Do you have medical bills to pay, want to improve your house, buy a car, or need to attend some social occasions like a wedding, but don’t have the needed money? Are you in need of a loan? You can apply to banks, credit unions, or Best Egg Lending Club, but they ask for a high credit score. Usually, bad credit scores do not go together with loans.
If you experienced some of the above-noted situations, you should know that you are not alone. 25% of Americans have bad credit scores. Loans are not an excuse for not saving up for big expenses. Sometimes you need a lot of money faster than you can save it up. And that is the reason why bad credit loans with guaranteed approvals showed up. But you would ask why they would give me a loan, and are they legitimate? The answer is yes. They are legitimate, however, they give you credit because they measure other qualities such as: how you spent your income, how do you repay your debts, pay your bills, and so on.
In this article, you will read reliable information based on a lot of research, so that you can make a good and educated decision, related to bad credit loans options. So save yourself a lot of clicks on research and read our article.
Bad Credit Loans with guaranteed approvals
- MoneyMutual: Overall Best Bad Credit Loans Lender Online
- BadCreditLoans: Get Instant Loans For Bad Credit
- CashUSA: High Risk Personal Loans Guaranteed Approval From Direct Lenders
- Personal Loans: Known For Quick Personal Loans
- Credit Loan: Guaranteed Payday Loan Direct Lender
#1. MoneyMutual: Overall Best Bad Credit Loans Lender Online
This brand is based in Las Vegas NV. It was founded in 2010 and has 60 lenders available with an easy procedure and over 2 million satisfied users. Money Mutual is a brand that needs to be taken into consideration!
If you decide to go with them, you need to know that the borrowing span at this brand is $100-$5000. The money will be deposited into your account after 24 hours. If you want to lend on the weekend or holiday, that will affect the time of landing. But there is no cost for their service.
Steps when applying
So, go to their website and fill out their simple form with basic requirements like name, age, how much you earn, social security number, and so on. Also, to mention here, they have the option to follow the proceeding of the request from their website so that you can use that as well.
After this step, the involvement of Money Mutual is done. Then you are contacted by the lender and you are familiarized with their agreement’s terms, conditions, interrogations, and fees.
If all of those work for you, you just sign the agreement and the money will be deposited in the next 24 hours. But we advise you to check out more than one lender’s terms and conditions before deciding to sign the agreement.
Types of bad credit loans that they have
These kinds of loans are short-term and need to be repaid on the next payday. They don’t have credit check requirements. And you can apply for them if you receive money once a week, or in two weeks’ time. Payday loans are unsecured loans with no collateral.
How to qualify for a payday loan?
- Provide proof for regular income
- You should be 18+ and US resident
- You should provide a valid checking account
- You need to have $800+ income
- Installment loan or so-called personal loan
This kind of loan is longer-term, and each loan is known as an installment. That is why it is called an installment loan. You repay installments on a regularly scheduled period of time. This loan option asks for a credit check. They are more suitable for bad credit than payday loans. The least time for repayment is two years.
Without a credit check, there is no documentation. You need to be employed for at least six months and have a monthly income of $1000+.
- No fees for customer service
- Straightforward procedure
- Easy to navigate website
- 24h per approval
- Available just in the US
- If you sign the agreement with the lender, the site is not responsible for anything that happens after that
- They are only available if you have regular source of income
Customers are satisfied with the speed of proceeding and the customer support. As they state, sometimes they only need 2 min to deposit the loan money. If you are not sure, check their websites reviews, there are two million reviews that must say something about this brand.
#2. BadCreditLoans: Get Instant Loans For Bad Credit
This website is operated by Chief LLC, established in Nevada. Bad credit loans offer loans from $500-$10000, which is a bit more than Money Mutual. They have a flexible repayment time of up to 36 months. When it comes to their interest rate, it can vary from 5.99% to 35.99%.
All of their loans have flexible terms in order for you to be affordable. Their lender network includes state and also Tribal lenders. Tribal lenders’ rates and fees are higher than state-licensed lenders and are subject to federal and tribal laws, not state laws. Your credit history impacts whether a lender offers you a loan and the terms of your loan, but some lenders in our network may offer loans to borrowers with all types of credit.
Steps when applying
Their form is quite simple. It requires you to fill out the amount, reason for borrowing, provide proof of citizenship, personal information, etc. Then as explained in Money Mutual, you are redirected to loaners, and you can decide to accept or decline. The repayment must be realized from 90 days to 6 years.
