Select Page

You may worry about how you are going to get a credit loan if your credit is less than perfect. You will have a harder time getting a loan with bad credit. However, you still have options. You may not be able to get a loan from a traditional loan, but you can get a loan from a peer-to-peer lending group or credit union.

Credit Unions

Car Loan bad creditA credit union should be the first place that you look if you are trying to get a car loan. Credit unions allow you to get a loan with lower-than-average interest rates and flexible payment plans. It is best to get a loan from a credit union that you already have a relationship with. If the lender already knows you, then they will likely take your personal circumstances into consideration. For example, if you have lost your job, then you will need to let the credit union know this.

Peer-to-Peer Lending Groups

Before banks and credit card companies, people would borrow money from other people. Those days are back to the Internet. Peer-to-Peer Lending Groups work by matching borrowers with individual lenders. However, these lenders typically charge higher interest rates. They also lack the personal touch.

Lending Club

Lending Club has been around since 2007. People can borrow between $1,000 and $40,000 from the lender. The loans are typically taken out from 36 to 60 months. Lending Club offers flexible loan terms. However, the vetting process is rigorous. The average customer who gets a loan from Lending Club has a credit score of 699. This is something that you will have to take note of as a borrower.

Car Loan bad creditProsper

Prosper has been around since 2006. It has a model that is similar to the Lending Club. The minimum credit score is required is 640. People can typically borrow between $2,000 and $35,000.

Prosper has a finance app. This app allows you to keep track of your loan payments and keep track of your credit score. Joint applications are not allowed.


It takes a lot of negotiation and research to get a loan if you have bad credit. However, it is definitely possible to get a car loan without a big down payment or ridiculous interest rates. Try to get funding for your auto loan as quickly as possible. Every hard inquiry causes your credit score to decrease. If you fill out all of the applications within a one-month time period, then you probably will not do much damage to your credit.