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Best Bad Credit Loans – Most Recommended Short-Term Personal Lenders That Work

It’s possible to get a loan, even with bad credit. Scores of reputable lenders offer bad credit loans. Therefore, a person with a bad credit score, an average credit score, or even no credit score can still borrow money from these lenders.

However, the borrower must get it right the first time by knowing where to look. To help borrowers locate the best bad credit lenders, our lending experts contacted bad credit companies, scrutinized financials, and engaged real customers about their experiences. In the end, we ranked the top bad credit lenders of 2022.

The Best Bad Credit Loan Providers of 2022

After thorough analysis and much deliberation, our editorial team ranked the following as the best bad credit lenders of 2022:

  • MoneyMutual
  • BadCreditLoans
  • PickAlender
  • CashUSA
  • PersonalLoans
  • LendYou
  • Next Day Personal Loan
  • Upgrade Personal Loans
  • Payzonno

Here’s a rundown of each of these companies:

MoneyMutual

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MoneyMutual is one of the bad credit lenders to consider in 2022. According to its official website, the digital lending platform has helped more than two million customers get cash loans from more than 120 lenders across the United States. At MoneyMutual, services are fast and secure.

It allows borrowers to access up to $5,000 in their accounts within 24 hours. Importantly, the popular platform imposes no stringent conditions, with borrowers only required to give brief information to MoneyMutual, which forwards it to the lender for review. The lender transfers the money to the borrower’s account within 24 hours.

The main advantage of MoneyMutual is that it offers its services at no cost. Borrowers just need to fill out a form and submit their information through MoneyMutual’s online marketplace at no cost. If a lender is interested in a borrower, it’s the lender to pay MoneyMutual while the borrower pays the lender.

  • Takeaway: Users can borrow $5,000 in as little as 24 hours.

BadCreditLoans

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Available online at BadCreditLoans, this platform allows users to borrow between $500 and $10,000 via a simple, digital application process. To get started, a customer just enters the ZIP code, the last four digits of their SSN, and date of birth to complete the application process. The customer can instantly see whether they qualify.

Just like MoneyMutual, BadCreditLoans offers its services completely free of charge. The platform connects borrowers with lenders, which eventually pay the company for bringing a customer. The borrower only pays the lender and not BadCreditLoans.

This platform connects borrowers with the best possible lenders through a hassle-free digital application process. All the same, BadCreditLoans embrace a high level of transparency and honesty. It’s honest about lenders’ fees and even offers tips on avoiding scammers.

  • Takeaway: Users can borrow between $500 and $10,000 in as little as 24 hours

PickALender

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PickALender is another ideal platform for anyone looking for a bad credit loan. The online lending platform allows users to borrow personal loans from as little as $100 to as much as $40,000. Users only have to fill out a digital form and immediately see the offers available. This process takes two minutes or less.

PickALender functions in a similar way to both BadCreditLoans and MoneyMutual. PickALender collaborates with dozens of lenders while it creates a suitable marketplace where borrowers can get the best deal based on each unique situation. The platform gives borrowers a hassle-free way of getting loans, even with bad credit. More importantly, it’s transparent and offers fast fund delivery.

  • Takeaway: Users can borrow between $100 and $40,000 within one business day.

CashUSA

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CashUSA allows users to consolidate debt for remodeling their homes or taking a vacation even with bad credit. Users can secure up to $10,000 in loans on this platform through four easy steps. Customers need to complete a digital form and connect with a lender. They can then accept the offer and wait for the funds to reflect in their accounts.

Like the other previously mentioned platforms, CashUSA serves as an intermediary between borrowers and lenders. The platform engages dozens of lenders nationwide, which compete to do business with borrowers. This means the customers can get the best possible offers.

In an online form provided by the platform, customers just need to enter their ZIP code, the last four digits of their SSN, and the date of birth to qualify for up to a $10,000 loan. CashUSA is also popular for its transparency. The platform aims to facilitate faster loans from reliable lenders.

Once approved, the disbursement process takes only 24 hours or less. The entire process is discreetly online, so borrowers don’t feel embarrassed.

  • Takeaway: Customers can borrow between $500 and $10,000 within 24 hours.

PersonalLoans

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This online lender allows customers to borrow money even with a bad credit score. PersonalLoans serves people with both good and bad credit scores. The website is user-friendly with a seamless digital application process that makes everything hassle-free.

PersonalLoans allow customers to request between $1000 and $35,000 from the platform’s network of reliable lenders. It offers the service at no cost without any hidden fees or obligations. Customers need to enter personal information into the online form and view their offers to get started.

