Bad credit loan options are quite limited. Financial institutions have strict credit checks that confirm your eligibility for a loan. If you have a poor credit score, lenders restrict your credit lines and charge exorbitant interest rates.
While you may not qualify for the best lending conditions, it doesn’t mean that you are out of options. Some companies are willing to offer bad credit loans with guaranteed approval.
These lenders can offer no credit check loans because they focus on other things. These include your monthly salary, monthly expenditure, how you save, or how you manage your money.
Many lenders claim they are prepared to take the risk. However, some are not genuine. Hence, you’ll want to look around before settling for the first offer you get. But no worries. We’ve done that part for you.
We’ve got a list of five online lenders that can help you get a bad credit loan with guaranteed approval. The good thing is that if you can consistently make timely payments, you can restore poor credit.
List of Top Five Best Bad Credit Loans with Guaranteed Approval
- MoneyMutual: Overall Best For Bad Credit Loans With Bad Credit
- BadCreditLoans: Instant Loans For Bad Credit Online, Runner Up
- CashUSA: Fastest For Quick Loans
- PersonalLoans.com: Quick Low Interest Personal Loans
#1. MoneyMutual: Overall Best For Bad Credit Loans With Bad Credit
Unfortunate circumstances always have a way of creeping up. For example, you need to repair your car urgently or pay emergency medical bills. When this happens, you reach out to your rainy-day fund.
But it’s not always that simple. Many times, we take short-term loans to cover unforeseen expenses. For those with bad credit, normal channels are out of the question. That’s why for two million Americans, MoneyMutual has been their saving grace.
MoneyMutual is not a lender but rather a platform that connects potential lenders to borrowers. Their marketplace has links to 60 lenders that are willing to work with folks with bad credit. To this end, one application links you to all these partner lenders. It beats the long queues at banks and credit unions. So, when you click submit, lenders evaluate your needs and look you over before indicating to MoneyMutual that they’d like to work with you.
MoneyMutual does not ask for upfront fees to connect you to a lender. All you do is fill out a form with your details. Usually, it takes only five minutes for new clients and less for return customers.
The company is a marketplace that gives you access to money for different things. It has payday loans where the lender expects repayment using your next paycheck. Installment loans with bad credit are also available. These kinds of loans need repayment using several payments. Still, the loan terms vary among lenders.
If you’re concerned about your credit score, it’s good to know that it’s not number one on the list of qualifications. It’s simple. You need to be at least 18 years and be a US citizen. The platform requires proof of employment or source of income. Also, you’ll have to be making more than $800 as your monthly income. Lastly, you need an active checking account. The lenders provide all other qualifications.
After submitting your information, lenders review it and determine whether they want to work with you. Each lender has established requirements. When a lender has an offer, MoneyMutual redirects you to their website. There, you can review the lender’s terms. On their part, in most cases, they simply confirm your personal information. This process takes place via email, phone, or text messages.
If you agree to the loan terms, the lender can deposit the money in 24 hours. That’s if it’s not a holiday or the weekend. Remember, the loan fees and repayment terms are solely at the discretion of you and the lender. So, MoneyMutual may not be able to answer questions concerning any particular lender.
As an online lender, MoneyMutual provides not only convenience but also privacy. You will not waste your time standing in line or making embarrassing calls getting people in your business.
- Funds are disbursed as quickly as 24 hours
- Trusted by over 2 million users
- No costs to fill out an application form
- Lenders decide within minutes
- Simple qualifications
- The platform has 60 reputable bad credit lenders
- The site does not have access to specific loan terms
- Provides personal loans to US citizens only
MoneyMutual is a credible source for bad credit loans. Most customers come back for a second loan owing to the incredible experience from the network. People appreciate the transparency, quick transfer of funds, and responsive customer support.
#2. BadCreditLoans.com: Instant Loans For Bad Credit Online, Runner Up
BadCreditLoans.com is one of the leading online lending networks. The company has been around since 1998. Like MoneyMutual, the site is a marketplace for lenders and borrowers. As such, you apply for a loan, and BadCreditLoans.com connects you to their network of state, tribal lenders, and financial service providers.
