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This content is for informational purposes only and is not intended to provide financial advice.
With the COVID pandemic throwing a curveball at our lives the past year and a half, many people lost their jobs and financial security. Subsequently, those of us that fell behind on bills might have seen a drop in our credit scores.
Even if you’re back on your feet, life has unexpected expenses. Maybe your car broke down, a home appliance stopped working, or a family member got sick. But now, your lower credit score might make it difficult to obtain a loan or line of credit.
It doesn’t matter what your reason for needing a loan is; lenders simply don’t like dealing with people who have bad credit. We’ve compiled a list of companies that offer bad credit loans with guaranteed approval to help you get the much-needed funds.
Most direct lenders do not care about the reasoning behind your bad credit and will simply avoid working with you. But we understand how it feels to be in a challenging situation made even worse by not being able to get a bad credit personal loan.
Time to stop stressing because we’ve made a list of lenders that can give you a loan regardless of your credit score. Moreover, these companies can help you improve your credit score by vouching for your timely payments and sending records to credit bureaus and institutions.
List of the Best Bad Credit Loan Companies
- MoneyMutual: Best Bad Credit Loans With Guaranteed Approval: Editor’s Choice
- Bad Credit Loans: Highly Recommended Loans for Bad Credit
- CashUSA: Most Trustworthy for Instant Cash
- Personal Loans: Best for Bad Credit Personal Loans
- CreditLoan: Best for Soft Credit Check Loans
#1. MoneyMutual: Overall Best Bad Credit Loans With Guaranteed Approval
Overview
Founded back in 2010, MoneMutual offers consumers an excellent lending experience and allows you to compare personal loans, short-term loans, and many other options.
MoneyMutual essentially acts as a middle man service, connecting you, the borrower, to a network of lenders who might be able to provide you with the funds.
According to MoneyMutual, 4 out of 10 Americans can’t come up with a sum of $400 in case of an emergency, a very worrying statistic. The service connects you with a large network of lenders that could provide you with payday loans, installment loans, and more.
Moreover, MoneyMutual has educational resources on the website, where you can learn about loans and personal finances.
How It Works
Using MoneyMutual’s service won’t cost you anything. They make a profit by successfully connecting you to a lender, who then pays them a commission. To get started, you fill out a simple form with your identifying information, contact information, and your employment status.
To be eligible for a loan, you need to meet several requirements:
- Being employed with a regular income of at least $800 per month
- You need to be 18 years or older
- You need to be a U.S. citizen or permanent resident
- Have an active checking account
After meeting the requirements and filling out the simple form, MoneyMutual sends the document to potential lenders for review. If a lender is interested in working with you, they will contact you and give you agreement terms that you can but don’t have to accept. The interest rates, payback, and overall terms are negotiated between you and the lender.
When you accept the loan, you will have the money in your checking account within 24 hours.
Perks and Features
Comparing Tailored Rates
Because MoneyMutual works with many lenders, you will have a considerable choice for the loan amount. When you apply for a loan, you will be presented with a list of lenders that are willing to work with you, and you can compare their terms to see how they suit your needs and budget.
No Origination Fee or Charges
MoneyMutual’s service won’t cost you anything. There is no need to worry about any hidden fees or maintenance charges. Once you get connected to a lender, everything you need to pay or repay will go directly to the lender.
Fast Application and Deposits
The simple online application form can be filled out in a few minutes and sent out to lenders instantly. Having an extensive network of lenders, MoneyMutual can connect you to a lender in a matter of minutes, and if you accept the terms of the deal, you might get your money in a couple of hours.
Pros
- Free service
- Quick and simple application and approval process
- Receive funds for the loan in as little as 24 hours
- User-friendly website
- Loans range from $100 to $5000
- Large lending network
- Educational resources
- Receive loan offers within minutes
Cons
- Only available for U.S. customers
- Not supported in all states
- Requires proof of regular monthly income
Customer Experience
Having served over 2 million customers and boasting tons of positive reviews, it’s safe to say MoneyMutual offers a fantastic service.