Additionally, Personal Loans allow customers to customize their loans and terms. For instance, customers can choose from a pool of lenders and even view the loan offer upfront. This allows borrowers to decide what works for them.

  • Takeaway: Customers can borrow between $1000 and $35,000 in 24 hours.

LendYou

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LendYou is another platform to recommend for anyone looking for a bad credit loan from reliable lenders. The popular platform helps users pay for emergency medical bills, car repairs, or any other short-term emergency of their choice. The application is made online, and once it’s completed, the lenders dispense the funds to the borrower’s account as soon as possible.

Like other bad credit lenders listed here, LendYou is open to anyone with good or bad credit history. The platform works faster, and everything takes place discreetly online. To get started, one has to be at least 18 years old, have an official checking account, and have a minimum regular income of $1000 per month.

Besides, the borrower should not be a United States military member. Once qualified, the customer can get up to $2500 transferred to their account in as little as 24 hours.

  • Takeaway: Customers can borrow from $100 to $2500 within 24 hours.

Next Day Personal Loan

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Next Day Personal Loan is another reputable bad credit platform that allows customers to acquire a bad credit loan in three simple steps. Customers just have to fill out an online form that takes two minutes. The last two steps involve reviewing and signing the documents before the money is dispatched to the borrower’s account.

The platform offers a fast disbursement within one business day. The main advantages of using the Next Pay Day Loan platform include fast disbursement of funds, multiple lending partners, and secure data security with 256-bit encryption. Importantly, the platform embraces all credit scores.

  • Takeaway: Customers can borrow between $100 and $40,000

Upgrade Personal Loans

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Upgrade allows customers to take a maximum of $50000 in personal loans. This makes it the only platform on the list that offers the highest amount, as no other lender gives more than $40,000. After application, Upgrade allows customers to view offers in just minutes.

Besides, customers can get low fixed rates and see the rates they can afford, all within a few steps. The entire process is easy, transparent, and hassle-free. The San Francisco-based lending firm offers between 5.94% and 35.97% APRs, which makes it one of the more affordable platforms on this list.

  • Takeaway: Customers can borrow between $1000 and $50000 in as little as one business day.

Payzonno

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Payzonno could be the most undemanding bad credit lender on this list. The platform uses a chatbot to greet customers with a simple quiz. The chatbot asks customers about their financial background and current financial situation. The bot gives a corresponding loan amount based on the customer’s responsibility.

Payzonno is open for anyone with a bad credit score, offering thousands of dollars to its customers. It even offers more for those who can provide proof of monthly income. Importantly, the services are free. Once the customer submits information, Payzonno connects the buyer with a reliable lender. The borrower can choose the most suitable lender based on the terms and fees charged.

  • Takeaway: Users can borrow between $100 and $5000 based on their credit score, status of residence, and other factors.

How We Ranked the Best Bad Credit Lenders

Every lender promises to deliver a secure personal loan. However, only a few live up to this promise, especially for bad credit loans. To draw a line between the best and worst bad credit companies, our team used the following metrics:

Ability to Accept Low or No Credit

People with good credit scores don’t need bad credit lenders. They have many borrowing options. Our team exclusively considered lenders that accepted low or no credit scores for this ranking.

Faster Transfer of Funds

Reliable lenders transfer money into the borrower’s account within 24 hours. Some even do it within 6-12 hours. This listing considered lenders that could transfer funds to the borrower’s account within 6-24 hours.

Company Reputation and Record of Accomplishment

Some bad credit companies are new, so they have a limited record or achievements. Other lenders have a well-established history of offering quality personal loans to customers of varying credit scores. Without being biased against new companies, our team considered lenders with a great reputation and track record.

Loan Range

Some lenders allow customers with bad or no credit to borrow up to $5000 within 24 hours. Other companies attract customers with giant deposits and eventually withdraw the offer after discovering the credit score.

Ease of Application Process

Some bad credit companies have functional, easy-to-use websites. Others use outdated user interfaces and poor design. We considered lenders that offered an easy application process to facilitate the loan in a few minutes for this list.

Customer Reviews

Our team tested each bad credit lender’s website wherever possible. Additionally, we considered customer reviews in our rankings, reading thousands of them to ensure our chosen lenders had a history of giving money to clients.

Honesty and Transparency

Many payday loan websites available out there are shady. Some are scams, immediately harvesting users’ personal and financial information. Other reputable lenders offer bad credit loans with no history of defrauding clients. Some companies are honest about their locations, while others are vague about their deals. We preferred honest and transparent bad credit lenders.

Interest Rate and Overall Cost

Bad credit lenders offer different rates for the interest charged on the loans. Usually, bad credit loans attract higher interest rates than regular high credit loans. This means borrowers should expect higher interest rates. However, bad credit loans cannot exceed certain interest rate limits legally. Our team considered interest rate and overall cost for this list.

