Getting a loan with poor credit may not be an easy task. Although many lenders offer various loan options for bad credit borrowers, not all of them can meet your needs at the moment. For example, secured loans require you to provide the lender with collateral, while traditional loans from banks and credit unions have strong minimum credit score requirements you must meet to apply. There are also payday loans that come with limited loan amounts and higher interest rates. Therefore, they may not be the right option to meet your long-term needs or cover your major purchase costs.
Luckily, there is a product that can suit you if you’re looking for a cash advance that works like a traditional unsecured loan but with no credit check option, instant approval, and same-day payout. Personal loans for bad credit are a fast way to get money online with any credit score. However, bad credit loans typically vary from lender to lender, so you should be careful when choosing a loan company. Many personal loan lenders strive to make money on people with bad credit scores by offering products at high interest rates and with inconvenient payment plans. But we’re here to help! Check out our top-3 companies you can trust when it comes to an online personal loan.
When the companies below, our select editorial team looked at the lender’s reputation, eligibility requirements, the interest rate the lender offers, and the repayment terms it provides.
ASAP Finance is a lending company that works with multiple lenders in order to connect borrowers with the one that meets their needs. It offers unsecured loans for people with less-than-ideal credit, and what’s more, their loans don’t affect your credit score. Minimum loan amounts may vary depending on the state and the particular lender. However, in most states, the company allows you to borrow from $100 to $5,000. You can repay the loan funds plus an interest rate either in one lump sum or in equal monthly payments, dispensing on the loan type.
Getting a loan from ASAP Finance is pretty easy and usually takes less than 24 hours. The application process starts with filling out a simple loan request form. You can apply online wherever you’re in just 5 minutes and get a guaranteed loan decision within an hour. If approved, loan proceeds will be transferred to your bank account by the end of the next business day or sooner.
1FirstCashAdvance is a loan provider that offers fast cash advances available right away when you need them most. The service works with online lenders all over the US and tries to help as many people as possible. That is why it has no such things as minimum credit score requirements or collateral backing. Borrowers with any credit ratings are welcome to apply if they meet a few simple eligibility criteria. Thus, you don’t need to take risks on a secured loan if you have a bad credit score.
Direct lenders of 1FirstCashAdvance don’t make hard credit checks, so your credit history won’t be affected, even if you apply several times over a short timeframe. The application process is also fast and simple. Spend a few minutes completing an online form and get a loan decision in one hour by email. If you meet the lender’s criteria, you will get a loan amount as soon as the next business day. Commonly, lenders allow you to borrow from $100 to $5,000 in a few taps.
Same Day Loan is a connecting service created for people with credit score issues. Once you fill out an online application form on its website, the company shares your details with several lenders through a secured connection. The one that can lend you the amount you need makes a soft credit inquiry and sends you a response shortly after you submit a form. If approved, you will receive personal loan funds within one working day.
Applying for a cash advance with Same Day Loan doesn’t hurt your credit score, as direct lenders don’t check your application details through main credit bureaus. So, you can get up to $5,000 even if you want to improve your credit history. You can use the loan amount to cover any personal needs you have. As lenders have no restrictions on a loan purpose, you don’t have to follow any instructions. Feel free to cover your credit card debt or pay off your medical expenses without any limits.
A personal loan for bad credit is an unsecured debt that allows borrowers with bad and fair credit scores access fast financial assistance. When you need money now but can’t meet the requirements of a bank or a credit union due to your past financial mistakes, bad credit personal loans may be the right solution for you. You can use the loan amount you get from a direct lender for any needs, from debt consolidation to covering your daily essentials. Thus, these loans are considered one of the best alternatives to traditional cash advances.
Depending on the type of personal loan, you can borrow from $100 to $5,000. However, a minimum loan amount may be lower or higher, depending on your state law regulation and the lender. The repayment terms also differ and may be from 14 days to 60 months. Therefore, personal loans can meet both your long-term and short-term needs.
As online lenders usually perform only soft credit inquiries, bad credit loans don’t affect your credit score. These loans are also very fast, so they may be the right option for people with good credit who need money desperately and can’t wait for days to get a loan amount. Lenders typically transfer loan amounts as soon as the next working day, so bad credit loans have almost instant payouts and can be used to cover financial emergencies.