Unlike other sites, BadCreditLoans.com discloses lots of information. So, before you even apply, you’ll have an idea of what you’re getting into.
Lenders on BadCreditLoans.com are willing to extend up to $10,000 in the loan amount. The limit is interesting for online loans. The lenders do not perform a hard credit pull. However, you still need to submit your credit score. As a result, the lender can determine how much they are willing to offer you. Still, for anyone with a bad credit score, lenders can only offer up to $1000.
Perhaps the best thing about BadCreditLoans.com is that they do not require physical collateral. The platform asks the usual name, age, SSN, etc. The lender may have more questions like proof of steady income and bank type. What we know is that no lender asks for physical collateral.
Another feature that BadCreditLoans.com reveals is the cost of loans. Loaners have an APR range of 5.99% – 35.99%. Not all of them have origination fees. And again, the penalty for missed payment is at the discretion of the lender.
Once the loan is approved, you will receive the funds directly to your account. You’ll most likely receive the funds the next business day. Note that the lender determines the payment and fees for your loan.
When you receive an offer, you have every right to go over your loan terms. After which, you can decide whether they are favorable. If not, you can abandon the offer and consider loans from other lenders. BadCreditLoans.com does not pressure you into accepting any loan.
With BadCreditLoans.com lenders, you can expect to have a loan term of anywhere from 3-36 months. However, you have to repay them within a year. It’s still better than paying within a fixed period of three months like some lending networks.
- Decent loan amount of up to $10,000
- Hundreds of lenders with one request form
- Credit history is not a primary factor
- Service is available 24/7
- The loan limit for bad credit is relatively low ($1000)
- Some loans attract higher APRs than others
BadCreditLoans scores high in transparency. Customers notice that they tell you what to expect in their advertising. Many users leave a positive response regarding the help they got, even with bad credit. However, some do not appreciate that they ask for the full SSN rather than the last four digits.
But it’s good to know that most clients would recommend the brand owing to their fast loan processing.
#3. CashUSA: Fastest For Quick Loans
CashUSA is one of the best solutions when you need debt consolidation, unplanned car repairs, paying for medical bills, or any emergency expense. Millions of users recommend this online marketplace as a trusted source of secured online loans.
CashUSA turns to its network of reputable partner lenders who provide the best possible terms for borrowers with bad credit. In addition, the platform boasts a connection of state and tribal lenders who are willing to consider loan requests for various purposes, not just personal loans.
Thanks to their quick and easy process, funds can transfer into your checking account the next business day. That’s why most customers use it to get fast cash that would otherwise be impossible using traditional means.
CashUSA does not limit how you use the funds. It gives customers access to working capital that they can use for anything. It’s the one place where you can find the financial solution that you need.
If you’re wondering about the available loan options, CashUSA has a variety. You can borrow money for debt consolidation, emergencies, auto repair, and taxes. In addition, you can request money for business, vacation, wedding, rent/mortgage, student loan, home improvement, and medical expenses.
The online application process in CashUSA.com is free. So, nothing is keeping you from checking it out. The online form takes you step-by-step. The first thing you’ll fill in is your personal information. It entails your zip code, year of birth, and last four digits of your Social Security Number.
The next step takes you through the reasons for requesting a loan. As we’ve explained, you can choose from the options above. Besides, the loan info does not make you more or less qualified for getting a loan. It’s just a method for CashUSA to match you with the best lenders. Still, you will have to enter your credit range. That’s between poor (below 500) and excellent (above 700).
After filling out the loan details, CashUSA will then ask for your contact information. These include the phone number, city, state, email address, and how long you’ve stayed at your current residence. Additionally, you’ll tell them the most appropriate time to contact you. The employment details come next. Here, you’ll fill out your source of income, employer’s name, phone number, and monthly gross salary. Other details to fill out are your banking details and identity confirmation.
