Best Bad Credit Loans: Top Payday Loan Lending Services with Low Credit Approval

Anyone can get a loan, even someone with bad credit. With hundreds of different bad credit lenders online, anyone can borrow extra funds without worrying about their current credit score. Even if someone has no credit score, they can borrow money from good lenders who are honest, transparent, and helpful.

In this guide, the top lenders for individuals with bad credit will be fully explored for maximum benefits to borrowers.

The Top Bad Credit Lenders of 2022

These are the top bad credit lenders of the year based on stringent criteria:

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

Read on below to learn more details about these lenders:



MoneyMutual has already helped over two million customers to get the cash advances that have taken them through numerous emergencies without costing them thousands more. This popular platform works quickly to bring customers their loans, ensuring that they can connect with over 120 lenders across the country.

According to the claims on the website, users should only have to wait for 24 hours to get the funds they request, and they could potentially see up to $5,000 per loan. Users just have to put their information on the website, give the lenders time to review it and get the money via direct deposit.

Unlike some other lenders in the industry, MoneyMutual is a no-cost service, which means they don’t have to pay for part of the submission. Lenders pay MoneyMutual directly, given to the customer without any extra fees.



BadCreditLoans provides users with $500 to $10,000 for their loan with a relatively straightforward online application. Users start by entering their zip code and the last four digits of their social security number and birth date. This data is enough to check to see if the individual qualifies.

This service is free, connecting borrowers to lenders as MoneyMutual does. The lenders then have to pay a fee for the privilege of working with the borrower. However, the borrower doesn’t pay anything. Any fees owed by or to lenders are addressed from the start. The company goes as far as to offer tips that customers can use to help them avoid scams associated with bad credit loans.

Once the user is approved, they only have to wait about one business day to be paid.



PickALender offers the chance to get a loan from $100 to $40,000. The form takes a few minutes to complete before potential borrowers are taken to the multiple offers available from lenders in their area. This is yet another company that connects lenders with borrowers, so users directly get the funds elsewhere. However, the marketplace created for consumers helps them find the best option for their loan needs.

The fee structure of this platform is completely transparent, and customers can get access to their funds relatively fast. The borrower should have the funds they applied for within one business day.



CashUSA helps borrowers consolidate their debt, though they also provide funds for individuals who want to take a vacation, remodel their home, and more. The process is four steps to qualify and get up to $10,000. The form is entirely set up online, allowing users to connect with their lender, accept one of the many offers, and wait for funding.

Again, this platform connects the lender with the borrower, competing to be the one who provides the funds. Users will need to include their zip code, social security number, and birth date to see what they qualify for. With the approval, users typically wait about one business day for a deposit.



PersonalLoans doesn’t care about the borrower’s credit score, allowing anyone to get a loan from their user-friendly website. The website makes the entire process simple, ensuring that borrowers can get a loan of $1,000 to $35,000 as they need it with third-party lenders. Users don’t have any obligations with the loans, and they don’t have to worry about surprise fees.

One of the benefits that PersonalLoans offers that other products might not is to customize the rate and the terms. Users typically receive their funds within a single business day. Users choose lenders, and they don’t have to commit to anything before selecting the best loan for their needs.



LendYou has many positive ratings from customers across the country, and they primarily help users cover emergency expenses, like car repairs, medical bills, and more. The deposit happens quickly for users with one business day. The online application takes a few minutes of the user’s time, allowing the borrower to see multiple options from lenders for their funds.

The limits available with LendYou are slightly less than what other companies offer. The loans range from $100 to $2,500 and are deposited within a business day. This lender has a few qualifications that users have to meet, including being over age 18, making at least $1,000 per month, and having an account that they receive direct deposits. Also, borrowers cannot be part of the military.

LendYou is familiar with a range of different credit scores, which means that individuals with bad credit can qualify.

