Are you in a sticky situation? Do you need quick cash but have bad credit? We know how difficult it can be when you’re in dire need of some finances and lenders aren’t willing to work with you. Especially now, while the pandemic is ongoing and the expenses that came along with the holidays.
Most lenders do not understand that unexpected things like medical expenses can happen, causing you to take out risky loans and tank your credit. This is precisely why we’ve made a list of services that offer bad credit loans with guaranteed approvals.
The services on our list will offer you credit based on other factors than credit scores, and if done correctly, taking out a bad credit loan might positively impact your credit score. These companies take into consideration things like your monthly income, how much you spend, your payment history, etc.
It’s important to note that the loan business is very lucrative, so many companies will try to take advantage of your situation and charge you absurd interest rates or just outright scam you. As a result, it’s critical to choose lenders with fair fees and personal loan interest rates, and we’ve got you covered on that part with the list of brands for best bad credit loans.
5 Best Online Bad Credit Loans For Fast Cash
- MoneyMutual: Overall Best Emergency Loans On The Market
- BadCreditLoans: Premium Payday Loans For Bad Credit
- CashUSA: Top Lenders for Loans With Poor Credit
- PersonalLoans: Best Online Personal Loans For Minimum Credit Score
#1. MoneyMutual: Overall Best Emergency Loans On The Market
MoneyMutual was established in 2010 with the primary goal of connecting short-term lenders with borrowers and making things simple for the latter by providing cash quickly upon request. In terms of time, the application and approval is a rather straightforward process.
MoneyMutual is undoubtedly one of the most well-known and well-respected loan companies in the country. It’s popular due to the fact that it does not always do a complete credit check on its customers, and by doing so, it will not negatively impact your credit score.
The company is not a direct lender, rather a free service that connects bad credit customers with legitimate lenders so they may get loans regardless of their credit scores. With an extensive network of lenders and transparent working policies, it’s no wonder this service has been operating for more than a decade and has helped over two million people in the United States meet their financial demands.
To begin, information such as your address, age, and whether or not you make $800 a month will be required of you. After you fill out the form, the service starts working on your request.
MoneyMutual does not check your credit score before linking you to lenders that are interested in working with you. If you’re looking to borrow money, most lenders won’t do a full credit check to see how much you may borrow. This not only speeds up the loan approval process but also ensures that folks with poor credit may get the funding they require.
MoneyMutual’s entirely online way of acquiring a short-term loan allows you to access the money in as little as 24 hours, making the process much more convenient for those in need. When it comes to paying off debt, this might be an absolute lifesaver.
- The service is completely free
- Fast applying and approval process
- Get loan offers in a very short time
- A network of over 60 reliable lenders
- A highly-rated company with a good reputation
- Money can be received in 24 hours
- Comprehensive educational resources
- Security and encryption of your personal information
- Only available in the US
- Not available in all US states
- You must have a monthly income source to be eligible
Having served over two million people, MoneyMutual’s platform is well praised for its ease of use and convenience in engaging with lenders online.
Most of its customers appear to be happy with the platform because it’s simple, and the service itself does not charge any fees to help you find a loan. Customers who used this service have stated that they were able to get their money quicker than they could with other similar services.
MoneyMutual’s customer service is incredibly popular, with people praising the employees’ politeness and willingness to help. Users also expressed their satisfaction with the loan’s repayment options and plan. People have been referring friends and family to the company because it has a good reputation and a lot of repeat customers.
#2. BadCreditLoans: Premium Payday Loans For Bad Credit
#2. BadCreditLoans: Premium Payday Loans For Bad Credit
Similar to MoneyMutual, BadCreditLoans is a company that acts as a middleman between people looking for a loan and lenders that are prepared to work with lower credit scores. The lenders featured on the website are not under the control of this service. However, it does inform you of any relevant details you may need, allowing you to determine whether or not to trust a particular loan partner.
As with the entirety of our article, the thing that makes BadCreditLoans convenient is that it is fairly commonplace for customers to receive loans without a credit check being performed. Even people with credit ratings as low as 500 can be approved, and each application is paired with a variety of lenders. You simply fill out a short request form and wait for the lenders to come to you.
You may use the website to browse for mortgages, auto loans, credit cards, home repairs, student loans, and other financial needs. Borrowers searching for business loans will be glad to find that the BadCreditLoans network includes lenders who support small enterprises and startups as well.
Before applying for a loan, you will need to meet specific requirements. Namely, you need to provide proof of US citizenship or residence, be at least 18 years of age, have a monthly source of income, and have an active checking account.
