Getting a loan when you have bad credit can be a challenge. Thankfully, there are lenders that specialize in loans for consumers with poor or limited credit. In this article, we discuss 10 bad credit loan sources that welcome borrowers who may have trouble getting a loan from conventional lenders.
WeLoans: Overall Best Online Loans for Bad Credit
Upstart: Best for Short Credit Histories
BadCreditLoans: Best for Ease of Use
Avant: Best for Flexible Payment Methods
OneMain Financial: Best for Secured Loans
LendingPoint: Best for Low Origination Fees
Upgrade: Best for Joint Application Loans
LendingTree: Best Online Lending Marketplace
CashUSA: Best for Additional Credit Services
LendYou: Best for Online Lending Practices
WeLoans: Overall Best Online Loans for Bad Credit
WeLoans is a top loan broker that arranges online loans for folks with imperfect, limited, or no credit. Its partner lenders can approve payday loans without conducting credit checks and so applying for one will not impact your credit score.
To apply to WeLoans, simply fill out its loan request form, which it will distribute to its network of online payday lenders. This saves time since one form can generate multiple offers, and you don't have to search for individual lenders. You can compare your loan offers before deciding which one to pick.
After finalizing the deal, the lender will deposit your money into your bank account as soon as the same day. Because WeLoans can find your loan quickly, it's a good source for emergency expenses or cash shortfalls.
Pros
- Can conveniently and securely get you bad credit loans online
- Uses an extensive network of lenders vying for your business, even if you have bad credit
- Loans range from $100 to $5,000
- The interest rates are competitive
Cons
- Not available in all states
Upstart: Best for Short Credit Histories
Upstart offers personal loans online ranging from $1,000 to $50,000. It determines the amount you can borrow based on your income, credit, and other factors. The loan APRs top out as 35.99%, and the repayment period is three or five years.
One reason to use Upstart is that it welcomes consumers who are new to credit. You can use the loan proceeds as you see fit, including consolidating debt, refinancing a car, or funding your business.
The lender prides itself on quick funding, transparent terms, and a hassle-free experience. The website offers a wide variety of educational materials concerning the use of credit, perfect for borrowers with limited experience.
Pros
- Welcomes credit newbies
- You can qualify without a hard credit check and receive a fast loan decision
- You can change your payment date
Cons
- Loan terms are three and five years only
- You may have to pay an origination fee
- Co-signers are not allowed
BadCreditLoans: Best for Ease of Use
BadCreditLoans has been arranging personal loans for subprime borrowers since 1998. You may be able to borrow up to $10,000 from its networked lenders despite a low credit score. Its loan-finding service is free, and you are not obligated to take a loan.
The secure and easy-to-navigate website lets you prequalify for a loan without impacting your credit score. Anytime day or night, simply submit the short loan request form, and BadCreditLoans will distribute your information to its network of direct lenders.
Pros
- It may take only minutes to receive multiple offers
- The website is easy to use and contains a trove of educational material regarding loan scams
- It can also find you offers for credit repair, debt relief, and other credit-related items
Cons
- As with all loan-finding services, it has no control over the rates, fees, and approval requirements
- Loans larger than $10,000 are not available
Avant: Best for Flexible Payment Methods
Chicago-based Avant offers online personal loans of $2,000 to $35,000 with 12 to 60 months to repay. Expect APRs to range from 9.95% for excellent credit to 35.95% for bad credit loans. The company offers transparent information and end-to-end encryption to help ensure your experience is secure and convenient.
You can make your monthly loan payments in several ways. For example, you can pay the bill online or use the full-featured mobile app. Moreover, you can set up recurring automatic payments in-app and online, so you never forget a due date.
Pros
- Convenient loan payment options online and through its mobile app
- You can alter your payment date
- Prequalify without impacting your credit score
Cons
- Requires a credit history containing at least one credit account
- May charge an origination fee of up to 4.75%
- Not available in Hawaii, Iowa, Vermont, West Virginia, and Wisconsin
OneMain Financial: Best for Secured Loans
OneMain Financial has roots going back 100 years and is accessible at more than 1,400 neighborhood locations. It offers secured and unsecured personal loans as well as cash-out vehicle refinancing. The company can help you get a loan even if you have bad credit because it looks at more than your traditional credit score.
Loan amounts range from $1,500 to $20,000 with terms of 24, 26, 48, or 60 months. The annual percentage rates vary from 18% to 35.99%, depending on your credit history, debts, income, and collateral.
