Bad credit can often take the form of a bad itch that will not go away no matter what you do. This horrible reality leads to exceedingly high interest rates when acquiring a loan, which further adds pressure on the victims of bad credit. In most cases, loan applications made by people with low credit scores and tainted credit histories are rejected straight away. This discrimination is commonplace in the credit loan industry and contributes to the never-ending misery of people with poor credit conditions.
Therefore, to ease this consistent source of stress, we have put together a list of loan lenders who not only offer loans regardless of your poor credit score but also provide an accompanying guarantee. Besides this, these companies may even improve your credit by sharing reports of your punctual payments to national credit bureaus.
The companies listed below focus on factors beyond the customer’s credit score and provide them with bad credit loans. These factors include overall expense management, average monthly income, total expenditure, etc. Therefore, these companies not only guarantee loan approval for customers with bad credit, but they also keep you from acquiring loans with, unfortunately, steep interest rates.
5 Best Online Bad Credit Loan Providers with Guaranteed Approval
- MoneyMutual: Overall Best Bad Credit Loan Company
- BadCreditLoans: Best for Poor Credit Scores
- CashUSA: Emergency Loans with Highest Approval Rates
- Personal Loans: Best for Personal Loans
- Credit Loan: Best for Short-Term Loans
#1. MoneyMutual: Overall Best Bad Credit Loan Company
MoneyMutual was established in 2010 with the mission of connecting short-term lenders with people who are seeking to acquire loans and get immediate access to funds. The process is fairly easy, as MoneyMutual does most of the work for the customer.
This company behaves as a middleman and is mainly responsible for connecting providers of bad credit loans with people looking for quick and easy financing. This network involves up to 60 lenders willing to provide you with loans even with a minimum credit score.
MoneyMutual’s network includes providers who offer an array of loans, including installment and payday loans. Therefore, it is the ideal service to aid customers in finding short-term loans without having to pay an additional fee.
The process of starting up is fairly simple. Customers have to visit the official website and fill out an easy form. Here, borrowers must provide information such as their address, age, and monthly income.
This is where MoneyMutual starts working on the customer’s request of acquiring a loan and offers them access to a progress tracker via their website.
The next step is the integral role of the company, where it connects the customer to the lender. Once they have connected, MoneyMutual’s job is done. The customer is then redirected to the loan provider’s website to review the terms and conditions involved, including the interest rate and other fees.
Once the loan is approved and finalized, the loan can be deposited into the customer’s bank account in less than 24 hours. However, it is important to note that MoneyMutual is simply a means through which bad credit borrowers find lenders, and they cannot be held responsible for the loan terms, which is the decision of the loan provider.
The company provides its customers with several features that make the process of acquiring these loans quite convenient. These features include:
- Fast service: MoneyMutual is ideal for those in a rush to obtain funds, as customers can get a loan within a few hours and sometimes even minutes.
- Comparing loan rates: There are various personal loan options available for customers despite having bad credit. Therefore, customers can opt for the best option according to their budget.
- No extra charges: This service is completely free for its customers to use.
- Easy online application form: The application form available on MoneyMutual’s website has an easy format and can be filled out instantly.
Aside from these various features, MoneyMutual offers payday loans, cash advances, installment loans, and bad credit loans.
- Free service
- User-friendly website
- Simple online form
- Receive loan offers quickly
- Free educational sources accessible
- Simple and quick approval procedure
- Loans from $200 to $5,000
- Company cannot help after agreement has been signed
- Not available in CT or NY
- Only available in the U.S.
- Must make at least $800 per month to be eligible
- Not a direct lender
This company has a great overall customer service response with over 2,000,000 customers online. These customers include past, loyal ones who keep returning to opt for MoneyMutual’s services and new customers who come through referrals, hearing of the level of satisfaction regarding all features offered.
Customers most appreciate its ease of use and also its affordability because it is free of charge. Moreover, lenders’ instant deposit of funds is one of the company’s best features, as customers widely appreciate the availability of short-term loans on such short notice.
#2. BadCreditLoans: Best for Poor Credit Scores
Similar to MoneyMutual, BadCreditLoans acts as a bridge between lenders and borrowers and was established in 1999. It has a network of lenders looking for customers who need loans, including those with a low credit score.
Many options are available for customers, which can be looked through and opted for based on the customer’s needs. The lender sets the loan terms and conditions, as opposed to the company. Therefore, the loan agreement is between the borrower and the lender only.