People liked that it was free, and they got connected to a lender quickly. When you’re looking for an emergency loan, you need the money fast, and that is precisely why so many people choose MoneyMutual. Customers liked the quick application process and appreciated that they got the money within 24 hours.
Compliments also went in the way of the helpful customer service; some users said that the support reps were professional, friendly, and very helpful.
⇒Visit the official website of MoneyMutual
#2. Bad Credit Loans: Highly Recommended Loans for Bad Credit
Overview
If you need funds as soon as possible for whatever reason, be it debt relief, rent, medical, holiday vacation, or auto repair, Bad Credit Loans has got you covered. Founded in Tacoma, Washington in 1998 and functioning in a similar way to MoneyMutual, Bad Credit Loans acts as a marketplace where borrowers and lenders meet online. Bad Credit Loans offers information and education about loans to help you make the right and responsible decision when taking out a short-term loan.
Bad Credit Loans has an extensive network of lenders providing a myriad of options for people with bad credit scores, giving out loans ranging from $500 to $10 000, with APRs between 5.99% and 35.99%.
Even though the terms for people with poor credit scores are not so attractive, with things like higher interest rates, higher costs, and lower amounts, services like Bad Credit Loans are essential for people in dire need.
How It Works
Like most marketplaces, you start out by filling out a convenient form application with accurate information about yourself, contact information, and employment data such as where you work and your employer’s contact info. Keep in mind that your credit score and history might impact the terms of the loan offers.
To be eligible for a loan, you will need:
- To be at least 18 years old
- Proof of citizenship such as Social Security Number or legal residency
- Have some form of regular income, either from regular employment, part-time job, disability, or social security benefits
- Valid work and home phone numbers and email
- Have a checking account in your name
Once you complete the loan request, it will be sent to lenders from the network, and if you connect, lenders will verify the information and review the loan request. Then, the lender might offer you a loan with specific terms. Take your time and read the terms, and if you find that they are acceptable, agree to those terms and seal the deal with an e-signature. You will get the funds in your checking account in as little as one business day.
Repayment terms are agreed solely between you and the lender. Bad Credit Loans has no say in the deal once it is completed.
Perks and Features
Many Types of Loans
With Bad Credit Loans, you can get personal loans to cover unexpected expenses like car repairs without providing collateral. If you’re not eligible for a traditional FHA or USDA loan, Bad Credit Loans can also assist you in finding a mortgage loan.
Other types of loans you can get are student loans, business loans, auto loans, or vacation loans. These can be done in multiple ways like installments, payday loans, or cash advances.
Simple Application Process
Bad Credit Loans has some of the most simple application processes. It will only take you 2 to 3 minutes to fill out the form, and it only requires the most basic information. All in all, you will need a few minutes to complete the form and a couple more minutes to get an answer.
Compare Options
You can get multiple offers from as many lenders as Bad Credit Loans can find for you, and you can compare them side by side. Filling out a simple form acts as multiple applications, and you will have various quotes to compare.
Pros
- Free service
- Compare options side-by-side
- Get loans ranging from $500 to $10 000
- Options for unsecured loans
- Many of the loans have flexible terms
- Vast network of lenders
- Get the money in as little as one business day
- If no lender is interested, the company shows you ads of third-party lenders
Cons
- If you have a very poor credit score, you might not get a loan bigger than $1000
- APRs can be high for bad credit scores
Customer Experience
Bad Credit Loans is a popular and credible source to find reliable lenders. Customers enjoyed working with the service because of the user-friendly website and ease of applying. People enjoyed working with the friendly customer support staff and are thankful they found a lender with reasonable return interest rates.
⇒Visit the official website of Bad Credit Loans
#3. CashUSA: Most Trustworthy for Instant Cash
Overview
With CashUSA, you can get bad credit loans with guaranteed approvals of up to $10,000. This platform has some of the highest approval ratings because it partners with both state and tribal lenders.
Tribal lenders are subject to federal and tribal laws instead of state laws, so you’re more likely to get a loan approved, although the APR might be higher, ranging from 5.99% to 36%. Taking out loans from Native American lenders may prove more expensive in the long run, so always read the fine print.
