Nothing can be more disappointing than being told you have bad credit when looking for a loan. It can be the spanner in the works and interrupt every dream you’ve ever had, or worse still, make an emergency all the more desperate.
Whether you need to replace a boiler in a hurry or need that car loan in a matter of minutes, a bad credit rating can really rain on your parade.
Bad credit means that on a credit scoring model, your credit score is so low that any lender will be skeptical about your repayment means. Your credit score is a three-digit number that is based on the information in your credit report. Your credit report summarizes how fast you pay your bills, your balance on your credit card, and other financial factors. If these are in the mud, then the odds of getting a loan approved are slim at best.
When you’re applying for a loan, your lender looks at your credit score and decides whether to give you a loan. The higher your credit score, the likelier your chances for qualifying for a loan is, with better conditions and better rates. Having a good credit score is more like a preventive measure towards getting a loan.
But in most cases, people with good credit scores do not need loans except on rare occasions. Having bad credit due to some unfortunate circumstance reduces your chances of getting a loan. So, what do you do if you have bad credit but want a loan?
You could always try to fix your credit score, make it better, and get higher digits, but those are long-term plans. They would work great in the long run and give a more permanent-ish solution to your bad credit problem. However, being long-term solutions, they’ll hardly do you any good if you’re looking to take care of a financial emergency immediately.
Now, it may look like you are stuck in a bind, but there is a solution. Some companies would give you loans even with a ‘bad credit’ score.
You might be thinking, if these companies do not consider your credit score, what do they look at?
Other than credit scores, there are other things that lending companies can look at when considering a loan application. A few of them include your average income, your expenses, and your financial situation. They use these pieces of information to decide your loan rates.
Due to the desperation that often comes alongside seeking a best bad credit loan with guaranteed approval, some fraudulent individuals try to take advantage of the situation and charge hefty interest rates on loans. As a result, you should be careful to only go for legitimate lending companies. In that regard, we’ve got you covered.
Top 5 Online Bad Credit Loan Providers With Guaranteed Approval:
- MoneyMutual – Overall Best No Credit Check Loans & Bad Credit Loan Online Companies
- Personal Loans – Trusted For Personal Loans With Poor Credit Score, Instant Cash Approval
- BadCreditLoans – Guaranteed Approval of Bad Credit Loans; Easy Loans Online
Here are the detailed reviews of our top picks:
#1. MoneyMutual – Overall Best No Credit Check Loans & Bad Credit Loan Online Companies
Financial problems? You’re not alone. Recent economic reports say that 40 percent of Americans wouldn’t have $400 available in an emergency. Those are dire statistics indeed and point to the fact that there is no easy way to access loans.
Spurred on by that reality and a sense of duty to their fellow Americans, MoneyMutual was founded in 2010. They operate an online marketplace that links people seeking loans to legitimate lenders.
Doing this eliminates the need for and the stress of seeking out lenders personally and convincing them to give you a loan. Using MoneyMutual also reduces your risk of taking a loan with a hefty interest rate and absurd requirements.
The first step in using MoneyMutual to get a bad credit loan is to fill the form on their website. MoneyMutual would ask you for information that includes your age, address, and current financial status, which is basically your monthly income. After filling the form and submitting it, the company starts working on your request. The speed and success of this process depends on how fast they find lenders who are willing to work with you.
When they do find a lender that’s willing to work with you, the next step begins. MoneyMutual links you up with the lender, and redirects you to the lender’s site.
It’s a good idea to go through the terms and conditions of the loan before agreeing. If you agree with the terms and conditions the lender sets, you can proceed with getting your loan. In most cases, the lender would opt to contact you directly to carry on with the transaction. Usually, the lender deposits funds into your account 24 hours after you finalize the agreement.
It is important to note that MoneyMutual is not a direct lending service. It is merely a company that bridges the gap between people who need loans and lenders. MoneyMutual also provides people seeking loans with educational resources to understand the terms and conditions of their loan agreement.
- Easy-to-use website
- Huge network of 60+ lenders
- Doesn’t require any fees
- Multiplicity of lenders facilitates the comparison of agreements and rates for decision making
- Quick loan offers
- Straightforward loan request and approval process
- Useful educational resources to build financial knowledge
- Users can earn money from referring others to MoneyMutual
- Only available in the US
- Unable to help when problems arise with loans
- Selectively available within the US
One thing that is undebatable about MoneyMutual is the millions of users who love benefiting from the platform’s bad credit loans. There are many reasons to love MoneyMutual. These include their reputation over the years, the platforms’ vast network of lenders, and affordability.
