Got bad credit but in need of a loan?
Most direct lenders understand it is nobody’s intention to end up with bad credit, and such circumstances are likely the result of unfortunate and unplanned situations such as illness or financial crisis. Many are able to empathize with feeling like you are ‘up a creek without a paddle’ when you are unable to get a bad credit loan to improve a situation where you are already struggling.
To bring you a little peace of mind, we have analyzed and broken down some of our favorite lenders who are willing to offer loans to borrowers with bad credit with guaranteed loan approval.
Furthermore, some of these lending companies can help you break free from your bad credit history by submitting payment records to national credit bureaus in order to help you rebuild your credit reputation.
You might be asking how it is that these companies are comfortable providing bad credit loans if they are not considering consumers’ credit scores.
The answer is easy — they simply analyze other factors. Such lenders may be interested in how you manage your expenses, what your average income is, etc. These are legitimate companies that evaluate the risk level of each borrower before agreeing to help.
Although there are genuine, legitimate companies out there who are willing to help you out by providing personal loans for bad credit, there are other, less good-hearted individuals who may only be interested in taking advantage of your vulnerability and desperation by charging hefty interest rates or practicing abusive collection techniques.
Therefore, it is important to make sure you are going with a company you can trust to charge reasonable fees and interest rates, and that is what we are all about. Keep reading to see how our favorite options stack up.
2021’s List of Best Bad Credit Loans with Instant Approval:
- MoneyMutual: Most-Trusted Personal Loan Provider for Bad Credit Borrowers
- BadCreditLoans: Top Emergency Loan Provider for Bad or No Credit Score
- CashUSA: Easiest Approval Loans for Borrowers in Need
- Personal Loans: Best Personal Loans
- Credit Loan: Guaranteed Loan Provider for Bad Credit Individuals
#1. MoneyMutual: Most-Trusted Personal Loan Provider for Bad Credit Borrowers
- Money transferred in as little as 24 hours.
- Large network of over 60 lenders is available.
- Reputation built by reviews from over two million users.
- Secure website protects user data and privacy.
According to one report, 40% of American consumers do not have sufficient wealth to cover even $400 in unexpected expenses. To add to the stress, it can be incredibly difficult for consumers to approach individual lenders, comply with eligibility requirements, and shoulder the financial burden of high-interest rates.
However, that is just what MoneyMutual aims to change.
Since being founded over a decade ago, MoneyMutual’s main priority has been to match borrowers with short-term loan lenders who are able to provide funds immediately. The application procedure is quick and simple.
Fill out a simple form online when you visit the MoneyMutual website to get started. After providing some basic information, like your address, age, and monthly earnings, the company will be able to evaluate your profile and start working on your request. Throughout the process, you can keep track of progress on the official website.
Next, MoneyMutual will connect you with a lender who is willing and able to give you a personal loan. You will be able to view the loan agreement’s terms and conditions after being redirected to the lender’s website. In addition, you can use this as an opportunity to ask questions about the terms of the loan or to seek clarification about anything you find confusing or vague. It will be up to you to read the agreement carefully and make sure you feel confident with that lender because MoneyMutual is not involved at this point of the process.
If you agree to the stated terms, interest rate, and fees the lender has set, you can close the deal by accepting the offer. Funds are direct-deposited into your bank account in as little as 24 hours.
It is important to note MoneyMutual does not dictate the terms and conditions set between you and your lender, as they are simply a liaison between you for the introduction.
- Free of charge service
- Simple and easy application for approval
- Easy to use and navigate website
- Funds are direct-deposited in as little as 24 hours
- More than 60 lenders partner with MoneyMutual
- User data is secure
- Applicants must reside in the U.S. to qualify
- Does not mediate disputes or disagreements between lenders and borrowers after the loan agreement has been signed
- Must have proof of stable income
Over two million consumers have turned to MoneyMutual to help them find personal loans, and from the majority of reviews, it is apparent they are doing a great job at providing users with a low-hassle, free of charge service that connects borrowers with lenders.
Another quality for which users praise MoneyMutual’s lender network is that borrowers do not have to wait to receive agreed-upon funds that are needed urgently. This is one of the main factors that maintains the public’s trust in MoneyMutual.
This trust is evident not only through the rate of returning users, but also through the rate of referrals, which validates the company’s reputation of credibility.
#2. BadCreditLoans: Top Emergency Loan Provider for Bad or No Credit Score
- Applying on this online lender marketplace is free to consumers.
- Loans can be requested for up to $10,000.
- 24/7 service is available through their private and secure website.
