Life is unpredictable. It throws unforeseen challenges that we must handle. Anyone can face a financial crisis at any point in their life. Having a bad credit score is not a crime. It just means that you have been less fortunate than others.
However, many loan lenders use credit score as the critical determinant for loan approval. Thus, it becomes complicated to obtain a loan from a legit lender when you have a bad credit history.
But does it mean that you must give up trying? We know how it feels when you are in an emergency, yet you cannot apply for a loan because of yourbecomes complicated obtaining bad credit score. To help you find a solution, we made a list of well-reputed platforms that connect borrowers with legit lenders and lending partners.
These lenders will not only help you deal with your current financial requirement, but they might also help you improve your credit score. They will send your payment records to the major credit bureaus, and you make a timely payment that will help repair your bad credit record.
But does that mean these companies go on lending money to anyone without considering the borrower’s ability to repay? Doesn’t that sound illegal?
It’s not that these companies do not consider anything. They just have set their parameters to evaluate risk levels and thus, may look into your average monthly income, how much you spend a month, how you manage your expenses, etc.
However, you must also remember that while these companies are genuine and help you get out of crisis, others want to take advantage of your situation. They might ask for an unreasonable interest rate or implement coercive techniques to collect the repayment. You must always be cautious not to fall prey to such loan agreements.
Besides, some fraudulent companies target people in vulnerable conditions. Their offers may look lucrative, but remember, if something seems too good to be true, it probably is.
The platforms on this list will connect you to a network of lenders and lending companies. However, they do not intervene in the loan negotiation process. You will need to communicate directly with the lender to strike a deal. Also, the platforms do not take responsibility to mediate if any issues arise between you and the lender.
Read on to learn more about these platforms and learn how they may help you with your situation.
Top 5 Best Bad Credit Loans With Guaranteed Approval
- MoneyMutual : Overall Best Bad Credit Loans With Instant Cash Approval
- BadCreditLoans : Top Emergency Loan Provider With No Credit Check
- CashUSA : Trusted Loan Lenders of Quick Cash Loans, Guaranteed Approval
- Personal Loans : Popular For Lending Personal Loans & Emergency Loans
- Credit Loan : Affordable Interest Rates on Installment Loans Online
Here are the detailed reviews of our top picks:
#1. Moneymutual: Overall Best Bad Credit Loans With Instant Cash Approval
MoneyMutual has been on the market for over a decade. MoneyMutual is not a lender itself but a platform that connects the borrowers to short-term lenders who can provide immediate financial assistance.
When you are in a desperate situation, it becomes challenging to approach individual lenders and negotiate a deal. On MoneyMutual, you simply put out your requirement, and the platform will connect you to potential lenders.
MoneyMutual is a well-reputed company with more than two million satisfied customers.
Short and straightforward application form: Obtaining a loan on MoneyMutual is an easy three-step process. First, you visit the official website of MoneyMutual and fill out a simple form providing basic information like your age, location, monthly income, and others. It shouldn’t take you more than five minutes to fill out the form. MoneyMutual is a free resource, and you do not need to pay any fees to submit the form.
Easy approval: Once you submit your requirement, it will be immediately available for the lenders to review. If a lender shows interest in lending you the required money, the platform will take you to their website. You must also read their terms and conditions thoroughly to determine if you are comfortable with them. Individual lenders set their terms, and MoneyMutual has no role in it. Before accepting a loan, you must work out the lender’s interest rate and repayment terms. In some cases, the lender may contact you via phone or email after submitting the form on their website. They will confirm your identity and personal information before they process the payment. You can get the required loan amount directly deposited to your bank account within 24-hour after you initiate the process, provided you respond on time.
Relaxed eligibility criteria: On this platform, you can borrow anything between USD200 and USD5000. To qualify as a borrower on MoneyMutual, you need to be a U.S. citizen, currently employed or have any other regular source of income, have an active checking account and your monthly income should not be less than USD800.
