Banks that Lend to People with Bad Credit

by Mack Bartlett

The credit crisis isn’t the headline it was a couple of years ago, but the effects are still being felt by the average loan applicant. When the economy nearly collapsed in 2008, millions of people saw their credit limits cut by a big percentage, but surprisingly that’s not what crushed the average fico score.

As more and more people found themselves jobless, they’ve had a tough time keeping up with car and home payments, and that’s where you’re credit score gets decimated. If you’ve missed payments and seen your credit score end up in the tank, you’ll be looking for banks who lend to people with bad credit the next time you need to borrow money.

A List of Banks that Lend Money to People with Poor Credit

LendingTree – has plenty of options for bad credit car loans and personal loans.

Bank of America – also offers a variety of subprime car loans, credit cards, and even loans for boats and RVs.

Wells Fargo – possibly not as flexible, but still worth investigating if you need a bad credit loan.

Regardless of which bank you’re looking into, it’s important to understand what kind of loans – at what terms – are going to be available for people with low fico scores.

Here’s a short list of loans you can get from banks for people with bad credit:

  • personal loans – usually offered in amounts ranging from $500 to $1,500, these loans carry some of the highest interest rates in the world of finance.
  • car loans – you can often get the car you want, but your interest rate may approach credit card levels.
  • home loans – in spite of the subprime lending mess, first-time borrowers with a down payment still may be able to get into a home, although (as with the other types of loans) the rates will be much higher than those paid by good credit borrowers.
Almost every bank out there has loan programs for poor credit borrowers. They’re likely to make you jump through more hoops, and the terms aren’t going to be favorable, but you’ll usually end up with the loan you want. The key is to get into a habit of making payments on time so you can rebuild your credit score and start taking advantage of traditional “prime” lending options again.


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