Quite often, there comes a time in life when having finances to get something done can be as crucial as life and death, which is why experts recommend having multiple income streams. However, if that is not possible and you are in need of a quick payout, you will likely look towards taking a loan from a lender.
But, to your dismay, you find out the lender will not loan you any money, despite your troublesome situation, because you have a bad credit score. Instead of falling prey to payday lenders that loan money for short periods of time at very high-interest rates, you should go for an online lender for bad credit.
Having bad credit is not a choice you make on your own, but rather a situation that develops due to the prior financial choices made. The majority of the time, the situation is not under your control, and that is something lenders fail to understand. Being in a crisis can be daunting and make you feel like there is no way out of it. And, on top of that, you being unsuccessful in getting the loan makes it even worse.
If you are someone going through something like this or looking to have an alternative option when a situation like this develops, we are here to help. We have compiled a list of lenders who will give you a loan despite your bad credit situation.
Now, if your question is something like, ‘How does this even work?’ it is valid. What most people with bad credit do not know is that there are some lending companies out there that do not look at bad credit alone as a key decision point; but, they also consider other factors. These can include your monthly expenses, how you manage your source of income, the size of your income, etc.
With the market having many fraudulent companies, a good list of lenders can help secure you and your family from any unforeseen circumstances.
Top 5 Online Bad Credit Loans with Guaranteed Approvals [Reviews]
- MoneyMutual: Top Pick for Personal Loans
- BadCreditLoans: Best for Emergency Loans and Easy Service
- CashUSA: Quickest Loan with Bad Credit
- Personal Loans: Good Personal Loan Option
- Credit Loan: 100% Guarantee for Bad Credit Loans
#1. MoneyMutual: Top Pick for Personal Loans
When it comes to an emergency situation, 4/10 people cannot produce $400 in the United States, according to research done in the country. This is where money lending platforms like MoneyMutual come in to allow borrowers short-term lending options without a credit check. This allows borrowers to feel at ease knowing they can always approach a lender on the platform and ask them for money immediately.
The official website has a form that can be filled out, which will require you to provide your personal information, your income information, as well as the place you work. However, the platform does have a minimum wage bracket that is required if you want your application to be processed further, which is $800.
The algorithm on the MoneyMutual website will then connect you with a lender that has reviewed your application and is ready to loan you money. You are then required to check the agreement as well as sign off on the terms and conditions on the website to move the process further. After finalizing the fees, the interest rate, and the loan amount/terms, the lender will wire transfer the money into the bank account you provide to them.
MoneyMutual is our top pick due to the fact that it helps you not only connect with a lender but get the money you require, all within a 24 to 48 hour period. This can be useful in an emergency situation where your bad credit is hindering your chances at a loan from a financial institution.
- No service or origination fee by MoneyMutual
- Quick approvals
- Easy-to-navigate website
- Quick wire transfer of funds
- Automatically matches you with a lender
- Only for residents of the U.S.
- After the agreement, MoneyMutual does not take responsibility for problems
MoneyMutual has had a large customer base in the past few years, and over two million people have used their services so far. Most of their customers claim they have excellent service because of the quick loan process and money transfer.
Customer reviews about the company revealed customers loved their ‘no-fees’ policy and how they did not have to waste time looking for a lender, as it was provided to them automatically. The website is also praised for it being easy to navigate through. Moreover, customers often end up referring the website to their friends and family as referrals and get bonuses through that system.
#2. BadCreditLoans: Best for Emergency Loans and Easy Service
BadCreditLoans has a similar structure in the service they provide as that of MoneyMutual, as they connect borrowers with lenders to ensure a transaction takes place. After understanding the total amount of money you need in an emergency circumstance, you can begin with the process on the platform.
The company also helps you with facts and figures regarding how much of a loan you can afford to take from a lender before you commit to their terms and conditions. This is a great feature the company provides to its customers, as it allows proper analysis of the options a borrower has before them.