Next Day Personal Loan


Next Day Personal Loan takes three steps to help consumers get the funds they need. Once the borrower fills out the form and signs the necessary documents, they could borrow between $100 and $40,000 deposited into their checking account within one business day.

The fast delivery of these funds is why this platform is on our list. Users of all credit scores can get a loan from Next Day Personal Loan, and the high limits appeal to many consumers.

Upgrade Personal Loans


Upgrade Personal Loans is a platform that offers a higher loan amount than any other lender in this guide – $50,000. Other lenders don’t exceed $40,000 for their loans.

With an offer from one of the lenders on this platform, consumers get a low fixed rate on their loan with a monthly payment that they can easily handle. Based out of San Francisco, the total interest is 5.94% to 35.97% APR, which is much more helpful to bad credit borrowers. Still, any credit score can get a payout on this website, starting at $1,000 within one business day.



Payzonno starts customers off with a quiz that will help users determine if this is the best solution for their needs. The questions, completed with a chatbot, go over background details and financial information pertinent to the lender’s decision. These answers determine how much a user can borrow, ranging from $100 to $5,000. The total loan will also depend on the borrower’s current credit score and state of residence.

Customers typically get their funds within one business day, and the service is entirely free to set up. However, the terms and fees are based on the lender options.

How the Rankings of the Top Bad Credit Lenders Were Decided

Every lender says they offer personal loans that can benefit customers with bad credit, but that isn’t always the case. Consumers need to be cautious in who they borrow from to protect their finances and prevent scams from taking hold of their funding.

Take a look below to learn about the criteria outlined for this type of loan:

Acceptance of Low Credit and No Credit

Anyone reading this guide probably doesn’t have good credit, but the bad credit loan options on the market are numerous. Lenders on this list had to offer loans for individuals with poor credit specifically or weren’t considered. Having a poor credit score or none should not be the determining factor in procuring necessary funds.

Speed of Deposit

With a suitable lender, borrowers should get a deposit within 24 hours of approval. Some lenders even provide these funds in a matter of 12 hours or less. That speed was considered when putting together these rankings, especially since most people who get these loans have to get funds quickly.

Company Reputation and Performance

Some lenders available today don’t have much of a track record to show good performance in bad credit loans. Other lenders have been around for years, demonstrating how helpful they are to individuals in these stressful circumstances.

Amount of Money Available

The total amount of money that an individual can borrow plays a significant role in which company they go with. Even without any credit at all, some lenders provide users with up to $5,000 in a matter of one day. Some companies are not as helpful or honest, pulling their offer the moment before funds are provided due to bad credit.

Ease of Application Process

The ease of the application process played a role in determining where each lender was positioned on the list. Anyone who struggles with poor credit already has financial stress, which is more difficult with a complicated application. A user-friendly website makes the entire process easier, directing them simply to everything they need to do to get a loan.

Customer Reviews

Whenever a service like a bad credit loan is provided, customers often voice their opinions, how easy the service was to use and how flexible the loan was. While these details are typically found on the official website, understanding why customers view the company in the way they did helped decide what lenders should be included.


Bad players exist in every industry, especially when it comes to bad credit. Some companies don’t benefit consumers, stealing their financial information and putting every applicant at risk. Other companies focus on having a good reputation, so they are honest with customers to show what they can expect. Any lender of a bad credit loan had to be open and transparent.

Interest Rate and Overall Cost

The interest rate of a bad credit loan can be high, considering the risk associated with loaning someone with a history of late payments or overexerting their available credit. Still, both state and federal laws say that only a certain amount of interest can be charged with these products, which is why this information was considered in the creation of this guide.

Fee Transparency

With any financial commitment, borrowers should know precisely what they are committing to before they ever set up an agreement. Any lender for bad credit tends to charge a higher fee, but they are clear about the cost.

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

The path to acquiring a bad credit loan isn’t as twisted as it may have a reputation for. With the many people who need these loans, new companies have specifically launched to address this niche. Still, there are a few steps that borrowers should consider.

