We care about our customers
Loans Compare
Lender
Details
Pros
- Ease of use.
- Simple application process.
- Large number of trustworthy lenders.
- No fees.
- Flexible loan terms.
- High security.
Cons
Not available in some state.
Small maximum amount to borrow.
No pre-qualification.
Pros
- Long-lasting presence online.
- Good standing.
- Customized offers based on applicants' individual needs.
- A convenient website with easy registration.
Cons
Not a direct lender.
LoansAngel hides the WHOis information.
The FAQ section could be more extensive.
Pros
- Free to use.
- Website's good quality and intuitive navigation.
- Updated SSL encryption.
- They don't check financial health.
- Flexible conditions for different borrowers.
Cons
Sometimes, customers have to wait for money for up to two days.
Text messaging spam.
Pros
- Accepts first-time credit applicants.
- Loans can be funded one business day after the borrower agrees with a loan offer.
- Credit card consolidation loans provide direct payment to creditors.
- Borrowers can select and adjust their payment date.
Cons
An origination fee may be charged.
Borrowers can only select between two repayment terms.
There is no debt management mobile app.
Pros
- One-stop solution for finding all lenders.
- Easy 10-minute process.
- Fast transfers.
- Easy to navigate for new users.
Cons
Not a direct lender.
In case of late payments, Funds Joy will report a lower credit score to the credit agency.
A borrower must earn at least $800 per month to be eligible for a loan.
Pros
- No additional fees.
- Rates are competitive among available internet loan lenders.
- Provides a 0.5 percentage point rate reduction for setting up autopay.
- Satisfaction-guarantee service.
Cons
There is no pre-qualification option on its website.
Some lenders may ask for several years of credit history.
ExtraLend isn't the direct lender, which makes the process lengthy.
Pros
Cons
Pros
Cons
Pros
Cons
Pros
- The Company provides commission-free American stock and EFT trading without inactivity and withdrawal fees.
- The process of creating an account is seamless, digital, and quick.
- The support center offers relevant and helpful answers.
Cons
The Company is only available to American residents.
There are limited products.
The research tools are not advanced.
Pros
Cons
Pros
Cons
Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here's how we make money.
Compare Your Bad Credit Loan Options
What is a bad credit loan?
When a borrower applies for a loan, the lending institution first looks at his credit score to determine whether or not there is a risk in lending him money. What determines the credit score? It is the level of repayment of previous loans or credit history that determines your credit score. If you have a short credit history, defaulted credit cards, or late payments on previous loans, you are likely to have a bad credit rating.
Loans to people with low credit ratings are called "bad credit loans." Some lenders grant the money without examining the borrower's credit history. However, some bad credit loans require the borrower to hold collateral with the lender, such as a house, car, or gold. But some bad credit loans do not require such collateral. In this case, the lender grants the money based on the borrower's income. Remember that the interest rates, fees and other terms of these loans vary from borrower to borrower.
How can I get a loan with bad credit?
As we have already mentioned, it is easier to get a personal loan with bad credit if you choose a direct lender or loan company. Banks generally do not offer loans for bad credit, so for most it is not even an option. We will also discuss aspects to consider when opting for these loans. Take a look:
- Eligibility criteria: eligibility criteria should not be too rigid. When the criteria are rigid, getting a loan becomes too difficult. Try to opt for companies that offer cash advances for minimum income levels, credit scores and debt ratios. Because you have a bad credit history, you cannot opt for lending institutions that have a high demand for loans. Therefore, when applying for a bad credit loan, be sure to check the eligibility criteria carefully.
- Interest rates and fees: compare the interest rates and fees of lenders to see which one offers a bad credit loan at an affordable price. Some lenders take advantage of the situation and charge a very high interest rate on bad credit loans. But not all lenders do this. Some offer bad credit loans at a much lower price, and this is what you need to look for; try to find someone who understands your situation and charges a reasonable interest rate and fee.
- Repayment period: in general, the repayment period for a bad credit loan is about one year. There are also emergency loans with shorter repayment periods. However, we recommend that you opt for a longer repayment period, as you will have enough time to repay the money on time. With a short repayment period, borrowers often fail to repay the loan and fall into the debt trap.
- Type of lender: bad credit loans can be obtained from credit unions, banks and direct lenders. The most difficult of all these options is to take out a bad credit loan with a bank. Banks do not easily grant this type of loan, and even if they do, it involves a lot of unnecessary scrutiny and paperwork. Getting a bad credit loan from a credit union is also an excellent option if you have a close relationship with them. However, a direct lender is the best choice. Money advances from online lenders guarantee you money instantly at an affordable interest rate.