However, a commonly shared opinion by users of this platform is how easy it is to get their loans approved. Having a network of over 60 lenders at any given time is why MoneyMutual can achieve this feat. With them, you are assured of bad credit loans with guaranteed approvals within 24 hours. MoneyMutual puts you in a good spot when you are in a pinch or a bind and need some extra cash as soon as possible.
Having multiple lenders on the site helps you compare rates and agreements before choosing the lender or loan agreement you feel would be most beneficial to you. In addition to returning users, MoneyMutual also gains customers through a referral system which points out how good the platform is.
#2. Personal Loans – Trusted For Personal Loans With Poor Credit Score, Instant Cash Approval
Like MoneyMutual, Personal Loans act as a middleman between you and the lenders. The company aims to provide people with free, easy access to loans.
Personal Loans acts as an online marketplace that offers users peer-to-peer, bank, and installment loans. Due to its flexible terms, Personal Loans is helpful for people who are in a bind and need emergency funds.
A great attribute to Personal Loans is that even if there are no lenders at the moment who want to give you a loan, there is the option for the available lenders to approach other third-party lenders on your behalf. This would require the company to provide them with some of your information but certainly nothing that you need to be worried about.
In the unlikely case that no lender offers you a loan, Personal Loans also provides other services like debt consolidation, credit repair, and credit monitoring to help you improve your financial situation.
The first step to getting a loan through Personal Loans is by filling the form on their official website. Their form has basic information that online lenders usually collect. However, Personal Loans gives you a reason for collecting each piece of information. This goes a long way in building user trust.
When the lender network reviews your information, they would contact you assuming that they’ve made up their minds to offer you a loan. In this process, you’ll get a link to be redirected to the lender’s website, or they might contact you directly. The loan agreement typically contains the loan amount, APR, and terms of the loan. If you accept the repayment terms, funds are usually transferred to your account between 24 and 72 hours.
Personal Loans also offer relaxation during the repayment of loans. This is aimed at people who may miss a deadline to pay their loans due to unfortunate circumstances. If you miss a payment deadline, you can contact your lender directly, or you can contact customer support on Personal Loans, who would, in turn, contact your lender and discuss relaxation by giving you a new deadline. Your lender can also draw up a new repayment schedule, factoring in your budget and current financial situation.
- Personalized loan offers to suit your needs
- Higher loan amounts compared to other lenders
- Variety of lenders for you to choose from
- Getting a loan is a quick and easy process
- Flexible repayment plans
- Receive Funds Quickly
- Credit lenient loans
- If your credit score is extremely low, your loan request may not get approved
- You may face fees from the lender you choose
Customers love Personal Loans for the personalized loans that suit your financial needs allowing you to choose loans that match your financial needs.
#3. BadCreditLoans – Guaranteed Approval of Bad Credit Loans; Easy Loans Online
Although there’s a hope that people would find loans no matter their credit score, this is not often the case. People with bad credit find it harder to get loans to cater to them. To solve this problem, BadCreditLoans was formed. The company is an online resource that helps people get loans.
Working as the intermediary between people with bad credit and lending services, BadCreditLoans doesn’t give out loans. They just make the process of getting loans easier.
Like most online marketplaces, BadCreditLoans makes you fill out an application then sends out this application to all matching lenders. As soon as you get offers, BadCreditLoans sends you the offers from the lenders.
Once you choose a loan, BadCreditLoan’s work is done. You become directly involved with the lender. Remember that you are under no obligation to accept any of the loan offers sent to you via BadCreditLoans and should only choose a loan agreement that you’re comfortable with.
To be completely transparent, the repayment terms of the loans provided will be less attractive than you’d get on a standard loan marketplace. You’ll find lower loan amounts, higher interest rates, and higher costs, but you’ll be able to secure financing even with poor credit scores.
- The company is specifically for people with bad credit
- Easy to use
- You can apply to multiple lenders with one loan application
- Reasonable and flexible loan terms
- You can get free loan quotes
- Impressive speed with regards to finding lenders for borrowers
- Your lender may charge you extra fees
- The application process requires a lot of personal information
BadCreditLoans has a lot of constant users, which points to customer satisfaction. A positive about this platform is that many of the site’s users enjoy its fast and secure loan application process. Many customers are willing to recommend it to someone needing a loan for emergencies. Loans on BadCreditloans are pretty reasonable and within the budget of most users, enabling them to repay regularly.
#4. CashUSA – Popular For Quick Cash Online Same Day loans & Payday Loans With Bad Credit Score
What makes CashUSA stand out from all the other money lending competition? For one thing, the company offers smaller loans and easy guaranteed approval of loans despite any bad credit. The company offers borrowers smaller amounts ranging from $500 – $10,000. This makes it easier for people to get loans on short notice.