  • Check their current credit score. With this information, borrowers can find out which companies offer their services.
  • Research. Don’t just go with the first company found in a Google search. The industry is vast, and many bad credit lenders with different terms and funding options make a big difference in the experience.
  • Get everything needed for the application. Each lender requires different information, but some of the standard details they need include the applicant’s name, birth date, checking account details, proof of income, etc. The specific company will determine what facts are required.
  • Apply. The online application process for most lenders is relatively quick, with all of their required steps listed on their official website. Once all of this information is at the borrower’s fingertips, the only thing left to do is apply.

The entire process of applying for these bad credit loans is fast, usually only taking a couple of minutes. Individuals who qualify could see a decision within seconds of submitting their application, giving them the funds as quickly as an hour after they apply. Some lenders could take until the next business day to process the deposit.

5 Advantages of Getting a Bad Credit Loan

Even though some people think that getting a loan on bad credit is just the catalyst of worsening credit history, it benefits them substantially in many ways. Here are a few advantages to taking on this kind of loan:

  • Receive much-needed funds quickly. The entire purpose of this type of loan is to help consumers get the funds that they need quickly. These funds can be used towards unexpected expenses or emergencies that need to be handled promptly.
  • Get a lower rate than what a credit card charges. Even though credit cards are often seen as the better option, they come with interest rates of up to 30% or more for balances carried over. Bad credit loans might charge as little as 4.9% interest to consumers, making it more affordable than going to a credit card company to get an advance.
  • Have a more extensive range of options for a loan. Despite the limits that poor credit can impose, the availability of options is no issue. Lenders for bad credit are some of the largest groups of loan options possible because the market is significant.
  • Choose how long it takes you to repay. While some loans require that the user pay back the funds in a matter of weeks, some bad credit lenders give up to five years to reimburse them the total cost of the loan. Finding a repayment schedule that works for their needs is easy with a bad credit loan search.
  • Improve credit score. When a bad credit lender records on-time payments, it boasts well for the user’s credit. Enough regularity with these payments can push up the user’s credit score quite a bit,

How Do Credit Scores Work?

Credit scores are rather complicated, but understanding them a little can make a big difference in how individuals handle their financial situation.

In the United States, three major credit bureaus exist – Experian, Equifax, and TransUnion. These three bureaus track every citizen’s credit history with their Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN). The reports from each bureau are highly detailed, showing the individual’s current payment history through the years. Each one has a slight variation in what they consider, but all three are entertained by new lenders when they pull a credit report.

The score assigned is based on the information provided by the credit bureaus.

Why Does an Individual Have Bad Credit?

A credit score is calculated with multiple factors considered by credit bureaus. If the user finds that they have a poor or low score, it is likely due to one of these reasons:

  • They have only had credit for a short time. By continuing to maintain credit for a while, the score will rise.
  • They are using all available credit (or more). Reducing balances will increase their credit score.
  • They owe a high amount on any current loan, debt, installment, or other accounts.
  • They have certain credit accounts, like car loans, lines of credit, bank loans, and credit cards.
  • They have recently opened credit accounts.
  • They have a track record of many missed or late payments.
  • They have declared bankruptcy.

Credit bureaus will determine the individual’s credit score with these factors considered. The score is not a permanent number, and changes in these financial situations will cause changes in the number. For instance, paying off a student loan will cause the credit score to rise. Adding a new credit card will increase the amount of available credit, so the individual’s credit score will also increase in this situation. However, using more of the available credit will reduce their credit score.

What is a Bad Credit Score?

A bad credit score means that the individual has a score under 580. Anyone with a score under this amount tells lenders that they are at risk of never seeing the funds reimbursed after the loan is provided.

Generally, an exceptional credit score is at least 800. Individuals with Very Good credit have a score between 740 and 799. Good Credit is considered between 670 and 739, while Fair Credit is 580 to 669. Anyone with a credit score of less than 580 has poor or bad credit.

