Credit scores are an indicator of your credit history. For example, were you a responsible borrower? Did you have a good relationship with your past creditors? Did you pay on time?
These are some questions answered by those digits more popularly known as credit scores or credit ratings. For these reasons, banks and lending institutions heavily rely on these numbers before considering your loan eligibility.
On the contrary, we have online lending platforms that are flexible enough to allow bad credit borrowers to apply for a loan. Of course, these may have higher costs and charges than banks and other financial institutions. Still, at least they are willing to extend credit to customers with unattractive credit histories.
But with one problem solved comes another. There are so many online lending platforms that you don’t know which ones are the most trusted. Each one claims to offer the fairest interest rates and most flexible terms. Still, their feedback section is filled with negative customer comments upon checking.
We want to help you make a better decision because we know the struggles of suffering from financial emergencies, especially if you have a bad credit score. That’s why we’re here to help.
We’ve compiled this list of best bad credit loans with guaranteed approvals so that you’ll be more knowledgeable about the lending process and become a better and more responsible borrower.
Top 5 Best Bad Credit Loans With Low Interest Rates:
#1. MoneyMutual.com: Overall Best Bad Credit Loans Guaranteed Approval, Editor’s Pick
#2. BadCreditLoans.com: Top Direct Lender For Bad Credit Loans
#3. RadCred.com: Top Rated Mortgage Lenders For People With Poor Credit Score
#4. CashUSA: Popular Lender For Payday Loans and Cash Advances
#5. Personal Loans: Most Recommended Site To Get Personal Loans for Bad Credit
1) MoneyMutual.com – Overall Best Bad Credit Loans Guaranteed Approval, Editor’s Pick
First on the list is a lending platform offering quick and simple loan applications. MoneyMutual is a free resource stop that provides potential borrowers and lenders the ability to meet.
As per theislandnow, they’re not a traditional lender but a marketplace that acts as a middleman for the creditor and the borrower. So, in short, they are not involved in the lending process per se.
MoneyMutual was established in 2010 when owners recognized that many Americans regularly need loans to solve their financial emergencies. So they brainstormed and researched how to integrate the current internet advent with modern lending practices. In doing so, they created an online marketplace for both lenders and borrowers.
A one-stop-shop for both parties seems impossible to achieve, but MoneyMutual was successful in that endeavor. Now, they are among the best online lending platforms globally, catering to millions of Americans for their short-term financial needs.
- MoneyMutual is a member of the Online Lenders Alliance, an association representing the online financial services community members. Being a member is already a prestige and adds another layer to the brand’s reputation.
- Their application form is easy to accomplish, and you can finish it within a few minutes. You need to provide personal information, source of income, employment information, and banking information.
- Once you submit your form, MoneyMutual’s network of lenders will review your application and compare it to their established eligibility requirements. Then, if they think you’re worth extending a loan to, they will send you a proposal and their terms and services.
- One of the advantages of platforms like MoneyMutual is you’re not obliged to accept any proposals. They give you the freedom to choose which one is most suitable for you and your circumstances. For example, the first offer’s APR is higher, but the repayment term is flexible. On the contrary, the second proposal has lower interest rates but offers a single repayment schedule. You can select which option works best for you, and the rejected lender will not take it personally.
- Once you have entered a contract with your lending partner, they will finalize the loan by verifying your contact information. Then, you’ll only have to wait for 24hrs or less before the money is deposited straight into your bank account. Easy, right?
- If you need emergency cash, you can borrow up to $5,000, and the approval rate is high.
- MoneyMutual doesn’t check your credit score even if you’re borrowing the maximum allowable loan amount of $5,000.
- The platform’s network of lenders is one of the largest in the country, so you’ll be sure that a lender will cater to your needs.
- Their application form is straightforward and can be accomplished in just minutes.
- MoneyMutual accepts loan requests from borrowers with bad credit scores.
- Their website is secured with a state-of-the-art encryption program.
- Services are free to use; you don’t need to pay anything.
- If you’re living in Connecticut or New York, you can’t avail of MoneyMutual’s services.
- You can only borrow up to $5,000; therefore, it’s not an ideal place when you need high-value loans. Instead, their target market is people looking for short-term loans with small amounts.
- Since they are not a direct lender, the company cannot force or compel its lenders to follow its APR guidelines. As a result, some lenders may impose higher interest rates on bad credit borrowers.
What Customers Say
Customer reviews are the best indicator of a brand’s reputation and transparency. Borrowers agree that MoneyMutual is true to its claims. They were connected to the right lending partner who offered short-term loans even if they had an unattractive credit history.
