers who need the money quickly
Upgrade is an online financial service that offers up to $50,000 loans to borrowers with good to fair credit. It provides several interest rate reductions and allows you to add a co-applicant or collateral to your application. Choose it if you need money quickly and are not concerned about relatively high interest rates.
Upgrade offers convenient maximum and minimum loan amounts along with flexible repayment terms. It also accepts fair credit borrowers and provides several interest rate discounts.
- Rate discounts for auto pay, direct payment, and reward checking
- Allows to add a co-applicant
- Mobile app for managing your loan
- At least 18 years also
- Permanent US resident
- Income confirmation
- Valid bank account or debit card.
- Origination fees: 1% to 10%, or $25 to $500, depending on the state
- Late payment fees: $5 to $30, or 1.5% to 15% of your loan amount
- Non-sufficient funds fees: $10 to $50 per payment returned
- Joint and secured loans are available
- Wide range of loan options for low credit
- Pre-qualifying doesn’t affect your credit score
- Convenient options for debt consolidation
- Relatively high interest rates
- Charges origination fees
- APRs are not disclosed when pre-qualify
- Not available in all states
Within one business day of approval via a direct deposit. Funding within several hours may be offered if you receive the funds on your debit card.
Borrowers with credit issues who want to avoid predatory lenders.
OneMain Financial is a reliable financial service that offers personal loans between $1,500 and $20,000 without minimum credit score requirements. With its joint applications, flexible repayment terms, and soft credit checks for pre-qualifying, it can suit borrowers with bad credit. Interest rates are usually high, though.
The company offers a wide range of secured, unsecured, and joint loan options with flexible repayment terms. Its personal loans are available to underbanked borrowers.
- Direct payment to creditors for debt consolidation
- Loan cancellation within 7 days
- Fast funding
- Be at least 18 years old
- Prove your US citizenship or permanent residence
- Live in states the company operates in
- Provide your bank account information
- Show your monthly income by providing pay stubs, tax forms, or bank statements
- Provide an active email address and phone number
- No fees for loan processing, late payments or prepayment
- Quick access to loan funds
- No prepayment penalties
- No origination and late fees
- Flexible monthly payments
- Reports on-time payments to credit bureaus
- Borrowers with any credit can qualify
- High interest rates
- Small loans amounts
- Hard credit checks are performed
- Not available in all states
One business day (same-day funding not available).
Poor credit borrowers who can’t qualify for traditional personal loans
Rise gives a credit boost to borrowers with low ratings by reporting payments to two major credit bureaus. Fast funding and lenient requirements are overshadowed by high rates.
Rise does not conduct traditional credit checks on its clients. Instead, it looks at applicants’ overall financial situation. Customers can also apply in the morning and obtain their personal loan before the end of the day.
- Quick funding
- No origination fees
- Soft credit checks performed
- Be a U.S. permanent resident
- Live in a qualifying area
- Be at least 18 years old
- Have a valid email address
- Have a valid personal checking account
- Provide income confirmation
- Origination fees: 1% to 5%, depending on your state
- Cash advance fees: 10%
- Late payment fees: vary by state
- Non-sufficient funds fees: None
- Next-day funding
- No application fees or prepayment penalties
- Bad credit is accepted
- Flexible repayment terms
- Convenient minimum loan amounts
- Very high APRs
- Low loan maximums
- Origination and late payments fees may be charged
- Not available in all states
Next business day
Borrowers with bad credit in need of fast cash
NetCredit helps bad credit borrowers qualify for personal loans and credit cards. Despite fast approval and funding, APRs and fees are high. Additionally, NetCredit is unavailable in 14 states.
NetCredit offers cheaper alternatives to regular personal loans and provides bad credit individuals with more flexibility. Additionally, it has fast funding times and allows borrowers to improve their credit.
- The ability to change the due date;
- Refinancing with the same lender in some states;
- Credit-building opportunities.
