The Best Personal Loans for Borrowers With Low Income of 2024

Personal loans are valuable financial tools. They can help you consolidate debt, buy a car, or complete home repairs. But if you have a low income, you want to be careful about where you borrow money. Companies that offer low payments and flexible options may be your best bet, as you’ll see below.

Compare Best Personal Loans for Borrowers With a Low Income

How We Chose

AmONE gathered data from almost 20 personal loan lenders to bring you the best ones for borrowers with a low income based on several initial factors such as credit scores required, quick funding, loan amount, accessibility, ease of application, and more.

Our methodology

We analyzed the data we collected to see which lenders offered loans to borrowers with a low income. We looked deeper into the ones we found and looked at over 10 data points, including credit score requirements, fees, accessibility, flexibility, customer service, interest rates, loan amounts, loan terms, the application process, and more. We picked the best personal loans for bad credit by scoring loans based on those features. But AmONE won’t stop there. We will continue to review our list to ensure the most recent loan information is included here and update our list annually.

Top Lenders

No one lender is best for all situations, so it’s always best to check with lenders directly if you have any questions. Here are our top choices based on the type of loan or features you need.

Upgrade: Best for a longer payoff term

Why it’s a top choice: With terms of up to 84 months (that’s 7 years!) available, Upgrade makes it easy to find a loan with an affordable monthly payment. Loans have fixed interest rates so you know exactly how much you’ll be paying each month. Income requirement: None disclosed Loan amount: $1,000 – $50,000 Availability and restrictions: Loans issued in Georgia must be for a minimum of $3,005 while loans in Massachusetts must be for a minimum of $6,400. Loans are not available in the District of Columbia. Money from Upgrade loans cannot be used for higher education, investments, or gambling. Pros:

• Loan repayment terms can be 24 – 84 months.
• Loan amounts of up to $50,000 are available.
• You could get your money as quickly as a day after approval.
• There is no prepayment penalty if you pay off your balance early.

Cons:

• Loans have origination fees.
• The origination fee is subtracted from your distribution. For instance, if you are approved for a $10,000 loan with a 3% origination fee, you will only receive $9,700.
• APRs are based partially on credit scores so those with poor credit or fair credit will pay more interest.

Read the AmONE Upgrade Personal Loan Review

Best Egg: Best for a wide range of loan amounts

Why it’s a top choice: Whether you need a little money or a lot, Best Egg has you covered. It offers loan amounts that range from $2,000 to $50,000. Income requirement: No minimum is disclosed, but to receive the best APRs, you’ll need an annual income of at least $100,000. Loan amount: $2,000 – $50,000 Availability and restrictions: Loans are not available in Iowa, Vermont, West Virginia, the District of Columbia, or U.S. Territories. Residents of Massachusetts must have a minimum loan amount of $6,500 while minimum loan amounts are $5,000 in New Mexico and Ohio and $3,000 in Georgia. Pros:

• Loans of up to $50,000 are available.
• Borrowers can check their interest rate without affecting their credit score.
• Applications are reviewed quickly and funds can be disbursed in as little as one business day.
• Borrowers can change their payment due date.

Cons:

• Loans have origination fees.
• Limited repayment terms are available.
• You’ll need a verifiable checking account in order to apply.

Read the AmONE Best Egg Personal Loan Review

Achieve: Best for flexible loan use

Why it’s a top choice: Regardless of why you need a loan, Achieve offers flexible financing options. You can select from a variety of repayment terms and borrow up to $50,000. Income requirement: None disclosed Loan amount: $7,500 – $50,000 Availability and restrictions: Loans might not be available in all states, and those issued in Arizona must be for a minimum of $10,500. Pros:

• Same-day loan decisions for many applications.
• Funds sent within 24-72 hours of approval.
• Repayment periods from 24-60 months are available.
• You get a fixed monthly payment and can choose your due date.
• A co-borrower can be added to your loan.

Cons:

• Loans have origination fees.
• The minimum APR for Achieve is higher than what you might find at other lenders.
• You’ll need excellent credit to get the best loan rates available.

Read the AmONE Achieve Personal Loan Review

Prosper: Best for home equity financing

Why it’s a top choice: While Prosper offers solid personal loan options, where it really shines is in its ability to provide home equity lines of credit (HELOC) of up to $500,000. However, even if you don’t have equity in your home, you can still get a personal loan for home improvements. Income requirement: Must have income greater than $0. Loan amount: $2,000 – $40,000 for personal loans, up to $500,000 for HELOCs Availability and restrictions: Loans may not be available in all states. They are also not available to those with credit scores below 640, more than five credit bureau inquiries in the past six months, fewer than three open accounts on their credit report, a debt-to-income ratio of more than 50% or a declared bankruptcy within the last 12 months. Pros:

• HELOCs can be approved in just a few weeks.
• You can borrow up to $500,000 with a HELOC or $40,000 with a personal loan.
• You can check for a loan offer without affecting your credit score.
• A co-borrower can be added to an application.

Cons:

• Loans have origination fees.
• There is a processing fee if you pay by check.
• The approval time for Prosper personal loans may be longer than what is available through other lenders.

Read the AmONE Prosper Personal Loan Review

Avant: Best for fast funding

Why it’s a top choice: If you need money fast, Avant may be the lender for you. Some borrowers could have cash as soon as the next business day. Income requirement: None disclosed Loan amount: $2,000 – $35,000 Availability and restrictions: Loan availability and minimum requirements may vary by state. Pros:

• You could receive money from your loan in as little as one business day.
• An online application can be completed in just minutes.
• You can check your eligibility without affecting your credit score.
• The Avant app makes it easy to manage your loan.