CashUSA does not have specific details about the financial implications of a loan. Such details differ between lenders. As a result, any information you get depends on the information you’ve submitted.
For example, the APR varies between 5.99 -35.99% according to the specific loan request. Furthermore, details such as implications for non-payment, loan finance charges, late payment fees, and loan renewal policies all depend on the lender.
- Wide variety of bad credit loans
- $500-$10,000 loan requests
- 3-72 months loan terms
- Funds in 24 hours
- Uses computer safeguards for data and privacy protection
- Lots of personal questions may be a dealbreaker
- It’s not BBB accredited
Most people who have used CashUSA are happy about choosing the marketplace. Many praise it for quick loans and their fast transfer of funds. In addition, they highlight that the platform has helped them make better financial decisions since they have an informative education center.
#4. PersonalLoans.com: Quick Low Interest Personal Loans
If you’re looking for an easy and secure way of accessing a decent loan amount, you may want to turn to PersonalLoans.com. The site is still a middleman with lenders who can furnish you with loans from $500-$35,000.
This network has credible lenders who can fulfill loan requests to borrowers despite their poor credit history. PersonalLoans.com has been in the business for 20 years. We can see why most people turn to it for quick and convenient online loans.
Request $500 and pay within 90 days. Besides this one, you can access varied loan amounts with a repayment of up to 72 months. The APR ranges from 5.99% – 35.99%. Furthermore, the origination fees depend on the lender.
Many loans have a repayment period of less than a year. These loans require monthly payments decided by the lender. Equally important, early repayments attract discounts with some lenders. It’s something you may want to keep an eye out for.
If you have a conventional credit score, you’re better off accessing loans from banks. There, you’ll have ideal terms for your financial needs. However, if you’re looking for a personal loan for debt consolidation or you can’t access capital for a new business, then PersonalLoans.com is right for you. It’s highly commendable for offering business loans since few lenders are willing to lend to new businesses.
Still, you’ll find that non-business loans have better terms. In this case, you will get fewer restrictions on how you can spend the money. It covers you for a handful of reasons, such as emergency bills and auto repairs. Additionally, there are three main choices in the loan selection. Choose between peer-to-peer loans, installment loans, and bank loans.
Each type of loan differs in terms of the amount you can get and the credit score for approval.
PersonalLoans.com is very accommodating. Especially for new clients, you’ll get lots of helpful information that guides you in the right direction. Moreover, there are financial tools like budgeting and spending articles. As such, you not only get the loan you request, but you also walk away with essential finance tips. Additionally, if you don’t get a loan offer right away, PersonalLoans.com will send you loan offers periodically.
PersonalLoans.com is a member of the Online Lenders Alliance (OLA). It implies that the platform commits itself to fair consumer practices. In addition, PersonalLoans.com complies with federal laws and regulations regarding online lending. As a result, you can expect the best user experience. The network protects you from illegal online threats and fraud.
Another perk of being an OLA member is that PersonalLoans.com has to give you adequate cancellation time. Not to mention the site does not display any false or misleading information.
The process of applying for a loan starts with meeting the pre-qualification. That is, be a US citizen or a permanent US resident of 18 years or older. You also need an active bank account and appropriate income to meet the repayment plan.
Unlike CashUSA, PersonalLoans.com does not ask for lots of personal information. It protects your data by employing top-of-the-line encryption. The site shares your information with its network of lenders. However, if you no longer wish for them to hold on to your data, you can have it deleted from the platform.
Representatives from PersonalLoans.com work from Monday through Saturday. You can contact the team during business hours.
- High loan amounts of up to $35,000
- Lots of lenders for choosing the best loan offer
- Provides personalized offers depending on request
- Straightforward application process
- Honest consumer practices
- Flexible loan repayment terms
- It does not indicate specific loan terms
- Verifiable income of $2000 is a bit high
Many people appreciate PersonalLoans.com. Most have had loans with reasonable APR. And, some cite it’s hard to get a trustworthy online lender, but PersonalLoans.com has proven to be fast and secure. They also mention that the terms are clear, and there’s no pressure to accept a loan offer.