It takes fewer than five minutes to complete the online application. Following that, the server will locate several lenders who suit your criteria and provide you with email proposals. The BadCreditLoans service is accessible 24 hours a day, seven days a week. So, if you need a loan, you may submit an application at any moment and wait for a response.
BadCreditLoans allows you to apply for up to $10,000 in loans. What’s nice is that you may spread out your payments over a period of up to 36 months. The interest rate, on the other hand, changes based on the terms and circumstances of the loan agreement. Interest rates can vary from 5.99% to 35.99% APR.
- The site interface is very user-friendly
- Connect with various lenders with just one form application
- Borrow loans from $500 to $10,000
- If the service does not match you with a lender, you will be directed to other lending companies
- Information about the lenders is available
- Compare the offers from different lenders
- Users with very poor credit may only get small loans
- The application requires detailed personal information
While there aren’t tons of customer reviews out there, the ones we found on TrustPilot were positive. Customers that were pleased complimented the company for providing timely financing and clearance, even if they had bad credit.
Borrowers who have used the company’s services have also commended the politeness and knowledge of the company’s customer service representatives. If you have any questions, you can get in touch with the support reps via phone or email. Overall, BadCreditLoans is an excellent platform for finding reputed and trustworthy lenders.
#3. CashUSA: Top Lenders for Loans With Poor Credit
#2. CashUSA: Top Lenders for Loans With Poor Credit
One of the most popular services on our list, CashUSA, has been providing loan solutions since 2004. Personal loans from CashUSA, like many other bad credit or quick loans, are ideal for folks who are short on cash, can’t get it through traditional channels, and need to borrow money immediately.
CashUSA allows you to borrow up to $10 000, with the amount and APR varying depending on your credit score. Your credit score does affect the loan, but you will still be guaranteed loan approval. One of the most notable features of CashUSA is the comprehensive education center. It gives you all the information you need on a variety of financial topics, such as credit score, debt calculation, student loan repayment planning, creating goals and budgets, and so on.
Moreover, we were very impressed with the company’s transparency on how they use your personal information as well as how it’s secured. For example, they share personal information with financial institutions and third-party service providers, including loan originators and loan servicers.
The application process is pretty standardized across the services on our list. To begin, you’ll need to provide some simple details such as an address, email address, and whether or not you’re currently serving in the military, as well as the amount you’d want to borrow. After that, you’ll be asked for additional specific information, such as your phone number, home address, ownership status of your residence, monthly income, name and phone number of your employer, and the sort of bank account you have. Finally, you provide information on your checking account, and the rest is up to CashUSA.
If a lender sends you an offer with terms that you would like to accept, you finalize the procedure via e-signature and receive the funds within one business day.
- The service is completely free of charge
- Secure and reliable platform
- Tailors the best offers based on your financial situation
- Over a million monthly users
- Great customer support service
- Very informative education center
- Data encryption to protect your information
- You can apply for both short and long-term loans
- The service is not a direct lender
- The application form requires a lot of personal data
People like the ease with which they can apply for substantial loans on this service and how fast they may acquire them. Customers also like the site’s varied interest rates and repayment alternatives. The only complaints we found were from people getting annoyed from getting promotional emails about the service.
CashUSA is always glad to respond to client questions and concerns, with customer care professionals being available during business hours. The support team at CashUSA is widely regarded as one of the best in the industry.
#4. PersonalLoans: Best Online Personal Loans For Minimum Credit Score
#2. PersonalLoans: Best Online Personal Loans For Minimum Credit Score
PersonalLoans is a free-of-charge service that provides loans for any occasion at competitive rates with funding directly to your bank account. The service works with both in-house and third-party lenders, and they are catered to people of all credit types, with specific lenders who work with customers who have bad credit. Having such a large network of lenders is what makes PersonalLoans one of the best providers for bad credit loans with guaranteed approvals.
The company is a consumer service that links people with bad credit to personal loans ranging from $5,000 to $35,000. You may apply for a loan at any time of the day or night at any day of the week and be matched with various lenders around the country.
What we liked about PersonalLoans is the loan guides provided on the website that contain information about the different loan types and what kind of loan is the right fit for you.
First of all, the application process at PersonalLoans is one of the shortest, and what makes it unique is that you do not have to provide detailed information until a lender contacts you. After that, you’re free to make a decision based on the terms and circumstances that the lender has authorized. Within 24 hours of the agreement being approved, the cash will be deposited into your bank account.