Now that you know what to keep in mind when applying for an online bad debt loan, it is time to learn about the terms and conditions required for these loans. Although the terms vary from state to state, we have compiled a list of the most common terms in most countries. Here is the list:
- The borrower must be at least 18 years old. Minors cannot complete the application.
- The borrower must reside within the country's borders. To prove that he/she is a citizen of the country, he/she must provide proof of address to the lender.
- The borrower must have a fixed monthly income. Since the lender disburses the money regardless of your bad credit, you must show the lender your income to ensure that you will be able to repay it on time.
- You must also provide identification.
- You must have an active phone number so that the lender can contact you if needed. An active e-mail address is also essential to facilitate communication.
- Finally, you must have an active bank account so that the money can be credited to your account once the loan is approved, or use loans without a bank account.
Do not forget that some lenders have a few extra requirements. For this reason, it is always advisable to check with the lending institution before applying for the loan.
What does a bad credit score depend on?
FISCO considers five important factors when calculating a credit score:
- 35% of payment history
- 30% of the amount owed
- 15% of length of credit history
- 10% of new credit
- 10% of the composition of credit
After taking these values into consideration, the score will be between 300 and 850. Let us now look at the role played by each of these elements in determining the credit score:
- Payment history: Payment history is determined by how regularly you have repaid previous loans. It also takes into account bankruptcies and other payment problems. It also counts the time taken to resolve these problems. In addition, you will have a negative rating if you have not repaid previous loans on time or if you have taken a long time to resolve payment problems.
- The amount of debt: The amount currently owed also plays a key role. Those who spend more than their credit limit are generally considered bad debtors. Although this criterion focuses primarily on the amount of current debt, it also takes into account the number of accounts outstanding. If you have a lot of debt from different sources, your credit rating will be negatively affected.
- Length of credit history: length of credit history is also important. People with high credit ratings generally have more than ten years of credit history. Lenders are also more likely to lend to those with longer credit histories. Borrowers with shorter credit histories of less than three years are generally considered bad credit.
- New credit: If you have taken out new credit on several occasions, your credit rating may be slightly affected. For this reason, it is advisable to think twice before taking out new credit.
- Combination of credits: lenders look for people with a good combination of credits. For example, you need to be able to handle both revolving credit and installment credit. However, in the case of borrowers with bad credit, their credit combination experience is rather poor, which results in a bad credit score.
Keep in mind that overall poor performance in all or only one or two of these areas can determine your credit score. Any value below 579 is considered bad credit by FISCO. But fortunately there are still ways to get secured bad credit loans from online lenders!
Procedure for applying for a bad credit loan
The steps to apply for a bad credit loan online are very simple to understand. Online platforms have made the whole application process so simple that even people who have no idea about loans can apply for one in no time. The best thing is that you can apply for bad credit loans online from anywhere in the world. All you need is a stable Internet connection! Take a look below to find out how to apply for a bad credit loan on our website:
- Visit our website online.
- Fill out the bad credit loan application form.
- Be sure to attach all required documents to the form.
- Contact the lender and discuss your needs.
- Once the loan is approved, the money will be credited to your bank account.
Be sure to follow the steps correctly to get your application approved instantly!
Bad credit loans: understanding and applying for them
When you apply for a loan, lenders generally evaluate your credit rating to assess the risk associated with the loan. The rating is influenced by your credit history, including how you have handled previous loans. If your credit history shows late payments, outstanding credit cards or a limited credit history, you may have a low credit score.
Loans made to people with low credit ratings are known as "bad credit loans." Some lenders offer loans with minimal examination of the borrower's credit history. However, some bad credit loans require collateral such as a house, car, or gold. In contrast, there are unsecured options in which the lender assesses the borrower's income to determine loan eligibility. It is important to note that the interest rates, fees, and terms of these loans can vary from borrower to borrower.
Bad credit loans offer an affordable option for those with low credit scores to access urgent funds. Although finding an affordable lender may take time, it is possible to obtain loans on reasonable terms. Make sure you have a stable income and understand the requirements before applying. These loans are a lifeline for those in need of funds despite a low credit rating. With the knowledge gained here, you will be better equipped to explore your options and apply for the loans that meet your needs. Are you considering applying for a bad credit loan? Let us know what you think!
Frequently Asked Questions
-
How Long Will It Take to Get a Bad Credit Loan?