- This company is dedicated to lending responsibly.
Just like MoneyMutual, BadCreditLoans is another company that allows consumers to access its network of lenders.
Whether you need quick funding for bills, expenses, debt relief, or credit card refinancing, BadCreditLoans has your back.
The only thing borrowers have to do is pay attention to the loan terms and conditions being offered before they seal the deal with lenders and receive the agreed-upon funds.
Loans provided through BadCreditLoans range in value from $500 to $10,000, with flexible repayment terms up to 36 months and varying APRs between 5.99% and 35.99%.
In order to meet eligibility requirements, consumers must be at least 18 years old with evidence of a steady source of income and proof of citizenship. If that is you, then you are just three simple steps away from getting your loan funds deposited.
First, you will need to complete the simple form provided on the official website. Here, you will be asked to share the amount you are requesting to borrow, what you intend to use the borrowed funds for, and proof of citizenship (like a social security number, personal details like name and birthdate, and bank account information).
Second, you will have to wait for a short period while the company does its job of finding you a willing lender. Interested lenders will look at your request, then they will offer you a loan agreement based on your submitted qualifications.
Third, you will need to make a decision on the offer. You can accept it if you are satisfied with the terms, or you can decline it and look for a different lender. Be sure to read the terms and conditions carefully to make absolutely certain you understand what is being laid out for agreement.
If you and the lender are able to reach an agreement, you will sign an electronic contract to initiate the transfer of loaned funds to your checking account. It is most likely you will receive your money the following business day, but you might experience a slight delay if your lender’s deposit process is incompatible with your bank.
- Simple and quick application process
- A single form connects you to a network of several lenders
- Other lending companies available in case of no loan offers
- No obligation to accept offers
- Consumers with bad credit may only be eligible for loans up to $1,000
- Inadequate Better Business Bureau rating
Overall, BadCreditLoans is a good source for many consumers who need to find trustworthy and reliable lenders, particularly borrowers with poor credit reports and low credit scores.
Because they do not rely solely on credit histories, BadCreditLoans requires consumers to provide a little more personal information than many other companies in the lending industry. But, for consumers who are able to qualify for loans, it is all worth it.
#3. CashUSA: Easiest Approval Loans for Borrowers in Need
- Loan submissions are fast and free.
- Qualification requirements are simple.
- Loans valuing up to $10,000 are available.
- Official website promises users safety and security.
CashUSA is one of very few companies that offers guaranteed approval on bad credit loans. Lenders in CashUSA’s network are willing to let you borrow up to $10,000, although the value of the loan offer will depend on the condition of your credit score, with APRs ranging from 5.99% to 35.99%.
One of this company’s standout features is its online education center, which provides consumers with resources related to credit scores, debt calculation, paying back student loans, budgeting, tips on choosing a financial advisor, and more.
CashUSA’s official website lets you access all of these educational resources as well as approved loan offers from eligible lenders.
CashUSA’s process is fairly standard for the industry. It can seem overwhelming to think about sharing so much personal information with lenders, but compared to the in-person process of scheduling meetings, waiting for responses and transfers, and mailing or delivering repayments, it is clear these online companies still have a leg up on the competition.
You will first be asked to submit a short form that includes basic identity and loan information, like your name, email address, military status, and requested loan amount.
You will then be asked to provide more detailed information about your identity, residence, and employment. You will need to give CashUSA your phone number, home address and property type (rental or own home), as well as your monthly income, your boss’s name and contact information, your ID, SSN, and bank account type.
You will eventually have to give the company a little more information about your bank account and other final details in order for them to process your loan application.
After you submit your application, CashUSA will send your request out to all available lenders for review, and any interested lenders will then be able to send you an offer.
Before accepting a loan offer, you should view all offers and read them thoroughly in order to understand the terms and conditions. If you are not satisfied with the lender’s proposal, you can always decline the offer and wait for the right one to come along.
Once you find the right loan offer for you, acceptance is as easy as electronically consenting, after which you can expect your funds to be transferred by the next business day.
- Free, fast service
- One million monthly users
- Terms up to 70 months for some loans
- Numerous lenders available
- Education center provides financial information to consumers
- Personal information is safe and secure
- Must make $1,000 a month to qualify
- Some may not be able to afford certain lenders’ high interest rates
- A lot of personal information required upfront
Satisfied consumers had no regrets about choosing to get their loans from CashUSA’s lender network, thanks to fast, no-hassle fund transfers.
#4. Personal Loans: Best Personal Loans
- Internet’s favorite service for finding personal loans.