The company is unusual because it provides personalized service through its coast-to-coast office network. You can apply online, connect with a loan specialist, and, if approved, receive your funds online or in person via a check at your local branch.
Pros
- It looks beyond your traditional credit score
- It offers secured loans
- You can prepay your loan without penalty
- Flexible loan repayment periods
Cons
- It may take up to five business days to receive your money
- Doesn't disclose minimum credit score and income
- Charges origination fees of 1% to 10%, depending on the state
LendingPoint: Best for Low Origination Fees
LendingPoint makes direct personal loans and refers loan applications to several partners, including FinWise Bank, Coast Community Bank, and Midland States Bank. You can borrow from $2,000 to $36,500 at APRs ranging from 7.99% to 35.99% and repay the loan in 24 to 72 months.
The company uses proprietary algorithms and other technology to evaluate loan applications. It makes loans to borrowers with good, fair, or bad credit, and funding is fast. LendingPoint reports your payments to at least two of the major credit bureaus.
Pros
- Full-featured mobile app
- Free credit scores
- Prequalify without hurting your credit
Cons
- Origination fee up to 8%
- Does not allow co-signers
- No secured loans
Upgrade: Best for Joint Application Loans
Upgrade secured and unsecured personal loans are available to consumers with low credit scores. Unlike many competitors, it accepts joint applications and makes direct payments to creditors when you take out a debt consolidation loan. Loan amounts range from $1,000 to $50,000 with APRs of 7.96% to 35.97% and repayment periods of 24 to 84 months.
Another unusual aspect of Upgrade's loans is that you can earn a $200 welcome bonus when you meet specific requirements. After you accept a loan and Upgrade verifies your information, it will send the funds to your designated account as soon as one business day.
Pros
- Accepts joint applications for secured and unsecured loans
- Rate discounts are available
- Provision for direct repayment of creditors via a consolidation loan
Cons
- Origination fees up to 8.99%
- You cannot change the payment date
- Requires a minimum credit history of two years
LendingTree: Best Online Lending Marketplace
LendingTree is the country's biggest online lending marketplace. When you fill out a simple loan request form, it can connect you with up to five direct loan providers on its huge, 300-lender network. You can apply online for a personal loan despite having bad credit because its network contains many lenders who specialize in subprime loans.
In addition, LendingTree can arrange various services for folks with bad credit, including debt relief and credit repair. You can use the LendingTree app to monitor your credit score, improve your credit, and receive personalized updates.
Pros
- One-stop shopping for many loan types
- An extensive network can provide multiple loan offers
- The powerful app helps you manage your credit
Cons
- Jack of all trades, master of none?
- Collects and sells personal information
CashUSA: Best for Additional Credit Services
You can arrange a personal loan of up to $10,000 from CashUSA. Its network of lenders offers loans with APRs of 5.99% to 35.99% that you can repay in three to 72 months. Loan requirements vary by lender, but you must be 18+ years old, a US citizen or permanent resident, and have a job, checking account, phone number, and email address.
It costs you nothing to use the CashUSA service, and there is never an obligation to accept a loan offer. The company welcomes borrowers with bad or limited credit.
Pros
- All credit scores can apply
- Simple requirements
- The service is free
- Offers links to additional credit services, including credit repair, banking, credit monitoring, and debt relief
- The website has extensive educational articles about credit and loans
Cons
- You must be employed for at least 90 days before applying
- Low maximum loan amount
LendYou: Best for Online Lending Practices
LendYou is a lending platform that can connect you to multiple loan providers. It favors consumers with bad credit and can arrange loans quickly and securely. Loan amounts range from $100 to $35,000 in the form of payday, personal, and installment loans. Borrowers must receive a regular income of at least $1,000 per month.
Payday loan APRs range from 200% to 1,386%, while those for installment loans top out at 485%. LendYou is serious about keeping your information private and secure, including the use of 128-bit SSL encryption.
Pros
- Offers several loan types
- All credit types welcome
- Loan-finding service is free
Cons
- Not available to residents of Arkansas, New York, New Hampshire, Vermont, and West Virginia
- The maximum payday loan amount is $1,000
- Requires a monthly income of at least $1,000
Methodology
Our selection and assessment of lenders are based on key features, including loan rates and terms, third-party ratings, and lender reputation. We independently evaluate the facts most important to consumer satisfaction using published data and customer comments.