As a result of their wide range of terms, Personal Loans have risen to the very top of the lending ladder. Many personal loan companies set strict limitations on their customers, such as short payback periods and loan limit caps. A wide range of options is available for borrowers using this platform, allowing you to take out a loan that fits perfectly within your budget.
This differentiates Personal Loans from other lending platforms because of the variety of loans accessible. Many lending services only provide a single loan kind. Personal Loans, on the other hand, provide three different types of loans from which to pick depending on your need. Peer-to-peer, bank, and installment loans are all options.
- Many types of loans are available
- The site is well-designed and user-friendly
- Loan amounts up to $35,000
- Part of the Online Lenders Alliance
- Receive the funds within 24 hours
- The application procedure is straightforward
- Flexible repayment terms with due dates up to 72 months
- Not available in all US states
- There is a chance some people might not get approved
Customers like the variety of loan alternatives provided by this business, as well as the convenience with which they can obtain all of the necessary information on the official website.
Furthermore, you will be able to acquire loan rates and other information about offers on the site, which you can use to make an educated decision about which lender to choose. This has shown to be quite beneficial to customers.
You may contact PersonalLoans by phone or email on weekdays, from 6:00 AM to 7:00 PM. Their staff can help you with general service issues, but not with specific lenders.
#5. Credit Loan
Credit Loan has been in business for more than two decades and has remained at the top of the lending industry despite a lot of competition. With its service, you may get both small and large loan amounts, making it more adaptable than most other organizations in the industry.
Since its inception in 1998, Credit Loan has helped more than 750,000 customers find unsecured personal loans lenders that provide various loan sizes, moderate interest rates, flexible repayment period, and affordable monthly payments. Because there are two lending networks at CreditLoan, you can rest assured that your loan request will be seen by suitable lenders, regardless of whether you have terrible credit or outstanding credit.
The service will only perform a so-called soft pull check on your credit, preventing it from further harming your credit score. Credit Loan is a viable alternative to explore because of its low-interest rates and flexible repayment terms. Both borrowers and lenders were pleased with how successful this service connects them and how much it has changed to meet their evolving needs.
The loan request process at Credit Loan is pretty similar to others on our list, but what differentiates this platform is how well it works for small loan amounts with affordable interest rates.
When you submit the quick loan request form, that form will be instantly distributed to the network of lending partners. A soft credit pull will be performed, and in a matter of minutes, you may get an email with a number of loan offers to pick from. If you find a loan offer that meets your criteria, you may complete your loan application in an hour or so and have the cash in your corresponding bank account the following business day.
Security is another great feature of the site, having a TRUSTe verification and other measures in place like McAfee SECURE browsing. This ensures your personal information stays private and does not get stolen or used for unethical reasons.
- The service is free, fast, and secure
- Loans ranging from $250 to $5000
- Rated A+ by the Better Business Bureau
- Your personal information is protected
- TRUSTe verified
- Funding is available in one business day
- Educational resources are available
- Not available in the states of Connecticut and New York
- The maximum loan amount is $5000
Customers like the website’s user-friendly application process and the immediacy with which borrowers may get money. It is both dependable and secure so that customers can put their faith in it without reservation. According to the majority of users, Credit Loan’s distinguishing features include an overall convenient and pleasant experience.
A brief visit to the brand’s official website will reveal the numerous positive customer reviews that people have written for this service. People also liked how quickly and readily the customer service representatives answered their inquiries, which improved their experience with the service.
Things to Look for Before Taking Out Bad Credit Personal Loans
There are many elements to take into consideration when applying for a bad credit loan. Not only that but there are many scam sites out there that are waiting to take advantage of your situation. To get the best possible loan offer, you should keep in mind the following factors.
- Interest rates
The most crucial factor when shopping for a bad credit loan is, without a doubt, the interest rate. Having a poor credit score puts you in the risky borrower category, so companies will charge you higher interest rates in order to rationalize that risk.
With that being said, having a bad credit score does not mean you should pay exorbitant interest rates. You will need to accept interest rates that are generally higher than the average, but you should not agree on unreasonable APR.
The best thing you can do is make use of all of these free services, connect with as many lenders as possible, and then compare the interest rates offered. This will allow you to get a feel for your situation and make an educated decision. If you go with the first offer, you might end up overpaying.
- Check for eligibility
After you consider interest rates and what would be a suitable loan, you need to see if you meet the requirements. Not all lenders disclose this detail, but having a minimum credit score of around 610-620 is almost always a requirement.