Bad credit loans typically have a quick approval process, often taking two to three days. Some platforms even approve loans on the same day, offering immediate access to cash during financial emergencies. After approval, the funds typically reach your bank account within 1 to 4 business days, usually within five days. However, if there are holidays or weekends, the process may take slightly longer. Overall, bad credit loans offer a relatively fast solution to financial needs. -
How Much Money Can I Get With a Bad Credit Score?
You're correct in noting that a FICO credit score below 579 is considered poor. Typically, loans available to individuals with such scores are in the range of approximately $4,000 or less. Loans for higher amounts, such as $5,000, typically require a credit score of at least 600, which falls between poor and good credit. However, some lenders are willing to provide loans exceeding $4,000 even to individuals with poor credit scores. In such cases, while you may access a higher loan amount, it's important to be aware that the interest rates might be higher to compensate for the increased risk associated with poor credit. Borrowers should carefully consider the terms and interest rates before proceeding with such loans. -
How Can You Raise a Credit Score?
Things that affect your credit score are:
- Payment history
- Amount owed
- Length of credit history
- New credit
- Credit mix
- Start by paying off all your past debts.
- Try to resolve the existing payment issues.
- Close the unnecessary credit accounts that you require no longer.
- Try to minimize creating new credit and gain experience in different credit fields for a better credit mix score.
-
Bad Credit Loans Alternatives
Some personal loans bad credit alternatives that you can find on our website are:- Title loans: If you want to borrow money against collateral security like a car or home, you can apply for title loans.
- Payday loans: Payday loans will be perfect if you want instant cash for a short time interval.
- Installment loans: If you want to pay back the borrowed amount in installments, this one should be your choice.
-
How do bad credit loans work?
Obtaining a bad credit loan typically involves the following steps:- Application: You start by applying with a lender. This often involves filling out an online application form.
- Documentation: You'll need to provide proof of income and other necessary documents as requested by the lender.
- Approval: If your application is approved, you'll receive a loan offer. Bad credit loans typically come with higher interest rates and fees due to the increased risk for the lender.
- Repayment Plan: Once you accept the loan offer, you'll agree to a repayment plan. This includes the loan amount, interest rate, and the duration of the loan.
- Repayment: You'll repay the loan over the set period, usually in installments, which include both the principal amount and interest. The loan may have a fixed or variable interest rate.
-
What are the benefits of a bad credit loan?
The primary benefits of a bad credit loan include:- Access to Funds: Bad credit loans can provide access to funds when you have a poor credit history and might not qualify for traditional loans. They are designed to cater to individuals with less-than-perfect credit.
- Credit Building: Some bad credit loans are reported to credit bureaus. Making on-time payments on such loans can help rebuild your credit over time. This is particularly beneficial if you're looking to improve your credit score.
-
What are the drawbacks of a bad credit loan?
The primary drawbacks of bad credit loans include:- High Costs: Bad credit loans often come with high interest rates and fees. Borrowers with poor credit are considered higher risk by lenders, so they charge more to offset that risk. This can make the loan significantly more expensive compared to loans for individuals with better credit.
- Predatory Practices: Some bad credit lenders may engage in predatory practices, such as offering loans with extremely high interest rates or charging exorbitant fees. Borrowers should be cautious and thoroughly research lenders to avoid falling victim to such practices.
- Limited Loan Amounts: Bad credit loans typically have lower maximum loan amounts compared to loans for individuals with good credit. This means that if you need a substantial amount of money, a bad credit loan may not be sufficient.
- Shorter Repayment Terms: Bad credit loans may come with shorter repayment terms, which can result in higher monthly payments and potentially greater financial strain for borrowers.
-
What are some alternatives to bad credit loans?
Indeed, there are several alternatives to bad credit loans that individuals should explore based on their specific financial needs and circumstances:- Personal Loans: If you need funds for debt consolidation or other personal expenses, you may qualify for a personal loan. While interest rates can vary, they are often lower than those of bad credit loans, especially if you have fair or better credit.
- Balance Transfer Credit Card: If your primary concern is high-interest credit card debt, consider transferring your balance to a credit card with a 0% introductory APR offer. This can help you pay down your debt without accruing additional interest.
- Borrowing from Friends or Family:While it's essential to approach this option with care and clear terms, borrowing from friends or family members can be a lower-cost alternative to bad credit loans.
- Credit Cards with 0% Introductory APR: For unexpected expenses, using a credit card with a 0% introductory APR can provide you with an interest-free period for a specified time, giving you time to pay off the balance without interest charges.
- Credit Building: Focusing on improving your credit score is a long-term strategy that can lead to better loan terms in the future. This involves timely payments on existing debts, reducing outstanding balances, and addressing any errors on your credit report.
What our customers are saying