However, BadCreditLoans allows its customers to freely make loan decisions, as the company does not bind them to opt for any loan unless they are satisfied.
BadCreditLoans offers loans that fall in the range of $500 to $10,000 dollars and, therefore, does not cater to customers who require a larger amount. So, for quick, short-term financing, BadCreditLoans is your go-to. However, the repayment options accommodate its customers, as they have the freedom to pay back the entire loan over up to 36 months.
The company’s annual percentage rate (APR) normally falls in the range 5.99% to 35.99% and is set by the lender. Therefore, it varies from case to case. Surely, an APR of 5.99% is a fairly good rate for a loan. However, this feature has a low rating due to the upper limit of the APR range, which is a high rate of 35.99%.
The process of opting for the services of BadCreditLoans is fairly simple, as it requires its customers to visit the official website and fill out a quick online application form. The form consists of information regarding the loan amount, why the customer needs it, and other identity validation methods such as a social security number. The following step is when BadCreditLoans connects the customer to various lenders, who offer them a loan after going through their loan request.
The final stage is to accept or reject the loan offer, which the customers have complete control over, as BadCreditLoans does not bind them to accept a particular offer if they are not satisfied. Mostly, the loan is deposited in the customer’s bank account within a day. However, in some cases, delays may occur.
This company offers loans to customers with bad credit, but they extend their requirements to other factors as well. Some of the requirements set by the company include:
- Customer should be 18 years of age or older
- Must provide a valid phone number
- Must have proof of U.S. citizenship
- Must have a consistent source of income
- Must have an approved checking account
- Connects borrowers with various lenders at once
- Provides other options in case of application rejection
- No minimum credit score requirement
- Information on lender given
- No obligation to accept any loan offer
- Loans from $500 to $10,000
- Low Better Business Bureau rating
Customers are overall satisfied with the company’s feature of providing loans with guaranteed approval to those with bad credit. This opens up opportunities to obtain funds for those who do not have access otherwise. However, BadCreditLoans requires the customer to give more private information compared to other bad credit loan services.
#3. CashUSA: Emergency Loans with Highest Approval Rates
CashUSA was launched in 2002 as an online lending portal that mainly connects lenders with potential borrowers. Customers have access to loans of amounts ranging up to $10,000, depending on their credit condition. However, CashUSA has a wide network of lenders and does not discriminate against poor credit holders.
The overall interest rates range from 5.99% to 35.99%, depending on the customer’s credit profile. However, the most important feature of the company is the online educational sources offered by its website. These include an array of information related to finance in general, including credit score, debt calculation, student loan payback planning, aligning your budget with your expenditure, and much more.
Therefore, this company informs its customers on the nitty-gritty of their financial conditions and gives them a platform to borrow money through its wide network of lenders.
The process of starting is fairly simple with CashUSA, as, like most online lending portals, it requires the customer to fill in one single form which includes information such as the customer’s name, their email address, their zip code, the requested amount, and whether they are a military member or not.
Moving forward, the company requires the customers to provide some additional personal information such as an address, phone number, social security number, etc. Lastly, the customer must fill in their bank information and a few other finance-related questions. This form is then shared with the company’s network of lenders and, therefore, saves the customer the time and effort to approach different lenders when seeking to acquire a loan.
Once the online form has been sent to the lenders, any interested ones will send the customer an offer based on their loan request. The offer can then be analyzed and accepted or rejected according to the customer’s needs and alignment with the loan terms and conditions.
The loans offered through this medium have a payback period of between 90 days and 72 months, which is flexible. All in all, it caters to customers who have bad credit histories or a bad credit score by keeping their requirements beyond their credit condition.
- No fees to use the service
- Loans approved within one business day
- Over one million satisfied customers
- Repayment term up to 72 months
- Wide network of lenders
- Educational resources available
- Safe and ensures privacy of customer information
- Maximum loan amount of only $10,000
- Not a direct lender
- Detailed private information required
The overall customer reviews are favorable and include appreciation for the overall experience. The educational sources offered by the website are also widely popular among the customers. The company has consistently proved itself to be immensely helpful for people with bad credit and those seeking to acquire small loans. Moreover, the process is convenient and quick, which is largely appreciated.