Moreover, you should check for other requirements like valid checking accounts and income statements. A credit score does not matter as much as long as you can provide an income statement that meets the minimum requirements. Most companies will only work with people who earn at least $800 to $1000 per month.
If your credit history does not allow you to be approved for a loan, you may be able to find a lender that would allow you to add another signatory to the loan. With a co-signer, you may take advantage of their excellent credit and income. This might help you get a better deal from the lender.
- Terms & conditions of the agreement
Once you and the lender finish the loan request process, the loan agreement will be made accessible to you. All that you need to know about the loan, including details on the amount and interest rate, will be included (annual percentage rate).
Before agreeing to the conditions, you should carefully review them to ensure they are in your best interests. You should also make sure that you can afford to pay the loan back.
Always remember to read the fine print of the loan agreement before deciding whether or not to take out a loan from a certain lender. Some payday lenders, for example, may provide you with the loans you desire at reasonable interest rates but with strict loan payback terms.
- Additional fees
People with poor credit ratings may be charged fees, fines, and other loan costs. Late loan repayments, cheques returned by the bank (also known as bounced checks), and other events might result in these penalties.
Depending on the lender, there might also be processing loans that accrue fees of up to 6% of the loan. In addition, this fee may be charged separately (the “origination fee”) or as part of the loan that must be repaid.
Again, these costs aren’t the same for every lender, so you’ll have to evaluate prices from other online lenders before making your choice.
How to Prepare for Taking Out Online Payday Loans with Fast Approval
With online loans becoming prevalent and the whole process becoming much more streamlined and straightforward, there is no need for massive paperwork or long preparations before applying for a loan.
With that being said, it’s in your best interest to follow our step-by-step guide for loan applying.
- Check your credit score
It’s crucial to understand where you stand before searching for the best loan offers. You should use the free annual credit report to get an estimation of your credit score. Knowing your credit score should give you an idea of what kind of offers to expect.
- Try improving your score
See if you can take actions that will instantly improve your credit score. Some things you can do are paying off debt and lowering your credit utilization.
- Create a budget
Even if you need the money for an emergency, it’s not wise to apply for a loan without consulting your budget. Make a rough estimate of how much you can afford. You don’t want to accrue more debt or pay additional charges. Not only that, but you can damage your credit score even further.
- Compare loan offers
The great thing about these online lending services is that they are free of charge. You can use this to your advantage and get as many offers as possible before making a decision. Avoid blindly accepting the first offer that comes your way, as you never know if a better one is waiting for you.
Some lenders include a pre-qualification procedure where you may see if you qualify without a hard credit check and what restrictions you’d get if you were accepted.
A pre-qualification does not affect your credit score because it only gives you an idea of the rate, loan amount, and repayment terms you may expect. It can, for example, assist you in determining whether or not you qualify for a loan and allows you to compare loan offers from a range of lenders. Most financial institutions and many lenders have this option.
- Have crucial information and documents at hand
Prepare the papers needed to apply for a loan ahead of time. W-2s, pay stubs, financial documents, and your SSN are examples. Some lenders will respond to your application the same day or the following day.
- Create a repayment plan
It is your number one responsibility to make timely payments. You’ll avoid fines, late fees, and a harmful impact on your credit record by doing so. Failing to repay will only increase the cost of the loan.
If your credit score is so low that you’re not able to get an offer, you can try some alternative ways to get funds.
- Cash advances
If you’re on good terms with your employer, you could ask for an advance on your next paycheck. Depending on your boss and the company’s size, this is not a bad option as you won’t have to pay any interest rates.
Another cash advance option is getting money out of a credit card. Many banks will allow you to withdraw funds instead of just purchasing with the card, although this option usually comes with high-interest rates.
- Budgeting and liquidating assets
Taking it easy on your day-to-day purchases for a few weeks can help you save up some money. Try making a budget plan, buying only what is essential, and not spending money on unnecessary goods.
If a frugal budget is not enough, you should consider selling some of your assets. This could be jewelry, an antique item, or even your car. Other things you can turn into cash are things like company shares or bonds.
- Friends and relatives
Nobody wants to be a nuisance to their loved ones, especially when it comes to money. But, if all else fails, you should consider asking a close friend or family to spot you some cash. You can approach this as you would a standard loan by having a formal agreement written with repayment terms and due times.
Personal Loans for People with Bad Credit: FAQs
Q1. How do I find out what my credit score is?