If you accept, you get the money in one business day or so. If you don’t accept, they also offer the following service: they connect you with sites for debt relief, credit repair, or other credit-oriented products. For example, you can borrow from them $2000 for 12 months with 19.9% APR representative with repayment of 183.63 and repay 2203.56.
What kind of loans do they offer
As mentioned above, you can consider this option when you need a higher amount of money. So, we don’t advise you to take it for a new TV or so. We recommend you to consider them only if it is an emergency, such as paying an electricity bill because your electricity will be cut off if the family car needs to be repaired, medical bill, or so.
As you might know, these loans are loans in which your house is listed as collateral if something happens and you can’t repay the debt.
These kinds of loans are suitable for small businesses in order to get a soft push.
It is for better education if one can’t allow himself that.
For making it affordable for you to allow yourself a new car.
It is for affording your dream house.
Nowadays, lenders also give credit cards, but first, you must provide: first and last name, desired loan, email, and zip code. You can choose some of these credit cards:
The prepaid card is not linked to your bank account. It is that kind of card where you pay now and buy later. It is intended for individual deposit funds, where you spend your own money.
With this card, you must first put in a minimum deposit of some amount in order to receive credit. Secured credit cards are usually issued by banks or credit unions. The deposited amount protects the issuer from losing money in a case where you can’t pay your bill.
This card is different from the two I just explained. You must already have funds in the checking account attached to the card. As this card deducts money from a checking account. The principle is – Pay now and buy later.
Requirements for getting a loan:
- Proof of citizenship
- Regular income
- Checking account
- Work or home telephone number
- Valid email address
- Simple form
- Factual info of lander
- No pressure of signing
- Free service
- You will find Bad Credit loans with guaranteed approvals options that you could not find yourself
- No more than $1000 for abysmal credit scores
- Work just in business days
On websites, like TrustPilot, we discovered a handful of reviews, but only half are negative. Their weakness is their interest rate, which is a bit high starting with 5.99%, and their strength is customer service.
#3. CashUSA: High Risk Personal Loans Guaranteed Approval From Direct Lenders
The third option of the Bad Credit loans with guaranteed approvals that we find worthy of mentioning is CashUSA. Why? Because they have a feature that makes them different from the others, they have an educational center on their website where you can choose some of the sections as credit, finances, debt, or banking and begin your learning.
You can take a loan of up to $10 000, with an interest rate between 5.99%-35.99%. The money will be deposited in one business day, and you can repay them for 90 days to 6 years.
Steps when applying
Also, they have an easy online form in which you should submit only your zip code, birth year, and the last four digits of your Social Security number. On the next page, you put your personal information, whether you’re an active-duty military member, the short-term loan amount you’re requesting, and your credit score range.
You fill out the form, and then you get connected with a lender. If no lender offers you a loan, you will receive offers for debt relief, credit repair, or similar services. Or, if you receive offers and accept one, you will provide the additional information needed and you will have the money deposited to your account. Credit decisions are based on: your credit history, your current debt load, and your income.
Types of loans
The network will ask for your intentions with the loan, and this will not affect your qualifications. You can choose from: Debt consolidation, Emergency situation, Auto repair, Auto purchase, Moving, Home improvement, Medical, Business, Vacation, Taxes, Rent or Mortgage, Wedding, Major purchase, Student-related/Education, and some of these can be secured loans and unsecured loans, installment or short-term. Just to note, CashUSA.com is not a payday lender.
If you choose to go for a personal loan, you will have no rule on spending the money. That is not the case for auto loans, mortgage loans, or student loans which are secured loans. If you qualify for a loan from one of the network’s partner lenders, most of them will require a credit check.
Average personal loan by credit score:
- A bad credit score is from 300-579 and comes with an interest rate of 28%-32%.
- A far credit score is from 580-669 and comes with an interest rate of 17%-19%.
- A good credit score is from 670-759 and comes with an interest rate of 13%-15%.
- An excellent credit score is from 760 and comes with an interest rate of 10%-12%.
Requirements in order to qualify for a loan
- Be at least 18 years
- Be a U.S. citizen
- Earn $1,000+ after taxes
- Have a checking account
- Have a valid email address and a valid phone number
- Available in all the 50 countries
- Fast and free service
- Educational service
- Protection of personal info
- They charge high APR’s
- The max loan amount is $10,000
When it comes to reviews MoneyUnder30.com gave it a 3.5 rating and Finder.com gave a 2.8 rating, both stating how high are interest rates and multiple fees might make repayment expensive.