Fee Transparency

Some bad credit companies attract low-interest rates and reveal hidden fees later. While all bad credit lenders charge higher fees, some are openly unreasonable. We considered bad credit lenders that were honest and transparent with their charges.

How to Get Bad Credit Loan: Step-by-Step Guide

The process should be straightforward to get started with a bad credit loan. Here’s a systematic guide on how to go about it:

  • Step #1: Check your credit score to understand better which lender to work with.
  • Step #2: Research your options from the pool of thousands of bad credit lenders online. Any company on this list is certified and popular.
  • Step #3: Get the application documents and verification data ready, including name, date of birth, and financial information. Some lenders also require proof of income, debt-to-income ratio, and other details. Others don’t.
  • Step #4: Start the application process by filling out the online application form from your preferred lender. Submit the application form and wait for approval from the lender. You can have money in your account within an hour.

After gathering information and checking your credit score, the remaining process takes two and three minutes. Most online lenders are easy to work with, and after submitting your information, you can be ready to get money.

Top 5 Advantages of Bad Credit Loans

Getting a bad credit loan comes with several advantages. Here are the most important benefits:

  • Fast Cash: Bad credit lenders can give you money as fast as possible, especially if you need to pay for emergency expenses.
  • Lower interest rates than credit cards: Several bad credit companies charge lower interest rates than credit cards. The interest rates on credit cards range between 18% and 30% annually. However, bad credit loans charge between 4.9% and 35.99%. This makes them more affordable than using credit cards to borrow money.
  • Multiple lender options: With bad credit companies, users have multiple options, even with bad credit.
  • Personalized repayment term duration: A bad credit loan could last as short as two weeks or as long as five years. Bad credit lenders customize the repayment terms based on their unique needs.
  • A bad credit loan can improve a borrower’s credit score. This is possible when customers make on-time payments for their loans. The credit score improves when one makes timely repayments.

How Do Credit Scores Work?

Many people don’t understand how credit scores work. In the United States, three major credit bureaus exist—Experian, Equifax, and TransUnion. Each bureau tracks the user’s information based on their social security number (SSN) or Individual Taxpayer Identification Number (ITIN).

Each credit bureau contains a detailed report on each citizen. A credit report contains an individual’s payment history, ability to pay debts, and the loans acquired over the years. With this information, the credit bureau gives a person a score according to the possibility of repaying money lent.

Why Do I have Bad Credit?

When credit bureaus calculate a credit score, they consider several factors. A bad credit score is likely to be due to one or more of these factors:

  • The duration of time taken with credit; the shorter the duration, the higher the score
  • The amount of money owed on current debts loans
  • The amount of the available credit the person is using
  • The types of credits a person has, such as bank loans, credit cards, car loans, and lines of credit
  • How much new credit does a person own?
  • How often does the person pay credit on time, have missed payments, or declared bankruptcy?

With this information, the credit bureau assigns good or bad credit. People should also note that a credit report could fluctuate. For instance, just paying your student loan could make your credit score go up. Similarly, getting a new credit card could boost your credit score by increasing your available limit. However, once you start using that credit, your credit score reduces.

What is a Bad Credit Score?

Lending companies often rate borrowers based on their credit scores. For instance, those with less than 580 are considered risky borrowers. If the credit score is below 580, the lender considers that borrower high-risk because of non-payment of credit.

The general guidelines for good and bad FICO credit scores include:

  • 800 and above: Exceptional Credit
  • 740 to 799: Very Good Credit
  • 670 to 739: Good Credit
  • 580 to 669: Fair Credit
  • Below 580: Poor Credit

Top 4 Best Types of Bad Credit Loans

Even with bad credit, it’s still possible to borrow money. The following methods allow you to borrow money, even with bad credit:

Online Lenders

Online lenders are the most popular agents of bad credit loans. These lenders facilitate faster credit for all credit scores online like those listed here. A person with bad credit often pays more than one with a good credit score. All the same, it’s possible to borrow money even with a bad credit score.

Payday Alternative Loans (PALs)

Mainly offered through the National Credit Union Administration, payday alternative loans are another way to obtain loans with bad credit. These loans are usually cheaper than regular payday loans. Besides, borrowers can pay the loans within a few months instead of just a single pay period. According to federal regulations, all interest on PALs is capped at 28%, making them a much cheaper alternative than payday loans.

Friends or Family Borrowing

When you borrow money from your family and friends, they don’t ask for your credit score before they lend you money. While it’s always not a good idea to mix business with pleasure, you can consider borrowing money from friends and relatives before exploring other options.