Additionally, they praise the platform’s transparency, variety of loans, flexible repayment terms, and several lenders. Moreover, MoneyMutual’s customer service is top-notch–they are willing to assist you with your concerns.
2) BadCreditLoans.com – Top Direct Lender For Bad Credit Loans
BadCrediLoans has been serving the American community since 1998. Its history of more than two decades is enough proof of its legitimacy and reputation as one of the leading online lending platforms in the country. They specialize in linking bad credit borrowers with the most suitable lenders.
BadCreditLoans from other lending platforms is their keen attention to customer satisfaction. They want to help as many individuals as possible, so they created a vast network of lenders and third-party lenders.
This way, borrowers can have more than one option. In addition, the loan process is easy. It doesn’t take long; unlike traditional lenders, that will take days before you get a reply from them.
BadCreditLoans offer financial assistance for your needs, such as home improvement, home down payment, medical costs, student-related expenses, car payments, etc. You can also choose which loan type you would like to avail yourself of, including home loans, mortgages, auto loans, credit card loans, business loans, and the topic of this article–personal loans.
Since you can refuse loan proposals that don’t work for you, you are allowed to compare deals from various lenders. Considering your current circumstances, you can read their terms and conditions and check which one is better for you.
- BadCreditLoans offer a variety of loan types. You can select per your needs and purpose.
- Even if you have low credit scores, their lenders will entertain you and are willing to work with you.
- You can borrow up to $10,000. However, bad credit borrowers may only avail smaller amounts.
- The website follows strict privacy policies and security measures; rest assured, your information is safely stored in its database.
- Their application process is simple and easy to follow. If you submit along with your complete information, you can easily receive your funds within 24 hours.
- Once your loan is approved, the lender will transfer your funds within one business day. However, some users reportedly receive theirs in less than 24 hours.
- You only submit one application form, and multiple lenders can view your request, saving you both time and effort.
- You don’t pay any amount for submitting an application.
- Their lenders offer competitive APR.
- Bad credit borrowers can request a loan.
- You can repay your loans between 90 days and 72 months, depending on the repayment schedule you have agreed upon with your lender.
- No collaterals are required for personal loans.
- They offer educational materials on their website, including articles and guides on achieving better credit standing.
- Lenders have the discretion of imposing high-interest rates. Usually, they impose higher APRs on bad credit borrowers.
- You can only avail of small loans at BadCreditLoans, so they’re not the appropriate platform for you if you need a larger amount.
What Customers Say
BadCreditLoans is another top-rated online lending platform in the United States. Their review section is filled with positive comments, stating how borrowers were satisfied with their services. Most customers praise their easy application and accessible website.
Some even said they are thankful for this platform–they found the perfect lender for them and were saved from the financial struggle. In addition, they like how customer service is always present whenever they ask something.
3) RadCred.com – Top Rated Mortgage Lenders For People With Poor Credit Score
Madrid is a popular lending marketplace that serves as an intermediary between potential borrowers and potential lenders. They are one of the most trusted instant cash resources that have been around for quite some time. Millions of users across the globe have availed of their services, and they can vouch for RadCred’s reputation as a highly rated online lending platform for bad credit ratings.
RadCred sympathizes with most debt-ridden Americans. They understand the importance of having a go-to establishment for instant cash loans. However, credit scores act as a barrier between borrowers and traditional creditors.
To solve this dilemma, they established a website where their network of lenders, third-party creditors, and tribal lenders work together to provide various financial assistance to those in great need.
Their website provides you with simple, easy, and quick service whenever you want it. However, a disclaimer is that their lenders might charge higher APR than regular lenders since they are prone to higher risk.
We understand their sentiments regarding higher interest rates—personal loans require no collateral. So, should a borrower default on payments, the lender has no property to liquidate to compensate for the lost credit.
- RadCred’s lenders can lend up to the extent of their capacity. Unfortunately, the website doesn’t specify how much is the maximum loan amount. So, if you need a large amount of money for your emergency needs, they’re one of your best choices.
- RadCred’s eligibility requirements are as follows:
- You must be 18 years old
- You must be a legal resident of the United States
- You must have a stable source of income
- You must provide a working phone and work telephone numbers
- You must have a valid email address
- You must have a valid checking account
- Some lenders offer flexible repayment terms, so you can just talk to your lending partner if you need to extend for a few days. They will agree to it, and you can protect your credit score.
- The review process for your application form takes only a few minutes. You will then receive quick responses from verified lenders. You may refuse or accept their proposal, depending on your needs.
- All personal information submitted is protected from any illegal disclosure.
- They offer various types of personal loans, including cash advances.
- Their vast network of lenders includes local and tribal lenders.