The period for repayment of loans ranges from 90 days to 72 months, and the APRs generally range from 5.99% – 35.99%, which is pretty much the industry’s average.
A prominent feature of CashUSA is the fact that it provides educational resources for existing and prospective borrowers. This educational resource offers information on credit score, repayment of a student loan, choosing a budget, and so on. Particularly useful because you get all your related financial information in one place.
Like the rest of the companies on this list, filling an application form is the first step to getting a loan from CashUSA. This form would inquire about your personal and financial information, which would go towards finding you a personal loan. The form has a lot of additional information you need to fill out, but it wouldn’t take more than a couple of minutes to do so online. It’s also better than wandering from office to office, requesting the signature of different personnel on your documents the way you would if you were seeking a physical loan.
After filling the form, CashUSA’s network of lenders will receive your request. The best part is that CashUSA sends out your application request to many lenders simultaneously, eliminating the need to go from one lender to another. You also get direct lenders that are willing to lend in your range of loans, in a sense, personalized lenders and loan plans.
- Great lending choices
- Availability of loans
- You can spread the loans repayments over long tenures
- Straightforward applications process
- Loans are processed quickly between a day and a week maximum
- An educational resource for people who want to lend and borrow money
- Requires a lot of personal information
With over one million active users and counting, CashUSA has built tremendous credibility. The majority of its users rarely have cause to complain about the company or the service it provides. Its straightforward process and the easy-to-use site have endeared them to many. It also offers fast and easy credit facilities from lenders willing to overlook your bad credit.
#5. Credit Loan – Reliable Online Emergency Loan Lenders With No Credit History Check
If you are looking for a loan and you have bad credit, or you’re simply looking for a way to get a fast loan without the hassle of the bank/Credit Unions and other unnecessary things, Credit Loan is the site for you. Created in 1998, more than 700,000 people have used Credit Loan to connect to lenders.
The company has two networks for lenders. The first is for people who have a good credit score and would like to take a loan. The second, as you can imagine, is for those who have poor credit scores and would like a loan. This provides bad credit borrowers with loans tailored to fit their unique circumstances.
Credit Loan is a reasonable option to consider with affordable interest rates and a pool of lenders when you want a loan despite your poor credit. Like all the companies previously mentioned in this article, applying for a loan with a Credit Loan starts with filling a form. Credit Loan is mainly for people who want a small loan at an affordable interest rate.
Although the form you will fill requires your personal information, Credit Loan goes the extra mile in securing your personal information. A proof of security is that TRUSTe verifies the company. It also possesses a McAfee SECURE certification, putting your mind at ease when submitting your data on its website.
After submitting your form, you would wait for loan offers to come in. This typically arrives within a couple of hours. The platform will then redirect you to the lender’s site to review the loan agreement terms when you decide on an offer. If you do not like the terms given, you can reject the offer and wait for more offers to come in. When you decide on a loan offer you like and agree to the terms, you’ll typically receive your funds within a day.
CreditLoan.com doesn’t charge for its services. Instead, the network will receive a referral fee from the loan broker after your loan closes. Once the process ends, you’ll only communicate with the lender and send all your payments directly to the lender.
Unlike other lending services, you do not need to meet a certain income bracket to qualify for a loan on Credit Loans. Each lender would have their requirement, but they do not have a bearing on Credit Loans’ processes.
- The service provided is fast, free, and secure
- You can be assured that your privacy is being protected
- Funds are fast to deliver
- You can have access to smaller funds
- Limited loan amounts
- Some lenders on the platform offer uncomfortably high interest rates
Customers generally seem to have mixed feelings about Credit Loan due to the limited loan amounts. However, most critics are those who were denied loans. The majority of them left bad reviews claiming vague terms and high interest rates.
Bad credit loans generally carry a higher interest rate than loans to persons with good credit. Despite that, Credit Loans is well within the industry-standard rates for lending. Customers who love this platform rate it highly for its rapid response enabling them to get money exactly when needed.
Factors To Consider When Seeking Bad Credit Loan
There are things to look at before you seek a bad credit loan. These factors come into play before you decide to take a credit loan, and they affect your decision on which loan agreement to choose. Here are some things you should note before checking out a bad credit loan:
Your Current Financial Situation
How would taking a loan affect your current score? Typically, taking a loan can improve your credit score. Regular repayment of the loan would reflect on your financial records highlighting your payments. Also, having funds to spend other than your credit goes to improve your credit score. You should also look at your budget and whether you’d be able to afford the loan repayment with its interest rate.