Unsecured personal loans for bad credit may be roughly divided into three types:
Bad credit loans were originally created to help low credit score borrowers overcome their money problems. Although you can spend the loan funds for any purpose, it is recommended to resort to poor credit loans only in case of financial emergencies. Thus, you may use them to cover your medical bills, utilities, car or home repairs, rent payments, credit card debt, or any other daily needs. You can also use an urgent cash advance as a debt consolidation loan if you suddenly find it challenging to manage all your existing debt. Debt consolidation loans can help you combine all your cash advances into one and avoid late or missed payments. Also, it can help you save money in the long run if you find a new loan at a lower interest rate.
Same-day loans are basically a trick created by lending companies. Although sometimes you can get cash by the end of the same day, lenders actually can’t guarantee it happens. It is because they can’t impact the transactions’ speed. In most cases, lenders deposit money to your checking account as soon as the next working day.
As direct loan providers usually run only soft credit checks and don’t inform major credit reporting bureaus, applying for a poor credit loan doesn’t affect your credit score. However, a reputable lender will check your data through alternative resources as it needs to have an idea of your income, debt-to-income ratio, payment history, or any other details that can influence a loan decision.
Although bad credit loans have a high approval rate, a lavender can’t assure you will be approved. First, it needs to review your application details and estimate the risk of default. Therefore, a lender can only guarantee you will get a loan decision after it checks and analyzes your application details.
It is hard to say what option is better without knowing your specific situation. If you have a bad or fair credit score and own some valuable property to use as collateral, a secured loan may be a good option to consider. Secured loans have a lower annual percentage rate and offer flexible terms, so they seem to be more affordable compared to loans from online lenders. However, you need to ensure your income is enough to cover your monthly payment. Otherwise, a lender can repossess your property to cover the losses. Although an unsecured loan for bad credit is typically more expensive, it carries no risks to a borrower.
Here are some alternatives to consider if you need to get a loan with bad credit.
Hard money loans are similar to home equity loans but are offered by a private lending company, not a bank or a credit union. These loans are secured, so they require you to provide the lender with your home as collateral. You can use the money to make a home improvement, consolidate debt, or pay your tuition fee if you don’t want to seek help from student loan lenders. The main thing is to avoid non-payment so as not to lose your home.
Credit cards allow you to use loan amounts within limits set by your credit card company. You can cover any unexpected expenses whenever they arise, as you always have money as close as your wallet is. Many lenders also offer credit cards with an interest-free grace period, so you don’t even have to overpay. At the same time, you can face the payments you can’t afford if you won’t pay off your balance until your promotional period ends.
If your credit is not perfect, but your spouse, relative, guardian, or friend has a credit score over 670, you can ask them to be your co-signer. Thus, you can get a personal loan at reasonable rates and with flexible terms. However, not every financial institution allows co-signers or co-borrowers.
Use a peer-to-peer platform to match with a qualified participant who can lend you the amount you need. You can also seek help from your family members or friends and ask them to lend you a helping hand.
Finding the right personal loan may be tough, especially with less-than-perfect credit. However, you should not only decide on a loan type but also compare various lenders before applying. When selecting a lender, look not only at the personal loan rates it offers but also at the amount of origination fee it charges. Sometimes loans at low rates come with high origination fees. Also, pay attention to a loan’s monthly payment and the repayment terms. For example, some lenders set prepayment penalties.
Moreover, a lender’s reputation also plays an important role. Check out a couple of reviews to get acquainted with the experience of the former borrowers. It can help you avoid some common mistakes.
You can apply for installment loans online or in a store, depending on the lender’s requirements. However, application steps are usually similar.
Best personal loans are those with low or no origination fee, at a reasonable interest rate, with simple eligibility requirements, and affordable monthly payments. Nevertheless, it is hard to get all this at once if you have “subprime” credit.
Sure, you can. Direct lenders don’t look at your credit report details and are more focused on your income. Thus, your credit score is not a barrier to getting online loans.
Although online loan providers don’t check borrowers’ credit reports through main credit bureaus, they still perform soft credit inquiries through some alternative sources. Such a check doesn’t hurt your credit history but can impact a lender’s loan decision.
Disclaimer: The loan websites reviewed are loan-matching services, not direct lenders, therefore, do not have direct involvement in the acceptance of your loan request. Requesting a loan with the websites does not guarantee any acceptance of a loan. This article does not provide financial advice. Please seek help from a financial advisor if you need financial assistance. Loans available to U.S residents only.
Disclaimer: This article is published in association Leads Up and not created by TNM Editorial. Please do your own research before applying for loans from the above services and seek independent legal/financial advice if you are unsure.