Did you know that getting a loan is possible even when you have a bad credit score? Today, hundreds of lenders have chosen to focus on this particular industry. And thanks to their services, you can still access credit even when you have a poor rating.
It’s possible to borrow money today regardless of whether your credit score is average, you don’t have a credit score, or you have a poor score. Many reputable companies will not shy away from offering you one, provided you know where to start your search.
When writing this article, our team consulted various bad credit loan providers, engaged real customers on their experiences, and went through several financial documents. We got to prepare a list of 2022’s best bad credit loan providers from this research.
The Best Bad Credit Loan Providers in 2022
After a thorough analysis, this is how we ranked 2022’s best bad credit loan providers:
- Next Day Personal Loan
- Upgrade Personal Loans
As an online lending platform, MoneyMutual has helped over 2M customers receive cash advances since it went into business. Its customers describe it as a secure, fast, and popular platform that connects borrowers to more than 120 lenders across the U.S.
According to MoneyMutual, poor credit score borrowers can receive cash advances of up to $5,000 within a day. You have to provide your information to the company, allow lenders to scrutinize the details, and await a deposit into your account.
The entire process typically takes twenty-four hours from start to finish.
MoneyMutual stands out from other bad credit loan providers as it doesn’t charge a fee for its services. It won’t cost you even a penny to take out a form, fill it in, and send it to the MoneyMutual internet marketplace.
If there’s a lender that would like to advance you a loan, they will need to pay MoneyMutual to do so. Once you have the money, you can pay the lender for the cash advance. Please note that MoneyMutual doesn’t charge any additional fees.
Using MoneyMutual, you can borrow as much as $5,000 within twenty-four hours.
BadCreditLoans is an online platform that allows you to borrow from as low as $500 to $10,000. We noticed that it has a very straightforward application process.
You’ll need to start by entering your ZIP code, date of birth, and the last four digits of your social security number. These three pieces of information will enable you to know whether you qualify for a loan or not.
As is the case with MoneyMutual, BadCreditLoans doesn’t charge any fee. Its job is to connect borrowers to willing lenders and then charge these lenders a fee for the opportunity to offer you a cash advance.
You’ll need to pay the willing lender to borrow money, so you won’t have to pay BadCreditLoans any fee. It’s beneficial as you’ll get access to the best lenders in the market without going through a tedious application process.
Transparency is one of its key selling points. BadCreditLoans strives to provide as many details as possible related to the lenders. For instance, it will give you valuable tips on identifying and avoiding scammers.
BadCreditLoans is an excellent platform for borrowers with poor credit scores but who need to borrow money urgently to settle some bills. You can borrow as little as $500 or as much as $10,000 within one business day.
If you’re looking for a personal loan, look no further than PickALender. The online lending platform enables borrowers to borrow from $400 to $40,000. You can complete the application form in under two minutes, allowing quick access to local lenders.
PickALender shares various similarities with MoneyMutual and BadCreditLoans as it gets interested lenders to compete for your business. Instead, this platform doesn’t offer loans but partners you with many local lenders.
You can view it as a lending marketplace that enables borrowers with poor credit scores to get the best possible deals based on their prevailing money situations. PickALender has a fast fund delivery, transparent fee structures, and a nationwide network of lenders.
It provides a hassle-free marketplace for those with poor credit scores to obtain a loan. Use PickALender to borrow any amount from $400 to $40,000 within one working day.
CashUSA is the go-to platform for borrowers having a bad credit score but who would like to take a vacation, remodel a home, or even consolidate their debt. Applicants need to go through four easy steps to obtain a loan of up to $10,000.
The application process at CashUSA is as follows:
- Fill in the application form
- Connect with interested lenders
- Accept the offer given to you by the lender
- Allow the lender a few hours to deposit the funds into your account
It connects borrowers with poor credit scores with willing lenders. It does this by encouraging the lenders to compete for the chance to offer you a loan. While at it, CashUSA does its best to ensure that you’ll only get access to the best offers in the market.
When submitting the application form, you’ll need to fill in your date of birth, the last four digits of your SSN, and your ZIP code. The platform will use this information to give you access to loans as high as $10,000.
Apart from its high loan offers, transparency is another reason we like CashUSA. The company operates using a single goal – to connect borrowers with lenders who can offer them quick cash. Once approved, the company can send the money into your account within one business day.
Additionally, you don’t have to go through the horrible experience of negotiating with loan managers. Everything from the application to the disbursement of funds occurs online. With CashUSA, you can borrow from $500 to $10,000 within twenty-four hours.