Eligibility for a loan depends on your credit score. Of course, these loans are available to people with bad credit but having a better credit score improves your chances of getting a loan with better rates.
Lenders who offer loans to people with bad credit usually have other requirements that you must meet before they give out the loans. They may have their scale for calculating a credit score. In most cases, they require the loan requesters to have a definite source of income. That way, they can rest assured that the borrower will pay back the loans on time. Specific lenders may have a fixed annual amount that you’re supposed to earn in order to earn before qualifying for a loan. Others may not be so rigid in their requirements but would still demand proof of stable employment.
In situations where you can’t meet the income requirements for a loan, you can get someone to cosign for you. This means that you’re taking the loan based on said person’s credit score. If you default on your loan payment, you could lose the relationship you have with your co-signer.
Terms and Conditions
When you receive your loan offer, it will come with access to a loan agreement. This loan agreement would contain the terms of your loan, information about the amount you’re borrowing, and the APR (annual percentage rate).
You should go over the terms and conditions of your loan agreement thoroughly. The contract is binding, and if there’s a term you’re uncomfortable with but have already signed the agreement, there is no wiggle room to adjust it.
Interest Rate Offered
The first thing to look out for in a loan agreement is the interest rate. When comparing offers from lenders, you should keep an eye out for the loan with the minimum interest rate. Of course, the better your credit, the better the rates offered would be but barring that, you should aim to go for a loan with an interest rate that is favorable to you and that you can pay back comfortably.
Some lenders give bad credit loans that offer fixed interest rates as opposed to fluctuating interest rates. On the other hand, there are some with interest rates that are dependent on the index rate.
While you ponder the decision to take a loan, you should keep in mind whether you have a backup reserve of assets that you can turn into liquid cash in an emergency. This would insulate you from specific unfortunate incidents like losing your job, which may cause you to default on repaying your loan.
Some lenders may charge fees for things like late payments, bounced checks, and transaction processing charges. Others may not. You may also encounter lenders who adjust your origination fee to suit them, and others may not charge origination fees at all.
You would have to decide which situation you would like to go with after carefully considering these parameters. Also, you would have to communicate with your lender and go through the terms of your loan agreement about these fees. If you’re not satisfied with the costs, then you might choose to forgo that loan.
How to Get a Bad Credit Loan with Guaranteed Approval
You can get a loan despite your bad credit. It would only take a bit of preparation and research. Here are the ways you can get a bad credit loan with guaranteed approval:
1. Crosscheck Your Credit Report
The first step in the plan involves taking a serious look at your credit report. You should do this to spot any errors or inconsistencies and point them out to the credit bureau. Having a better credit score improves your chances of getting a better loan.
Ensuring an up to date credit report every three months is a good way of handling your financial situation. When applying for a loan, the lender would request and view your credit report and credit score. These are the criteria used to judge whether you can pay the loans back in the time allotted and influence the decision to give you a loan.
2. Target and Budget
When deciding to take a loan, you should set a fixed amount that you want to borrow. Having this amount in mind allows you to work towards this financial goal. You would be able to create a budget around the time you want to take the loan.
You should also look at how the loan repayment would affect your personal and family life, factoring in your usual expenditure and other things. This ensures that you make realistic calculations when it comes to the loan. Also, note that the longer your loan tenure, the more you would have to pay back during the loan repayment.
3. Interest Rate
Getting a loan with bad credit is something that should be taken very seriously. This includes keeping an eye out for the interest rate. The interest rate you would get would depend on the duration of the repayment period and how much you take out for a loan. Even though they are bad credit lenders, most lenders do a background check on your credit score.
If you have an awful credit score, this might influence their decision to give you a loan. To get around this situation, you should go to lenders that have pre-approvals. Once you get your loan agreement and the interest rate you would be paying, it is then up to you to determine whether you can pay it at that rate. Remember that repayment is a monthly recurring expense, and your lender may not be prone to giving you leeway.
4. Beware of Scams
The bad credit loan industry is infested with scammers. And it is becoming rampant. If you’re a newbie to receiving loans, you should look out for scammers. There are various ways to spot scammers. One sure way is that scammers wouldn’t inquire about your payment history as most legitimate lenders would.
They would constantly bug you about when you’re paying back the loan. They would also be insistent on making payments to bogus accounts. If you think your potential lender is a scammer, you should terminate all talks with them.
5. Keeping to a payment schedule
Planning and keeping to a payment schedule makes it easier for you to repay the loan. Setting aside a certain amount of money from income scheduled for repayment is a sure way to get your loan paid within the allocated time.