- Between $1,000 and $35,000 in funds available from lenders.
- Loans transferred in as little as 24 hours.
- Easy repayment terms keep things simple.
Personal Loans promises consumers a safe, secure, and timely transfer of funds. With a large network of lenders available 24/7, you can start looking for that money you need whenever it is convenient for you. Some lenders are willing to offer loan amounts as large as $35,000 to qualifying borrowers.
If you do not qualify for a loan with Personal Loans, a third-party partner may be able to help you. Personal Loans will make sure your basic loan profile is accessible to other lenders who are willing to work with you.
Personal Loans charges no fees for their matching service, and they are not involved in loan negotiations or post-acceptance processes. After you have met the right lender, the rest of the communication will be directly between you and them.
On the Personal Loans website, you can take the first step towards starting the loan process. You will initially be asked to fill out a basic information form, which is pretty standard. However, what is not standard is that Personal Loans explains the intent and purpose behind asking for each piece of information, so you can get an idea of what your details will be used for.
Based on the information you provide in the introductory form, interested lenders will invite you to check out their websites, where you can view the approved terms and conditions and make a decision on whether you would like to proceed.
Once the deal is approved, funds will be direct-deposited in your bank account in 24 hours or less.
Personal Loans brings customers peace of mind when it comes to repaying loans. If, for any reason, you suspect you might not be able to make your installment payment on time, you can either contact customer support, or you can communicate directly with the lender to ask about extensions, adjustments, or other accommodations.
If you miss a repayment deadline, you can talk directly to your lender to request a new payment schedule that is better suited to your budget constraints.
- Approved loan funds transferred in as little as a day
- Easy to comply with proposed repayment terms
- 72-month loan terms available in some cases
- Viewing and responding to offers is free of charge
- Loans up to $35,000 available
- Borrowers face a lot of eligibility requirements
- Some consumers with bad credit will be redirected to other lenders
Many customers have expressed satisfaction with Personal Loans’ fast loans and quality customer service, but the company is not accredited through the Better Business Bureau.
#5. Credit Loan: Guaranteed Loan Provider for Bad Credit Individuals
- Application is fast, free, and secure.
- Website is TRUSTe-verified.
- 24-hour waiting time for funds.
- Smaller loans for bad credit available for consumers in urgent need.
Since before the new millennium, Credit Loan has been helping connect consumers with lenders all over the country. More than 750,000 people have trusted this company’s promise to provide users with secure and practical tools to help them resolve financial problems.
For many people, Credit Loan’s affordable interest rates on payments make them an option worth considering. Borrowers with average credit histories as well as those with low credit scores can find lenders that are willing to help with their requests.
You will have to give most of the same information to Credit Loan that you would to any of the other lenders mentioned here, but what makes this company’s offerings distinct is that consumers in search of small loans at affordable interest rates may have better luck here.
With Credit Loan, you can also trust your information will be in safe hands, thanks to TRUSTe verification and McAfee SECURE certification to promote security and protect your data while you browse their website.
Like with any other lender marketplace, you will need to start by providing some basic personal information, including your name, email address, and zip code, among other things. Once you have submitted your request, it will be forwarded to the Credit Loan lender community.
In no time at all, willing lenders will reach out and allow you to follow a redirected invitation to their own website. There, you can check out the terms and conditions of the loan, evaluate the current offer, and decide to accept or decline it.
Once you accept a loan offer, you should see the funds in your account within one business day, provided your financial institution does not have a longer processing time for deposits.
- Free, fast, and secure lender matching process
- Personal information and browsing data is protected
- Funds transfer within one business day
- Smaller loans receive more favorable rates
- Only loans up to $5,000 available to bad credit holders
- High-interest rates
A lot of Credit Loan’s customers praise the company’s fast processing and secure service, and most find the rates and terms to be agreeable.
Lenders who partner with Credit Loan can help improve your credit score by reporting payments to credit bureaus.
Everything You Need to Know About Getting a Loan with Bad Credit
- Checking to See if You Are Eligible
Most lenders demand a FICO or minimum credit score of 620, although some lenders are willing to work with consumers who have scores as low as 580.
Debt-to-income ratio will also play a part in determining whether or not you qualify, as will the stability of your employment history and the value of your monthly income. Lenders want to know you will be able to make repayments in a timely and punctual manner.
If you do not qualify on your own, lenders may feel more comfortable offering a loan to you and a co-signer. A good co-signer — someone who has a great credit history, money in the bank, collateral to offer, or a high monthly income — can give lenders peace of mind that the money will be paid back, and they may be willing to make you a loan offer under these conditions.