#4. Personal Loans: Best for Personal Loans
Launched in 2015, Personal Loans started with the mission of connecting lenders, peer-to-peer lending networks, and loans with its customers. Moving forward, the company expanded its services to offering personal and installment loans to customers across all credit types, including those with poor credit histories.
This online lending portal is exceptional in providing a secure and quick approval of loans. It is also extremely efficient in its approach, as the loans are available for customers regardless of the time at amounts ranging up to $35,000.
Personal Loans does not charge their customers any fees for their services, making it affordable. The main purpose of the company is to connect customers with lenders from within their network. Once this has been done, their job is complete, and the loan agreement is between the lender and the borrower.
This company is incredibly accommodating for its customers, as its loans fall in the range of $1,000 to $35,000. Therefore, these loans can cater to short-term necessities and long-term investments.
The company’s annual percentage rates normally fall in the range of 5.99% to 35.99%, depending on the customer’s financial condition. Moreover, it offers its customers convenient payback periods that range up to 72 months, which is a good amount of time to repay a loan.
The process of signing up is similar to other online lending portals, where the customer fills in a form as the first step. This form asks for the customer’s basic personal information. However, it is distinct in its approach, as it offers a reason for asking for each section of the form. This aids in making the customer comfortable because it adds to their confidence regarding the relevance of the particular piece of the required information. Furthermore, it helps the customer trust the company.
This information is then sent to Personal Loans’ network of lenders. Then, a lender from within this network will reach out to the customer with a loan offer and a request to shift to their website. This loan offer consists of the lender’s terms and conditions, which the customer can assess before accepting or rejecting the offer. If the customer accepts the offer, the loan will be deposited into their account within one business day.
Unlike most online lending portals, Personal Loans is accommodating when it comes to repaying the loan. If the customer cannot pay back the loan due to any circumstance, contacting the lender or the website’s customer support is an option to extend the due date.
Moreover, the best part is that if the customer misses a deadline, they can contact the lender and request a new repayment schedule that is more aligned with their budget and capability.
- Loans provided within 24 hours
- Flexible and convenient repayment terms up to 72 months
- No obligation to accept a loan
- Timely repayment may lead to an improved credit score
- Simple and quick online form
- Loans up to $35,000 available
- Not a direct provider of the loans
Personal Loans has good customer reviews overall, which is shown from its consumer rating of 3.29 stars. This shows that most of the customers are satisfied with their experience with Personal Loans. Moreover, this company is ranked 24th among online lending portals. Overall, customers appreciated the reliability of this company and were fairly satisfied with the APRs too.
#5. Credit Loan: Best for Short-Term Loans
Credit Loan was founded in 1998 as an online lending company, and since then, it has had more than 75,000 users, which it has successfully connected to lenders. The company has the mission of offering useful and safe tools for its customers to manage their finances.
One of the best features offered by Credit Loan is its low interest rates on the loans offered. This website offers loans to customers who have mediocre credit conditions, devastatingly poor credit, and no access to receive funds when in need.
However, Credit Loan ensures customers are matched with lenders who are right for the particular customer according to their financial conditions and loan requirements.
Credit Loan has a similar process to all of the other companies reviewed above. However, it is unique because it offers bad credit loans in small amounts at cheap interest rates. This is rare in the bad credit loan industry, as lenders mostly quote exceedingly high interest rates to their borrowers.
Like the other companies, the process begins with filling in a simple online form that requires the customer’s basic information such as name, email address, zip code, etc. Another great feature of Credit Loan is the security it provides to its customers by prioritizing the protection of their personal information.
The company is certified by various security companies, including TRUSTe and McAfee SECURE, ensuring the customer’s complete security as they browse through the website.
Similar to other online lending portals, Credit Loan has its network of lenders to which it forwards the customers’ loan request. This makes it convenient and accessible for borrowers to have access to multiple lenders by filling a simple online form.
Once the customer is connected with a lender, they are then redirected to their website. At this point, the customer is meant to go through the loan agreement and assess if the terms and conditions align with their budget and affordability. If these are reasonable, the customer can accept the loan and have the funds deposited into their bank account within 24 hours, provided it is a business day. However, the customer’s bank or financial institution may affect the time before they receive the loan.
