Maintaining a good, let alone impeccable, credit score can be very difficult in the current economic state of our world. Add to the bargain the impossibly high credit score requirement of banks and credit unions, and it becomes impossible to secure a loan when you need it the most. If you search for major loan providers online, you’ll likely find few, if any, that don’t perform a credit check as a prerequisite for loans.
Fortunately, there are marketplaces dedicated to finding you a lender even with a bad credit score. We researched many such loan portals to find you the best bad credit loans. The services listed below are all free for public use and strive to get financially challenged people the much-needed help in their time of need.
Top 5 Best Bad Credit Loan Providers with Guaranteed Approval:
- Money Mutual – Overall Best Bad Credit Loan Lenders, Instant Approval With Low Interest Rates
- Bad Credit Loans – Top Direct Lenders of Payday Loans & Same Day Loans Online
- Cash USA – Trusted For Quick Cash Loans With No Credit Check
- Personal Loans – Instant Approval of Personal Loans For Bad Credit
- Credit Loan – Reliable Platform For Debt Consolidation Loans
Here are the detailed reviews of our top picks:
#1. Money Mutual – Overall Best Bad Credit Loan Lenders, Instant Approval With Low Interest Rates
Beginning our list with a marketplace founded with the very purpose of helping average American households tackle financial crises promptly, Money Mutual is a free service dedicated to connecting bad credit loan applicants with potential lenders.
After a report on the economic well-being of US revealed that almost half the households couldn’t come up with $400 in an emergency, a team of working people from Las Vegas decided to create a service that works as a solution for these households’ financial issues.
For more than a decade now, Money Mutual has been providing individuals a free resource to find personal loans even with a bad credit score and has served more than 2 million satisfied users so far.
- Versatile loan ranges: Money Mutual has one of the most flexible loan amount ranges among all the services we evaluated. You can borrow as low as $100, and go as high as $5,000 when requesting a bad credit loan.
- Highest customer satisfaction ratio: Even though Money Mutual is relatively newer compared to the other resources on our list, it still holds the top spot for customer satisfaction. Within its decade of being operational, the service has successfully provided more than 2 million individuals with bad credit loans.
- Free-of-cost usage: The last thing someone looking for a loan would want is to face more expenses. The reason Money Mutual has such a flawless customer satisfaction ranking is because it’s a free resource that anyone can make use of.
- Fast deposit times: Money Mutual has a substantial network of lenders, so you get loan offers almost instantly after submitting a request. Because of this streamlined process, borrowers usually receive the funds within 24 hours of accepting a loan offer.
- Completely free of cost.
- Large network of lenders.
- Streamlined application process.
- Flexible loan amounts.
- Quick return of loan offers.
- Borrowers get funds within 24 hours.
- Competitive interest rates and loan terms.
- Industry-grade encryption on the website and servers.
- Only provides loans to individuals with US nationality.
- Not a lender itself.
With the number of satisfied customers going above 2,000,000, it’s evident that Money Mutual leaves no stones unturned when looking for a loan provider based on the applicant’s credit score. A large number of people use Money Mutual as their go-to service when looking for a quick and hassle-free loan with a bad credit score.
2. Bad Credit Loans – Top Direct Lenders of Payday Loans & Same Day Loans Online
Ranking second on our list is a service that was specifically created for people with a bad credit score. As the name implies, Bad Credit Loans is where you’re bound to find a personal loan on a short notice if banks and credit unions aren’t an option for you.
Bad Credit Loans is an online marketplace designed to make the process of finding a lender simple and convenient. Though you won’t get a bad credit loan directly from Bad Credit Loans, the resource will make sure to connect you with hundreds of potential lenders willing to work with you.
- Easy application process: The request form for Bad Credit Loans is completely online and extremely easy to fill out. Getting started is just a click away from the homepage, and you can input all the required information in three simple steps. It only takes a few minutes for your application to reach numerous major lenders.
- Private and secure: Even though the application form is incredibly simple, it’s still one of the most secure internet webpages. All the information you fill out in the forms is stored on highly-encrypted servers to ensure your privacy and security.
- Helps individuals with many financial issues: Apart from bad credit loans, the service provides individuals with many other resources to help them out in their financial struggles. These include lots of informational guides on taking out loans, budgeting advice, scam protection, and many other things.
- Transparent policies: Bad Credit Loans is committed to finding people the best possible financial aid when they need it. To this end, the service maintains a solid image in terms of transparency. You will be provided with all the information regarding bad credit borrowing while applying for a loan through Bad Credit Loans.
- Lets you borrow up to $10,000.
- Application process only takes three steps to complete.
- Provides plenty of other financial resources to users.