Types of Bad Credit Loans

Even with bad credit, getting a loan is possible. There are a few main methods that users can take on to get a loan.

Online Lenders

One of the most popular ways to get these funds is with an online lender. These lenders (as seen above) help individuals with a wide range of credit scores, even customers who have bad credit. However, they will likely have to pay a little more than someone with good credit would.

Credit Union Payday Alternative Loans (PALs)

PALs from credit unions are much less expensive than typical payday loans. Due to federal regulations, users typically have a few months to repay the loan, which cannot have more than a 28% interest rate.

Borrow from Friends or Family

For individuals who don’t have the option of going through a lender, checking with friends and family might be the best option. Unlike a professional lender, a friend or family member won’t go so far as to check credit score before they loan someone the money. However, the relationship between loved ones and money is sometimes muddled when loans happen, so it is best to be careful about this kind of arrangement.

Home Equity Loan with Bad Credit

Individuals who own their homes and have equity can apply for a home equity loan. A home equity loan, or a home equity line of credit (HELOC), requires that the customer puts up their home as collateral. The user’s credit score isn’t considered, and the interest rates are typically low in exchange for the lien against the house. Tax deductions are offered for anyone who pays interest on their home equity loan. To protect the loss of a home, paying back this loan is crucial.

How Much Does a Bad Credit Loan Cost?

The interest rates associated with a bad credit loan depend on multiple factors, like the user’s credit score, financial portfolio, and the state they reside in. On average, the rate ranges from 4.9% to 35.99%.

Always check the terms of this type of agreement to be aware of any fees for early repayment, missed payments, and other potential charges associated with the loan.

How Much Can Customers Borrow?

Lenders for individuals with bad credit typically offer up to $5,000 for their loans, starting at $500. The total amount varies from one company to another. Some lenders allow up to $50,000 to be borrowed in a single transaction, while others only offer $100.

With more income verification, customers have a higher limit that they can take advantage of. The deposit of funds happens within just a few hours of the approval, though some companies take up to a business day to make the deposit.

Other Bad Credit Loan Alternatives

While a bad credit loan can benefit consumers, there are a few other options for individuals who need funds for emergencies. Every budget and circumstance is different, but customers may consider a few alternatives.

Interest-Free Cash Advance Apps

Multiple apps – including Earnin, Dave, and Chime – advertise the chance for their account holders to get an interest-free advance on their paycheck. There are specific eligibility criteria (like having qualifying direct deposits from an employer), and the advance amount is limited. Individuals with bad credit can take advantage of these options without getting their credit report pulled.

Personal Loan from Bank, Credit Union, or Online Lender

Users don’t have nearly the APR they have to deal with when they get a bad credit loan with a personal loan. While a bad credit score may deter many lenders, they are available to individuals with various scores.

Small Dollar Loans for Emergency Expenses

A bank typically offers a small-dollar loan as a way to deal with emergency obligations as they arise. Balance Assist (from Bank of America) and Simple Loan (US Bank) are two examples of these types of loans. The short-term loan is available as an option to customers who already have accounts with these financial institutions.

Peer-to-Peer Lending

These peer-to-peer lending platforms have been around for a while, allowing potential borrowers to get involved with lenders. Some companies use cryptocurrency, while others pay high-interest compensation for the loan.

Auto Title Loans

Auto title loans don’t go by the user’s credit. Instead, they use the title of the customer’s vehicle, putting a lien on it in return for the funds. Most title loans have to be repaid quickly within 30 days. However, if the borrower fails to pay it back, they may lose their vehicle, so these loans should only be used when the customer is sure that they can pay it back in the allotted time.

What Do Customers Need When Applying for a Bad Credit Loan?

There are specific qualifications that any customer must meet to get a bad credit loan. While lenders have different criteria, state laws also determine who is eligible to receive this type of loan.

