Bad Credit Loans in Pennsylvania: Options for Those with Poor Credit

If you have bad credit and need a loan in Pennsylvania, you may feel like you’re out of options. However, there are still several potential avenues to explore for getting a loan, even with a low credit score. This guide will cover everything you need to know about bad credit loans in Pennsylvania, including:

What qualifies as bad credit in Pennsylvania
Types of bad credit loans available
Top lenders that offer bad credit loans
How to improve your chances of approval
Alternatives to consider

What is Considered Bad Credit in Pennsylvania?

In Pennsylvania, as in most states, a FICO credit score below 580 is generally considered poor or bad credit. Here’s a breakdown of FICO credit score ranges:

Excellent: 800-850
Very Good: 740-799
Good: 670-739
Fair: 580-669
Poor: Below 580

If your credit score falls in the “poor” range below 580, you’ll likely have difficulty qualifying for traditional loans and credit cards. However, there are still loan options available specifically for those with bad credit in Pennsylvania.

Types of Bad Credit Loans in Pennsylvania

Some common types of bad credit loans in Pennsylvania include:

Personal Installment Loans

These are unsecured loans repaid in fixed monthly installments. Terms typically range from 1-5 years with loan amounts from 1, 000−50,000. Interest rates are usually high for bad credit borrowers, often 20-35% APR or more.

Secured Loans

Using collateral like a car title or savings account can help you qualify for better rates, even with bad credit. Common secured loans include auto title loans and secured personal loans.

Payday Alternative Loans (PALs)

Some credit unions offer small-dollar loans as an alternative to predatory payday loans. PALs have lower fees and longer repayment terms than traditional payday loans.

Co-Signed Loans

Having a co-signer with good credit can help you qualify for better loan terms. The co-signer agrees to take responsibility for the loan if you default.

Credit-Builder Loans

These small loans are designed to help you build credit. The money you borrow is held in a savings account while you make payments to build positive payment history.

Top Lenders for Bad Credit Loans in Pennsylvania

Here are some of the top lenders that offer bad credit loans in Pennsylvania:

OneMain Financial

OneMain specializes in personal loans for borrowers with fair to poor credit. They offer both secured and unsecured loan options.

Loan amounts: $1,500 – $20,000
APRs: 18.00% – 35.99%
Terms: 24 – 60 months
Minimum credit score: None specified

Avant

Avant offers unsecured personal loans and focuses on borrowers with fair credit scores.

Loan amounts: $2,000 – $35,000
APRs: 9.95% – 35.99%
Terms: 24 – 60 months
Minimum credit score: 580

Upstart

Upstart uses AI and machine learning to evaluate borrowers beyond just credit scores.

Loan amounts: $1,000 – $50,000
APRs: 6.70% – 35.99%
Terms: 36 or 60 months
Minimum credit score: 300

LendingPoint

LendingPoint specializes in near-prime borrowers with fair credit.

Loan amounts: $2,000 – $36,500
APRs: 7.99% – 35.99%
Terms: 24 – 60 months
Minimum credit score: 585

How to Improve Your Chances of Approval

If you have bad credit, here are some tips to increase your odds of getting approved for a loan in Pennsylvania:

Check your credit report for errors and dispute any inaccuracies
Pay down existing debt to improve your debt-to-income ratio
Consider adding a co-signer with good credit
Offer collateral to secure the loan
Show proof of steady income and employment
Apply with lenders that specialize in bad credit loans
Be prepared to pay higher interest rates

Alternatives to Bad Credit Loans

Before taking out a high-interest bad credit loan, consider these alternatives:

Borrow from family or friends
Use a credit card (if available)
Get a paycheck advance from your employer
Seek assistance from local non-profit organizations
Use a pawn shop for a short-term loan
Take on a side gig to earn extra cash

How Bad Credit Loans in Pennsylvania Work

Bad credit loans in Pennsylvania typically work as follows:

You apply online or in-person with a lender that offers bad credit loans
The lender reviews your application, credit, income, and other factors
If approved, you receive a loan offer with terms and interest rate
You accept the offer and receive funds, often within 1-3 business days
You make fixed monthly payments to repay the loan over the set term

Most bad credit lenders in Pennsylvania use a “soft” credit check for pre-qualification that won’t impact your credit score. A hard credit check is only done if you decide to move forward with a formal application.

Bad Credit Loan Dosage

When it comes to bad credit loans in Pennsylvania, the “dosage” refers to how much you should borrow. As a general rule, only borrow what you absolutely need and can afford to repay. Here are some guidelines:

Calculate the minimum amount you need to cover your expense or consolidate debt
Factor in any fees or closing costs
Ensure the monthly payments fit your budget
Avoid borrowing extra just because it’s offered
Consider a smaller loan amount to improve approval odds

Pros and Cons of Bad Credit Loans in Pennsylvania

Pros	Cons
Can provide needed funds despite poor credit	High interest rates and fees
May help build credit if payments made on time	Risk of predatory lending practices
Faster and easier than traditional bank loans	May trap borrowers in cycle of debt
Variety of loan options available	Shorter repayment terms in some cases
Can consolidate multiple high-interest debts	Risk to collateral for secured loans

Product Table: Dosages and Prices (in USD)

Lender	Loan Amount Range	Typical APR Range	Monthly Payments Example	Application Process
OneMain Financial	$1,500 – $20,000	18.00% – 35.99%	$471 per month for a $10,000 loan over 60 months at 35.99% APR	Online or in-person application; fast approval process
Avant	$2,000 – $35,000	9.95% – 35.99%	$441 per month for a $15,000 loan over 60 months at 35.99% APR	Online application only; quick decision on prequalification
Upstart	$1,000 – $50,000	6.70% – 35.99%	$284 per month for a $30,000 loan over 60 months at 21.99% APR	Online application; AI-based evaluation process
LendingPoint	$2,000 – $36,500	7.99% – 35.99%	$418 per month for a $25,000 loan over 60 months at 35.99% APR	Online application; near-prime borrower focus

The Bottom Line on Bad Credit Loans in Pennsylvania

While bad credit loans in Pennsylvania can provide a lifeline when you need quick funds despite poor credit, it’s crucial to weigh the pros and cons carefully. High interest rates and fees make these loans expensive compared to traditional financing options for those with good credit.

Before applying, explore alternatives like borrowing from family or getting a short-term advance from your employer. If taking out a bad credit loan is necessary, shop around for competitive rates and terms, and only borrow what you truly need. Improving your financial habits can help you build better credit over time so that you’re not reliant on high-cost bad credit loans in the future.

Disclaimer: The information provided here is accurate to the best of our knowledge at the time of writing but may change with updates from lenders or regulatory agencies. It’s always a good idea to consult multiple sources when making financial decisions.

Note: This article aims to provide an informative guide for those seeking bad credit loans in Pennsylvania and does not constitute financial advice.

For more information on what qualifies as a bad credit score, see this article from Experian.
To learn more about interest rates and loans for different types of debt, visit the Consumer Financial Protection Bureau’s guide on good vs. bad debt.