7 best loans for low income
In this article you will learn about the best loans for people with low income.
If you have low income and are looking for a loan that fits your financial profile, here are our picks for you
Lenders want to know whether you will be able to make your payments regularly and pay back the full amount you have borrowed. It is no wonder, therefore, that they have reservations when offering loans for individuals with a low income.
If you fall within that category of borrowers, you might be going through that tiresome process right now. If that is your case, we have got some good news for you.
There are a number of lenders which make personal loans available with low or even no income requirements. This does, however, come at a price: you must have good or excellent credit to qualify for the best terms.
You can still get your loan if you have a bad credit score, but you will likely have to pay a lot more in interest.
With that in mind, let’s have a look at our picks for the 7 best loans for low income, in no particular order.
With a nice loan minimum of $5,000, Figure offers a higher loan amount than many other lenders in the market. The lender offers loans at low APRs for individuals with Good or Excellent credit.
The application process for Figure loans is 100% online and takes just a few minutes to complete. Once you have submitted your application you will receive a decision fast.
Also, funding happens fast, within a business day or two. Plus, if you enroll in autopay, Figure offers a discounted interest rate.
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2. Best Egg
With no minimum income requirements, Best Egg is another excellent option for people with a low income. It does require, however, that you demonstrate your ability to make regular payments on your loan.
With Best Egg you can take out loans for as little as $2,000. The company also offers one of the lowest starting interest rates in the industry.
3. Happy Money
Offering minimum interest rates which are on the lower end of what you can find with most lenders, Happy Money offers loans for people with low income starting at loan amounts of $5,000.
This lender allows you to customize your loan terms so that you can make sure that they work for you. Plus, it gives you access to a number of money management tools which will help you improve your financial health.
One caveat of Happy Money is that you can only use their loans to pay for credit card and debt consolidation. If that is not what you intend to use the money for, you might want to look for a different lender.
If you have a monthly income as low as $1,200, you are likely to get approved for a loan with Avant. It allows you to check your loan options without you having to incur a hard inquiry, so you do not need to worry about taking a hit to your credit score.
Once you have submitted your application, it is possible for you to have the money deposited into your bank account within just one business day after you have been approved.
Mind you, however, that this loan does charge early payment fees in case you decide to pay the loan off early.
Let’s start this one by saying that their website does not disclose a minimum income amount you must have in order to qualify for this loan.
However, you will need to provide proof of earnings. The good thing is that they offer long loan terms of up to 5 years, which makes monthly payments more affordable.
So even if you have a low income, you can still borrow as little as $2,000 and get a loan term that allows you to pay for it. Another good news is that this loan does not charge prepayment penalties.
It also accepts joint applicants, and if you enroll in autopay, you will get a 0.25% discount on your rate, which will help you save some money.
6. Lending Club
Lending Club offers personal loans with no minimum income requirements. You can take out loans ranging from $1,000 to $40,000 even if you have a low income.
The loans are available in all 50 states and they come with a low minimum APR. Also, Lending Club offers fast funding, which is excellent if you need money quickly.
This lender also gives you the ability to customize your loan offer. This includes customizing your loan rate, its term and payment options. This allows you to fit the loan perfectly in your budget.
Upgrade supports a wide range of credit scores and incomes, making it the perfect option for low-income individuals. Their minimum credit score requirement is 560, and the company reports to major credit bureaus, which helps you improve your credit.
If you have bad credit, however, Upgrade’s APR range can be a little high. Also, the company performs a soft credit check during the application process, which does not have an impact on your credit score.
It is also possible for low-income individuals to apply for a temporary reduction of the monthly minimum. You can even ask for a permanent modification of your loan so that it suits your situation.
The Bottom Line
When you apply for a loan, make sure you meet the credit requirements the lender has. This will ensure that you do not take an unnecessary hit to your credit score.
Also, the higher your credit score, the higher the chances of your loan being approved. Not to mention, a higher credit score makes it more likely that you will get the best rates and be able to save money on interest payments.
If you’d like to have an excellent credit score, we have a full guide to achieve it. Read the article on the following to keep learning about personal finances.
About the author / Danilo Pereira
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