PersonalLoans, as is the case with all the other platforms mentioned above, is a money lending platform that allows you to access loans even when you have a bad credit score. Fortunately, it’s accessible to everyone, regardless of their credit scores.
We like PersonalLoans because it has a seamless online application process and a user-friendly portal. Using its website, you can submit a request to borrow any amount from $1,000 to $35,000 from its sizable nationwide network of lenders.
Borrowers get to use this service at no extra cost. You’ll like it because it doesn’t have any hidden obligations or fees. You need to submit the information requested in the application form and begin viewing offers from interested lenders.
Another reason why you’ll likely fall in love with this portal is because it allows you to customize your preferred terms and rates. For example, you get to choose the best offer from multiple lenders, review the request given to you, and settle on the one that suits you best.
PersonalLoans allows you to borrow between $1,000 to $35,000 in one business day.
LendYou is a renowned and service-focused lender that makes it easy to pay medical bills, car repairs, and any other short-term emergencies you could be facing. You can spend the money as you wish once it’s in your account.
Once you have completed the application process, the network of lenders working with LendYou will immediately dispense the funds to your account. It ensures that you’ll get access to cash at the earliest possible opportunity.
LendYou, like all the other platforms mentioned in this article, works with people having all types of credit histories. It doesn’t matter whether you have a good or bad rating; the platform will connect you to lenders who can immediately sort out your emergency issues.
For one to qualify as a borrower, you need to be at least 18 years. Other requirements include:
- You should not be a member of the U.S armed forces
- You must have a minimum monthly income of $1,000
- You should have a valid saving or checking account that supports direct deposits
Qualified borrowers can borrow between $100 to $2,500. The funds are usually disbursed to their accounts within a single business day.
Next Day Personal Loan
You can use Next Day Personal Loan today to find a lender in three easy steps. It takes around two minutes to fill in the application form. Once done, make sure to review it before appending your signature. It should take approximately twenty-four hours to receive the funds.
Its top benefits include support for all credit score types, fast loan delivery, strong military-grade encryption, data security, multiple lending partners, and marketplaces access. Regardless of their credit score, any borrower can fill in a request for a loan.
Another benefit offered by Next Day Personal Loan comes in the form of the amounts you can borrow. Some borrowers can access up to $40,000 through this platform. It’s an amount that makes it the most significant lender on this list.
Next Day Personal Loan allows you to borrow between $100 and $40,000 in a single day.
Upgrade Personal Loans
Upgrade Personal Loans makes for the second-largest lender on our list. It provides loans of up to $50,000, all the others providing amounts below $40,000.
Borrowers using their online portal to borrow loans view offers in minutes. They also get access to loans with loan fixed rates. Before accepting a bid, you have an opportunity to see how much you’ll need to pay in the form of monthly repayments.
Upgrade Personal Loans provides cash-strapped borrowers with a hassle-free, transparent, and easy way to borrow money online. Headquartered in San Francisco, the company offers between 5.94% and 35.97% APRs.
It’s by far one of the most affordable lenders on this list. Borrowers with a better credit score get to pay less than those with poor credit scores. However, anyone can borrow and enjoy the most competitive rates in the loan industry today.
It allows you to borrow from $1,000 to $50,000 within twenty-four hours.
This is perhaps the most straightforward of all the listed platforms. Payzonno uses a chatbot to greet all the borrowers trying to access its online platform. It gives you a quiz meant to provide a better insight into your financial and personal background.
The information you’ll provide will determine the type of loan offers you’ll get access to on this platform. It doesn’t matter whether you have a good or bad credit score, as this platform can help you get access to thousands of dollars.
Borrowers can provide proof of income and stand to receive more than those who can’t. Its services are available at no cost to you. Once you have submitted your application, the company will find lenders on your behalf, competing to offer you a loan.
It’s recommended that you choose your preferred lender based on their fees and repayment terms. Applicants can apply for loans ranging from $1,000 to $5,000. Factors that will determine the amount you’ll receive include:
- State of residence
- Current credit score
- Other factors deemed necessary by the lender
It only takes a few minutes to complete the quiz given by the chatbot. Remember, your answers will determine what amount you’ll receive, with the lowest being $100 and the highest $5,000.
Criteria Used to Rank The Best Bad Credit Loan Providers
Every lender in the financial industry claims to have the most straightforward personal loan application process. But the reality is that all lenders aren’t the same, especially for borrowers with poor credit scores.
We used several metrics when preparing this list of bad credit lenders. Read on to learn how we separated the best lenders from the worst.