Individual short-term lenders may implement additional criteria to approve your loan. Besides, some lenders may accept benefits like social security, pension, and disability as qualifying income.
Over two million satisfied customers: To date, MoneyMutual has helped more than 2 million customers in times of their financial crisis. The reviews by customers show that the platform has been successful in doing its job. The customers love the way the whole process works. According to them, the process is fast, secure, and hassle-free. They say it took them less than two minutes to get connected to a lender, and within 30 minutes, they got an approved loan. Customers who are skeptical about borrowing money online due to the threat of scams and other reasons find MoneyMutual a safe option. As the website implements security protocols, they know their information will not fall into wrong hands.It has many returning customers and referrals. That proves the platform is doing a great job and has successfully built trust.
- A free service
- About 99 available lenders
- An extensive network of lenders
- Apply in less than five minutes
- Receive fund within 24 hours
- Fullt straightforward process
- A stable income and bank account must-have
- USD 5000 cap for a bad credit loan
#2. Badcreditloans: Top Emergency Loan Provider With No Credit Check
Like MoneyMutual, BadCreditLoans is also not a lender but connects borrowers to potential lenders and financial service providers. It’s a 100% free service. You are not obligated to take out a loan unless you are satisfied with the loan terms.
BadCreditLoans allows you to request up to USD10,000 and goes an extra mile to ensure that no one suffers because they can’t access the money they require. If the platform fails to find a lender for you, it may connect you with credit repair, debt relief, or other related services. Also, it show related ads of companies so that you can choose the one suitable for your needs.
The company secures your data with advanced encryption technology. It does not share any sensitive information with the credit repair or debt relief services and uses your contact information to contact you and share plans.
No minimum income requirement: To initiate the process, you need to fill up an online form with your request for a loan. The company does not require a minimum income but you need to meet specific criteria to fill up this application form like being 18 years or older, a U.S. citizen or a legal resident in the U.S.and you must have a regular income from full-time employment, self-employment, or other benefit schemes. Once you decide to accept the offer, you need to e-sign the loan document. Then the lender or financial service company will directly deposit the agreed loan amount in your bank account. The fund becomes available within one day after the initiation of the process.
Flexible repayment options: The Annual Percentage Rate (APR) on loan offers that you get on this website ranges from 5.99% and 35.99%. The (APR) depends on your profile and credit history. Usually, the repayment term ranges between 3 months and 72 months. Before agreeing to a loan term, make sure you have read and understood the whole document, as BadCreditLoans does not take any responsibility in this regard.
Additional services: In case the platform doesn find a match to your request and the lending partners don’t show particular interest in you, BadCreditLoans offers upgraded services like debt relief or credit repair as alternatives. Also, they allow you to browse through lenders and approach them directly if something caughts your eye. Nevertheless BadCreditLoans will not share your personal information with the companies, except your contact details for further communication.
Available 24/7: Feel free to approach the platform any time you need as lenders are available 24/ 7 to offer loans. If your case is urgent, you can contact them immediately and start the process the very same day. The platform’s customer service is also open to customers 24/7 for any doubts or questions.
Trustworthy: BadCreditLoans is a trustworthy company with tons of positive reviews. Those who need some fast cash find this platform very useful. It has an extensive network of reliable lenders and financial companies ready to help people with subprime credit scores. The affiliate lenders on BadCreditLoans have locations in various parts of the country, and thus, the interest rate varies significantly. The highest available APRs are pretty high on this platform. However, people with bad credit could secure student loans at an affordable rate. Compared to other such platforms, on BadCreditLoans, you need to provide a little more information, however, this detailed information helps the website narrow down your choices.
- Apply for a loan 24 hours a day, seven days a week
- Transparent lenders information is available
- Connects you with debt relief or credit repair services when lenders are reluctant
- Fast service, fund available within a day
- Personal data protected by advanced encryption
- Low chances to get a loan in case of poor credit history
- Doesn’t have an adequate Better Business Bureau Rating
#3. CashUSA: Trusted Loan Lenders of Quick Cash Loans, Guaranteed Approval
CashUSA is one of the most reputed brands in the United States for guaranteed loans for borrowers with bad credit history. It’s a platform that connects borrowers with reliable lenders and financial companies willing to lend money to people with poor credit scores.
