Who Are the Best Online Lenders if You Have Bad Personal Credit?
What happens if you need funding but your personal credit is, shall we say, not so hot? We know the best online lenders if you have bad personal credit.
Got Bad Personal Credit? A Background on Online Lenders
There are several online lenders but only some of them will provide a loan if you have less than stellar personal credit. Qualifications including annual revenue and time in business requirements can vary. So can the maximum available amounts. Here are the details.
We researched the following online lenders and asked about their programs, rates, terms, and features. Only BlueVine and QuarterSpot confirmed our research. Rates can rise and fall. This is normal when it comes to financing. We suggest you investigate all online vendors which interest you to confirm our numbers before requesting funding.
The Best Online Lenders if You Have Bad Personal Credit: Try BlueVine
BlueVine confirmed this information when we asked. BlueVine offers lines of credit. And BlueVine offers up to $250,000 in lines of credit. So they have 24 hour approval. Your business must have revenues of $10,000 or more per month. Flex credit lines currently run up to $100,000. Interest is as low as 4.8%.
No maintenance or unused credit fees. You must have a consumer credit score of 600 or better. And you must have been in business for at least 6 months.
The Best Online Lenders if You Have Bad Personal Credit: Try Lending Club
Lending Club offers term loans via the Accion Opportunity Fund only. Get up to $100k. They will take anyone with any credit score—but recognize that the worse your credit, the fewer choices you will have, and they will have less favorable terms.
The Best Online Lenders if You Have Bad Personal Credit: Try OnDeck (OD)
OnDeck offers short term loans and lines of credit. For short term loans, up to $250,000 is available. So their terms are of 3 to 24 months.
You must have annual revenue of $100,000 or more. Personal FICO Score of 600 or better. You must be in business 12 months or more. So there is an 8.5% to 79% APR.
Specifics
For lines of credit at OnDeck, up to $100,000 is available. Also, there is a term of 6 months.
You must have annual revenue of $100,000 or more. Personal FICO Score of 600 or better. You must be in business 9 months or more. The average rate for lines of credit is 47.14% APR.
Details
Advantages include the low FICO score requirement for term loans. So there is some flexibility for term lengths. Disadvantages are the maximum APR for both term loans and lines of credit are extremely high.
If your company cannot pay back a loan or line of credit, it could sink you financially.
The Best Online Lenders if You Have Bad Personal Credit: Observations
Getting funding with fairly poor personal credit is not easy. So here are some pros and cons.
The lowest personal credit score (FICO) requirement is 500 for OnDeck short term loans. But Bond Street will look past a low FICO score if other factors are favorable.
The most funding you can get is $2.5 million from BlueVine invoice factoring. And the shortest time in business required is one year at both OnDeck and QuarterSpot.
Alternatives
So borrowers with less than optimal personal credit might want to take the steps to repair their credit. Or they can have another personal act as a guarantor. Or they could offer collateral. And this collateral can take the shape of anything from equipment to a 401(k) account.
Any of those would provide more options. And online lenders would be less concerned about a low FICO score if any of these factors were present.
The Best Online Lenders if You Have Bad Personal Credit: Takeaways
As with all funding sources, make sure to read the fine print carefully. Your own individual requirements and needs are most important when determining where to get business funding. Today, we want to hear from our audience! Share your voice with us about your experiences with online lenders.
And here’s another pro tip. Building business credit will mean your personal credit score will no longer matter when it comes to getting business funding.