Home Equity Loan with Bad Credit

People with home equity can easily apply for a home equity loan or a home equity line of credit (HELOC). When that happens, the home becomes the collateral for the loan. This method also doesn’t ask for the borrower’s credit score.

Home equity loans often have low-interest rates because the property secures the loan. However, the interest levied on the loan could be tax-deductible. The main advantage of this method is that if you fail to repay the debt, you lose your home.

How Much Does a Bad Loan Cost?

The rates levied on bad credit loans vary according to the borrower’s credit score, state of residence, and financial background. The bad credit lenders mentioned on this list charge between 4.9% and 35.99%. With a higher credit score and more proof of income, one can borrow more.

Importantly, borrowers should check bad credit loan statements carefully before sealing the deal. Some companies charge additional fees, missed payment fees, and other charges.

How Much Can One Borrow?

As mentioned on this list, most bad credit lenders offer between $500 and $5,000. Some lenders even allow borrowers to take as little as $100, and some increase their limits to $50,000. Usually, customers with higher credit scores and more proof can borrow more money.

Most bad credit companies transfer money to the borrower’s account in as little as one business day. Some lenders even transfer the money within hours after approval.

Other Bad Credit Loan Alternatives

In case of an emergency financial need, a bad credit loan comes in handy. However, there are alternatives. Based on the situation, a person may want to consider other options instead of the ones on this list:

Interest-Free Cash Advance Apps (Earnin, Dave, or Chime)

Some apps allow customers to get quick, interest-free advances on their paychecks. They include Dave, Earnin, and Chime, among others. Borrowers must meet eligibility requirements to use these apps. Besides, there’s a limit on how much one can borrow. Overall, they also allow people with bad credit to get cash in advance.

Personal loans

These loans are obtainable from banks, credit unions, or other online lenders. Personal loans often attract lower APRs compared to bad credit loans. Even with a lower credit score, one can still get a loan from any options mentioned above.

Small-dollar loans

Small-dollar loans are available for emergency expenses. These loans are available from some of America’s largest banks. For example, Bank of America runs a program known as Balance Assist, while the US Bank runs the Simple Loan program. These programs can offer short-term loans to their existing customers in good standing with these programs.

Peer-to-peer lending

This form of lending has been active for more than a decade. Peer-to-peer websites connect borrowers with reliable lenders. Some of the sites even use crypto. It’s another option for getting money for emergency expenses.

Auto title loans

A borrower uses their vehicle as collateral to secure an auto title loan in this option. These loans are expensive and should only come as a last resort. Borrowers have to repay the loans within 30 days, which is the lender’s possession of the borrower’s vehicle.

Requirements for Applying for Bad Credit Loans

Borrowers of bad credit loans need to meet certain specific requirements. They also need to verify certain documents before applying for a loan. These requirements vary from one lender to another and from one state to another. Generally, here are the requirements for applying for a bad credit loan:

  • The borrower should be at least 18 years of age
  • The borrower should be residing in the state chosen in their loan application
  • Should have a valid, active email address and phone number
  • The borrower should give proof of an active bank account that has been active for at least one month
  • The borrower should not be a debtor or in a bankruptcy case nor intend to file for bankruptcy relief

In addition to these requirements, some bad credit lenders require borrowers to provide evidence of a steady source of recurring income such as employment, retirement funds, disability payments, or other reliable sources of income.

Overall, one qualifies for a bad credit loan if they have more than $1000 monthly from all sources. Some lenders also require a valid SSN or Individual Taxpayer Identification Number (ITIN).

How Much Does a Bad Credit Loan Cost?

The cost of a bad credit loan varies widely from one lender to another. Generally, it costs about $15 to borrow $100 from a payday lender, according to the Consumer Financial Protection Bureau. This amounts to an APR of 391% for a 14-day loan. Even so, not all bad credit lenders work like payday lenders.

Many bad credit lenders serve borrowers across the divide—people of all credit scores. But they charge higher rates for borrowers with bad credit scores. Besides, they provide faster transfer services.

How Much to Borrow with a Bad Credit Loan?

Those who are targeting bad credit lenders can borrow between $300 and $1,500 based on the lending regulations in the state. However, if you opt for a personal loan, the amount could be higher. Some lenders offer between $5000 and $15000 even if one has a bad credit score.

The Best Bad Credit Loan Providers of 2022 Final Word

According to the Federal Reserve, 4 out of 10 Americans cannot generate $400 in an emergency. Fortunately, even with bad credit, several options are available to explore. These offers include payday lenders, short-term lenders, and many more. Besides, they are easily accessible, and this list can get you started. Try a top bad credit loan provider above today!

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