A high risk loan is a loan that has a higher probability of nonpayment or default. Traditional lenders are unable to quote on high risk loans when credit requirements do not meet the minimum standard.
Struggling to Obtain a High Risk Loan
The most common reason to be denied a high risk loan is your credit score. Most lenders will complete a soft pull on your credit score and if it is below their established credit risk, the lender will not proceed with the loan application.
Where to Apply for a High Risk Loan
Many unsecured loan lenders do not use credit scores in the application process. The lenders focus on the borrower’s employment history, other than credit score. The private lenders provide smaller loans with shorter terms than standard unsecured personal loans.
Most high risk lenders are private companies who do not fall under the strict rules of traditional lending institutions.
Loan Offers With Private Lenders
- High Risk Loans offers from $500 to $5000., Any Credit Score Can Apply
- Applying will not harm your credit score
- Loans available from 3 to 36 months. Short terms loans will have higher interest rates
- Not available in the following states:
- AR, AZ, CT, GA, MA, MD, ME, NC, NJ, NY,PA,VT, WV
- Additional fees vary by lender
- Loans up to $35,000. Interest rates ranging from 6% to 35.99%
- Interest rates starting at 6.59% and up
- Applying will not harm your credit score
- Loans available from 3 months to 72 months. Short terms loans will have higher interest rates
- Any Credit Score Can Apply | Loans $500 to $10,000.
- Applying will not harm your credit score
- Loans available from 3 months to 72 months. Short terms loans will have higher interest rates
- Not available in the following states:
- AR, AZ, CT, GA, MA, MD, ME, NC, NJ,NY, PA,VT, WV
- The APR on a personal loan from our network of lenders varies, with many lenders offering rates of 5.99% to 35.99% and loan durations between 90 days to 72 months, although the terms of your specific loan may differ depending on your qualification.
- Additional fees vary by lender
- Loan offers from $1000 to $35,000
- Applying will not harm your credit score
- Loans available from 90 days to 72 months. Short terms loans will have higher interest rates
- Not available in the following states:
- Qualification depends on a number of factors including your credit rating, income, debt and bankruptcy history. Most lenders and lending partners only require an e-signature to receive a loan, though some may require a few extra steps as well. Many providers in our network offer rates from 5.99% to 35.99% and loan durations between 90 days and 72 months, although the terms of your specific loan may differ.
- AR, AZ, CT, GA, MA, MD, ME, NC, NJ, NY, PA,VT, WV
- Additional fees vary by lender
- Loan from $100 to $1000 | This is a Payday Loan
- Applying will not harm your credit score
- Loans available from 90 days to 72 months. Short terms loans will have higher interest rates
- Not available in the following states:
- AR, AZ, CT, GA, MA, MD, ME, NC, NJ, NY, PA, VT, WV
- Additional fees vary by lender
- Apply Here for loans from $100 to $35,000
- Interest rates starting at 6.59% and up depending on credit history
- Applying will not harm your credit score
- Loans available from 3 months to 72 months. Short terms loans will have higher interest rates
- Not available in the following states:
- AR, AZ, CT, GA, MA, MD, ME, NC, NJ, NY, PA, VT, WV
- Additional fees vary by lender
- Loan from $100 to $5000 | Any Credit Score Can Apply
- Interest rates starting at 6.59% and up
- Applying will not harm your credit score
- Loans available from 6 months to 60 months. Short terms loans will have higher interest rates
- Not available in the following states:
- AR, AZ, CT, GA, MA, MD, ME, NC, NJ, NY, PA, VT, WV
- Additional fees vary by lender
Lender Risk with High Risk Loans
Credit Score
Making payments on time and using your credit availability on a regular basis to build and develop your credit score
- The credit score is lower than accepted by lenders
- The credit score below 580+
No Credit History
Just starting out in your life, heading off to college, university or your first job
- No credit history is an issue when starting in your career and applying for the first loan or credit card
- Not had time to establish a credit history
Credit History
Time creates a credit history. Making payments on time month after month
- Credit history demonstrates if the borrower makes their payments on time
- Your credit score has dropped from nonpayment
- Loan or credit cards have gone to collections
- Vehicle or other asset repossessed
- Missed credit card payments, may have gone to collections
High Debt to Income Ratio
Can you manage another payment with the debt you already have?