- RadCred’s loan process is straightforward and quick.
- You can apply even with bad credit ratings.
- Personal loans for different purposes can be requested.
- Madrid, being an intermediary, doesn’t provide projected APRs.
- Large loan values have higher interest rates.
- Madrid is a new platform in the industry, so they have a smaller market cap than others.
What Customers Say
Users commend RadCred for employing SSL encryption to protect user details. With an advanced security program, all information is protected and secured from any third-party hackers.
Additionally, borrowers appreciate the platform’s efforts in connecting them with the most suitable lenders. As a result, they are treated equally even with bad credit scores.
Since customer support is available 24/7, users can easily ask for queries or assistance. Lastly, RadCred provides educational resources to help borrowers educate themselves on budgeting and other financial matters.
4) CashUSA – Popular Lender For Payday Loans and Cash Advances
Completing this list of best personal loans with guaranteed approvals is CashUSA, one of America’s most reputable resources for emergency loans. With a large network of lenders and other third-party networks of lenders, you, as a borrower, are sure to find the perfect match. In addition, the platform provides secure, convenient, and quick service in helping you find the best personal loan that will be beneficial for you.
CashUSA’s lenders include both state and Tribal lenders. The latter’s rates are slightly higher than the former since they are subject to tribal and federal laws instead of state laws. While CashUSA accepts requests from bad credit borrowers, it goes without saying that lenders still prefer to extend loans to people with better credit history.
However, bad credit borrowers can still try and send a request. With the sheer number of lenders available, it’s almost impossible to have a zero-loan offer unless you have no credit score.
However, even if you have a zero score to boot, CashUSA lenders can still offer you other financial products such as a line of credit and others. So, you can still avail of their other services if you can’t find the perfect lending partner for you.
- You can be confident that CashUSA’s website is heavily protected with advanced encryption to prevent any information from leaking. Hackers cannot breach this security program.
- They have simple requirements, including:
- Must be 18 years old
- Must be an American citizen or a permanent resident
- Must earn at least $1,000 per month after taxes
- Must have a checking account in your name
- Must have a valid address
- Their loan process is relatively easy and involves four steps. First, you must complete their secure online form. Second, you can review their offer once connected to a lender. Finally, suppose no lender sends you a proposal. In that case, you may avail of CashUSA’s debt relief, credit repair services, or similar products.
- Suppose you accept an offer from a potential lender. In that case, they will ask you to submit supporting information such as banking information, contact information, employment information, and credit history. Some lenders require these details for verification.
- Once finalized, you may receive the funds in your bank account the next business day.
- CashUSA offers credit monitoring, credit report, and debt relief if you can’t connect to a lender.
- The whole process is fast and convenient, particularly if there are no issues with your information.
- CashUSA wants you to be equipped with the proper knowledge before making informed decisions regarding personal loans. So, their website offers educational resources ranging from articles and guides written by financial experts and coaches that may be of help.
- They have various lenders, from state and tribal creditors to local lenders.
- Their eligibility requirements do not include credit scores.
- Lenders at CashUSA may charge you with interests ranging from 5.99% to 35.99%.
- Low credit scores are given higher interest rates.
- Some lenders require more information to proceed with loan processing.
What Customers Say
We checked what customers say about CashUSA, and one thing is clear: they deliver what they advertise. According to customers, they love how easy the application process on the website is.
In addition, they quickly received their funds, so they are thankful for CashUSA lenders who have significantly helped them in times of great need. Besides, they were linked to good lenders who offer flexible repayment terms and fair interest rates.
#5. Personal Loans: Most Recommended Site To Get Personal Loans for Bad Credit
Next, we have a company called Personal Loans which guarantees approvals for bad credit loans. The website is keen on providing detailed and accurate information to customers to help them make good choices. The company is customer-oriented and offers the best loan options to users, along with providing educational resources to acquire seamless loans.
Among the many resources offered, their website has a detailed explanation of APR or annual percentage rate to allow for interest calculation personally. When the borrowers and lenders are clear on the interest rate, loan terms, and conditions, there are fewer chances of miscalculations in the future. This chart is represented in an easy-to-understand format on the website.
Similar to other websites on this list, the user interface is pretty simple, and first-time users will figure out the proceedings in no time. To add to that, the makers are transparent about all policies involved, and no information about the terms or lender is hidden from customers.
Additionally, the lenders on this site are willing to provide higher amounts in the form of online loans. While other websites have an upper limit of $10,000, the lenders here are willing to offer up to $35,000 for short-term loans. So, if you have an immediate need for a large sum of money, Personal Loans can help out by matching you to the appropriate lender.