Ability to Accept No Credit or Low Credit
The truth is that you’re only reading this list because you have bad credit. Those with good credits tend to have lots of borrowing options. Luckily for you, we took our time to focus on lenders that accept borrowers with no credit or bad credit scores.
You shouldn’t lack access to financing because you lack a credit score or a low score.
The best lenders can deposit money into your checking or savings account within twenty-four hours. Leading lenders can even do it within six to twelve hours. The deposit speed is one of the crucial factors we consider when ranking lenders.
Anyone looking for a bad credit loan is someone who is in urgent need of cash. And this is where the lenders on this list come in!
Company Track Record and Reputation
Some credit lenders are new and don’t have a good track record. On the other hand, some have been in the industry for years and have established a name for themselves.
Since they began their operations, these companies have provided access to bad credit loans to millions of people.
Bad credit lenders will enable you to borrow a maximum of $5,000 within one business day, regardless of whether your credit score is good or bad. However, others will only lure you with enticing amounts to return to their word after seeing your credit score.
Ease of Application
The industry’s best bad credit loan lenders have spent millions of dollars creating functional and user-friendly websites. Those unwilling to make such a huge investment will often have user interfaces with inferior designs.
When reviewing the top bad credit lenders, we looked at the ease of application before ranking each platform. We prioritized websites with an easy application process, which didn’t take more than a few minutes to fill in a form.
We made sure to test each bad credit lender whenever possible. Nevertheless, we also considered the reviews posted by past clients when compiling this list. In some cases, our team had to sift through thousands of reviews to confirm that the lender had a proven track record of offering such loans to their clients.
Honesty and Transparency
The internet is filled with all manner of payday loan websites. If you aren’t careful, you may engage with scammers who will do everything they can to steal your information (personal and financial) and use it to apply for financing.
Fortunately, some of these companies are reputable and committed to offering bad credit loans to clients who need them. They do so without scamming their clients. If you’re lucky, you may encounter companies that disclose their information, including their history, upfront.
Others prefer to remain anonymous and don’t offer any details about running their operations. We chose to concentrate on companies that were upfront and transparent with all the information regarding their operations.
Overall Costs and the Applicable Interest Rates
The bad credit loan lenders on this list compete against each other based on their prevailing interest rates. You must note that bad credit loans will always attract a higher interest rate than those with good credit scores.
In short, bad credit loans are expensive, so you should expect to pay higher. Nonetheless, the law has put in measures to ensure that the interest rate limits charged by these companies can’t exceed specific rates.
We considered the overall cost and interest rates in our rankings.
Transparency in Terms of Fees
Not every bad credit loan provider you encounter will tell you everything about their fees. Some will offer low-interest rates with the hope of getting your business and then surprise you with lots of hidden costs.
Although all bad credit lenders are known to charge high fees, some lenders charge downright unreasonable fees.
A Step by Step Guide on How to Apply for A Bad Credit Loan
Getting a bad credit loan is as simple as you can expect. As seen from our list above, many companies have specialized in this line of work. If you’re looking to apply for a bad credit loan, this is what you need to do:
Begin by Checking Your Credit Score Rating
Your rating will provide you with a better idea of the type of lender that you need to consider approaching.
Search for Viable Lenders
A simple search online will reveal thousands of websites offering such services. For the best results, concentrate on the top-ranked lenders on this list. It’s the best way to avoid getting disappointed.
Collect Your Application Documents in a Single Place
Every lender will expect you to submit several verification documents. In this case, you’ll need to provide details such as your income information, date of birth, and official name. Other lenders may need more information, such as where you work, your current income to debt ratio, and further KYC details. Not all lenders will need access to these details.
Submit Your Application for a Bad Credit Loan
Often, this is the last step in this process. You’re ready to send your application for a bad credit loan to a lender at this juncture. Go through the above steps to ensure that you have provided all the necessary details, and wait for a response. Depending on your chosen lender, you may receive the cash in your account in as little as an hour or within one business day.
After checking your credit score and collecting all the necessary documentation, it shouldn’t take more than three minutes to complete the remaining process. Many lenders on this list have made it easy for borrowers to request a loan/cash advance.
Submit the necessary details and wait for a response from your bank.
5 Benefits Offered by a Bad Credit Loan
Applying for a bad credit loan comes with many notable advantages for the borrower. Of these, the five most important benefits are:
Boost Your Credit Score
Borrowers who make payments on time have an opportunity to boost their credit scores. The credit score will improve, provided you don’t skip your bad credit loan payments.