No matter who provides the loan, CashUSA is reliable and considered America’s most trusted resource for short-term cash loans, with installment payouts ranging from 3 to 72 months.
What’s cool about CashUSA is that they provide a detailed, free, and streamlined financial education section on their website.
How It Works
CashUSA is fast and convenient. Submit a request using the web form, which can be done in two minutes if you have your banking account and personal information readily available, along with contact information like email and phone number and the amount you need.
You need to provide additional information like:
- Approximate credit score
- Social Security Number
- Government ID
- Bank account and deposit information
- Home or car owner information
- Official job title and income status
To be eligible, you need to be 18 years of age, be a U.S. resident, and earn at least $1000 per month. This might seem like a lot of information, but it helps CashUSA to connect you with suitable and relevant lenders. This means you will get an offer much faster, tailored to your specific case.
Once a lender has made an offer, make sure to read the terms and fine print and see if it fits your budget and needs. If you accept it, you will have the loan money in your account in a matter of hours or the next business day.
Perks and Features
Receive an Offer Fast
Because CashUSA requires more information upfront when compared to competitors, it’s able to provide a faster and better-tailored offer from a lender. The more details you provide, the better the accuracy of the offer tailored to your situation. Once you submit the loan request, it’s processed and sent to lenders within a few minutes.
All Credit Profiles are Accepted
CashUSA works with many lenders and different types of lenders like state and tribal institutions. Because of this reason, everybody gets a loan approved. The only requirement is to have a regular income of $1000 or above, and you will be accepted regardless of your credit score and profile.
Extensive Education Center
CashUSA wants to teach loan responsibility and financial literacy through their education center. You can learn all about credit, how your score is determined, how to manage credit, and improve your credit score.
The finance section also teaches you how to handle your finances and improve your overall situation. Other things you can learn about are debt, timely payments, types of debt, etc.
All in all, it has great information about the world of finance and banking that could persuade you to make your payments on time, help you manage your student loans, or open a savings account.
Pros
- Fast and free service
- Loans tailored to your needs and history
- Available in all 50 states
- A vast network of state and tribal lenders
- Installment loans ranging from $500 to $10,000
- Great education center
- Repayment times of up to 72 months
- Your information is encrypted to keep it secure
Cons
- Requires a lot of personal information
- No side-by-side comparison of lenders
Customer Experience
CashUSA is rated 3.9, which is a great rating for a service of this type. People generally feel angry they can’t get the best personal loan deals for bad credit, so they take it on services like this. People have been saying that this is the best service that provides many personal loan options and excellent customer support.
⇒Visit the official website of CashUSA
#4. Personal Loans: Best for Bad Credit Personal Loans
Overview
If you’re looking for loans for a more considerable amount of money, Personal Loans is the place to go. It offers a fast and secure transfer of funds any time of the day with amounts up to $35,000. Personal Loans has one of the biggest networks of loan providers, and if you fail to find a match, it can connect you to other third-party lenders to help you find a loan.
The loan specifics will depend on the lender you’re working with, and the platform generally accepts all credit scores, but the recommended score is 600 or higher.
Personal Loans acts as a lending marketplace that offers its users bank, peer-to-peer, and installment loans. You can apply for a loan regardless of the reason, like major purchases, rent, medical procedures, debt consolidation, vacations, home improvement, and more.
Personal Loans is an Online Lenders’ Alliance member, which is an organization committed to fair and honest lending practices. Personal Loans complies with federal laws and regulations, protecting its users from fraud and online scams.
How It Works
Submitting the request is as simple as filling out basic information in a form. The information required is your name, phone number, zip code, email, birthdate, loan information such as how much you need, the loan reason, and what kind of credit you have. You also need to provide a Social Security Number, a driving license or other ID, and a bank account.
After sending the request, it only takes a few minutes to start receiving offers. Personal Loans runs your request through a proprietary algorithm designed to connect you to suitable lenders. The algorithm tries to match you to lenders matching your needs and tries to avoid incompatible pairs.
The final step is reviewing and considering the offers you receive. This is where you negotiate and fine-tune the deal you’re looking to accept.
