4 Low-Income Personal Loans for the Frugal Borrower

Personal loans can be a great resource for those in need of extra cash to cover expenses or consolidate debt. However, for individuals with low incomes, finding a personal loan that fits their financial situation can be challenging. In this article, we’ll take a look at four low-income personal loans for frugal borrowers.

PayActiv

PayActiv is a lender that offers low-income personal loans to employees through their employers. These loans range from $500 to $5,000 and are designed to help employees with unexpected expenses or emergencies. With PayActiv, loan payments are automatically deducted from the borrower’s paycheck over a 12-month period.

Self-Help Credit Union

Self-Help Credit Union is a non-profit lender that offers low-income personal loans to individuals and families in need. These loans range from $500 to $50,000 and have flexible repayment terms ranging from six months to 20 years. Self-Help Credit Union also offers free financial counseling to borrowers to help them manage their finances and build credit.

Lending Circles

Lending Circles is a program offered by Mission Asset Fund that provides low-income personal loans to individuals who are part of a lending circle. Lending circles are groups of individuals who come together to borrow and lend money to each other. With Lending Circles, borrowers can receive loans of up to $2,500 with repayment terms of 6 to 12 months. The program also offers free credit counseling to borrowers to help them improve their credit scores.

OppLoans

OppLoans is a lender that specializes in providing loans to individuals with low credit scores and incomes. Loans range from $500 to $5,000 with repayment terms of 9 to 24 months. While interest rates are higher than traditional personal loans, OppLoans provides an option for individuals who might not otherwise be able to qualify for a personal loan.

When considering a low-income personal loan, it’s important to read the loan terms carefully and understand the fees and repayment schedule. It’s also important to only borrow what you can afford to pay back, as failing to make payments can negatively impact your credit score.

Additionally, there are a few things you can do to increase your chances of being approved for a personal loan. One is to build up your credit score by paying bills on time and disputing any errors on your credit report. Another is to consider adding a co-signer with good credit to your loan application, as this can improve your chances of being approved.

In conclusion, personal loans can be a valuable resource for those with low incomes, but finding the right loan can be challenging. PayActiv, Self-Help Credit Union, Lending Circles, and OppLoans are all options for low-income borrowers in need of a personal loan. Remember to read the loan terms carefully and only borrow what you can afford to pay back. By taking these steps, you can find a loan that fits your financial situation and helps you achieve your goals.