- Adheres to responsible lending practices.
- Guaranteed security of information.
- 100% free to use.
- Connects you with various lenders so loan terms and APR may vary.
- The minimum loan amount is $500.
- Below-average rating from Better Business Bureau.
Bad Credit Loans has a considerable appeal among users, especially ones struggling with a poor credit score. The resource is well-liked because of the promptness of its customer support, easy loan requesting form, and thorough dedication to educating and helping users with financial management.
3. Cash USA – Trusted For Quick Cash Loans With No Credit Check
Cash USA is another major loans marketplace on our list. It’s one of the most famous bad credit loan portals on the internet that connects borrowers with a large network of reliable loan providers. Cash USA is the ideal option for people who are cash-strapped and don’t have the credit score and time to apply for a bank loan.
If you’re looking for the perfect blend of ease-of-use, swiftness, and reliability, Cash USA is where you will find it. The marketplace is completely safe and convenient, and also features plenty of educational resources to guide you through bad credit loans.
- Minimal eligibility requirements: Cash USA has one of the easiest eligibility requirements for its loan requests. All you need is an ID showing US residency and your age (which must be 18 or above), a saving account, and a valid contact and email address to apply for a personal loan.
- Lots of educational resources: Cash USA is filled with a wealth of valuable information that everyone should be aware of to make the most of their loans. The dedicated education center provides individuals with the most up-to-date financial information and tips, so that they can use their resources efficiently while getting out of the poor credit situation.
- Diverse loan terms: Despite being exceptionally fast and convenient, Cash USA ensures that you get the most suitable terms while requesting a bad credit loan. Its distinct network of lenders allows the service to find you exactly what you’re looking for.
- Reliable customer support:Cash USA has extremely friendly and prompt support representatives ready to help you with any questions or concerns. You can reach them through the website, telephone, mail, e-mail, and even Facebook and Twitter.
- Hugely popular and trusted.
- Dedicated educational resources section.
- Easy requirements.
- Bad credit loans of up to $10,000.
- Extraordinary customer support.
- Secure website.
- Some lenders might conduct a hard pull on your credit report.
- The website’s UI looks slightly dated.
Since Cash USA is one of the most popular loan marketplaces on our list, it goes without saying that the majority of customers find it exceptionally trustworthy for their financial needs. Reviews indicate a high level of satisfaction from borrowers.
4. Personal Loans – Instant Approval of Personal Loans For Bad Credit
Personal Loans is similar to the previously-mentioned marketplaces on our list. Except, it takes the lending business one step further by marginally increasing the loan amount ranges, covering various types of personal loans, and providing you a one-stop solution for all your financial needs.
The portal not only connects you with its trusted network of lenders, but extends its services to secure you a loan from third-party lenders if all else fails. It’s safe to say that your chances of getting a loan are practically guaranteed no matter how bad your credit score.
- Lets you borrow as much as $35,000: Even though bad credit loans are usually below the $10,000 mark with most online lenders, Personal Loans understands that some needs can be higher. You can borrow anywhere between $1,000 and $35,000 using this service.
- Accredited by the Online Lenders Alliance: There’s a reason this marketplace’s name is synonymous with the service it provides. Personal Loans maintains a very high standard of lending. This is why the service is certified by the Online Lenders Association.
- Largest network of lenders: Personal Loans has a huge network of lenders. Moreover, it also works with third-party loan providers to improve your chances of securing a bad credit loan. You can find all kinds of financial help through Personal Loans, even lines of credit.
- Caters to your needs even if you fail to secure a loan: Even though Personal Loans has one of the best approval chances for bad credit loans, if you fail to secure a loan on the off chance, the service will connect you with other offers like debt relief, credit repair, and more such services.
- Extended network of lenders.
- You can borrow up to $35,000.
- Providers all types of personal loans and even credit lines.
- Member of the Online Lenders Alliance.
- May share some of your information with third-party lenders if you fail to secure a loan from its trusted network.
- Some of the lenders might have higher interest rates.
Personal Loans has a remarkable rating from user reviews. A lot of people praise its wide coverage of loan purposes along with the fast and hassle-free loan offers. The website is also extremely easy to navigate and features many guides on loans as well.
5. Credit Loan – Reliable Platform For Debt Consolidation Loans
Credit Loan is one of the oldest loan marketplaces of its kind on this list. The service has been around for more than 20 years and has since provided countless people many ways of dealing with financial crises.
The service is unique because of its distinct lender networks, one of which is reserved for applicants with a bad credit score. If you have failed to secure a loan with other loan providers, Credit Loan will still give you a good chance at getting one.