BadCreditLoans is known to have given customers amounts between $500 to $10,000, depending on their requirements. In addition, the company gives you repayment options that are easily followed, and the maximum time period of repayment is 36 months. Most of these conditions stay constant except for the interest rate, which can fluctuate between 5.99% to 35.99% APR.
The form you fill out from the company will ask you about the amount of money you wish to borrow, the reason for borrowing it, as well as proof you live in the United States. Other than that, the process is similar to that of MoneyMutual to the point that you get the money transferred to your account immediately after the form is approved.
On a side note, the lender will sometimes review the form, check the amount you wish to borrow against the income you receive and recommend another amount that is feasible in your case. Then, if both parties agree to that amount, it is transferred to your account.
- Easy form submission process
- Funds get transferred to your account
- Automatically connects you to the lender
- Fact-checking and recommendations are provided
- No pressure on closing deals
- Those with extremely poor credit scores may not be able to get a loan above $1,000
- The company is not rated by Better Business Bureau
Despite the fact the Better Business Bureau has not rated the company, it gains most of its reputation from its satisfied customers and the reviews they leave behind. The other thing that is credible about BadCreditLoans is the fact they have a reliable list of direct lenders, which gives a company like this an edge in the market.
The second thing the customers like about the company is the quick form submission and loan receiving process. It is perfect for an emergency situation, where you need to pay someone off soon or pay money for basic needs. Lastly, the company offers larger loans based on the income of the individuals, which is unusual for a company that gives loans out to bad credit score holders.
#3. CashUSA: Quickest Loan with Bad Credit
Getting your loan approved and then going through the process of filling out the application is not streamlined everywhere. Approvals are hard to come by when you have bad credit on your financial sheets, but CashUSA exists exactly for that purpose. It not only gives you the cash you need, but it also ensures approvals are one online application form away.
The maximum amount you can borrow from CashUSA is $10,000, and the interest rates can range from 5.99% to 35.99% based on the terms that are agreed upon. The website is where the magic happens because the company has installed a resource there which helps first-time loan takers to get accustomed to the terminology and process.
This resource is known as the Education Center and gives you the information you need regarding credit scores, debt calculation, student loans, payment schedules, etc. Other than that, you can get a loan from CashUSA by submitting a short form with all of the relevant information needed by the company, and you can download the form from the company website.
After that, your request and form are sent to all of the lenders registered with the company. The lenders that find their interests align with yours will send you a direct offer, which will consist of the terms of the loan as well as any changes to the loan amount after they check the form.
Once you give your consent on the form, the lender will wire transfer the money to your bank account within 24 hours. This makes it easy for you to utilize the cash as soon as possible.
- Quick customer service
- One million customers per month
- 70 month period for loan repayment available
- Free to use
- Keeps your personal and bank information secure
- The form asks for too much personal information
We went through multiple review websites to check feedback on the company, and so far, they were all positive, minus a few here and there. Customers mostly liked their quick loan process in their time of need, and some even went on to recommend them to family and friends.
The second thing customers loved about CashUSA is their wire transferability that happened within 24 hours of the loan approval.
#4. Personal Loans: Good Personal Loan Option
For starters, Personal Loans offers customers a safe and secure service, as they aim to be a company that customers can rely on for emergency funds. The company has a large lender base that allows them to allocate lenders to anyone regardless of the situation they are in. The maximum loan amount is $35,000 that can be lent to a borrower with bad credit (subject to terms and conditions).
In the case where no lender approaches you after the forming process is over, the company holds a backup that gives them the edge in the market. This consists of the company having multiple third-party lenders, who are given limited information on the borrower to see if the loan gets accepted. Most of the time, the loan is accepted through this two-tier approach, which is why most customers remain satisfied with the company.
Once you start filling out the form, you will find another feature that is different from other platforms, and that relates to how the company provides a reason for each piece of information they take from you. For the first-time borrower, that is a huge deal because they need to understand why they are becoming so vulnerable with a company they do not know much about.