Get Cash Fast
Bad credit loans ensure that you receive the money you need within hours. The money gets deposited straight into your account, allowing you to care for emergencies and other pending bills.
Customizable Repayment Term Lengths
There are bad credit loans due within fourteen days. Other lenders allow borrowers between one to five years to repay the loan. Bad credit loans allow you to customize your repayment terms, reducing your chances of defaulting on the loans.
Multiple Lender Options
Borrowers have multiple lender options, regardless of whether they have a good or bad credit rating. Today, there are more lenders specializing in this niche than ever before. The fact that multiple lenders get an opportunity to compete for a chance to give you a loan means you have access to some of the best rates possible. And this is notwithstanding the poor credit score.
Low-Interest Rates Compared to Credit Cards
The interest rates charged by bad credit lenders are often more favorable than those set by regular credit card companies. Credit cards charge between 18% and 30%, while some bad credit lenders charge an average of 10% per annum. Typical rates charged by bad credit lenders vary from 4.9% to 35.99%. It makes them a more attractive option than borrowing money from your credit card company.
A Look into the Inner Workings of Credit Scores
Worry not if you’re yet to understand how credit scores work. The reality is that the system is quite complicated and has many moving parts, making it even more challenging for the average person to understand.
Before we go any further, you should note three major credit bureaus in the United States. These are:
- Every bureau works by tracking your financial information
It can follow this in two ways:
- Using your Taxpayer Identification Number (ITIN)
- Using your Social Security Number (SSN)
Every credit bureau will typically maintain a detailed credit report that captures details such as the number of loans you have accrued in the past few years. It will also capture other vital data, such as your repayment history for past debts.
Reasons for Having a Bad Credit Score
Before assigning you a credit score, every bureau will consider hundreds of factors. If you have recently found that you have a bad credit score, the score may have occurred due to one or more of the following factors:
- The number of years you have had access to credit – the longer the duration, the higher your score.
- How often have you declared bankruptcy, missed payments, or repaid your debt on time?
- The total amount you owe on all outstanding loans and debts
- How much do you have when it comes to new credit
- How much of the available credit you have used in the past few months
- The type of credit you have access to includes lines of credit, car loans, bank loans, and credit cards.
A credit bureau will use the above factors to assign you a good or bad credit score. Please note that the score isn’t permanent and will fluctuate over time. For example, if you pay your student loan today, your credit score should increase automatically.
Furthermore, your credit score should improve once you have received a new credit card. It needs to improve as you now have access to more credit. However, this credit score will reduce when you use the new credit card.
Bad Credit Score – What Does It Mean?
Lenders will generally consider a person with a score of less than 580 as a risky borrower. Individuals who have such scores are considered high-risk because there’s a possibility that they may never repay the loan advanced to them by the lender.
The general guidelines for good and poor credit score (FICO) ratings are:
- Exceptional Credit: 800 and above
- Very Good Credit: 740 to 799
- Good Credit: 670 to 739
- Fair Credit: 580 to 669
- Poor Credit: Scores below 580
The Four Leading Types of Bad Credit Loans
As we mentioned earlier, it’s still possible for you to borrow money even when you have a poor credit score. Borrowers who have bad credit ratings should use any of the following four methods to borrow cash:
Home Equity Loan with Bad Credit
It’s possible to apply for a home equity line of credit if you already have some equity in your home. Your home will serve as collateral for the loan, allowing you to borrow money to offset your bills.
Such loans tend to attract low-interest rates because the home secures them. Furthermore, it’s possible to deduct the interest on the loan when filing your taxes. Their downside is that you risk losing your home if you fail to repay the loan.
Online lenders have become more popular than ever before. They include all the lenders we mentioned at the beginning of this guide. These lenders enable you to access cash even when you have a poor credit rating.
Remember, individuals with bad credits will generally have to pay more than those with better scores. Their upside is that you get to borrow quickly and have the money deposited into your account within one business day.
Borrow from Family or Friends
Family and friends will typically not care about your credit score. Additionally, they will not ask to see your credit score report when advancing your money. However, it’s never a good idea to mix business and pleasure.
But in some cases, this is the only available option.
Credit Union Payday Alternative Loans (PALs)
There are credit unions that work together with the National Credit Union Administration. Such coalitions can offer payday alternative loans to their members. You’ll find that these loans are, in most cases, much cheaper than your average payday loan.
One significant benefit of such loans is that you can repay them over several months instead of having to clear them in a single payday period. The interest rates charged by Pals are capped at 28% by Federal regulation.
What’s the Cost of a Bad Credit Loan?