A. Competitive Offers And Interest Rates
The makers and lenders of this platform are aware of the dire situations people go through financially and how sometimes urgent loans are the only option. Some borrowers do not have the luxury of time to bargain for offers and rates and need to wrap things up in a hurry. For those borrowers, this platform provides multiple options in one go saving up a lot of time.
All the lenders that match are shown to you quickly, and you have a wide range of offers to select a loan from. Since this website allows many genuine lenders to register, there is a fair amount of competition for rates between each other. As each lender tries to improve their offer, the borrower gets better rates and the choice to select a good deal.
B. Non-Loan Options Available
The company Personal Loans is primarily based around matching loan borrowers and lenders; however, that is not all they do. After applying for loan requests, some customers may not find the perfect lender with the best rates. In this case, the company offers other credit-related programs to help out with the best possible outcome.
A customer can reach out to the team at Personal Loans stating that the current loan options do not suit them. Promptly, the company will share all the alternatives relevant to the customer. These programs are usually associated with third-party companies, so make sure to read the terms before signing a non-loan option.
C. Wide Lender Network
In the case that a customer is unable to find an ideal loan offer, this website has other options in place as alternatives. If you find yourself in such a situation, reach out to the team, and they will send the loan request to a broader network. This network of lenders, non-lenders, and associates may have someone willing to make an offer for your case.
- Quick approvals
- Has various lending partners countrywide
- Larger lending limit of $35,000
- Allows loan offer comparisons
- Strict repayment policies
Factors To Consider Before Getting Loans For Bad Credit
Before making an informed decision when borrowing money, there are several variables to consider before making an informed decision. We always recommend readers weigh their options and check every resource available to verify if the online platform is true to their word.
However, since we’re talking about money, we can’t just let you decide in hindsight; you need an in-depth understanding of how the lending process works. We’ve already walked you through the basics. This time, here are the factors you need to consider before applying for a loan.
In most cases, interest rates are why borrowers fail to repay their debt. Since the interest fees have stacked up to large sums, they have no other choice but to default. That’s precisely why interest rates are one of the first variables you need to consider before choosing a lending platform, particularly if you have a bad credit score.
Now that we’re talking about bad credit ratings, you have to understand that most lenders prefer higher scores. So, you need to prepare to pay higher interest costs since creditors are more likely to impose higher APRs.
This sort of response is actually normal since these lenders are taking more risks, considering that you have a bad track record for borrowing credit in the past. Besides, personal loans have no collateral to liquidate once the borrower fails to play.
All online platforms we recommend have a large network of lenders. Therefore, you can compare interest rates from various loan providers before making your choice.
Be careful with fixed interest rates, though, because you will not be given a chance to ask for adjustments regardless of your prompt payment. In addition, instead of reducing interest charges based on amortized loan amounts, they simply ignore this and require you to repay more.
Before applying for a loan, you must first check if you are eligible to request a loan amount. Each platform has its own set of eligibility criteria you need to pass. You must go to each website listed above and navigate their requirements page. However, these are only the basic qualifications listed on the website.
It still stands that each lender has established its own requirements. In addition, some may require you to provide other information, such as the amount of your current outstanding debts, your monthly income after taxes, and your credit score. Each factor plays a critical role in determining your creditworthiness. It will help you prove that you can pay for the amount you borrow.
Don’t be intimidated if this is the case, as asking for supporting information is a standard protocol for lenders. Because again, we’re talking about money, and like you, they also need to weigh in a few things before deciding if they can entrust their funds to you. Since your credit score is low, they will resort to looking at the bigger picture, including the information mentioned above.
Terms And Conditions
The terms and conditions laid down by the lender should be meticulously reviewed. Each item is a critical factor that might affect your decision on whether or not you would like to enter into an agreement with the potential lending partner. Therefore, checking every item is a crucial step since it’s during this time when you weigh in your selection.
Additional Charges and Penalties
Some lenders may charge you additional costs if you delay a repayment. That’s why it’s very important to make prompt and timely payments on your loan. These costs are presented on the terms and conditions, so check them in detail before signing the contract. If you think these charges are high and can’t afford to pay for them, you should think about whether you can commit to the obligation or not.
How To Get Started With A Bad Credit Loan Process?
Choose The Right Lending Platform
The right lending platform will significantly help you obtain instant cash. However, you should be careful in choosing which online lenders you should choose since scammers are rampant nowadays.
Some platforms may claim to be the best, but only to find that they’re a fraud and are just waiting for victims to fall into their traps. Our recommendations are all reputable lending platforms. Rest assured, you’re in good hands with them.