A credit score is influenced by a couple of factors that are determined based on your past finances, history of repayments, credit cards, etc. If you have no clue what your credit score is, you can get an evaluation at annualcreditreport.com. The site calculates your credit score based on your credit history throughout the years with information from the three main credit reporting agencies.
Q2. What is considered a bad credit score?
Your credit is determined by the FICO scoring system. The FICO scores range from 300 to 850. Suppose you have a score that is ranked below 670. It’s generally considered bad. But, most people average scores of around 580 to 670, which is good enough for getting a loan with reasonable interest rates.
Scores that range from 300 to 570 are considered abysmal, and if you fall in these categories, you will most likely be rejected for most loans, and the ones that you will get approved of will have enormous interest rates. People who have scores above 670 up to 850 fall in the excellent score category, enabling them to get the most favorable loan terms.
Q3. How does the pandemic affect bad credit loans?
In reaction to the COVID-19 epidemic, several lenders have changed interest rates or adjusted loan offerings to help mitigate risk. This includes both traditional banks and internet loans.
However, given the present uncertain economic climate, qualifying for a loan as a first-time borrower with negative credit may be more challenging. If you’ve already taken out a loan, you may be able to delay payments or avoid fees depending on your lender.
Q4. What are the consequences of having a bad credit score?
A poor credit score might prevent you from expanding your company. When you apply for loans, you will be turned down right away. You won’t be able to use and extend the line of credit if you have an emergency.
Many financial benefits, such as personal loans, vehicle loans, student loans, and credit cards, will be taken away from you.
Q5. Are bad credit loans with guaranteed approvals legitimate?
The short answer is yes. The companies on our list will connect you with legitimate lenders who are willing to work with bad credit scores. With that being said, the motivation behind such lenders is not one of a good samaritan, rather charging high-interest rates.
This is completely justified as the worse your credit score is, the bigger the risk the lender is taking. Although the services only work with licensed lenders, if you’re skeptical about a particular lender, you should do some research. For instance, you can make sure they are registered by looking for a registration number on their website or looking for them in the Better Business Bureau.
Q6. What can I do to improve my credit score?
Improving your credit score is not easy or fast, but there are a couple of things you can do to impact your score positively.
The number one thing is to keep track of what your credit score is by using up your free credit estimation reports. The biggest thing you can do to better your score is to pay off your debt and keep paying your bills and payments on time. If you owe any installments, you should get rid of them as fast as possible. You should also avoid opening up too many credit cards, as well as avoid situations that require hard pulls on your credit score. If you earn a good wage, you should consider the help of professional counselors who will devise a plan on how to boost your credit score.
Q7. Are there any ways of getting a loan without providing a credit score?
The services on our list are willing to work with bad credit scores, but that does not mean they will not check your credit score. If you’re looking for a way to avoid credit checks, you can try out things like secured loans or payday loans.
Be wary that these types of loans come with high-interest rates as well as additional consequences if you fail to pay. Some payday loan providers will only ask for an income statement and access to your bank account without checking your credit score.
Q8. Can I still apply for a bad credit loan if I’m unemployed?
Yes, you can. The services on our list clearly state that to be eligible for a loan. You need some form of a consistent monthly income. This doesn’t have to come from employment; it can be rent money that you collect from properties, social security benefits, disability benefits, and more.
Even though we do not recommend it, it is possible to acquire a loan if you’re currently unemployed.
Q9. Is taking out a bad credit loan worth it?
This is a question only you can answer. Indeed, short-term loans for bad credit usually come with unfavorable repayment terms, but this is because you’re considered a risky borrower. Sometimes life hits you with an emergency or unexpected expense that you have to pay off quickly.
This is where a small loan comes in handy. If you think your situation is dire enough and a loan is the only way out, then go for it. Sometimes, a bad credit loan can improve your credit score by positively impacting your payment history, showing that you can pay it off on time.
Conclusion: Top 4 Payday Loans with Poor Credit Scores
Bad credit loans are a great solution to an unexpected expense. Whether it’s a holiday, wedding gift, car repair, or any other reason, there are many events that could happen without you having any say, ignoring your budget and possibly damaging your credit score.
That’s why we made this article and presented the services on our list. These companies can connect you with lenders who give out bad credit loans with guaranteed approvals at just the right time.
The platforms are free, trustworthy, convenient, and, most importantly, life-saving. Our top picks would have to be MoneyMutual or CashUSA, as these companies have had a lot of positive feedback from customers and have been around for a long time.
All that is left now is for you to get the financial aid you require and spend the money accordingly. Just remember to plan out your budget and repay the loan on time.