You can get up to USD 10,000 in your checking account on this platform. Once you submit your request, its vast network of lenders or other third-party networks of lenders will get to review the application.
The website uses industry-standard encryption to secure your data. In addition to connecting with potential lenders, the platform offers educational resources. It provides you with financial tips, including how to set your financial priorities and how to make the debt work for you. The valuable tips offered by the education center will help you navigate through the financial crisis and plan your finances better.
Simple process: To be eligible to submit a request on this platform, you need to be at least 18 years old, a U.S. citizen or have a legal permanent residency in the U.S, have a minimum monthly income of USD1000 after taxes and have been employed for at least 90 days. Also, you need to have a checking account as a primary account holder.The process of application is similar to other lending platforms. You fill up the request form with all your details, and the potential lenders make an offer. After receiving the offer, you go through the terms and conditions and sign the agreement. The process is fast and convenient, and you receive the loan funds as early as the next business day. The interest rate and repayment terms depend on your credit history. Usually, the APR ranges between 5.99% and 35.99%
Educational resources: CashUSA has a website that is full of rich resources to help you learn ore about the nature of the lending process and how to navigate easily in all stages. You will find practical, simple steps on how to manage financial priorities and work your way with the debt. This way you can wisely plan your budget, calculate the debt and the period of paying back the loan.
Secure Website: CashUSA keeps your personal date safe and secure through an advanced encryption system. This company considers website security a priority and ensures that the access to data is available only through strict authorization.
- Free service, fast and convenient process
- An extensive network of lenders
- Easy installment repayment, up to 70 months term
- Helpful information available in Education Center
- USD1000 minimum earning requirement
- Abounding personal details in the request form
#4. Personal Loans: Popular For Lending Personal Loans & Emergency Loans
Personal Loans is yet another platform that has built its reputation for connecting bad credit borrowers with reliable lenders. You can borrow up to USD 35,000 from its extensive network of lenders on this platform.
The lenders are available 24/7, so you can approach the platform whenever you need. You can request a loan for anything, be it a medical emergency, home renovation, business startup, or family vacation.
Suppose your loan request does not interest a lender on its network. In that case, Personal Loans may present you with an offer for credit repair, credit monitoring, debt relief, or other valuable services.
It’s a free service, and Personal Loans does not charge any upfront fees for matching you with potential lenders. Once you receive offers from the lenders, you need to communicate directly to negotiate a deal.
Up to $35,000 can be requested: In contrast to other platforms, on Personal Loan you can request a loan amount from $1,000 to up to $35,000. This makes the platform open and attractive to borrowers with different needs and credit scores. Nevertheless, your loan availability and the loan amount depends mainly on your responsibility pattern. This means that you need to have a steady source of income, such as permanent employment, self-employment, or social benefit schemes. Some lenders may ask for a pay stub, and most of them ask for a valid checking account. Individuals with an account over 60 days late are not considered by the lenders. Besides, those who have records of active or recent bankruptcies will not be offered a loan. Lenders are also hesitant to offer a loan term to the borrowers who already have a debt that their current income cannot cover or who have demonstrated late payment patterns. Moreover, if you have any recent charged-off account, you will not get a loan on this platform.
Transparent request form: The process of obtaining a loan using the resources on Personal Loans is pretty standard. You start the process by filling up a basic information form. Personal Loans are a transparent company that explains how they will use each piece of the information you provide on this form.Once you submit the form, lenders may invite you to take a look at their websites based on your information. After reviewing their terms and conditions, you can accept or reject the offer. Once the borrower and lender negotiate a deal, it takes less than 24 hours to deposit the funds in the borrower’s bank account.