After the information is filled in, it gets processed and sent over to the lender list to be chosen by any one of them. If one of these lenders wishes to loan you money, they will send you an invite via email or the website itself. The best feature about Personal Loans is you do not have to stress out about repaying the loan on time.
That is right. The company has a relaxation feature they give to their clients. If you are late on the repayment, simply contact their customer support team and propose a viable date that works for you.
- 24-hour customer service
- Quick funds transfer
- Provides loans up to $35,000
- Flexible repayment system
- Free-of-cost service
- Extremely bad credit scores are not accepted
So far, the customer experience rating for this company is 4/5, which we have averaged out after checking multiple review sites for feedback on Personal Loans. Customers love the flexibility this company offers when it comes to paying the loans back, which is something not a lot of lender platforms have. Other than that, the majority of the customers have faced a smooth form process, and it does not take a lot of time for the money to be transferred as well.
With that being said, the company does end up rejecting borrowers with extremely bad credit, which is why it might be better to go with another option.
#5. Credit Loan: 100% Guarantee for Bad Credit Loans
The company is one of the oldest bad credit loan providers in the country, having been founded in 1998. This has gained Credit Loan a large reputation in the market for their secure transactions, data storage, and other practices that help the borrower with everyday finances.
The company provides borrowers affordable interest rates, ensuring their repayment schedule is made according to what they can reasonably afford against the loan they take. In addition, the website allows borrowers with good and bad credit histories to find lenders that will allow them the opportunity to receive money on an immediate basis.
Credit Loan specializes in lending smaller loans to borrowers that are easy to pay and quick to receive in the bank account. The borrower can start the process by filling out a typical form on the website, after which lenders take a look at their details and present them with an offer on the lender website. The entire process can take 24 hours at best because there are no bottlenecks in place due to the company having a plethora of experience in the market.
The company guarantees a 90% chance to all of its borrowers that their form will be accepted, after which the money is directly transferred into their bank account.
- Quick and secure service
- TRUSTe verified website
- Funds transferred within 24 hours
- Perfect for taking out smaller loans
- Only provides small loans up to $5,000
The customers of Credit Loan were pretty happy with the security the company provides for both transactions and personal information. The company is noted to provide loans without any unnecessary hassle due to the loan amounts being small. This makes it easier to perform transactions immediately, which is why customers were happy to see the company was there for them in their time of need.
Other than that, the customers also found the interest rate and the repayment terms to be pretty decent considering the bad credit and poor financial situations they were in.
Factors to Consider When Getting a Bad Credit Loan with Guaranteed Approval
While the bad credit loan providers we have mentioned have their benefits, it is always a good idea to search for your own options. This will help you remain fully satisfied with the selection you have made. However, there are several factors that need to be considered before a bad credit loan is selected.
Fortunately for you, we have listed a few factors so you can assess the options you research.
- Check Loan Eligibility
While a lender may offer you a loan despite your bad credit, there is a limit to how bad the situation can be before the lender takes his or her hands off the situation and rejects your application. There is a minimum criterion for how much your credit score must be for the lender to take a risk on you. If the credit score is below 620 (as written down by FICO), the lender has every right to reject your application.
This is where the question, ‘Am I even eligible for a loan?’ will come into play again. Other than this fact, there is the debt-to-income ratio which should meet the lender’s requirements before they can move the application process further. If you have a certain level of liability and expenses every month with a small income left by the end of the month, chances are you will not be eligible.
To make it easy, some lenders tend to set an income bracket per annum, after which you are eligible for their loans. Make sure to ask them about it if they have not already mentioned it to you through email or any other form of communication you have with them.
- Interest Rates
Next, you should consider interest rates. You may become eligible for the loan, but, usually, lenders tend to set higher interest rates for risky borrowers. When the lender presents you with an offer, you need to first take a look at the amount of the loan (whether they have changed it or not) and the interest rate they are going to offer you against the loan you take.
