Small Personal Loans for Bad Credit

If you’ve been rejected for a personal loan for poor credit history, we can help you out. Find out how to apply for a small personal loan even with bad credit and get quick responses. Apply now within minutes!

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Kiplangat BettFinancial Writer

Jul 27.2022. Filed under: Loans for Bad Credit Hub

Benefits of Getting a Small Personal Loan

A small personal loan could be the solution to your financial trouble in times of emergency. Generally, personal loans have the following advantages over other types of loans:

Fast Cash

Small personal loans let you receive the cash as quickly as possible, sometimes within a day of submitting the application.

Flexible Repayments

With small personal loans, you can repay the amount based on monthly installments across a duration of several days, weeks, or months, based on your ability and the mutual decision between you and your lender.

Fixed APR

There’s a fixed APR set at the start that decides the annual interest rates and fees that you have to pay over the repayment duration.

No Spending Restrictions

There’s no restriction as to where and when you can spend your loan. From travel expenses and student fees to home and car repairs or utility bills, you can use the loan for anything.

No Collateral

Small personal loans don’t require collateral, i.e., an asset, as a security deposit. You can get the loan without the risk of losing an asset of yours.

Co-Signer Feature

While the eligibility criteria for small personal loans for bad credit don’t need a good credit score, you can enlist a co-signer for your loan for higher acceptance chances.

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What’s the difference between a payday loan and a small personal loan?

Payday loans and small personal loans are similar ways to borrow fast cash in a way that they’re given at a fixed rate for temporary financial assistance. You don’t need to deposit cash beforehand or hand over an asset as collateral in either loan. But that’s where the similarity ends.

Payday lenders don’t conduct credit checks. While that’s beneficial for people with bad credit, it comes at the expense of higher interest rates and charges. Plus, payday loans need to be paid by your next payday, within a few days or weeks.

On the other hand, the interest rates on personal loans are between 3-36%, which collectively is a lower rate than payday loans. As a matter of fact, even if the amount of loan borrowed is the same for both loan types, you can repay personal loans over a longer duration of several months in installments instead of a lump sum.

What Are Small Personal Loans for Bad Credit?

Bad credit creates a hurdle when applying for an urgent loan in the midst of a financial crisis. A score below 600 can often mean rejection from lenders, especially traditional types like banks and credit card issuers.

People with bad credit can apply for small personal loans that let them borrow money up to $5,000 quickly. You don’t have to set anything up as collateral or urgently clear the debt on your next payday. The fixed interest rates and monthly installments over a selected period make it easier for individuals with bad credit to borrow money in this manner.

Small personal loans for bad credit are similar to any other personal loan, but with higher interest rates and charges because of the risk the lender takes by giving money to people with poor credit history. However, the APR and fee together are still lower than in the case of instant loans or payday loans.

How to Choose the Best Small Personal Loans for Bad Credit

There are several factors that you need to take into consideration when choosing a lender to borrow from for your next small personal loan:

Loan Range

First and foremost, check whether the lender offers the amount you require within the range of their personal loans. Some lenders do not offer more than $1,000 loans for bad credit, while others may not offer an amount as small as $50.

APR and Charges

Don’t be blinded by promises like ‘guaranteed approval’, ‘instant funding’, etc., before you look at the APR and charges. Compare the rates and select the lender that suits your budget and other preferences. Too much APR and charges can put you in more debt than you started off with if you can’t repay it promptly.

Repayment Duration

Whether you want to repay the loan in two weeks or two months, depends on you. What you need to search for, though, is a lender that allows you to choose the time range within which you want to make the full repayment.

Approval and Deposit Time

Each lender has its own request review and deposit duration. If you need a personal loan as quickly as possible, some lenders approve applications within minutes and offer same-day funding. Check or inquire about the time it takes for the lender to complete the process in case of an emergency.

Application Process

When you’re already going through financial struggles, the last thing you need is a complicated application form that takes hours. Many online lenders nowadays either have a simple application form on their website that takes only a few minutes, or you can apply through a broker.