- Safe and convenient platform
- Provides loans of small amounts
- Services are free of charge
- Loans available within one business day
- Prioritizes the safety of customer’s personal information
- Certified with TRUSTe and McAfee SECURE
- Simple and quick process
- Wide network of lenders accessible
- Process is done completely online
- Affordable interest rates
- Small loan amounts up to $5,000
The majority of users of this company appreciate the service due to how quick and safe it is. It is highly recommended for borrowers who seek to acquire small amounts for quick financing and affordable interest rates.
Moreover, Credit Loan offers flexible repayment terms and reasonable APRs. The lenders in the network also contribute towards helping customers build their credit by reporting punctual payments to the national credit bureaus.
Factors to Consider When Looking for a Bad Credit Loan
People suffering from bad credit are victims of a double-edged sword due to the lack of options for access to bad credit loans and exceedingly high interest rates. However, when opting for a bad credit loan, there are some important factors to consider. These include:
- Eligibility Requirements
Companies that provide loans to borrowers with bad credit have minimum eligibility requirements, such as a credit score of at least 620. This credit score requirement is fixed by FICO, i.e., Fair Isaac Corporation, which is an analytic firm. In addition, users should also keep the debt-to-income ratio in check, which weighs out the ability of a customer to pay off their debt based on their income.
The lenders also prefer customers who have a consistent source of income, since their basis of providing bad credit loans is based on requirements beyond the customer’s credit situation. Therefore, income is an important aspect to ensure timely repayments.
In some cases, when the customer is not eligible for a loan based on their credit score, they have the option to seek out lenders who allow a co-signer for the loan. Through this method, the customer can take advantage of the co-signer’s good financial history, giving them a wider window to negotiate the terms with the lender.
Through this method, the customer may even acquire a loan with an affordable interest rate. If the customer cannot pay off the debt, however, the co-signer is responsible for repaying it on their behalf. Therefore, this gives the lender a guarantee that the borrower will repay their loan on time.
- Quoted Interest Rates
Once the customer has access to the loan agreement proposed by the lender, it will include all of the loan terms and conditions, such as the total loan amount, the payback period, and the APR, or interest rate.
Once the customer reaches this stage, it is integral that they carefully read through the terms and conditions of the loan and ensure these align with their budget and other preferences regarding the total amount of time until the loan has to be repaid.
- Other Fees Involved
There are various fees lenders charge aside from repayments and interest payments. These include advance payments, late payments, processing fees, etc. These additional fees fall in the range of 1% to 6% of the total amount of the loan.
There is an origination fee involved, which some lenders are flexible about and set it according to the loan. This fee varies depending on the state and the lender, as each lender sets their own terms and fees. Some lenders also charge their borrowers a late fee, which can add to the overall cost of the loan. However, various lenders offer leeway by permitting additional time before charging this fee for 10 to 15 days of delayed payment.
Delayed payment fees normally fall in the range of $15 to $30. Moreover, it is important to note that many lenders also do not charge delayed payment fees.
- Backup Repayment Plan
When obtaining a loan, the borrower should ensure they have enough assets to back that loan if they cannot pay through their income. This backup could be in the form of prior savings or any liquid assets. These backup repayment contingency plans ensure the borrower will not face a permanent or long-term loss in case of failure to repay their loan, such as a lawsuit or loss of their job.
A Guide to Obtaining a Bad Credit Loan with Guaranteed Approval
The ability to obtain a bad credit loan goes beyond the borrower’s credit conditions. The power of negotiation is an important factor when applying for a loan if you have an unfortunate credit score. Therefore, this requires you to prepare while keeping various factors in mind. First and foremost, you should check your credit score and credit report, set a budget for repayment of a loan, and then seek the ideal loan with the right terms and conditions.
Step 1: Analyze Your Credit Report
As a customer seeking to obtain a bad credit loan, it is important you obtain your credit report, thoroughly go through it to detect any possible errors, and discover the areas of improvement. Ideally, you will be able to find errors and fix them to optimize your credit score. A better credit score may help you provide much better deals to get a personal loan by making you eligible for low interest rates. This process is slightly taxing but fairly rewarding, and credit reports are easily available from all major credit bureaus.
Most of the time, after applying for a loan, the lender takes note of the borrower’s credit history to assess their ability to repay the loan. Therefore, lenders’ first and foremost factor includes the borrower’s credit report and credit score, which helps them decipher your credibility.