A well-organized and comprehensive website: Personal Loans has successfully built an extensive network of trustworthy lenders and lending partners. The customers appreciate that the company’s website is simple to navigate and all the necessary information is easily accessible. To gather essential information, you don’t need to look further than the homepage. Here you will find all details explained, including the specifics of the services in general and the terms and conditions.
Different types of loans are available: Personal Loans accepts a request from borrowers with any credit score, however, the lenders on its network look for the basic requirements.On the platform you will find different types of personal loans to choose from, like Bank Personal Loans, Peer-to-Peer Loans and Personal Instalment Loans. To become eligible for a Peer-to Peer-Loan for example, you need to have a monthly income starting at $2, 000 from (self) employment, as well as a credit score of 600+. When it comes to Personal Instalment loans, your credit score should be at minimum 580. The rest of the requirements are the same, but if you opt for Personal Instalment Loans, your income from social benefits will also be considered.
- Up to USD 35,000 loan available
- No fees to use platform
- Loan term available for maximum 72 months
- Brief and explanatory initial form
- Funds available within 24 hours or less
- Stringent eligibility criteria
- The Company is not responsible for issues between two parties
- Not accredited by the Better Business Bureau
#5. Credit Loan: Affordable Interest Rates on Installment Loans Online
The company was established in 1998 to help people deal with their financial hardships. To date, it has served more than 750,000 happy customers.
The platform does not charge service fees for connecting borrowers with potential lenders. On this platform, with bad credit, you can get student loans ranging from USD 250 to USD5,000.
You need to provide standard information to submit your request for a loan. If you have a bad credit score, there are chances that you will not be able to secure a high amount. However, if you are looking for a small loan at an affordable rate, a Credit Loan can be an ideal place for you.
The website is TRUSTe certified and has McAfee Secure approved security protocol. Thus, you know your information is safe and there’s little chance that cybercriminals can access them.
This website also has a rich library containing all the information and tips about personal finance management. One of the main aims of this company is to educate people so that they do not face unnecessary financial difficulties.
Simple process: To initiate the process, you need to provide some basic information on a prescribed form. You will not be allowed to submit a form without a valid bank account in your name. After you submit the form, your information will be available to the lenders who offer best personal loans. Once a lender shows interest in working with you, they will redirect you to their website. Then you can review their offers and accept the loan. Credit Loan does not guarantee fairness in loan terms offered by the lenders on its network. You should examine the loan terms minutely before you agree. After you accept a loan, they will transfer the fund directly to your bank account.
Two distinct lending networks: Credit Loan have two available lending networks. One is dedicated to applicants with poor credit and the other one for consumers with good, i.e. better credit. This way, applicants can ensure that the appropriate lenders will access their loan request. Before a lender decides to offer you a loan, they often consider your debt-to-income ratio. The lender calculates the ratio by dividing your monthly debt payments by your monthly net earnings. Individuals with debt-to-income of 36% or more are more likely to secure a loan on this platform.
Safe to use: Credit Loan were awarded with TRUSTe seal, from the name-like organization that monitors website privacy and email policies, for the best rigorous safety practices according to online privacy standards. This company assures the highest level of encryption and security online for safe customer experience. All the information you share with Credit Loan, and that’s further shared with partner lenders, is processed through encrypted lines that remain invisible to hackers.
Efficient customer service: Customers have reported good communication with the customer care representatives who are knowledgeable and helpful. Apart from the loan approval, customers can also gain comprehensive knowledge about finance and personal debt management. The platform has helped over 33 million visitors with useful resources and tips.
- An easy process
- No hidden charges
- Secured loans with favorable terms
- Robust security protocol to secure information
- Loans over USD 5, 000 with a bad credit record are unavailable
- Unlikely to secure a loan in case of a high debt-to-income ratio
What We Looked For
The online market that offers home equity loans for bad credit is vast and versatile. However, many of the options out there are inconvenient, suspicious or risky, therefore, we created a list that offers reliable and safe companies.
We have examined a great number of sites before we had chosen the best for you. We collected the details from every website, compared the features of companies, and lastly, made a selection of key points highlighted in the list below.