- Be at least 18 years old
- Prove your US citizenship or permanent residence
- Provide your bank account information and social security number
- Show your monthly income by providing pay stubs, tax forms, or bank statements
- Provide an active email address and phone number
- Optional fees (up to 6%)
- Low interest rates
- Co-applicants are allowed
- No prepayment penalties
- Flexible loan amounts
- Interest rate discounts are available
- Multiple repayment options
- No origination fee
- Good credit is required for better loan terms
- Hard credit check if you continue your application
- Late fees might apply
- No co-signer option available
- No physical branches
One to three business days
Applicants with good to excellent credit scores who want to consolidate debt, make major purchases, or cover their long-term needs.
SoFi is a financial website that provides unsecured personal loans. The company doesn’t specify its minimum credit score requirements, but most of its borrowers have credit ratings of 680 and higher. Loans from SoFi are also accessible with a co-borrower with good to outstanding credit. Personal loan candidates need to have a sufficient income and a low debt-to-income ratio.
SoFi does not do credit checks on its customers when they prequalify for a loan. Instead, it examines applicants’ whole financial situation. The company offers reasonable interest rates and flexible repayment terms to qualified borrowers.
- No prepayment penalties
- No origination fees
- Low interest rates
- APR discounts
- Co-applicant option available
- Be at least 18 years old
- Prove your US citizenship or permanent residence
- Provide your bank account information
- Show your monthly income by providing pay stubs, tax forms, or bank statements
- Provide an active email address and phone number
- Origination fees, prepayment penalties, or other fees may be applicable
- Prequalification for multiple personal loans on one platforms
- Low minimum interest rates
- Fast funding (same-day direct deposit may be available)
- High maximum interest rates
- Extra fees may be applied
- The company’s partners may perform a hard credit check
- Data privacy concerns
One business day (same-day funding available)
Borrowers with bad credit scores who want to consolidate debt or cover other significant expenses.
LendingTree serves as a handy platform for seeking personal loans. It allows borrowers to explore a variety of loan offers in one place. Many lenders that partner with LendingTree can provide loans swiftly. However, borrowers with bad credit scores typically get high interest rates.
LendingTree has accreditation from the Better Business Bureau, a non-profit group dedicated to customer safety and trust. The BBB rates LendingTree as A+, a symbol of excellence. The BBB’s decisions are based on how a company reacts to customer gripes, truth in marketing, and openness about company procedures.
- The ability to compare multiple loan offers in one place
- Loan funds in one business day
What Is A High-Risk Loan?
High-risk loans are financial products for people with bad credit, unstable income, or high debts. They usually have higher interest rates and less favorable conditions because of the risks of non-payment. Lenders might also ask for collateral to compensate for potential losses.
Who Is Considered High-Risk Borrower?
A person is considered a high-risk borrower if some factors in their credit or financial profile indicate a high probability of not repaying a loan. Here’s what lenders look at when assessing a borrower’s risk level:
One key thing to remember is that different lenders can look at these factors differently. They might use different standards when they’re assigning risk. Also, a borrower might be seen as high risk in one situation but not in another. It depends on the specific loan and how much risk the lender is willing to take.
Can I Get a High-Risk Loan with Bad Credit?
Yes, high-risk loans are specifically designed for people with bad credit. Yet, these loans tend to come with pitfalls and higher risks. Lenders often balance the risk with higher interest rates and fees.
This way, you will be forced to pay more in the long run than someone with excellent credit. Some lenders may also ask you to provide collateral to secure the loan. This comes with extra risks of losing your asset in case of default. Therefore, be realistic about your repayment capabilities before obtaining a high-risk loan. Keep in mind that late or missed payments may affect your credit even more. Make sure you read the terms of your loan carefully and avoid predatory lenders with their exorbitant rates and hidden costs.
Rates & Fees
High-risk loans usually come with high interest rates and additional fees. This is made to offset the risks lenders take when they give money to bad credit borrowers. While traditional loan options typically come with APRs between 5.99% and 35.99%, high-risk loans often come with annual costs between 16% and 200%. Some options may even have interest rates that excess 400%.
Additionally, lenders often charge extra fees for processing loan requests (up to 10%) and apply penalties for late payments or early repayment.