Another tip would be to revisit your credit report a minimum of three months before you apply for a loan. This way, you can fix any errors in the dispute and remove negative items by communicating them with the credit bureaus. This process requires a minimum of 30 days and will depend on areas of improvement within your credit report that you can communicate to the credit bureau.
Step 2: Set a Goal and Strategize Accordingly
Before starting up any project, setting a goal is the most important requirement. Similarly, you should set the exact amount you need in the form of a loan. Then, you should devise a strategy regarding the repayments to ensure all payments are punctual. The overall budget should include all necessary expenditures, savings, debt payments, interest payments, etc.
The ideal way to go about this process is by calculating a realistic amount you can pay back monthly and then deciding on a final amount for your loan and the total amount of time for the overall repayment. In most cases, a longer payback period means the long-term loan will be expensive while the monthly payment will be cheaper.
Step 3: Note the Interest Rate
Acquiring a bad credit loan has its own set of risks involved and requires extreme care. Therefore, choosing the most affordable interest rate is important. In such a scenario, lenders who provide pre-approvals may be a good option because they do not conduct detailed credit investigations before setting out the loan terms and conditions, including the interest rate.
Therefore, ideally, you should opt for such lenders and then pick one whose terms align the most with your affordability. This will save time and the headache of experiencing hard credit inquiries by a series of lenders.
Step 4: Stay Clear of Potential Scams
When planning to obtain a bad credit loan, you should always consider the possibility of a scam. It is undoubtedly difficult to perceive scams if you are new at this. However, there are some tips for you to keep in mind which may help you.
An example of fraud could be that they will not be concerned with your credit history or financial standing but fixate on advanced payments. It is common for scammers to demand payments from prepaid cards. On the other hand, in some cases, scammers may not possess the license to lend loans.
Step 5: Schedule Your Payments
The most important part of acquiring a loan is paying it all back. Therefore, as part of this contract, making punctual repayments is your responsibility. This will save you from additional fees, a hit to your credit score, and potential penalties. If you fail to pay, you may have to deal with a major loss in the form of exceedingly high interest payments and an increased loan cost.
FAQs: Bad Credit Loans
Q. How Can We Judge if Our Credit Score Is Good, Bad, or Horrible?
Every local citizen of the United States has the lawful right to obtain their credit report from the three main credit bureaus for free. The process is fairly simple, as all you have to do is visit this website: www.annualcreditreport.com.
Once your credit report is obtained, you can match your credit score to the pre-established scale fixed by FICO, which falls in the range of 300 to 850. This scale suggests that any credit score below 670 is bad, while a credit score between 300 and 570 is considered horrible. On the contrary, a credit score that falls between the range 590 and 669 is good, while one that falls in the range 669 to 850 is considered excellent.
Q. How Can I Get Rid of a Bad Credit Score?
There are a few precautions or measures you can take to get rid of a bad credit score. These include:
- Frequent visits to check on your free credit report.
- Timely payments of your bills.
- Punctual payment of debt installments.
- Ensuring you steer clear of any circumstances which may lead to hard credit investigations.
- Work on monitoring, fixing, building, and maintaining your credit through consistent counseling with credit experts.
Q. What Is the Consequence of a Bad Credit Score?
There are several negative implications of a bad credit score, as it can keep you from building your business. You are likely to get all of your loan applications rejected, and acquiring short-term emergency loans may only exist as a dream.
There are several financial benefits you may not receive, such as personal loans, car loans, student loans, and even credit cards. Moreover, high interest rates and other potential financial hardships are another consequence of a bad credit score.
Q. How Can I Get an Urgent Short-Term Loan if I Have a Bad Credit Score?
Online lending portals are the easiest and best way to apply for urgent loans if you have a bad credit score. These ensure those with poor credit also have access to bad credit loans in their times of need. This process ensures immediate deposit of funds into your bank account without further issues and does not require a great credit score.
Q. Can I Obtain a Personal Loan Without Having My Credit Score Checked?
Suppose you are unwilling to display your credit history when applying for a bad credit personal loan. In that case, there is a price to pay, which comes in an exceedingly high interest rate and various other fees to provide the lender security. A co-signer may also be an option for such a situation.
Just because a past financial mishap has lowered your credit score does not mean you should deprive yourself of applying for a loan in your time of need.
Reliable websites such as MoneyMutual and BadCreditLoans are safe havens for such situations. They have proved themselves to be immensely helpful when bad credit holders feel like there are no options left.