#5. Credit Loan – Best Approval Standards
For 30% of Americans, getting a loan approved is a hurdle. Many lenders don’t want to work with anyone with a credit score lower than 620. As a result, you may never get emergency funding when you need it most.
Credit Loan has been in the online lending industry for more than 20 years. It started in 1998. In this time, the company has helped 750,000 users secure loans with reasonable loan terms. The organization aims at not only helping you find a lender but also educating you about finances. Their goal is more about educating so you can enjoy long-term financial success.
Credit Loan connects you to a loan provider since they are not direct lenders. They will ask you a few questions which pre-qualify you for a loan. You will then receive an email that will direct you to the lender’s website in a few minutes. There, you will find the loan offer. You then need to evaluate the loan terms. If the terms and conditions align with your needs, you can fill out the official loan agreement paperwork.
After you accept and both parties sign, you will receive funds in as little as 24 hours.
Credit Loan has a lending network for people with good credit scores and another for bad credit scores. It means when applying, the platform will match you with the most suitable lender. That’s why it requests a soft credit pull before connecting you to a lender. For those with a good credit history, you can access loans of up to $40,000. But only $5,000 for poor credit history.
Except for the usual, no specifics qualify you for loan approval. You just need a regular source of income, no active bankruptcy cases, a valid bank account in your name, and be 18 years of age.
The official loan request form has eleven steps. The first thing is to choose your state. Credit Loan does not accept loan requests from New York and Connecticut. The second step involves filling out your Zip code, name, and the amount you may want to borrow. It then leads to answering more questions like whether you’re on active military duty. The last step is verifying your identity by giving your Social Security Number. The site does not accept a driver’s license and ITIN for identity verification.
Unlike other bad credit sites, lenders at Credit Loan will require that you agree to a formal credit check. This step is to ensure that nothing comes up that was not in the soft credit pull. This step is most likely going to determine your approval or denial of a loan.
You don’t need to verify employment as your source of income. Credit Loan allows you to fill other forms of income. These include social security, disability benefits, retirement, annuity, investment returns, and many others. This feature sets Credit Loan apart from other lenders.
However, you still need to submit proof by uploading documents of income providers or government benefits.
This network offers excellent online privacy standards. It has even received a TRUSTe Seal to prove the same. Credit Loan assures its customers it goes the extra mile of protecting customers’ personal and financial information. Additionally, it encrypts all lines that send information to lenders.
- It does not require employment as income proof
- A+ BBB rating
- Works with reputable lenders only
- It has double lending networks
- You can use the loans for anything
- Fast loan approval
- Pre-qualifying does not guarantee loan approval
- Loans for bad credit are up to $5,000 only
Credit Loan is well-reputed in the industry. Customers rave about their positive experience with the service since they are quick to respond. Users who’ve complained have always had their issues resolved. On top of that, the company maintains a certain level of control over the lenders to prevent scams. As a result, customers can get better repayment terms and loan rates.
What To Consider When Applying for a Bad Credit Loan
There’s no best company for bad credit loans. What works for one borrower may not work for the other. That’s why before you accept any loan offer, you may want to look around for the ideal service provider. Here are a few considerations so you can get the best deal.
Check your Eligibility
The first thing you want to do is check if you fit the eligibility criteria of a company. For example, some networks don’t accept loans from certain states. Others have a specified credit score before you apply.
It’s also best to understand why a lender may deny your loan application even if they claim they can offer bad credit loans.
For example, you may be denied a loan because of your debt-to-income ratio. Here, you’ll have to compare the money you make and the money you owe. If you don’t make enough to cover the current debt, you’ll likely not qualify for a bad credit loan.
Lenders can woo you into accepting bad loan terms. Hence, it’s best to do your research to avoid such an experience. Make sure that you understand other customers’ experiences with a network or specific lender. Also, see if people come back for a second loan. It will help you to determine whether the lender is dependable.