The table below provides several examples of the cost of a $2,000 high-risk loan, depending on the interest rate and the repayment period:
| APR | Repayment Term | Monthly Payment | Total Cost |
|---|---|---|---|
| 16% | 12 months | $181.46 | $2,177.54 |
| 16% | 36 months | $70.31 | $2,531.31 |
| 36% | 12 months | $200.92 | $2,411.09 |
| 36% | 36 months | $91.61 | $3,297.87 |
| 84% | 12 months | $251.8 | $3,021.65 |
| 84% | 36 months | $153.41 | $5,523.5 |
The examples are provided for informational purposes only. You can use our loan calculator to determine the cost of your loan based on the particular conditions offered or find out what terms will suit your budget.
Loan calculator
ESTIMATED MONTHLY PAYMENT
TOTAL LOAN AMOUNT PAID
TOTAL INTEREST PAID
TOTAL COST OF LOAN
Types Of High-Risk Loans
High-risk loans come with greater odds of not being paid back. It could be due to the borrower’s past credit, money situation, or the type of security. These loans often bring higher rates to make up for the added risk to the lender. Below are some kinds of high-risk loans:
Payday Loans
Payday loans are small loans that are due by your next paycheck. They are known for swift approval and easy availability with less paperwork. They are considered pricey due to high interest rates that often exceed 400%. This may also involve extra fees for processing, late payments, and loan extension. Plus, a short payback time span could trap borrowers in debt if they can’t pay promptly.
Car Title Loans
With car title loans, your car acts as security. Your vehicle’s worth determines the loan amount you can get. The lender can seize and sell your car to get back the loan if you fail to pay. The danger of car title loans is losing your vehicle. High rates and fees, along with short repayment terms, add to the risk.
Bad Credit Personal Loans
Bad credit personal loans come with higher loan limits and more flexible repayment terms. These options come with amounts of up to $50,000 and can be repaid in affordable monthly installments over 12 to 84 months. Interest rates are typically higher compared to traditional options. Strict income requirements may also apply.
Loans With Collateral
These loans need something valuable, like a car or a house, to provide as a pledge. They come with lower interest rates and allow you to access a higher loan amount or longer repayment period as a lender feels safer due to the collateral backing. However, secured loans also come with the risk of losing your asset if you fail to pay on time.
Alternatives To High-Risk Loans
There are several alternatives to high-risk loans that people can consider. Some of them may offer more favorable terms, lower interest rates, and reduced financial risk. Here are several options to consider:
| Conventional Loans | Credit Union Loans | Peer-to-Peer Loans | Loans from Friends or Family | Government Support | Emergency Fund | |
|---|---|---|---|---|---|---|
| Interest Rates | 5.99% – 35.99% | 7.99% – 17.99% | 8.99% – 35.99% | None | None | None |
| Loan Terms | 12 – 84 months | 2 – 48 months | 6 – 60 months | Varies | None | None |
| Funding Times | Several days | 1 – 3 days | Same day/several days | Immediate | Varies | Immediate |
| Minimum Credit Score | 670+ | 580 | None | None | None | None |
| Extra Fees | Varies | Varies | 1% – 10% | None | None | None |
| Who Offers | Banks | Credit unions | Online platforms | Your family members or friends | Federal Funds | Your bank account/cash |
Why Choose Us
BadCredify is your financial helper when it comes to selecting the right loan offer. We provide expert and unbiased opinion on lenders and use modern tools that allow you to access and compare their offers by filling out just one simple application form. Our company strives to simplify the borrowing process for people with any credit, offering the ability to find the best possible solution to anyone seeling financial support. We pay attention to the lender’s interest rates, terms, and overall reputation and undergo a pre-qualification process for a detailed look on their application procedure and conditions. This fair assessment helps us create our top for a particular loan product.
FAQ
Should I get a high-risk loan?
Many consumers find high-risk loans risky because they can cause continual debt. However, it may be a good option if you need extra money for urgent needs and have no other option to turn to. Ensure it’s within your means and carefully review your loan terms before accepting any offers.
What are the drawbacks of high-risk loans?
High-risk loans come with high interest rates. As a result, borrowers pay a lot more overall. Additionally, some options have shorter repayment terms, making it more difficult to manage the loan.
Should I use a high-risk loan to pay off debt?
It’s usually not a good idea to use a risky loan to clear debt. Risky loans tend to have high interest rates and less flexible terms, which can make dealing with your debt a real fight. It may only be an option if your current loan has less favorable conditions than a new high-risk option you consider.
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