- Brand Reputation: As you will be dealing with payday loans, you need to be cautious and attentive when choosing a platform. The brand’s reputation is of utmost importance as it translates into customer service. Customers highly commend the five platforms on our list, which count millions of satisfied customers.
- Network Size: The next in our criteria was the size of lenders’ networks. As a borrower, the platforms will connect you to potential lenders who need to be stable and trusted. We made sure that these platforms are places where trusted lenders are the rule.
Another great thing about these five companies is that they offer a variety of lenders. The more lenders on a platform, the wider the options for a good offer for borrowers.
- Ease of use: We understand that finding suitable debt consolidation loans in times of emergency is not an easy task, therefore, we focused on providing you with straightforward sources of information that will help you in the process.
The selected platforms offer simple steps all the way, from the stage of applying to receiving the money on your savings account.
- Cost: When searching for the right lender, the last thing you need is extra charges. No worries, all the platforms on the list exclude additional costs and you don’t have to pay anything extra even after the approval of your loan.
- Fast Service: Financial strains require quick and effective solutions. We understand that you want to be sure that you’ll get your secured loans fast and on time. Therefore, we chose marketplaces that guarantee fast transactions without unpredictable hassle.
Buying Guide – Factors to Remember While Looking for Best Bad Credit Loans
While searching for a suitable loan option, you have to be extra cautious, especially if you have bad credit. Consider the following factors before you make your decision.
- Interest Rate
The interest rate is the most crucial factor to consider while agreeing to a loan term, and it comes in a wide range depending on the lender you choose. Usually, the lenders ask for more interest if you have bad credit because it is a high risk. Before making a final decision, compare the interest rate offered by various lenders willing to work with you.
There are two types of payday loans: fixed interest and variable interest. For the former, the interest rate remains fixed throughout the loan term. If you go for variable interest, the rate will vary depending on the index rate.
Both have their advantages and pitfalls, but make sure you understand the rate you are accepting.
- Repayment terms and APR
Besides the interest rate, the other critical components of a loan agreement are the repayment conditions and the Annual Percentage Rate or APR.
Before signing up for a loan, read through the agreement to know how much time you will have to repay it and how frequently the lender expects you to repay the installments. Make sure you have a practical plan to meet these requirements. If you fail to repay the loan on time, it will further burden your credit history.
You should also consider the APR in the total cost of the loan. It includes the interest and other fees that the lender may charge you.
- Additional Fees, Including Penalties
Ensure the agreement is transparent about extra fees and penalties that you may have to pay. Sometimes, lenders write it vaguely to confuse borrowers who urgently need loan funds. If you can’t understand any part of it, contact the lender and ask for an explanation.
Make sure the agreement document mentions the policy regarding penalties and other charges. If you find the terms convoluted, it’s better to avoid the lender.
- Eligibility Requirement
If a lender approaches you based on the preliminary information, that means you have satisfied the criteria. However, you should also check it for yourself to ensure that you are eligible to receive the loan.
The primary eligibility criteria for receiving a legit loan typically include your age, nationality, legal residency permit, and minimum stipulated monthly income.
Once you fulfill the essential criteria, your credit score and debt-to-income ratio are the following things to consider. Usually, you can obtain a bad credit loan with a credit score of 620. Some lenders may agree to work with borrowers with a credit score of as low as 580.
However, you may find lenders who do not look at your credit score on these marketplaces, provided you fulfill the other criteria.
- Review Your Credit Report
You are entitled to receive your credit report for free every 12 months. You can order online at Annual Credit Report. Once you receive your report, scan it thoroughly to find any possible discrepancies. You can solve the dispute by approaching the credit bureaus if you find any. Usually, it takes them around 30 days to solve any dispute.
Besides, from the credit report, you will understand the weak points of your credit record and you can work on those to improve your score. Even if you do not have time for this, you will still have the knowledge before approaching a lender.