Always read the offer carefully and see that it suits your budget and financial needs. If you don’t like the offer, skip it and submit another request. Personal Loans won’t charge anything for submitting multiple times.
Perks and Features
Submit Requests With Obligation-Free rates
A cool feature of Personal Loans is that it won’t ask you for bank account information before trying to connect you with a lender. This is great because you can see the types of offers you expect before giving away your banking details. Having that kind of privacy is a big plus for many people, ourselves included.
User-Friendly Process
The whole applying and connecting to lenders process was very convenient. Every question and step of the process was clear and explained well, and every question had an elaboration on why it was asked. This is great for people who are skeptical of these sites and think they only want to use and sell your information. Rest assured, between explaining everything and not requiring banking details, Personal Loans keeps your data safe.
Loans for Any Occasion
Whether you need a loan for home improvement, debt consolidation, an emergency, tax refunds, or you just need fast cash, Personal Loans has got you covered.
Personal Loans provides detailed information on all types of loans to help you decide what’s the right choice for you.
Pros
- Funds transferred in as little as one day
- Loans up to $35,000
- Flexible repayments
- Repayment period up to 72 months
- Personalized offers
- A large network of lenders
- Member of the Online Lenders’ Alliance
Cons
- People with extremely bad credit scores might not get approved
- APRs can be high
Customer Experience
Customers are generally satisfied with the service Personal Loans provides. People are grateful they could get a loan fast and with a reasonable APR. Users have been saying that the whole process took them around 10-15 minutes, and they got loan offers in just a few hours.
⇒Visit the official website of Personal Loans
#5. CreditLoan: Best for Soft Credit Check Loans
Overview
Being around for quite some time, CreditLoan has connected more than 750,000 people with lenders from around the U.S. CreditLoan provides a great, safe service to help users with bad credit scores find suitable loans.
With CreditLoan, you can get loans ranging from $250 to $40,000, and the company will only make a soft pull on your credit history, meaning it won’t affect your credit score.
Focusing on quality services, it has been featured in publications like CNN, The New York Times, The Wall Street Journal, Forbes, and many more.
The service is excellent for people with bad credit who are in need of small funds in a short time period. There is also tons of information on how credit scores work, how your score influences the loan terms, what makes up a bad credit score, how you can benefit from taking out a bad credit score loan, and more. Moreover, CreditLoan keeps your information safe and secure, being TRUSTe-verified and having a McAfee Secure verification.
How It Works
The process is pretty easy—just submit your information using a typical site form. You will need to provide things like name, phone, email, zip code, income status, employment status, proof of residence, a checking account, etc.
CreditLoan is one of the most secure companies when it comes to protecting your data. To be able to apply for a bad credit loan or personal loan, you need:
- Proof of U.S. citizenship or residency and a valid government ID
- Be at least 18 years old
- To have a valid checking account
- To have not filed for bankruptcy
- Employment and income status
After you fill out the quick form, your request will be sent to a network of lenders, who will contact you if they’re willing to work with you. To finalize the process, you will be redirected to a lender’s website, where you will be given the terms and conditions of the agreement. If you find those terms are acceptable, you sign the contract using an electronic signature, and you will get the funds in as little as 24 hours.
Perks and Features
Security
CreditLoan is one of the few companies that heavily focus on keeping your sensitive information safe. It’s TRUSTe-verified, meaning they follow the digital data privacy certification standards. Moreover, it enables safe browsing using McAfee Secure that protects you from hackers and such.
Guides and Tools
Suppose you’re in need of a loan but are hesitant to try out an online site that gives out bad credit loans with guaranteed approvals, head to CreditLoan’s extensive guide section, explaining everything you need to know about taking out loans with bad credit. There is also a helpful tool in the form of a personal loan calculator, which can aid you in crunching the numbers and checking if it matches your budget.
Fast Application
Out of all the companies on our list, CreditLoan has the fastest application process, if you have the information at hand, it should not take more than 2 minutes. Being around since 1998, CreditLoan has amassed an extensive network of lenders, meaning that there are always active lenders online who might give you an offer in a matter of minutes.