- Debt to income ratio is monthly income divided by your payments.
- If the debt to income percentage is above 40%, lenders are concerned that your income cannot support the loan payment
Employment
Lenders are looking for long-term employment and stability
- The lender will review current employment
- May request pay stubs for proof of employment
Loan Offers With Credit Score near 580+
If your credit score is near the 580+ mark and you have not had collections, we have a few lenders that may be able to help you in the states that allow high interest loans. Before you attempt to apply with any provider, check to make sure that they are providing loans on your state.
Stuck in a Payday Loan
There are a few options that may help you if you are stuck in payday loans.
Payday Alternative Loans (PAL’s)
The credit unions have developed a program called PAL’s to help people stuck in revolving payday loans. The credit union will want you to become a member for a few months before this program can be implemented.
PAL’s features:
- Loan amounts $200 to $1,000.
- Must be a member for one month
- Loan terms range from 1 to 6 months
- There may be a fee for setting up the application of $20.00
Contact your local credit union to get some help.
When you have poor to bad credit and need emergency funds, an installment loan offers better interest rates than a Payday or Title Loan
Opploans Loans $500-$5000 installment loan
OppLoans offer Service in AK, AZ, FL, IN, KY, MI, MN, NE, OK, OR, and WY.
Interest rates from 59% to 199%
Debt Settlement
If your credit score is below 500 and you have over $7,500 in debt, you may want to look into debt settlement. If You are at a point where you really cannot damage your credit score any further, but you can work through a process to clean up your past. The issue with debt settlement providers is that they will charge you a fee of roughly 30-40%. If you can manage debt settlement yourself, you can get out of debt faster with the money that you would have given the debt settlement provider.
Credit Card Hardship Programs
Credit cards are maxed out and you need some help. Many of the credit card providers offer hardship programs to help you through a difficult time
High Risk Signature Loan
A high risk loan is usually based on your signature for repayment. The lender is accepting your word that you will repay the loan. If your credit score or credit history has been a bit tarnished, you may require collateral.
Secured Loan
A secured loan is a loan that the borrower pledges assets like a home or vehicle as collateral for the loan, which becomes a secured obligation owed to the lender who provides the loan.
What is Collateral?
Collateral is an asset used for security to provide the lender the comfort that if the loan is not repaid, they can collect by taking that asset. The most common collateral used for getting a loan is home equity and auto refinancing.
Home Loan
Applying for a secured loan can be a lengthy process. The lender will assess the value of the asset that you are using for collateral. In most cases, this is your home equity. The lender will appraise your home to calculate your current equity in the property and loan up to 90% on the available value. The lender will still look at your credit score, income, work history and debt to income to assure repayment.
Auto Loan
When we purchase a car, it is very common to take out a loan secured against the vehicle. If we default on the loan the lender can repossess the car. This removes some of the risks for the lender.
Co-Signing
A co-signer with a better credit score can help lower the risk to the lenders by agreeing to repay the loan if the borrower defaults on the loan.
Typical situations where a Co-Signer is Required
- Many young people ask their parents to co-sign when they are starting out in college or in their career.
- With a 50% divorce rate in America, the separated couple requires two homes. One of the separated couple will take over the family home and may not be able to support the mortgage alone.
- Self-employed people who do not qualify from their business revenues
- Adults going back to school for upgrading or career changes
Lender Co-Signer Requirements
Every lender has different terms for co-signing. The co-signers Debt to income and credit score will be considered as if they were taking the loan themselves.
Lenders That Offer Co-Signing
Not all lenders offer co-signing services. Check the following conditions with each lender:
- What state they offer services
- Amount of loan offered by a lender
- Credit score required by borrower and co-signer to apply
- Debt to income ratio required by co-signer
Where to Apply for a High Risk Loan
Many unsecured loan lenders do not use credit scores in the application process. The lenders focus on the borrower’s employment history, other than credit score. The private lenders provide smaller loans with shorter terms than standard unsecured personal loans.
Most high risk lenders are private companies who do not fall under the strict rules of traditional lending institutions.