Co-signers can also help you get a more favorable interest rate, which could lower your monthly payments as well as your overall amount of debt. However, if you choose to add a co-signer to your loan, be careful. If you cannot repay the loan, your co-signer will be liable to pay on your behalf.
Other lenders, and lender marketplaces, may not place so much importance on credit history, but most will still require consumers to be at least 18 years old, able to demonstrate proof of identity and residence, and willing to share employment and banking information.
- Understanding Interest Rates
Getting an affordable interest rate is the most important consideration for most people when borrowing a loan. It is vital for consumers to have a clear comprehension of interest rates. This means not only taking the time to understand different types of rates but also comparing offered rates in order to get the best deal.
In 9/10 cases, available interest rates are going to depend on your credit history. Borrowing with a good credit score will earn you a more favorable interest rate because lenders do not see these consumers as a big risk. On the other hand, having a bad credit score could result in extremely high-interest rates for borrowers.
Some loans have fixed interest rates, which means they remain the same over the lifetime of the loan. Other loans may have variable interest rates, which change according to the index rate. So, before you agree to a loan offer, be sure to read the fine print and make sure you understand what kind of interest rate you are working with.
- Analyzing Terms and Conditions
If you are approved for a bad credit loan, you will be able to see potential loan agreements from available lenders. These offers will tell you the basic terms and conditions for the loan, including how much money you could borrow, how long you would have to repay the debt, how frequent repayments will be expected, and what the APR would be.
APR (Annual Percentage Rate) is the amount the loan is going to cost you, the borrower. It includes the interest rate as well as other fees and charges from the lender. Make sure you can afford this number before you proceed with accepting an offer.
After you have read and understood all of the terms and conditions and are assured you are satisfied with the loan being presented, you can sign to accept it. Then, the only thing left to do is get your funds.
- Looking Out for Extra Fees and Penalties
Some lenders may take advantage of your urgency or desperation by piling on an assortment of extra fees and penalties.
Activation fees or origination fees, prepayment penalties, late payment penalties, and processing fees are all things you need to be aware of. Be sure to read the fine print of any agreements before you sign, and if you are unsure about the lender’s policy on fees and penalties, ask them directly.
If a lender is unwilling or unable to explain or describe associated fees or penalties, view that as a giant red flag and move on.
How to Get a Loan with Bad Credit – A Step-by-Step Informative Guide
Step 1: Check Your Credit Report
You can request your credit report from any of the major consumer reporting bureaus (Equifax, Experian, and TransUnion). Every 12 months, you are entitled to a free report from each of these three companies.
It is recommended you review your credit report at least three months prior to applying for a loan, if possible. This will allow you time to clear up any disputes before they become obstacles to getting a loan.
Your credit report will show any red flags in your credit history, and there may be time for you to address them in order to improve your credit score before you apply for any loans. If you are able to turn things around, you may be entitled to lower interest rates.
If you are in a time crunch, at least you will be aware of any potential drawbacks that lenders may hone in on.
Check the government’s Consumer Finance website if you want more information about credit reports and credit scores.
Step 2: Evaluate Your Needs and Make a Plan
You will need to determine precisely how much you actually need to borrow, and it is a good idea to make a list of relevant information, including:
- Your current budget with essential expenses
- Your current amount of savings
- Any current debt payments
- The amount required for the loan’s intended expense
- How much you can afford to repay monthly
- The number of months within which you would like to finish repaying the loan
Be honest and realistic with yourself about your financial situation, as well as your ability to repay the loan. Accept that you may not be able to find a lender willing to offer you a loan with your ideal terms and conditions.
Remember, a long-term loan will be more costly to you even though the monthly payments are lower. So, the accumulation of the interest payments is something to keep in mind.
Step 3: Shop Around for the Best Rates
As a borrower with bad credit, it is extra important that you get the most favorable rates from the most flexible lenders. Unlike subprime borrowers, consumers with solid credit histories are likely to be approved for installment loans by most online lenders.
Subprime borrowers are often better off going through lenders who offer pre-approval or guaranteed financing, as these specialized lenders are knowledgeable about other strategies for offering bad credit loans.
If you have the opportunity to review multiple lenders’ offers, be sure to pay attention to the numbers — particularly APR and term lengths — as these are the cost indicators for borrowers.
Do not feel pressured to accept the first offer that comes your way if it is not suitable for your personal situation.
Step 4: Be Aware of Scams
If going to a lender makes you feel vulnerable, your paranoia may be well-founded. There are countless individuals out there who are looking to take your money or your personal information and use it for their personal gain.