- Make a Realistic Plan
Figure out how much money you need to borrow and how you will repay them. We understand that it is often difficult to balance these two, but you must have a concrete repayment plan before proceeding.
If you have the plan in hand, it will be much easier to choose a loan that fits your budget. The lenders offer a variety of personal loan rates and repayment terms. Usually, long-term bad credit loans come with a higher rate of interest. If you can pay a monthly installment, go for such bad credit loans. They are often easier to repay.
- Compare Different Options
Depending on your situation, you may receive multiple loan offers once you submit your request. Examine the terms and conditions offered by each lender to pick up the best one. While comparing the options, pay particular attention to APR and term lengths. These are the indicators that will help you calculate the total cost.
- Beware of Frauds
The loan marketplace is full of scams and fraudulent activities. The criminals attempt to steal your data, money, or both by exploiting your vulnerabilities.
If a lender requests for an advance fee or insists you take a prompt decision, the chances are they are involved in some kind of shady business. A legit lender will always enquire about your financial history, including your credit score, employment, and monthly salary. If someone agrees to lend you money without any of these, it’s a red flag. Before accepting a loan check the website, find the address and contact details, research the company’s background and read reviews.
You can simply type the company name on Google. If it’s legit, you will find something on the internet or encounter people online who share raise scam alerts on other websites. Proceed with the loan agreement only when you are absolutely sure about the company’s legitimacy.
FAQs – Personal Loans For Bad Credit
1.What is bad credit?
Typically, the credit score ranges from 300 and 850. If you have a credit score of less than 630, it is bad credit. Besides impacting your chance of securing a loan, it also affects your insurance rates and utility bills.
2.What is hard pull, and how does it affect my credit score?
The lender will look at your full credit report to determine your eligibility when you apply for a loan. It is known as hard inquiry or hard pull. Every time someone asks for your full credit report, points are deducted from your credit score.
A hard pull remains on your credit report for two years, however, its impact lasts only a few months. But if you apply for multiple bad credit loans, it may significantly affect your credit score.
3.How can I improve my credit score?
To improve your subprime credit score, start by not missing monthly payments. Of course, no one delays their monthly payments willingly but try to develop a comprehensive plan within your means to make monthly payments on time.
Repay the principal amount as soon as you can. It will add to your credit score. If you continue paying the interest or the minimum requirement, you will end up paying much more. You need to prove that you can pay more than the minimum requirement. Avoid applying for more than one loan at once. Too many hard pulls will negatively impact your credit score.
4.What can I expect while trying to secure a bad credit loan?
While you have bad credit, the lenders may look for other criteria to determine your ability to repay the personal loan. Be ready to provide information that is not required otherwise. Besides, individuals with bad credit scores may have to agree to unfavorable conditions to secure a personal loan.
5.What is the best way to get an emergency or personal loan with bad credit?
If you are in an emergency, you need all the information ready at your fingertips. It can be energy and time-consuming pain to visit individual lending companies’ websites to find out whether you are eligible for a personal loan. An online marketplace with a vast network of lenders can help you.
Identifying the best personal loan for you from the vast pool of lenders can be daunting. You just need to put up your request on the marketplaces, and then the lenders will approach you with their offer. The process is less time-consuming and straightforward. You can secure a personal loan in less than one day on these platforms.
Conclusion – Best Bad Credit Loan Lenders
About 30% of Americans have a bad credit score. People living from one paycheck to the next, know how difficult it can be to deal with unplanned expenses. It’s even more challenging for individuals already struggling with a bad credit score.
Marketplaces like MoneyMutual, CashUSA, BadCreditLoans, Personal Loans, and Credit Loans aim to make life a little easier by bringing together the best bad credit loans with guaranteed approval on a single platform. The lenders on these platforms are flexible and willing to issue immediate debt consolidation loans for bad credit to borrowers with bad credit.
If you are hesitant about taking out a personal loan because of bad credit, you can visit these platforms and get acquainted with your options. The services are free, and you are not obligated to take a personal loan if you are comfortable with the terms and conditions offered.