Pros
- Free and fast service
- Secure and TRUSTe-verified
- Keeps your personal information private
- Great for people who need smaller funds ranging from $250 to $5000
- Loan calculator tool
- Great educational information
- Funds will be transferred in as little as 24 hours
Cons
- Not available for residents of Connecticut or New York
Customer Experience
CreditLoan holds more than 1000 reviews on TrustPilot, making it quite popular. Customers are satisfied with the fast and reliable service. People also complimented the customer support staff, saying it was friendly and responsive. Most customers said they would apply for a loan again, and they recommend the service.
⇒Visit the official website of CreditLoan
How Do These Bad Credit Loan Companies Decide to Work With You?
If you’re wondering why these loan providers do not consider credit scores, it’s because they look for other things. Being regularly employed and having a solid monthly income, how you manage your expenses, history of bill payments, and more are all factors that these companies consider.
Most of them have a minimum credit score they will work with, but the bar is very low. Moreover, this list will help you determine the legitimate bad credit loan providers from the fraudulent companies that will try to scam you or charge you outrageous interest. We’ve tried including companies that are willing to work with you and charge you reasonable interest rates and fees.
Factors to Consider When Getting Personal Loans for Bad Credit
Getting a loan is a serious financial decision so when looking for a suitable loan, keep some of these things in mind:
- Credit Score and Eligibility
Having at least a rough idea about what your credit score will help you a ton. Lenders usually demand a minimum FICO credit score from 610 and above. The FICO system is the most used credit score system created by the analytics software company, Fair Isaac Corporation.
Once you know what your credit score is, you will have an idea of what terms to expect when taking out a loan. Lenders love people who are oblivious of their finances because they can ramp up interest rates.
Moreover, things like credit history and debt-to-income ratio are also crucial. Knowing how much you owe versus how much you get paid each month is also a critical factor to getting better credit terms.
If you have a history of delayed payments, lenders might not be willing to work with you. Some lenders will consider working with you if you get a co-signer. A co-signer can be a friend or relative who is willing to vouch for your loan. If you fail to pay out the loan, it will fall on the co-signer to repay your debt.
- Read the Fine Print
Before you agree to sign any type of deal or contract, always read the fine print that shows the terms and conditions of the agreement. The fine print includes things like the offer’s APR (annual percentage rate), monthly repayments, when repayment is due, etc.
Make sure the terms are favorable for yourself and keep in mind that you will need to make room in your budget for the repayments. Failing to repay the installments will make your credit situation even worse.
- Interest Rates (APR)
Probably the most significant factor to consider when taking out a loan is the interest rate. High-interest rates are the norm when it comes to loans with bad credit scores, but that doesn’t mean you should accept every deal. The better your credit score, the lower interest rates you will get.
Make use of the side-by-side comparison features of loan services to get an idea of the range of interest rates you could get. Also, keep in mind that some lenders don’t offer fixed interest rates. In contrast, others give out variable ones. The variable interest rates fluctuate with the index rate. It’s better to find a lender who will give you a fixed interest rate, so you can better calculate your payments and plan your budget.
- Additional Charges
Look out for additional fees that might come with the lending process. Some of these include payment in advance, late payments, commencement, bounced checks, and transaction fees.
Fees can vary from 1% to 7% of the total loan. The most common additional charges that can come up are related to late payments, although many lenders are flexible and will give you an extra week or two before charging you a delayed payment fee.
- Customer Reviews
It’s a good idea to take some time and read what people are saying about the service and company. When people take out loans with bad credit scores, you will stumble upon some unhappy customers who haven’t understood the terms. Still, generally, customer reviews are a good indicator if you should consider the company or not. There are also institutions like the Consumer Financial Protection Bureau that rate companies based on customer satisfaction.
The FICO Credit Scores
The most commonly used system for credit scoring is the FICO score. Around 30% of Americans are considered customers with bad credit.
