Are you in dire need of urgent capital to embark on a highly promising business endeavor, but all traditional banks and even the leading peer-to-peer lending sites are not willing to offer you a loan because of your bad credit score?
Are you caught up in an endless infernal spiral of debt begging more debt and plunging you deeper and deeper into a financial abyss? Well, cheer up! All is not lost. There are online peer to peer lending sites that offer hefty loans (in some cases, up to 35000 USD) even to small business owners or online sellers with very bad credit scores (in some cases, as low as 580).
In this article, we will describe to you, the main features of a few of such online companies. First, let's briefly specify what it means to have a bad credit:
The rationale behind a bad credit is to help lenders avoid lending to people from whom they risk not getting all their money back, especially in case the loan is not secured. Based on your credit history, you are given a score that informs every potential lender on how safe it is for him/her to lend you money.
Your credit history depends on three factors, namely: the amount of money you currently owe, your current credit, and the timeliness with which you have been paying past debts.
These three factors are weighted differently when calculating your credit score, with the amount owed having the greatest weight. The least possible credit score is 300 and the highest is 850.
- Any score between 300 and 629 is considered bad credit;
- between 630 and 689 is fair credit;
- between 690 and 719 is considered a good credit and 720 or more is excellent credit
Some of the peer-to-peer websites that can offer you a loan even if you have a bad credit score are:
In Bitbond www.bitbond.com peer to peer loans are available globally. You can do it from the comfort of your own home without ever leaving your chair because peer to peer platforms has implemented an innovative scoring mechanisms to more accurately assess your credit with which means that although they are less restrictive they make a more accurate assessment of your credit worthiness.
Bitbond is the perfect solution. Bitbond works on the Bitcoin network which means it’s available internationally. People with low credit score or without bank account now can have access to working capital. They do not need a bank account to get a loan. Because Bitbond uses Bitcoin as payment network they cutter the banks and as result, the fees are significantly lower than they would be with banks or other peer to peer lending platforms.
Peerform's lending standards are far more moderate than those of the other major peer-to-peer credit operators, lending club and prosper. Here, you can borrow up to 25000 USD with a credit score as low as 600. However, you have no guarantee that your loan will be funded since most peer-to-peer lenders will be wary of lending money to peers with low credit scores.
All the same, you have the opportunity to explain to lenders why your score is so low and to convince them that you can repay the money at the appointed time. By doing so, you will greatly increase your chances of getting a loan with bad credit on Peerform. Note, however, that there are a number of fees to pay in the course of such transactions on Peerform.
Another advantage with Peerform is that they will clearly explain to you all that it entails and thus save you the embarrassment of having to pay fees that you were not expecting.
To be able to get a loan from badcreditloans.com with a low credit score, there are a number of conditions you must satisfy:
- you must be no less than 18 years old
- you must have both a valid email address and a valid phone number
- you must either show proof of citizenship or proof of legal residency
- you must show proof that you have been working for at least 90 days successively, and earn a monthly salary of at least 1000USD after all taxes have been deducted.
Once you have fulfilled all these conditions, the website offers you a platform to contact potential lenders and present your case to them. The advantage you have is that each of the potential lenders who are willing to lend money to you, will then tell you the terms of the loan, and you will be free to select the best.
However, there is no guarantee that there will be many such offers, and even if there are, there is no guarantee that any of them will really suit you. The interest rates charged here typically range from 230% per annum to 2300% per annum. While these figures look astronomical, they should not scare you because you will typically have to pay back in a matter of weeks. However, if you are unable to pay back on time, then those terrifying interest rates will ready get you into trouble.
Avant deals mainly with borrowers whose credit scores lie between 580 and 700. One key difference between Avant and other peer-to-peer credit companies is that the money lends to you does not come from individual lenders, but from the company itself. As such, you can always be sure that if you satisfy the conditions, there will be capital available to you. In fact, with Avant, it is even possible to have the loan money the day after you apply for it.
One other advantage with Avant is that you can borrow up to 35000 USD at a go, which is extremely bounteous on their part, considering that the borrower has a bad credit score. The negative side of it, is that if your score is below 580, you stand absolutely no chance of qualifying for a loan from Avant.
With Netcredit, even if your credit score is as low as 550, you can get an unsecured loan of up to 10000 USD. This is really impressive for a bad credit loan. NetCredit is another peer-to-peer lending company which gives you clear and precise information on every aspect of the loan transaction.
A disadvantage, though, is that the interest rates are generally terribly high, and so unless are entirely sure of being able to repay on time, you may be better advised to search for another solution. Also, NetCredit is relatively new, so if you are looking for proven reliability, you may want to look elsewhere.
With PersonalLoans.com, a multitude of lenders can solicit your company once you have filled out a straightforward application form. You will have the choice as to which lender to borrow from, based on their respective APR's. One advantage is that, even with a bad credit score, you can borrow up to 35000 USD. A disadvantage is that there is no way you can determine beforehand what the APR's and other conditions and fees are going to look like since these does not depend on the platform, but only on the lenders and you.
There are other bad credit loan peer-to-peer businesses such as onemain, KIVA and GreenNote.
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