Alternatives to Bad Credit Loans
If you can’t get a bad credit loan and think that there is nowhere left for you to go, you shouldn’t despair. There are other ways to improve your financial situation besides a bad credit loan. Here are the following ways you can improve your financial situation without taking a bad credit loan:
Fixing Your Credit Score
The reason you were refused the loan was probably because of a bad credit score. The best way to improve your financial situation is to fix your credit score. It may be complex and exhausting work, but it is worth it in the end. A better credit score increases your chances of getting a loan.
You can always scout for properties and assets to sell to get liquidated cash and use it as an emergency fund. It may be the best choice for you to make at the moment. In addition, selling off something you own doesn’t cost anything else.
Ask your Employer
If you have a good relationship with your employer, you can talk to them about getting a short-term loan that would be deducted from your income. You should discuss the terms of the loan agreement before collecting it; how much would be deducted from your pay and for how long. This option exposes you to a slightly better choice than selling off things you own.
Talking to Your Bank
You can contact your bank for an overdraft at zero percent on your current account. The overdraft would be a fixed loan amount of money. You should make sure that you do not cross over the loan amount set or risk getting an overdraft fee. You can also talk to your bank about giving you a tailored loan. Your bank is aware of your financial situation and can develop a personal loan that fits you and your situation.
FAQs about Bad Credit Loans
How can I tell if my credit score is bad?
You can get your credit report legally from any of the credit bureaus in the United States. Using this credit report and a scale by FICO, you can determine your credit score. Credit scores typically range from 300 to 850.
If your credit score is below 630, it is typically considered bad. In this case, getting loans with guaranteed approval from lenders would be extremely hard. If your credit score is from 630-699, this is regarded as a fair score. Although getting a personal loan with this score would be less challenging than getting one with a bad score, lenders may be reluctant to give you a personal loan.
The best range of credit scores is above 750. You can get loans easier with this credit score.
How do you fix a bad credit score?
Fixing your credit score is a time-worthy investment. You can build up your credit score in several different ways. For starters, ensure that you make your monthly payments on time and without delay. This leaves lenders as well as those in charge of receiving your bills with no other choice but to passively or actively contribute to the betterment of your credit score.
Secondly, you should ensure that you keep your credit reports up to date and free of bugs. The latter is particularly important because occasionally, you might have one or two mistakes in your credit reports that you need to sort out with credit bureaus. If you don’t take care of them, they could leave quite a stain on your report.
Apart from these, you also need to make sure that you pay any installments on time to get rid of them as fast as possible. Remember, unpaid debts are the achilles heel of a good credit score. Finally, seek advice on how to improve your credit score. You could see a professional. As an alternative, especially if you’re not looking to spend money on a professional consultation, you could ask friends or family members. As a general rule of thumb, you only want to get advice from people who already have good credit ratings.
Can you take a personal loan without getting your credit score checked?
Yes, you can and there are various ways to achieve this. You could get a payday loan. However, it might not be the best idea as they usually have high APR and are known as debt traps. You could also go to a pawn shop to pawn your personal effects. If you have a vehicle, you could take an auto loan. This involves giving your vehicle’s title to the lender. If you default on the payment of the personal loan, you forfeit your vehicle.
What is the result of a bad score?
Having a bad credit score can hold you back from many things, such as starting or expanding your business. Frequently, you’ll experience refusals straight away when you’re applying for loans. You shall be prevented from accessing a line of credit because of your credit score. The shortest version of the story is that you won’t be able to get loans from any of the established financial institutions that most people turn to. They simply wouldn’t trust you to pay back and they can’t afford to take that risk.
Apart from that, a bad credit score could affect your ability to get a house or an apartment. This isn’t absolute and doesn’t always happen. However, some landlords check your credit score before allowing you onto their property. It gives them an insight into how well you’ve handled payments in the past. If your credit score is subpar, they would assume that you’re not particularly “faithful” with payments and wouldn’t want to risk you constantly defaulting on your rent. As such, they’ll decline your request to use their property.
Conclusion – Bad Credit Loans Online
In conclusion, should you get a loan with your bad credit? Emergencies do not care about your credit score; they occur at any time and are frequently unplanned. If you have an emergency that needs to be settled and have bad credit, you can always apply for a bad credit loan.
Credit scores always play a part when you are applying for loans. Notwithstanding, you have an easier chance of getting a personal loan when using the bad credit loan platforms outlined in this article. And we highly recommend you Money Mutual to solve your bad credit emergency crisis. These platforms do not charge you for using their services, reducing the loan amount of money you must spend.