⇒ Visit the Official Website of Credit Loan
- Dedicated network of lenders for applicants with bad credit: Credit Loan has two distinct lending networks. One of these is specially aimed at applicants with a poor credit score. So, if you didn’t have much luck elsewhere, Credit Loan should do the trick.
- Offers up to $45,000: If your credit score is decent enough to get your loan application forwarded to the priority network, you can request up to $45,000 in personal loans. If not, you’re still eligible for the specialized network, which lets borrowers with poor credit request loans depending on their financial standing.
- Simple application form: The application form for Credit Loan’s requesting process is impressively simple and only takes five minutes to fill out. Furthermore, it only asks for necessary data and doesn’t require much personal info.
- Rapid funding times.
- Loan ranges from $250 to $45,000.
- Has a separate network that specializes in poor credit lending.
- Works well for smaller loan requests.
- TRUSTe certified.
- Applicants with poor credit are limited to a $5,000 loan amount range.
- Not available in New York and Connecticut.
Reports from more than 750,000 users show that Credit Loan’s special network of lenders for bad credit loans works exceptionally well. Moreover, the fast direct deposit of funds is very convenient for users. The A+ rating from BBB and high Trustpilot ranking cement the marketplace’s top rank as a loans portal.
How we made this list
Now that you know our recommendations, let’s cover which metrics we used to judge the hundreds of services we went through and selected the best.
- Reputation: The best indicator of any good service is its reputation. In this regard, we first looked at whether the service was part of Better Business Bureau (BBB) and Online Lenders Alliance (OLA). OLA in particular makes sure that its members offer industry standard terms for their loans and protects people from predatory lending. After making sure of a service’s membership, we also looked at thousands of user reviews in order to decide which service is the best.
- Flexible terms: Another important factor was whether the service offers flexible terms for people with bad credit. The article covers bad credit loans after all. We only cherry-picked services that approve the highest percentage of people with bad credit. Basically, we tried to make sure that with these services you’re almost guaranteed a loan no matter what your credit score is.
- Transparency: As far as bad credit loans are concerned, predatory lending is a huge problem in this industry. If you aren’t aware, predatory loans come with hidden and exploitative terms and conditions, making them almost impossible to pay off without shelling out for several times the amount you took a loan for. We did our best to protect you from loans like that and only selected services which are transparent about the terms and conditions of their loans. With these services, all the details about a loan will be disclosed upfront. We highly recommend you read the offers thoroughly before you accept one.
- Speed: Chances are, if you’re in a bad enough situation to need a loan with higher than usual APR, you need money for emergency purposes and as quickly as possible. That’s why we only selected services that’ll get you the funds you need as quickly as possible (even faster than banks). In most cases, provided you submit all the required documentation on time, you’ll have the money in your account within 24 hours.
Factors to consider while applying for Personal Loan with Bad Credit
Borrowing money is never a simple task. When you’re taking a loan from a loan provider, it’s all the more important to consider some vital factors before you get into it. The importance of these factors cannot be overstated when it comes to responsible borrowing. Suffice to say, you should only accept a loan offer after carefully considering these factors. What are they? We’ll tell you.
- Eligibility criteria
First off, there is always an eligibility criterion for every loan provider, which includes bad credit lenders as well. Usually, the criteria for bad credit loans is very basic and requires you to have a steady source of income, a minimum credit score (typically far lower than what banks and credit unions require), a checking account in your name, US nationality, contact number, and a residential address.
Your eligibility status will also dictate the amount of money a lender is willing to loan out to you. If your creditworthiness is top-notch, you can borrow the maximum loan amount from a particular lender. The same is also the case with people who have a cosigner to apply for a loan with them. So if you don’t meet the eligibility criteria, a cosigner will do the trick.
- Terms and conditions
You will likely secure a loan from most lenders if you meet the minimum eligibility criteria for a bad credit loan. After you receive a loan offer from one of them, make sure you go through the details of the repayment terms offered and understand all its restrictions and limitations.
Take note of the conditions for repaying the loan, the frequency of payments, the methods allowed for it, and the timeframe of repayment. The loan term varies from lender to lender, but you can usually find loan terms ranging from months to years.
One of the most important factors to look out for is the Annual Percentage Rate (the yearly cost of the loan). Since bad credit loans are unsecured personal loans and come with a higher risk, most of the lenders charge a higher APR on these loans. However, you can still find reasonable interest rates if you find the right lender.
Make sure you carefully think about the interest rates that are being offered to you. Prioritize finding the most affordable interest rates for your budget. Even though it won’t be an easy task with a bad credit score, you can still find the minimum interest rate loan if you request a loan from more than one lender.