FICO ranges are as follows:
- Poor credit score – less than 580
- Fair credit score – 580 to 669
- Good credit score – 670 to 739
- Very good credit score – 740 to 799
- Exceptional credit score – 800 to 850
Any score below 630 is usually considered bad credit, and above that is considered fair and average. Borrowers with poor credit scores are considered risky, so they are given higher interest rates.
What Makes Up Your Credit Score
You can check your credit score once a year for free at AnnualCreditReport.com. Your score is calculated using a few factors:
- 35% Payment History – Paying off debt and bills on time will improve this metric, and making late payments will bring it down.
- 30% Credit Usage – The amount of credit you use from the available resources. To calculate this, add up everything you owe on credit cards and add up the limits. Divide what you owe by the limitations and multiply by 100.
- 15% Credit History – this shows how long you’ve had each account and the last time you used any.
- 10% Credit Mix – What kind of debt, credit cards, and accounts do you have.
- 10% New Credit – The new accounts or cards you have recently opened. Too many new cards can harm your credit score.
Benefits and Adverse Effects of Loans With Bad Credit
- Benefits
Taking out a loan on bad credit is not necessarily a bad thing. As long as you have the budget to meet the monthly payment on time, you can improve your credit score by positively influencing your payment history. Using credit cards instead of loans can max them out and harm your credit usage and utilization, harming your score.
And finally, by taking out a new loan, you can improve your credit score by diversifying your credit mix. Showing that you can pay off different types of debt can have a beneficial impact on your overall score.
- Negative Effects
Aside from having to repay a loan with high interest, there are drawbacks that could harm your credit score. Most notably, a lender can perform a hard pull on your credit history, hurting your overall score. When you apply for more than one loan and multiple lenders make a hard pull check, it will have an adverse effect on your score. Make sure to apply for one loan at a time, and try working with sites that only perform soft credit pulls.
Common Types of Personal Loans for Bad Credit
- Payday Loans
A payday loan is the most common type of short-term loan. You will get some extra cash until your next paycheck, but you need to provide the exact date you will get your next payment and give the lender permission to withdraw funds from your checking account.
- Cash Advances
Similar to payday loans, you can get these even if you’ve reached your credit limit. Cash advances have the most significant interest rates.
- Installment Loans
Installment loans are when you pay back the lenders in a series of scheduled payments over a period of time. These usually have lower interest rates.
FAQs on Online Loans for Bad Credit
Q1. How can I improve my bad credit score?
There are a couple of things you could do that will have a positive effect on your credit:
- Make timely payments on bills and credit installments
- Avoid hard pulls on your credit history
- Keep track of your credit score
- Avoid having too many credit cards
- Build up your credit score with the help of financial advisors
- Keep your credit utilization low
- Keep your old accounts open and running
Q2. How do I find out if my credit score is good or bad?
We’ve already touched on this subject, your credit score rating is determined by the FICO scoring system. You can get a free credit report to estimate each year at AnnualCreditReport.com. Scores below 620/630 are considered bad, and scores above that threshold are considered less risky.
Q3. Which companies offer bad credit loans with guaranteed approvals?
Unless you have a cosigner with good credit or expensive collateral, there isn’t a lending service that will 100% guarantee you a loan. With that being said, the companies on our list have vast networks of lenders who are willing to work with risky customers. If your score is considered bad but not abysmal, you will most likely get some loan offers.
Q4. Can I get a loan if I’m not employed?
Yes, as long as you have some type of regular income, you’re good to go. If you have income coming from benefits, disability welfare, alimony, rental properties, investments, etc., you will get approved. If you don’t have a regular stream of income, you won’t be able to get a loan.
Final thoughts: What’s the Best Service for Bad Credit Loans?
In this day and age of the internet, the process of applying for a loan is drastically simplified. With one loan application, you can get in touch with hundreds of vendors. With that being said, always remember to go over fine prints and terms and go through multiple offers.
We would recommend trying out a service like MoneyMutual, Bad Credit Loans, or CashUSA. These companies have a big network of lenders, easy application processes, security measures, and satisfied customers.
Moreover, these companies have a good reputation, so you don’t have to worry about getting scammed. Do not take a loan that you can’t repay, and remember to make the payments on time. Best of luck!
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