Overall, any customer needs to meet these minimum criteria to get a bad credit loan:

  • Must be over age 18.
  • Must live in the state chosen on the application for the loan.
  • Must have an active phone number or email address for correspondence.
  • Must have an active bank account that has been open for a minimum of 30 days.
  • Must not currently be in bankruptcy.

Some lenders ask their applicants what their current source of income is, requiring proof of employment, self-employment, and other sources to show that they have the means to repay the loan. Most lenders don’t need evidence beyond $1,000 a month in income.

Depending on the company, these lenders may also ask the customer for their social security number to verify their current credit score and history.

How Much Does a Bad Credit Loan Cost?

Every provider has a different interest rate, though some regulations at the state and federal levels. The Consumer Financial Protection Bureau states that a loan of $100 comes with an average of $15 charged in interest, which comes out to a 391% APR for individuals who get a small loan for two weeks.

Still, plenty of lenders doesn’t operate in the same way as a payday loan company. Lenders for bad credit adjust the interest rates to accommodate the increased risk, but it would be less expensive than committing to a payday loan.

How Much Can Customers Borrow with a Bad Credit Loan?

Even with a bad credit score, most customers can get a loan of $300 to $1,500. However, the regulations in their particular state may impact this total amount.

Individuals who want a personal loan might have access to a greater allotment. Online lenders tend to offer between $5,000 and $15,000, despite a poor credit rating.

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Frequently Asked Questions About Bad Credit Loans

Q: What is the most accessible type of loan to get with bad credit?

A: Online lending websites have made securing a bad credit loan relatively easy. Decisions are made within minutes, allowing users to access the funds quickly.

Q: Can customers get a loan with no credit?

A: Yes. Though it may seem tempting, avoid companies that don’t check the customer’s credit score because that is a good indication of a scam. However, they will need to check out a “no credit check” loan, which can be a bit pricey. However, they make it possible for consumers to access the money they need without getting good credit first.

Q: What loan company will accept customers with bad credit?

A: Any loan providers listed in this guide will allow customers with bad credit to procure a loan.

Q: Can customers honestly get a loan with bad credit?

A: Yes. However, the interest rates are understandably higher due to the risk of loaning someone with bad credit. There is also the option of getting a “no credit check” loan.

Q: How do customers borrow money immediately?

A: Personal loans with online lenders are the easiest way to get funds immediately. Users willing to get cash advances on their credit cards can collect funds from an ATM. Borrowing from loved ones or selling items at a pawn shop are easy ways to access instant funds in a pinch.

Q: Can someone get a $10,000 loan with bad credit?

A: Yes. Many lenders allow individuals with bad credit to get personal loans for over $10,000.

Q: What’s the catch with bad credit loans?

A: The hardest part about procuring a bad credit loan is that they often come with high-interest rates. There are also additional fees associated with these accounts. To ensure that the individual is not being scammed, always check that the company describes the costs before setting up the loan.

Q: What is a bad credit loan?

A: A bad credit loan is issued to individuals who don’t have a good credit score or credit history. This type of loan involves a fee in return for the money.

Q: How much can an individual borrow with a bad credit loan?

A: The total payout of this type of loan typically ranges from $100 to $1,500. However, some lenders offer it for more.

Q: Will applying for a bad credit loan impact the customer’s credit?

A: The only way this type of loan will impact the user’s credit is if the company checks their credit score. However, simply checking the credit score won’t necessarily cause a significant change in their credit.

Q: What is a FICO score?

A: It is a type of credit score that lenders use to determine loan approval. Individuals with bad credit typically have an equally bad FICO score with it.

Q: What do customers need to apply for a bad credit loan?

A: Though it doesn’t take much to qualify to get a bad credit loan, a few criteria must be met. Only adults over age 18 can get a bad credit loan, and they must live in the state where they submitted the loan application. They must also have a valid email address and a social security number, though an Individual Taxpayer Identification Number (ITIN) is acceptable. Proof of income and a current bank account may be necessary, depending on the lender.

Q: Can an individual get a bad credit loan when self-employed?