Total Payback Amount
When evaluating loan offers, you’ll want to know the total payable amount. This dollar value presents the principal amount of the loan, including the interest rate, processing fee, application costs, credit reporting, among other expenses. As such, it is easier to understand than the Annual Percentage Rate (APR).
For example, a $1000 loan at an annual interest rate of 10% to be paid over three years in monthly installments will amount to a total payable amount of $1335.86. This number tells you in plain terms what you will pay in the end if you adhere to all other loan terms.
You’ll get loan offers from different lenders. The interest rate differs from lender to lender. Aim for the best interest rate by comparing the payable amount with varying rates of interest.
Also, don’t go for fixed interest rates if you don’t know what it means. Fixed interest rates are only reasonable if money loses value over time. If it appreciates, you’ll end up paying hefty sums. Equally important are fluctuating interest rates. They depend on the value of money. As a result, they change as the index rate changes.
Terms and Conditions
Once your loan is pre-approved, you’ll need to check the terms and conditions. We are talking about all the required information about the loan. Some lenders don’t bother to tell you the monthly payment, the APR, and other fees. It’s easy to think that terms are favorable when information is missing.
Ease of Repayment
How easy is the repayment process?
Will you be writing checks, or do you need to set up direct withdrawal from your bank? Also, know the applicable penalties for late payments and whether there are discounts for early repayments. These are some of the things you should look for in the repayment terms.
Furthermore, it helps to get into how the lender calculates the exact amount you should pay monthly. Some lenders can “miscalculate” the amount leaving you to pay a massive sum in the end.
Some of the included charges in a loan are bounced checks, inadequate funds, advanced payments, late payments, and commencement fees. If you don’t look at them beforehand, they can spiral out of proportion such that you’ll be paying a fortune. Note that lenders charge such fees as 1% to 7% of the total loan.
Step by Step Guide: How to Get a Bad Loan with Guaranteed Approval?
It’s now easier to get a bad credit loan than it was a few years back. However, you still need to know how to get the best bargain. And that starts with careful consideration along with making sure your credit score is in order. Now, you will need to prepare a budget on how best to pay off your loan. Plus, look for a loan with the best possible terms.
Step 1: Evaluate Your Credit Report
First, look at your credit history on your credit report. Evaluate the report for errors. Mind you, mistakes are more common than you think. If you find errors, have them fixed before applying for a loan. This step will help you get better terms on loans.
Step 2: Figure Out the Money You Need to Borrow
Don’t get carried away. Remember, you will pay back the loan. So, calculate the number you need. Then, go ahead and figure out a plan on how you’re going to repay the loan. It ensures that you remain realistic to avoid drowning further in debt if you can’t pay the amount you owe.
It’s also advisable to have a fixed number of months you wish to repay the money. Remember that a longer repayment period means that you will pay a high amount in the end.
Step 3: Check Out Interest Rates
The amount you want, payback period, and credit score determine the interest rate of a loan. In this case, you’ll want to consider lenders who don’t perform a hard credit pull. As such, you can get a pre-approved loan at an average interest rate.
Go ahead and compare the interest rates from various lenders. Only settle for the interest rate you know you can afford.
Step 4: Make Timely Payments
After you’ve settled for a loan, you need to ensure that you make timely payments. Only then can you avoid penalties and charges that can drag the repayment beyond your budget. Keep in mind that bad credit loans have higher than average interest rates. So, they can easily dig a hole in your pocket if you don’t make timely payments.
Alternatives to Bad Credit Loans Instant Approval
When you have a bad credit score, likely, you may not find a suitable lender. To this end, you can still find other types of cash alternatives to finance your short-term monetary needs.
What other money options do you have? If lenders were not available, you could still find a way around your situation. For example, you can have a garage sale for things you don’t deem essential but are valuable to others. Assets are also a good idea to save the day. They can get you fast cash if a bad credit loan is no longer an option.
Ask for Cash Advance from Your Employer
If you have a good relationship with your employer, now is the time to ask for a cash advance on your salary. It will help in an emergency provided you can survive the following month without a full salary.