Cons:

• Loans have an administration fee.
• Interest rates on Avant loans may be higher than what is be available elsewhere.
• The maximum loan amount available is less than what is available through some other lenders.

Read the AmONE Avant Personal Loan Review

How Does a Personal Loan With Low-Income Work?

Determine your income

If you have low income, you may be surprised to learn that personal loans can be readily available to you. Some lenders may have minimum income requirements — such as $25,000 a year — but the majority don’t appear to have any minimums.

Know your credit score

Lenders may be more interested in how much debt you already carry compared to your income (known as a debt-to-income ratio) or your credit score. As a result, those with bad credit may have more difficulty receiving a loan than applicants with a low income.

Verify your income

Regardless of your income, be prepared to provide copies of your W-2 forms or tax returns to verify how much you each year. The amount of your loan and/or your interest rate could also vary depending on your annual income.

How to Compare to Find the Best Loan for Low Income

Families with low incomes need to make every dollar count so don’t apply for just any personal loan. Instead, consider all the following factors before making your choice.

APR

A loan’s APR is the interest charge you will pay on your balance. The lower the rate, the more money you’ll keep in your own pocket. Online personal loan rates range from 4.37% to 35.99%. Keep in mind that the best rates are generally reserved for those with excellent credit and higher income.

Origination fees

An origination fee is the upfront cost of receiving a loan. Financial institutions use this money to cover the cost of reviewing applications and issuing funds. Some lenders call it an administration fee. Origination fees can be as high as 10% and like APRs, lower fees may be reserved for those with higher credit scores and incomes. The origination fee is charged before funds are distributed so if you are approved for a $10,000 loan with a 10% origination fee, you’ll only receive $9,000 from the lender.

Special features

Some lenders provide services and features that add value to their products. These include user-friendly apps, online calculators, and other resources to help you with money management.

Repayment period and terms

For those with a low income, the repayment period can be almost as important as the APR. The longer a loan’s term, the lower your monthly payment will be. However, a longer repayment term could mean more interest charges in the long run. Lenders may offer repayment periods of two years to seven years, but longer terms may only be available to those borrowing a larger amount of money.

Funding time

If you are consolidating debt, you can probably wait a few days or even a few weeks for your loan payment to be processed. However, if you need a new car to get to work or have a leaking roof, you may need cash ASAP. In that case, your top choices for a personal loan could be companies such as Avant and Best Egg, which say they can deliver money as quickly as one day for some applicants.

How to Get a Personal Loan with a Low Income

Personal loans are available even to those with low incomes, but you should follow these steps to ensure you are getting the best deal possible.

Research and compare your options

Personal loans are a great choice for many needs, but they aren’t always the best option. Depending on why you need money, an auto loan, home equity line of credit or even a balance transfer to a new credit card could be a better choice. Take the time to research and compare other financing sources before you apply for a personal loan.

Understand Your Credit Score

Your credit score – which shouldn’t be confused with a credit report — is a key factor in whether a lender approves your application. It can also determine your term loans including how much interest you’ll pay. If you don’t know your credit score, you can access it for free through many credit cards and banks. For instance, CreditWise from Capital One is free for everyone and provides access to credit scores.

Find the best rates

Interest charges come with the territory when you’re borrowing money, but you don’t want to pay any more than necessary. Learn how to find the personal loan rates and start by applying to companies that offer lower APRs.

Increase your chances of getting approved

When your income is low, you might need to take action to improve your chances of an approval. For example, if you have bad credit, try to boost that number before applying. Other low-income personal loan strategies include increasing your income, finding a co-signer, and reducing the loan amount you are applying for.

Find someone willing to co-sign if it helps

In some cases, having a co-signer with more income or a better credit score can improve your chances of an approval. Co-signers, also known as co-borrowers, are legally responsible for paying back a debt if you cannot. That gives some lenders confidence that they can safely extend a loan to someone with low income, poor credit or no credit. Before you use a co-signer though, make sure you understand the pros and cons of getting a personal loan with a co-signer. Generally, a family member may be the person most likely to co-sign on a loan with you.

Apply for loan

Once you are ready to apply for a loan, make sure you have gathered all the relevant information first. You’ll need proof of your identity and income as well as banking information among other details. Take your time to avoid common loan application mistakes.

Get approved

Personal loans often provide fast decisions on applications. Usually, you will hear back in a few days, but it’s possible to receive a same-day decision from some lenders. Make sure you have entered your contact information correctly so a company can inform you of the decision or reach out with any questions.

Get help if you need it

Many personal loan applications can be completed quickly and easily, but it’s not uncommon for people to have questions about the process. You may be able to contact a company directly with questions or you can call an AmONE representative for free, personal assistance.

Make payments on time

Once you are approved, be sure to make your payments on time. Late payments can be expensive – not only could you get charged a fee, but your APR could be increased to a penalty rate. If you have a joint owner, be sure it’s clear who will be making what payments and when.

How AmONE Can Help You Find a Personal Loan With a Low Income

Getting the right loan can be the first step toward financial freedom, but you don’t have to take this journey alone. AmONE offers FREE personalized assistance so you can:

• Compare lenders and loan terms
• Match your needs with the right loan company
• Easily walk through the application process

We have helped countless low-income families get the money they need. There is no cost to speak to a loan specialist and receive personal advice. Call toll-free 888-401-0330 Monday through Friday from 9:00 AM to 9:00 PM or on Saturday from 9:00 AM to 5:30 PM Eastern Time to speak to a loan specialist. We can answer your questions and help you find the right loan to fit your needs.

Personal Loans With a Low Income Pros and Cons

Personal loans can be good choices in many situations, but they aren’t perfect. Here’s a look at the pros and cons of various aspects of these loans.