Most of the time, this interest rate will be a fixed rate, so you should not have to worry about it changing afterward. But, some even set variable interest rates based on the market situation. So, take all of these points into consideration regarding the interest rate before you sign off on a loan.
- Terms and Conditions
Once all is set and done and you are satisfied with the terms, the lender will send you the formal agreement that will hold the terms and conditions of the loan.
This document will include not only the amount of the loan you are being offered but also the interest rate against it, the repayment schedule, and so on. Please ensure you read the terms and conditions at least twice before accepting and signing them. Make sure there are not any hidden clauses you will be signing to, as most scam lenders tend to do that.
- Other Fees/Charges
There are several fee payments and charges that can come with taking out a loan. Some of these include the lender fee and processing fees by the platform you used. You need to make sure you can go through with such payments before your event starts to fill out the form in the platform you are taking the loan on.
There is another fee, called a late payment fee, the lender can levy on you once the loan is given and repayment starts. While lenders do allow borrowers some additional time in the case of an emergency, it only lasts between 10-15 days.
- Have a Backup Option
You should not depend entirely on the bad credit loan option. Always keep a backup in case you fall into the line of having ‘extremely bad credit.’ This is important because you will have something to fall back on, which can be anything like selling personal assets at a pawn shop or having savings in the bank.
You can even try borrowing the money from a friend or family member, as they will not charge you the interest level you will have to pay here.
In times where you have an excess amount of money, it is a great option to either save or invest that extra sum. It is times like these where that extra money can come in handy.
Step-by-Step Guide: How to Get Bad Credit Loans Online with Guaranteed Approvals
Being eligible for a bad credit loan is easy. All you have to do is ensure your credit score is up-to-date, along with a few other steps we have listed below for your reference.
Having a plan will always be beneficial if you are hoping to strike the best deal.
- Step 1 – Look at Your Credit Report
The first step involves you taking a look at your credit history in your credit report and ensuring it is up-to-date with the numbers. On several occasions, your credit history can have a few bugs, which you can get fixed by tallying through numbers. Doing this allows you to settle on a much better loan with lowered interest rates.
The best practice is to ensure your credit history is updated every three months before you apply for a loan. The gap in time gives you the buffer you need to make further adjustments if you end up in a sudden dispute out of nowhere.
- Step 2 – Fix the Amount and Plan It Out
The second step for anyone trying to borrow money will be to figure out how much money you need. Once you figure that out, layout a plan where you can insert pessimistic and optimistic numbers that speak of the repayment plan. This ensures the calculations you make are realistic enough to be considered when you finally end up taking the loan.
You should also lock down how many years or months you wish to take the loan for, followed by calculating how it will affect your daily life and the life of your family. The longer the repayment period, the more money you will have to pay for the entire loan amount.
- Step 3 – Understand What Interest Rate You Can Afford
Depending on the terms that are set, i.e., the number of months it takes to pay the loan back and the amount you take as a loan, your interest rate will be set accordingly. Another factor that plays a major part is the credit score, as we discussed above.
Most lenders will take a background check and find the credit score you have despite them being bad credit loan lenders. The best option if you have a bad credit score is to go for lenders that have pre-approvals. This ensures the lender does not investigate your credit score situation, and your interest rate is set at an average rate.
However, once you receive the interest rate, you need to determine whether you can afford it or not. Keep in mind this would be a monthly commitment you will be making, and your lender might not be as flexible with the repayments.
- Step 4 – Keep Away from Scams
This is a huge problem in the market, and every year, scammers are becoming harder to differentiate from the real ones because of the way they shape themselves. If this is your first time taking a loan out, we recommend using the help of an expert who can guide you on the process and check whether the lender is trying to scam you out of money.
One way to distinguish a scammer from a real lender is that a scammer will constantly bug you regarding your payment history. They will be on your back, asking you to make fraudulent payments from your prepaid card instead of setting up a system for it in the beginning.