The rates charged by bad credit lenders vary depending on your state of residence, financial background, and credit score. Usually, the bad credit companies we listed above charge as low as 4.9% to 35.99%.
A high credit means you have a good cash flow, providing you access to better rates. Take your time to go through the bad credit statement to check for missed payment fees, early payment fees, and any other additional charges.
How Much Money Can You Borrow?
As we noted earlier, many companies will allow you to borrow any amount between $500 and $5,000. Others will enable borrowers to borrow as little as $100 and as much as $50,000.
Most lenders will deposit the funds into your account within twenty-four hours. Some only require a few hours to process your application.
Bad Credit Loan Alternatives
The services provided by bad credit loan companies are helpful, as seen throughout this guide. If your situation allows it, you could consider any of the following options:
- Auto Title Loans: You should use this as a last resort, as you’ll need to use your vehicle as collateral. Such loans are generally more expensive and must be paid within thirty days.
- Interest-Free Cash Advance Apps (Earnin, Dave, and Chime): Such apps have become popular with borrowers to provide interest-free cash advances. You can access the money 48 hours before payday.
- Peer-to-Peer Lending: They have existed for more than a decade and work by connecting borrowers to lenders.
- Small Dollar Loans for Emergencies: Leading banks in America have started to offer such loans. They are available to customers who have good standing.
- Personal Loan from Online Lender, Credit Union, Or Bank: These loans have a lower APR than bad credit loans. Customers with a bad credit score can still receive a loan from any of these entities.
What Will You Need When Applying for The Bad Credit Loans?
Lenders expect you to satisfy specific requirements before they can issue you with a bad credit loan. The documents required will vary from one lender to another. But from a general sense of view, these are the requirements put in place by most lenders:
- Be of legal age
- Not currently involved in bankruptcy proceedings or a debtor in a case
- You must reside in the state that you have mentioned in your application
- The lender will need proof of an active bank account. It should have been active for more than a month.
- Possess a valid phone number or email address
Depending on the bad credit lender, you may need to show that you have a steady source of income. You should have earnings of more than $1,000 to qualify for a bad credit loan. Other lenders may need your SSN or ITIN information.
What’s the Cost of a Bad Credit Loan?
The costs vary widely from lender to lender. Statistics provided by the Consumer Financial Protection Bureau estimated that it costs around $15 to borrow up to $100. It translates to an APR of around 391% for a fourteen-day loan.
It’s important to point out that not all bad credit loan providers work in this manner. Many will lend to borrowers who need their services but charge higher rates to those with poor credit scores.
You’ll still pay less than you paid for a payday loan.
How Much Are You Eligible to Borrow?
A borrower with a bad credit score can borrow any amount between $300 and $1,500. It all comes down to the regulations in place in your state of residence.
Applicants looking for a personal loan have an opportunity to borrow higher amounts. Most lenders will allow them to borrow between $5,000 and $15,000.
Frequently Asked Questions About Bad Credit Loans
Our team of bad credit lenders often receives tons of questions about bad credit loans. Below is a look at some of the most popular responses to these questions.
Q: What is the most accessible type of loan with bad credit?
A: Most of the lending websites featured in this guide allow you to get a bad credit loan, even when you have a poor score. All you need to do is apply and wait a few minutes to receive a response. The process is fast, simple, and convenient.
Q: Can I get a loan with no credit?
A: We recommend searching for a no-credit loan if you don’t have a credit score or a bad credit score. Be advised that these facilities are more expensive but are available to individuals with low scores. Steer clear of companies claiming they don’t check your credit, as many are scammers.
Q: What loan company will accept me with bad credit?
A: Simply send a loan request to any of the companies we listed at the beginning of this guide, and you should have a response within a few minutes. It doesn’t get simpler than that.
Q: Can I honestly get a loan with bad credit?
A: Yes, any person can apply for a bad credit loan. However, you should expect to pay higher interest rates than those charged by your traditional lenders.
Q: How do I borrow money immediately?
A: You can use some of the apps mentioned here or apply for a personal loan from an online lender. Alternatives include borrowing from family and friends, taking an advance from your credit card, and visiting a pawn shop.
Q: Can I get a $10,000 loan with bad credit?
A: Of course. Some of the lenders we have listed here offer bad credit loans of up to $10,000 to individuals with bad credit scores.
The Best Bad Credit Loan Providers in 2022 Conclusion
Studies show that four out of every ten Americans can’t raise $400 when faced with an emergency. Luckily, the borrowing options listed here can help them address any such issues, even with bad credit scores.
All one has to do is apply to any of the companies listed here and wait for an answer.
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