- Additional charges
When dealing with bad credit loans, chances are that you will meet lenders who charge additional fees and impose prepayment penalty on late payments as well. The most common form of extra fees is the origination fee. It’s a one-time upfront fee of 1%-5% of the loan amounts, which gets deducted from the principal amount even before you receive the loan. Try to find lenders that don’t charge an origination fee.
Apart from the origination fee, there are also many other additional costs involved with bad credit loans. Some lenders charge penalties on missed payments, bounced checks, and even ask for a processing fee on the onset of a bad credit loan. It’s always a good idea to look for ones willing to forgo these.
How to guarantee your approval while requesting a Bad Credit Loan
Having a bad credit doesn’t help when you’re looking to borrow money for your needs and wants. Luckily, with bad credit loans, you can focus on some other aspects of your financial profile to guarantee your approval. If you don’t know what those aspects are, read on to secure a bad credit loan the surefire way.
- Determine how much money you need
Knowing exactly the amount you’re going to request from a lender helps a lot when applying for a bad credit loan. Most of the lenders have a minimum and maximum limit on the amount you can borrow from them.
With bad credit loans, the minimum is usually between $500-$1000. If you want just a couple of hundred dollars on an urgent notice, you can ask a friend, relative, or your employer to help you out. Otherwise, you can focus on lenders willing to lend the amount you’re looking for.
- Go in prepared
Before you get into the loan application forms and requesting procedures, it’s a good idea to get your documents ready. The majority of bad credit loan providers only ask for proof of income and creditworthiness as the minimum criteria for a loan, but it’s better to show more than that.
Gather your employment history and salary slips from as far back as you can. You can also include tax returns, bank statements, educational records, and any other documents indicating your creditworthiness and ability to repay the loan. Make digital copies of all these documents before looking up lenders.
- Apply for a loan with multiple lenders
You can never be too prepared when applying for a loan online. Due to the aggressive marketing that predatory lenders use, it’s harder to find reputable lenders online. To avoid falling for such lenders, make sure you research well before you begin requesting a loan from lenders online.
One way to get the best interest rates and avoid getting swindled is by using many of the free marketplaces designed to help people find reputable lenders. These include services like Money Mutual, Bad Credit Loans, Cash USA, Personal Loans, and Credit Loan.
- Simultaneously work on your credit score
If you find the right lender, you won’t only have the much-needed financial aid that you were looking for, but also a chance to improve your overall credit situation. Just make sure you make timely monthly payments on the loan you’re borrowing, and chances are that your credit score will keep on improving.
Meanwhile, evaluate your credit report thoroughly. If you don’t have it, you can request a free copy from any of the three major credit bureaus. See if there are some aspects of it that you can improve on your own. As your credit score improves overtime, you will be eligible for more lower-interest loans on top of a guaranteed approval from the majority of lenders.
Alternatives to Bad Credit Loans
You’ve reviewed our recommendations, but some of you might be wondering if there are alternatives to bad credit loans. It’s more than okay to explore your options and pick the best one. Let’s see what other options there are.
- Borrow from a loved one
This might not be an option for all of you, but if it is, then you should definitely go for it instead of taking a bad credit loan. Whether it’s a friend or a family member, borrowing from someone will give you several advantages over even the best student loans a bank can provide. For one, you won’t have to pay interest and other fees on the money you borrow. Secondly, if there are ever exigent circumstances and you can’t make a monthly payment, your loved one will understand; your bank, on the other hand, will slap additional charges for late payment(s) on top of your already substantial loan.
- Ask a relative for partial ownership of their credit card
Being able to borrow money from a loved one is a luxury that not all of us have. If you have a relative or a family member with a good credit score and a credit card, it might be worth asking them for partial ownership of their card. Provided that they agree, you’ll get access to a credit card which you can use for your emergency purposes and, thanks to your relative’s good credit score, the APR will be significantly lower than what you’d normally get with bad credit personal loans.
Another advantage of this approach is that you might be able to use the good credit history on that credit card to get bad credit loans with lower APR. In addition, when you use that credit card and consolidate debt, your credit score will improve.
- Go for credit repair
Just because you have a poor credit score right now doesn’t mean it’s a permanent state of affairs. No matter which type of loan you take right now, you should definitely try to repair your credit score. With a good/excellent credit score, you’ll have the option to later take a bank loan with a much lower APR to settle your bad credit loan; this will basically swap your high APR loan with a low APR one, saving you a ton of money in the long-run.
There are two methods you can use to repair/improve your credit score. First, you can try to do it yourself. There are several methods available for this, but probably the best one is to get a credit card of your own and make regular monthly payments on it. Even if you settle all your credit card debt in full every month, your credit score will still improve.