Review Your Credit Score
Checking your credit score online is free of charge. You may simply request the document from the official website that generates your annual credit report. However, these reports sometimes include erroneous data, so you should frequently check the details to verify their accuracy. For example, there might be a chance that your credit score is slightly higher, but due to an error in reporting, you thought you had a bad rating all this time.
Compare Interest Rates
Don’t rush things when you’re borrowing money. Instead, you should take the time to thoroughly review all aspects, most especially interest rates. Since lending platforms often give you an overview of how things work, you’ll have a general idea of the range of their interest charges. Or you can also get pre-approval on your loans to know the interest rates. But, again, these are free, and your credit score will not be affected.
Make Prompt Repayments
You should make timely payments to avoid penalties and additional charges. Besides, you could have a lower credit score if you don’t pay on time. In addition, you should have already expected that bad credit loans come with higher interest rates and fees.
Hence, part of the preparation is setting a budget and making sure you pay on time. Doing this will help you finish the loan quickly, giving you the chance to fix your bad credit rating.
Alternatives For Bad Credit Borrowers
We understand that you need instant cash, but you can also obtain them from other sources besides bad credit loans. We’ve compiled a list of alternatives for you to consider before requesting bad credit.
Personal Loans are the loans we’ve been discussing in this article. They are the most popular type of loans offered online. They can be obtained from individual lenders via lending marketplaces like the five companies we recommend.
They have a high approval rate that extends to bad credit borrowers. You can say that these loans function similarly to regular loans from traditional lenders such as banks and financial institutions.
But what’s most attractive about personal loans is their absence of collateral, and there’s no need for a credit check. Because of this, most Americans with outstanding debt opt to apply for them.
Cutting down on unnecessary expenditures will surely help you make extra cash. You should only buy the important stuff, and don’t spend more than how much you are earning. Budgeting should be prioritized if you have outstanding debt. It can help if you can liquidate some intangible assets such as stocks and cryptocurrencies. You can easily sell them during emergencies.
Borrowing From Friends and Family
Borrowing money from friends and family may be hard to do at first since you don’t want to open up that you need financial help. Besides, you don’t want to mix business with personal relationships.
However, your loved ones care for you, and of course, they don’t want you suffering. So, you can ask them to lend you their extra funds so that you won’t have to pay high APR or interest rates to lenders. Just make sure you pay your relatives and friends on time.
Credit Card Cash Advances
People with bad credit ratings are usually given another option—to set their credit card for cash advances. Then, all you have to do is give your card to the lender, and they will give you instant cash. After that, they’ll just simply withdraw your money at a later time.
FAQs For Online Loans For Bad Credit
Q: How Much Does It Cost to Request a Bad Credit Loan?
Bad credit loans, in general, do not require you to pay any amount. However, keep in mind that the interest rates are usually higher than regular personal loans. As discussed previously, this is due to the higher risk involved in the transaction.
There’s always the chance that borrowers may not repay their debt, and there is no collateral to liquidate and cover it. So, lenders have no other means of getting their funds back.
For this reason, they usually charge higher interest rates and other costs for bad credit loans. These amounts are stipulated in the terms and conditions, so read each line beforehand.
Q: How Can I Obtain Instant Cash From Bad Credit Loans Quickly?
The lending websites above are the best in the industry, and we’ve walked you through the whole application process. These companies value your time and energy, and that’s why they make everything simple.
It starts with you filling up their application form with complete details. Once submitted, the system will send your form to their network of lenders for review. These lenders check your information and look at every detail to determine if you are creditworthy.
If they decide to work with you, you’ll receive a loan offer with the related terms and conditions. Read these thoroughly to know the important factors, such as the interest rates, repayment schedule, and fees. If you agree with what’s stipulated, you can enter a contract with the lending partner.
However, suppose you think you can get a better arrangement from others. In that case, you may decline the proposal and wait for another one to arrive. But everything is clear and favorable to you; the lender will finalize the loan and process the fund transfer within 24 hours.
Q: Can I Still Avail a Loan If I Have A Poor Credit Score?
You can still request loans from the websites mentioned above, even with a low credit score. However, lenders will have to check other variables in making a decision. Among the information, they’ll check your credit history, banking information, employment information, etc.
Final Take On Bad Credit Loans Guaranteed Approval
The loan landscape of the past has significantly changed. Now, various money lending websites are offering loans to bad credit customers. You can easily obtain instant cash from our recommended websites for best bad credit loans if you trust us.
They are trustworthy and reliable, with a network of lenders who are willing to work with you. If you insist on choosing others, we hope you’ll retain what you learn from this article and apply it in your endeavor before deciding. Good luck!