Reputation and Reviews

Undeniably, the most critical factor when considering a lender is their reputation and reviews. You can gather this information online and only choose lenders that are trustworthy and have good reviews.

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Do I Qualify for a Personal Loan with Bad Credit?

Every lender has a set of requirements that you need to meet in order to qualify for a personal loan with bad credit. Almost all online lenders adhere to the basic criteria as follows:

Legal Age

You need to be above 18 years of age and have valid identification documents, e.g., government-issued ID, license, or passport, as proof.

Active Checking Account

You need an active checking account to receive the deposit and pay the monthly dues.

US Residency

You need to be a citizen of the US and show proof such as utility bills or property documents.

Stable Income

You need to have a monthly source of stable income and have documents as proof, for instance, payslips or bank statements.

Other criteria benchmarks that lenders evaluate for bad credit holders are:

Debt-to-Income Ratio

Your debt-to-income ratio shows a lender how well you’ve been managing repaying your previous debts, so as to see whether you can manage another loan.

Repayment Ability

Lenders see your repayment ability using your net income to evaluate if you can repay the amount you requested within the decided period.

Capable of Credit Score Improvement

Another little-known factor is to judge whether the loan can help handle your existing financial problems, including previous debts. If the loan can pay for one-time expenses like credit card payments, that’s a positive sign for a lender.

How Can I Get a Small Personal Loan for Bad Credit?

At WeLoans, we understand the struggles of getting a small personal loan when you’re already going through a tough monetary phase. For this reason, we’ve made the process to get one fairly simple.

Fill in the Application

Enter the details on our responsive web form that requires personal and banking information. It only takes five minutes at most to fill out the form and hit the ‘submit’ button.

Compare Offers

Our trusted lenders will see whether you qualify for the loans and send you an offer if you do. You can compare the offers and choose the one that you think is the best for your needs.

Complete the Final Agreements

After selecting a lender, you’ll have to go over the final steps involving official agreements, signing terms and conditions, and any additional documentation. At this point, the lender will conduct a credit check to assess your financial handlings.

Receive the Deposit

Finally, you’ll receive the money directly into your bank account. It can be deposited on the same day or within 2-3 working days, depending on the schedule of your lender.

How Does WeLoans Compare?

Why Use Us?
How much am I allowed to borrow?Up to $35,000No hidden fees or charges
What are typically the loan terms?Up to 36 monthsVarious repayment options
Do lenders check my credit?Yes Soft search only
Do lenders take bad credit?YesBad credit considered
Chances of approvalGoodQuick turnaround
How to apply?Apply onlineNo paperwork needed
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Frequently Asked Questions

Where can I get a small personal loan with bad credit?

You can either apply for a personal loan directly to a lender or through an online broker such as WeLoans that enables you to access multiple lenders offering personal loans at competitive rates in one place.

What's the interest rate for small personal loans?

Generally, APR for personal loans lies between 3-36%. The interest rate on a small personal loan depends on the lender as well as your current credit score. The lower the credit score, the higher the interest rate for borrowing a loan.

How much can I borrow with small personal loans if I have bad credit?

The amount of money you can borrow with a personal loan is determined by your repayment ability, where the lender evaluates your monthly income and debt-to-income ratio. Normally, you can borrow anywhere between $50 and $5,000 with small loans.

How do small loans affect my credit?

While getting a small loan can result in a slight dip in your credit score, it can also gradually improve it if you pay the monthly repayments on time. Delaying payments can further decrease your credit score.

Is It Easy to Get a Personal Loan with Bad Credit?

It’s not particularly easy to get a personal loan with a poor credit score. However, online lenders that offer loans for bad credit overlook this and focus on factors like stable income and repayment ability instead. With bad credit, getting a loan through this option is more convenient.

We want to see your small personal loan request approved - no matter your credit score!

Leave it to us to bring the most trustworthy lenders to one platform that offers small personal loans for bad credit. All you need to do on your end is submit your information!

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