Poor Credit Personal Loans at Drancy

Poor credit personal loans are almost next to impossible to get. A credit rating is most important while you are applying for a loan. Whatever may be the loan for, whether it is a personal loan or a home loan or a car loan, the lenders always consider the trustworthiness of the borrower. It is mandatory to keep your credit score good if you want to avail of the loan facility. A credit score is the test of the creditworthiness of a borrower. The borrower can be a human being, or a company or a state. Even a country also has a credit score.

How Credit Ratings are Assigned?

When you apply for a loan, the lender will definitely check the chances of repayment of loans from the particular debtor. To make it easier, they have quantified the chances and have transformed it into credit ratings. The more the rating is, the higher the chance of loan recovery is from a particular entity. Keeping this in mind, there are several agencies who claim to check your credit score online for free. But many of these agencies are not universally accepted. Agencies like Fitch Ratings, Moody’s, Standard and Poor are the most genuine rating agencies.

Factors that Affect the Credit Ratings

There are many factors of a person’s financial history which puts a deep impact on the credit ratings. If you have any kind of the previous history of trouble in repaying the prior loans then it is for sure that there will be a poor credit rating for you. But if you have repaid the previous loans properly then your credit score is going to be better. The amount you owe is another aspect that is considered during the rating of your credit score. Your income, your length of credit for the previous loan, types of loans you are currently having are considered to rate your creditworthiness.

Poor Credit Personal Loans Providing Agencies

There are several agencies that approve loans despite having a bad credit rating. Our credit rating can be varied starting from 300 to 850 which are provided by FICO. But still, there are rays of hope for the people who have a bad credit history. Here are some agencies that provide loans to the people having poor credit ratings.

  • Prosper Borrowers ask for a credit score of a minimum of 640 for an applicant who is applying for a loan. The applicant should have kept a debt for at least 2 years and should have an average annual income of $89,000. The borrower should have a ratio of debt to income of 50% which doesn’t include the mortgage loans. Prosper Borrowers allows you to pay the loan amount even before the stipulated time and nothing is charged for it. But there are some cons also like you have to pay the origination fee for the loan.
  • LendingClub allows loans if the credit score of the borrower is at least 600 and having a history of 3 years of having a credit or a loan. It allows joint applications for loans also where you need to have a ratio of debt to income of 35 percent and if the applicant is single then it is 40 percent. But you need to be cautious about the time boundness of repayment schedule so that you don’t have to pay any extra charge for that.
  • OneMain is also a money lending agency that asks for an average credit score of 600 to 650 while you are applying for a loan. They don’t ask for any credit history of the borrower.