A: Yes. Like any other loan, the lender may want the applicant to prove the income of their self-employment business.

Q: How can someone apply for a bad credit loan?

A: Multiple companies have websites and physical stores that allow customers to apply.

Q: How soon will the applicant receive money with a bad credit loan?

A: The total wait time should be 2 to 24 hours, depending on the lender.

Q: Does the applicant require a job to get a bad credit loan?

A: Not at all. However, some companies require proof of income, whether from a job, disability payout, retirement, or even alimony. Essentially, these lenders may require the applicant to prove that they can pay back the loan somehow.

Q: How does an applicant know if their bad credit loan was approved?

A: Lenders notify applicants of approval or denial right away.

Q: Does it cost money to apply for a bad credit loan?

A: No. However, there are often interest fees associated with paying back the loan.

Q: How do customers receive my money from a bad credit loan?

A: Most of these loans are deposited to the user’s checking account via direct deposit. However, if the lender has a local office, they may offer the chance to pick up the loan in cash.

Q: When does the user pay back their bad credit loan?

A: The total time available to repay the loan will vary. While some loans come with a 60-day window, others only give the user until their next payday.

Q: How does the customer pay back their bad credit loan?

A: Loans procured online can also be paid back online. Some companies use automatic payments from checking accounts, withdrawing the installments at a predetermined date.

Q: What happens if the customer pays back their bad credit loan early?

A: Some companies will issue a penalty for prepayment, though others won’t. Sometimes, paying back a loan early helps the customer prevent further interest from accruing on loan.

Q: What loans are easiest to get approved for?

A: Since credit scores are irrelevant with online lenders, it is relatively easy to be approved online. Users don’t have to pay quite as much in interest after a higher credit score.

Q: Can customers refinance a bad credit loan?

A: Yes. However, it entirely depends on the particular lender.

Q: Why is the interest rate so high with bad credit loans?

A: Bad credit loans tend to be a high risk for lenders, and they have to be paid back quickly, much like a payday loan. Even for small loans, the interest could be 20% or more to borrow the funds for two weeks. However, most states have imposed restrictions on the maximum rates that these lenders can charge.

Q: How often can a customer apply for another bad credit loan?

A: State laws and company regulations determine how often individuals can procure their loans with bad credit.

Q: Are bad credit loans a scam?

A: Not at all. Even individuals with bad credit need loans sometimes, and these services make it possible for customers to shop around for the rates and timeframe that works for their needs.

Q: Do bad credit loans require security or collateral?

A: No. Most of these lenders just set up installment payments with the customer’s checking account to make a repayment plan.

Q: What if the customer can’t repay their bad credit loan?

A: The lender would contact the customer to settle the debt. Without this negotiation, the only way that users can fix this issue is with collection protocols starting from the lender.

Q: Are bad credit loans regulated?

A: The regulation of bad credit loans is similar to payday loans, which state and federal governments heavily supervise.

Q: Are online bad credit loans safe?

A: Yes. The majority of bad credit loans come from online companies. Still, consumers should shop online for these loans carefully to avoid detrimental effects on their finances.

Q: How can users spend their bad credit loans?

A: There are no specific requirements that customers have to follow to spend their loan funds. At the same time, most people get these types of loans to help with emergencies or unexpected expenses. The lender doesn’t have any regulations on how the loan should be spent because their only concern is that the loan is paid back.

Q: What’s the best bad credit lender?

A: The guide above shows that companies like PickALender, MoneyMutual, and BadCreditLoans are among the top lenders for individuals with bad credit today.

The Top Bad Credit Lenders of 2022 Final Thoughts

According to the Federal Reserve, nearly half of all Americans are in a tight financial situation that is just a small emergency away from crumbling. Finding a way out of financial ruin is possible with the many borrowing options for consumers with less-than-stellar credit. With payday loans and short-term solutions, anyone with bad credit can get what they need to fix their financial issues. Try the top bad credit lenders above today!

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