- Step 5 – Payment Schedule
Planning your payments will allow you to keep a margin out of your income for each expense for every single month until the loan is paid. While the lender will provide you with a payment schedule you have to adhere to after taking the loan, it is always good to pre-plan the payments so you do not have to worry about any sudden changes.
What Are Alternatives to Bad Credit Loans with Guaranteed Approvals?
While bad credit installment loans are amazing, there is a chance you will not end up getting a loan from a lender based on whatever reason they deem is right. Payday loans can also be an alternative to such a predicament.
In this case, it is always good to have alternatives to rely on. So, we have recommended a few to you below.
If the world did not have any lenders in the first place, you would end up utilizing the human ability to improvise. This means you will have to look around and determine what options you have left. This could result in you having a garage sale and selling all of your useless stuff that can be valuable to someone else.
This could also mean you will sell an asset worth something in the market or ask a friend or a family member to help you out with money. The best part about asking family and friends for help is that they usually do not take any interest.
However, please ensure there are proper terms and conditions for when you borrow from them. The worst situation to be in is to owe money to someone you are close with, as this could compromise your relationship with them.
- Ask an Employer
Some employers tend to help out their employees through tough/emergency situations. If you have a good relationship with your employer, you can request an advance paycheck in time of an emergency situation. This can allow you to not get involved with taking a loan, provided you can get by the next month without pay.
FAQs: Best Bad Credit Loans with Guaranteed Approval
Q1. How can you know if your credit score is satisfactory or not?
There is a law that states you can ask for your credit history free of any cost from three different credit bureaus that exist throughout the United States.
You can also figure out whether your credit score is acceptable or not by scaling it against the FICO standards. For example, according to FICO, a score above 550 is acceptable, which is why you should aim towards that. The score ranges from 300 to 850 in total.
Q2. How to improve a minimum credit score?
You can maintain a steady credit score by taking care of the following key points.
- Ensure your credit score report is well-maintained and has the most up-to-date numbers without any bugs
- Ensure all of your liability payments per month are made on time without any delay, as that reduces your credit score
- Do not end up in a fraudulent situation where you are asked questions about why your credit score is varying so much in a couple of months
- Take counseling from family members who have excellent scores (ranges from 669 to 850)
- Pay any remaining installments on time without delaying them, as this could reduce your credit score in the long run
Q4. Can I get a personal loan without having to show my credit score?
There are several other ways you can get a personal loan without lenders having to go through your poor credit history. The formula for everything is simple. If you have a good credit score, it means the lender can take a risk on you; but if it is not, they will not.
In such a case, you can take a loan in other ways.
- Pawnshops have a great way of lending you money for something in return that is a bit lesser than the actual value. However, the best part is that it is quick and easy money that can help you out in a difficult situation. Once you are done, you can repay the pawnshop back. With that being said, there is a real risk of losing the asset if you do not repay the loan on time.
- The second option you have is to put your car on the line through an auto title loan. The mechanism is the same as a pawn shop, except you will be putting one of your biggest assets on the line. If you fail to pay back the amount, you will have to say goodbye to your car.
- The third option you have is a payday loan, where you will be given a loan based on the income you earn. However, a payday loan usually has larger penalties, and it can be quite unfair to you if you cannot pay the loan back in time.
Conclusion: Which Is the Best Online Lender for Loans for Bad Credit Borrowers?
Of all of the trustworthy platforms we have mentioned, MoneyMutual is our top pick for those looking to find loans on an immediate basis. Not only is their process more streamlined than the rest, but they also have a great customer service system that ensures your queries are answered on time. This can be a big deal for first-timers.
As mentioned above, we have written down all of the pros and cons as well as tried to create an image in your head regarding the benefits you receive from the loans. To make you feel at ease, the platforms we mentioned will not ask you for any money as fees, which reduces further expenses on you. The credit bureaus understand the need for money can make or break a tough situation, and the online lenders act as support.
With a strong case, you can win them over and end up with good money on your own terms.