The best thing you can do to protect yourself is to recognize common signs of fraudulent lenders and be prepared to back out if you spot any of these red flags:
- The lender does not inquire about or confirm your financial history at all.
- The lender requests you pay an advance-fee out of pocket to process the loan.
- The lending company’s address and other contact details are impossible to find.
- The lender is pressuring you to make an immediate decision or disclose personal information.
Before providing personal information to an online lender, do your due diligence, and:
- Confirm the website is secure (look for an HTTPS website URL, not just an HTTP).
- Research the company to see if they are reputable.
- Read consumer reviews to look for any signs of loan scams or privacy issues.
Most importantly, remember that if it looks too good to be true, it probably is. Trust your intuition if the vibe is not right.
Step 5: Keep Up with Payments
Keep your finances organized and make your payments on time in order to avoid:
- Getting stuck with penalties and late fees.
- Damaging your credit score further.
- Paying excessive amounts of interest.
- Delaying the completion of repaying the loan.
Last Ditch Alternatives for Bad Credit Consumers
If you are not having any luck finding an acceptable loan offer, or if you are struggling to get qualified, do not turn to a life of crime just yet. Consider the following options your lifeline:
- Sell assets or property you already own.
- Check with your employer to see if you can access an employee emergency fund, or, alternatively, get an advance on a portion of your next paycheck.
- Ask close friends or family members for a small loan you can repay soon.
- Start a crowdfunding page to raise money through online donations.
FAQs: Guaranteed Bad Credit Loans
Q1. How Can I Find Out My Credit Score?
The federal government protects your right to check your credit history report. You can see your credit score by visiting annualcreditreport.com and looking for your FICO credit score, which ranges between 300 and 850 points.
If you have a score under 620, you are a candidate for a subprime loan, or a bad credit loan, which is likely to include higher interest rates and smaller loan amounts.
Q2. How Can I Improve My Credit Score?
- Know what your credit report looks like.
- Have an idea of what range your credit score falls into.
- Pay your bills on time and in full.
- Pay down any debts or open accounts.
- Avoid triggering hard inquiries unnecessarily.
- Do not open a lot of new accounts at once.
Q3. What Does It Mean if I Have a Bad Credit Score?
Having a bad credit score is not a judgment on who you are as a person, as it is simply a numerical value that represents your level of risk to lenders. A low score means you are more likely to miss or be late on a payment in the near future.
Consequences of having a bad credit score may include:
- Not being able to take out a line of credit for your business.
- Being disqualified for approval on regular loans.
- Being denied credit for personal, auto, and student loans.
- Facing higher interest rates and reduced loan amounts.
Q4. How Can I Get an Emergency Loan with a Bad Credit Score
If time is of the essence, take advantage of online lending networks that are offered by services like the ones mentioned in this article.
Approval is guaranteed for consumers who meet basic eligibility requirements, and funding is immediately transferred as soon as the loan agreement has been accepted.
Q5. Can I Get a Personal Loan Without Anyone Checking My Credit History?
The short answer is yes, you can. But, maybe you should not due to the risk and high associated costs.
The long answer is the simplest way to go about getting a personal loan without a credit history check is to apply for a secured loan, where you offer some kind of collateral to back up your commitment to repay the loan.
You might have to pay a higher interest rate or other fees to compensate the lender, as well. If this is acceptable to you, consider:
- Pawn Shop Loans – take personal property of value to a pawn shop in exchange for cash; but, if you fail to repay, you lose the item.
- Title Loans – attach your auto title to a loan; but, if you fail to pay, the lender takes ownership of your vehicle.
- Payday Loans – prove your income to a payday loan facility; but, be prepared to pay huge penalties if you default.
Getting a loan with bad credit may not be the ideal situation for anybody, but there are lenders out there who are willing to work with you when you find yourself facing an unplanned or unaffordable expense.
Online services like MoneyMutual, BadCreditLoans, CashUSA, Personal Loans, and Credit Loan are all available to connect struggling consumers with flexible lending partners who can offer a way out of a seemingly hopeless financial situation. These lenders do not charge consumers a dime for their service, so borrowers can avoid extra stress and expenses.
Choosing the right lender can definitely feel overwhelming, but we hope our apples-to-apples comparison will give you an idea of some of the best bad credit loans out there. If you are still feeling unsure, use our step-by-step guide as a reference throughout your loan search.
Now, you can stop feeling like you are at the mercy of your credit history, and you can take control by requesting immediate help right from the comfort of your home.