In addition, we address frequently asked questions regarding what types of bad credit loans are available, how to choose a legitimate lender, and how to identify loan scams.
What Loans Can a Person With Bad Credit Get?
Even with bad credit, you have many choices when you need a loan. The following loan types are the most readily available and provide the quickest funding:
1. Payday Loans: Payday loans are short-term loans (typically one to four weeks) available to employed workers who need extra cash until their next paycheck. You can obtain one online or at a payday loan storefront without a credit check or collateral. Payday loans have high interest rates, which is why it's important you repay on time.
2. Secured Loans: You must post collateral to get a secured loan. Often the collateral is the equity you have in your property, such as your home or car. Secured loans have interest rates below those of unsecured loans, but you can lose your property if you fail to make timely payments.
3. Unsecured Personal Loans: While secured personal loans are widely available, most loans of this type are unsecured. To get one, you must have a sufficient income and credit score. These are installment loans with terms usually ranging from three months to five years or longer.
4. Credit Card Cash Advances: If you have a credit card, you most likely have access to a portion of your credit line through a cash advance (at an ATM or bank branch). Unfortunately, the credit cards available to consumers with bad credit typically have low credit limits and APRs of up to 36%.
Other bad-credit options to consider include pawnshop loans, title loans, and loans from friends and family.
How to Get a Bad Credit Loan?
The easiest way to get a bad credit loan is through a network lending service like WeLoans. You submit a loan request form, and the service distributes your request to its network of direct lenders. You may receive multiple offers from which to choose and complete the process online. If approved, you can collect your money as soon as the next business day.
What Are General Eligibility Criteria For Online Loans for Bad Credit?
Each lender sets its own rules, but online lenders generally share several eligibility criteria:
- You must be at least 18 years old
- You must be a US citizen or permanent resident
- You must meet the lender's minimum income requirements
- You need a Social Security Number, a bank account in your own name, an email address, and a phone number
Additionally, some online lenders perform credit checks and/or accept collateral.
How to Select the Best Loan for Bad Credit?
Select a loan for bad credit based on its availability and cost. Specifically, address the following questions to find the best loan for your circumstances:
- Do I qualify for the loan in terms of eligibility, income, credit score, collateral requirements, etc.?
- Can I borrow the amount I need from the lender?
- What are the interest rates and fees?
- How long do I have to repay the loan, and do I repay in a lump sum or installments?
- Is there a penalty for early repayment?
- Does the lender have a legitimate reputation?
Is a Bad Credit Loan Legit?
Yes, there are many legitimate lenders and lending networks that welcome consumers with bad credit. Typically, well-known lenders are legitimate, trustworthy companies that have been in service for several years. Reviews like this focus on companies with backgrounds and reputations reserved for legitimate lenders.
Lenders must be registered in your state and adhere to all pertinent federal and state laws. You can check for legal actions and complaints against the lender with your state attorney general and the Consumer Financial Protection Bureau. Also, check for ratings from the Better Business Bureau and other third-party agencies.
How Can I Identify Bad Credit Loans Scams?
Certain red flags indicate a loan offer is a scam, including:
- The lender guarantees you will receive the loan, regardless of your situation or credit history.
- The lender asks for an upfront payment to process your loan request.
- Your state has not registered the lender.
- The lender pressures you into taking the loan through emails, phone calls, and even personal contact.
- You cannot verify the lender's physical address, and phone calls to the lender go unanswered.
- The lender is vague about the loan terms, including fees, interest rates, and payback schedule.
The general rule for all financial dealings: If it sounds too good to be true, it probably is. There are many legitimate lenders available to subprime borrowers, so if you run across a lender that raises one or more red flags, move on to someone else.
What's the Easiest Loan to Get with Bad Credit?
Several types of loans are easy to get, including:
- Payday loans
- Pawnshop loans
- Title loans
- Personal loans
- Credit card cash advances
Most of these do not require a credit check and are suitable for consumers with bad credit. Of these, payday loans are probably the easiest to get since they do not depend on your credit history.
Final Thoughts
The 10 best bad credit loans mentioned above are all well-selected and recommended to use in different situations. But WeLoans is the top choice since it has long experience with subprime borrowers, offers competitive interest rates, and looks for every possible way to say "Yes" to your loan application.
Plus, it can fund your loan as soon as the next business day by wiring the proceeds to your bank account. It's reassuring to know that your past credit problems will not automatically prevent you from getting a loan when you need one.