The other method involves getting professional help. There are businesses that’ll advise and help you in order to repair your credit score. Make sure you shop around and look out for any scammers demanding money upfront or giving you a guarantee that they’ll repair your credit. Legit credit repair businesses always go for deferred payments in installments and will never give you a guarantee.
FAQs Regarding Bad Credit Loans Online
Q1. What is considered a bad credit score?
The credit score of a person can range from 300-850, and anything below 580 is generally considered a bad credit score. With a score of 580 or below, the loans you get will have a very high-interest rate (sometimes as high as 30% or more). Even with a FICO score of less than 670 is considered somewhat bad and you’ll get higher than usual interest rates.
Good credit score starts at 670+, where you’ll start seeing standard APRs on your loans. The higher your credit score is, the better the repayment terms you’ll get on any loans.
Q2. Which documents do I need to provide with these services in order to get a bad credit loan?
Be aware that individual lenders on our recommended services might ask you for additional documents, but in general most of them need scanned copies of the following:
- Proof of identity (such as your state ID or driving license)
- Social security number
- Proof of residence (such as your utility bills)
- Proof of employment (such as pay slips)
- Tax returns (it’s a good idea to provide your returns for the last 2 years)
- Your bank information (the loan funds will land in this account)
However, to maximize your chances, we recommend that you also furnish your application with a personal statement describing your current circumstance and why you need the loan. A personal statement will show the lenders that you’re not a habitual debtor (who are considered high risk) and this is a once in a lifetime scenario for you.
Lastly, if you possess any credit cards and have an excellent repayment history on them, you should attach proof of it. Doing so will show the lenders that, despite your bad credit score, you’re financially responsible and can be relied upon to make regular monthly payments. As a result, you’ll get loan offers with lower interest rates.
Q3. How can I get a quick loan from a bank?
Credit Unions/ Banks generally don’t offer quick loans unless you have a credit score in excess of 740 and years of perfect credit history with different types of loans (car loans, student loans, home equity loans etc.). Unfortunately, most people don’t fit in this category. The average credit score in the US is 699, which is good enough to get a loan but won’t get you very quick funding. That’s why a lot of people have to rely on online lending services to get their funds quickly.
Q4. What’s the maximum amount I can take a loan for?
The maximum amount of money you can take a loan for depends on the particular service you’re using and your personal factors. For example, Money Mutual has an upper ceiling of $5,000 and won’t let you borrow more than that; whereas Personal Loans offers a much higher ceiling of up to $35,000.
However, it’s important to mention that just using a service like Personal Loans doesn’t guarantee you’ll be able to get a bigger loan. That’s where your personal factors come in. Variables like how much you earn monthly can have a huge impact on your personal borrowing limit. Obviously, you’ll be able to borrow significantly more if you earn $3,000 a month compared to someone who earns $1,000 a month.
Q5. What can I use a personal loan for?
Unlike specific loans, such as a car loan, student loan, or a medical loan, there are no restrictions on what you can do with the money once you get a personal loan. You can use the money for any purpose you’d like. Do be aware though that personal loans for bad credit have a higher APR than the aforementioned loans, and that’s why you shouldn’t borrow more than what you strictly need for your emergency purposes. In case you’re unsure of how much you’ll need, get a rough estimate and borrow 5-10% more than that. Even if you end up needing more money, you can always borrow more.
Q6. Which service is the best for bad credit loans?
All the services we’ve mentioned here are among the absolute best for bad credit loans. But if you’re looking for arecommendation, Money Mutual is by far the far the best one. The service was founded to help Americans who have bad credit in times of emergencies. Staying true to their mission, they approve the highest percentage of applicants with bad credit, and offer clear terms that are friendly and market competitive.
Q7. Can I get a bad credit loan if I’m unemployed?
Technically, it’s possible to get a bad credit loan if you’re unemployed and all the services we’ve mentioned here will let you apply for a personal loan regardless of your employment status. That being said, these services don’t give you the money themselves. They’re only responsible for putting your application in front of actual lenders, most (if not all) of whom will reject your application in case you’re not currently employed.
Conclusion – Direct Lenders of Best Bad Credit Loans
Needing a personal loan at the time of an emergency is very hard. Pair that with the fact that, when you have a bad credit most established institutions will turn you away, and your situation gets much harder.
Luckily, there are services that will help you out and give you a personal loan no matter how bad your credit scores are. We covered 5 such services today. All of these were selected after careful vetting of hundreds of similar services over weeks and we made sure to select only the best of the best. Make sure you read the personal loan offer thoroughly before you accept it so you make the best decision for yourself. We wish you the best of luck!