Turn to Loved Ones
Family and friends are invaluable during tough times. All you have to do is ask. Chances are they are more ready to help than you’d have imagined. However, you risk damaging a good relationship if you don’t repay the funds in the agreed period. So, it’s best to take the money like you would from a lender and apply the same strictness in repayment.
Frequently Asked Questions (FAQs) about Bad Credit Loans & Guaranteed Approval
What is a bad credit score?
The credit score range depends on the credit score model used, for example, FICO or Vantage Score and the credit bureau that pulls the score (Experian vs. TransUnion vs. Equifax). 90% of the time, your score comes from FICO. In this case, 300-579 is considered very poor. A fair credit score is between 580-669, while a good one starts at 670-739. With a 740-799, it’s considered to be very good. Whereas 800-850 is excellent.
How does bad credit affect your loan?
Generally, a score below 630 can affect your probability of getting a loan. Lenders view bad credit borrowers as high risk. So, they can deny your loan request or offer unfavorable terms.
For example, if you need a loan to buy a home, financial institutions require a FICO score of at least 620. A lower score can mean putting down at least 10%, and you’ll also have to pay mortgage insurance. Consequently, this will increase your borrowing cost tremendously.
Are there benefits of taking a bad credit loan?
Acquiring a bad credit loan is one of the methods of increasing your credit score. In addition, you can use the loan for debt consolidation. Doing so can reduce the average interest rate you have to pay across institutions since the debt you owe will now be with one lender. Additionally, you don’t have to remember different payment dates.
Access to quick cash is another advantage with bad credit loans. It can help you take care of bills while making progress on your credit score.
What loans do you qualify for with bad credit?
You may still qualify for a variety of loans with poor credit. These include; bad credit personal loans, short-term or payday loans, installment loans, student loans, and a cash advance on credit cards.
How can you improve your chances of qualifying for a bad credit loan?
Qualifying for a bad credit loan requires extra work. First, prepare necessary documents. Lenders will most likely ask for proof of identity, income, etc. So, it’s best to have your documents ready before you start the application process.
Next, ask for one loan at a time. Applying for more than one loan can hurt your credit score further. Lenders can also see which other loans you’re applying for. As a result, they may lose interest in fulfilling your loan request.
Plus, if you need $5,000, don’t apply for $10,000. A large amount is a risky endeavor for lenders. They are more likely to approve a small, short-term amount than a large long-term amount.
Finally, paying off debt will increase the chances of qualifying for a loan. In this case, aim for a 36% debt-to-income ratio. Any number or less will help lenders see that you always pay off debt.
How can you improve a bad credit score?
If your credit score is below average, it can take forever to restore. But there are several ways you can improve. Some of these will improve your credit score in 30 days.
The first thing you’ll want to do is to avoid late payments. Your payment history has the most significant impact on your score. And it’s not just about debt. Timely payments for utilities, credit cards, cell phone bills, etc., can impact your credit score positively.
Your credit utilization also affects your credit score. It’s best to use 30% of your credit limit to keep your balance low. You can do this by always paying what you owe before the end of each billing cycle.
Additionally, you can ask for a higher credit limit if you can’t keep credit utilization below 30%. It will instantly lower your credit utilization.
Lastly, if mistakes are affecting your credit score, fixing them can improve your score instantly. The process involves reading your credit report, looking for errors, and disputing them with credit reporting bureaus. Alternatively, you can have a credit repair company do it for you.
Bad credit loans with guaranteed approval can be challenging to find. We’ve compared the top lending networks that connect you to bad credit lenders. It’s a good starting point for finding the best terms.
As you know, bad credit loans have the most unfavorable conditions. So, you don’t need to go through a dozen websites comparing lenders. Our top options are among the best in the industry. They offer reasonable interest rates, flexible repayments, and low rates and fees.
Don’t let bad credit keep you from enjoying a better quality of life. Our top options will lead you to the best bad credit loan providers.