Obtaining personal loans on a low income might be challenging since lenders assess your income to decide whether or not to lend you money. However, each lender establishes its criteria, and some accept lesser wages than others. Some lenders do not have a minimum income requirement and instead evaluate your loan application based on all of your financial circumstances. Furthermore, if you’re looking for low-income personal loans, weigh all of your options to discover the best deal for you.
Best Low-Income Personal Loans
The average personal loan rate is 12.36 percent, which is lower than the low-income personal loan. The annual percentage rate (APR) is the most important consideration in our ranking of the top low-interest loans. This figure takes into consideration both the loan’s interest rate and any up-front expenses, such as an origination fee.
Because of this, using it rather than just the interest rate is preferable when comparing borrowing expenses. However, we took other factors into account as well. The best low-income personal loans were ranked based on various factors such as loan amounts, time to fund, payback terms, costs, credit requirements, and customer reviews.
Upgrade
Upgrade is an online lender that provides up to 84-month terms on personal loans with amounts between $1,000 and $50,000. It provides customers with competitive interest rates in addition to variable loan amounts and terms. However, note that consumers with exceptional credit are eligible for the lowest rates. If your credit isn’t the best, bear in mind that this lender’s maximum APR is somewhat substantial. Additionally, origination fees for borrowers will go from 1.85% to 9.99%.
The loan amount is reduced before receiving the money, and a late fee of $10 may be imposed for missed monthly payments. Also, customer service states that Upgrade does not have a minimum income requirement. However, this lender will probably ask for documentation to verify certain financial information. If you have any inquiries concerning borrower requirements, think about pre-qualifying for a loan with Upgrade and getting in touch with their support staff.
LightStream
LightStream provides a rate-beat program in addition to loans with low minimum and maximum interest rates. Depending on the purpose of the loan, LightStream offers unsecured personal loans in quantities ranging from $5,000 to $100,000. Apart from providing convenient and adjustable terms, LightStream doesn’t impose any fees for origination, late payments, or prepayment. Moreover, for consumers who sign up for autopay, the lender additionally provides a 0.50% rate reduction. Trust Bank’s Lightstream business is renowned for its selection of lending options and affordable interest rates. The eligibility criteria include a minimum credit score of 660, minimum income, and co-borrowers, but details are not provided.
Universal Credit
Another online lender without a minimum income criterion is Universal Credit. Upgrade is a fintech startup situated in San Francisco that was founded in 2017 and includes Universal Credit. Qualified applicants can apply for loans up to $50,000, with a repayment period of up to 60 months. Except for Washington, D.C., it offers loans in all 50 states in the United States. Universal Credit has downsides in addition to its benefits.
The origination costs on its loans range from 5.25 to 9.99%, which is a somewhat high amount when compared to its competitors’ APR ranges. Borrowers can pay back loans earlier without prepayment penalties, but late fees can be up to $10. Furthermore, the qualifications for the position include a minimum credit score, annual income, maximum DTI ratio, and employment qualifications, but not Washington, D.C.
Rocket Loans
Rocket LoansSM, a sister firm of Rocket Homes and Rocket Mortgage, provides personal loans via Cross River Bank. This lender is an accessible alternative because of its low minimum credit score requirement of 640 and availability in most states for personal loans. However, borrowers will be subject to origination fees and three- or five-year payback terms. In addition, Rocket Loans fared well because applicants can get money as soon as the same day they apply.
Those that are accepted must finish their application and sign the promissory note by 1 p.m. To be eligible for quick funding, applicants must be available on a business day, with funding typically taking two to four days if same-day funding is not available. The loan requires a minimum credit score of 640, income not disclosed, and does not allow co-signers or co-borrowers. Furthermore, its loan uses include home improvements, large expenses, and travel and vacation.
Best Egg
According to Best Egg, there is no yearly income threshold for its loans. This lender provides lower-rate secured loans as well as loans with a range of $2,000 to $35,000 (and $50,000 with a special offer). Another lender might be a better option if you only need to borrow a small amount because of its relatively large minimum loan amount. Best Egg may be a candidate for people with respectable credit because of its competitive minimum annual percentage rate.
However, 35.99% is a high maximum annual percentage rate. There are additional origination fees of up to 9.99%. Despite this, borrowers may see their credit scores for free with Best Egg, and there are no prepayments or late fees. Furthermore, loan restrictions include business and college tuition fees, a minimum credit score of 640, an annual income of none, a maximum DTI ratio not disclosed, and employment qualifications not disclosed.
Avant
Avant, a Chicago-based consumer lending platform, was established in 2012 and offers secured and unsecured personal loans through WebBank, a third-party bank. All states, except Hawaii, Iowa, New York, Vermont, West Virginia, and Maine, offer unsecured loans, as does Washington, D.C. The platform only requires a minimum score of 580 to qualify, and it specializes in middle-class customers with fair to good credit. The lender offers lower loan amounts but offers flexible repayment terms and a cheap minimum amount, attracting borrowers. Avant personal loans do have a fee, though, much like many loans for subprime customers.
Upstart
With reasonable rates, Upstart provides an appealing personal loan solution for applicants earning more than $12,000 annually. Its loan ranges from $1,000 to $50,000 and is utilized for various purposes like debt consolidation, home renovation, medical expenses, and moving expenses. Upstart offers credit services to borrowers with credit scores of 300 and above, as long as they meet its qualifying requirements.
In addition to having a current bank account, verifiable income, a job, and a residential street address in the United States, borrowers must be at least eighteen years old. However, startup personal loans come with origination fees of up to 12% of the loan amount and late payment penalties of $15 or 5%, whichever is higher.
Final Thought
Low monthly or annual income requirements apply to low-income personal loans. A low salary won’t keep you from getting a loan, but depending on the lender, you could still need to meet standards for credit, income, and other financial conditions.