LearnBonds.com and FundingHero.com, on the other hand, don’t share the same option. They gave the platform a 4-star and 4.4-star rating, respectively, and shared that CashUSA is one of the best marketplace platforms to purchase money online and offers flexible financing.
#4. Personal Loans: Known For Quick Personal Loans
The next brand is based in Houston, Texas, US, and showed up in 1998. It has a straightforward request that can be submitted in just minutes. You can borrow from them from $1000 to surprisingly $35000. What makes them different is that they work 24/7, so if the loan is with the greatest emergency, contact them. How do they accomplish that? If some of their members can’t connect with you they have “third-party” members.
Their APR (Average Percentage Rate) varies from 5.99%-35.99. It is the same as BadCreditLoans and CashUSA. You can choose to repay them from 3 months to 6 years. But the longer the time, the more APR you get, and you will have more money that needs to be returned.
If a situation appears where you can’t pay back the money in time, it is possible to choose another due date with this brand. Just contact the lender’s customer support or the lender directly.
Types of loans:
- Personal installment
This one is available if your credit score is 580+, and your income is 2000+.
With this option, you borrow money from investors, not from lending companies. For this type of loan, you need to have a credit score of over 600+.
These kind of bad credit personal loans provide you with a tax refund earlier, and you get the amount that your tax is calculated to be. The IRS is processed afterward, so you might get more or less when tax is refunded. However, you must return the whole amount that you borrowed.
You need to return it after two to four weeks maximum. The rate can vary from $10 to $30. And, as we explained, this is a small loan with a maximum of $500.
As you can see, some of the loans are not available for everyone, that is why we advise you to get a co-signer with a better credit score which will also contribute to a lower interest rate.
The interest rates come with the following value:
- 300-639- 29%
- 640-79- 19%
- 680-719- 14%
- 720-850- 11%
What kind of loans do they offer
Here you have a shorter plan than with an installment loan. You need to fill up these criteria in order to get this loan:
- Active bank account
- 500+ monthly payment
Depending on the lender, it can also ask for a credit score, a copy of a bank statement from the last three months, etc.
With this option, you can merge multiple debt accounts into one and pay all of your debts with only one installment. You can choose to do that with a personal loan and have a lower interest rate or maybe a home equity line or second mortgage, where you will have your house as collateral.
An emergency loan can be a payday, short-term, or personal loan only with lower loan amounts. If you choose to go for a personal loan, the negative side is that there will be a larger fee.
If you want to rebuild your home, you can choose from HELOS (Home equity Line of Credit) or a personal loan.
HELOS is a good choice if you want to sell your house afterward. You put your home as collateral and get a loan in the total amount of equity that you have now in your house.
- Personal Home improvement loan
You need to pay the same amount each month, and it is more quickly approved than HELOS, has a shorter term of payment, and does not have your home as collateral. Just note that you should always calculate 10-15% for unexpected costs.
- No fee for service
- Transfer within 24 hours
- Easy repayment terms
- There is a chance to get denied if you have a low credit score
If you want a fast loan, PersonaLoans.com is the place for you, the numerous satisfied customers’ reviews support this. Their lender network offers unsecured and secured loans, so complete the simple online form and see if you get offered one.
#5. Credit Loan: Guaranteed Payday Loan Direct Lender
With over 750 000 customers featured in Forbes, CNBC, WSJ, The New York Times, Credit Loan is one of the best bad credit loans options. You can borrow with them from $250 to an impressive $40 000. They have 4.6/5 on bad credit.org, which says something about this brand. Also, they have 3.6/5 on trustpilot.com.
This brand is TRUSTE (a major provider of privacy certifications for online businesses) verified, so they are pretty safe, they also have SSL, McAfee signed safe certificates.
Additionally, when it comes to lending, they have two distinct lending networks, one for poor credit applicants and the second for good or better credit. But how do you know if you have bad credit? According to the FICO score (Fair Isaacs Corporation), a score between 300-579 is a poor score, from 580-669 is a fair score, 670-739 is a good score, 740-799 is a very good score, and 800-850 is an exceptional score.
Also, one feature worth mentioning is their personal loan calculator, which you can use to compare interest rates. The higher the score, the lower the rate – this is the same as the other brands mentioned here. That is why you should consider getting a co-signer with a better score if your score is poor or fair. They also share with you how to calculate the debt-to-income ratio and credit utilization ratio.
How to calculate debt-to-income ratio?
You take the sum of monthly debts, divide it with pre-tax monthly income, and multiply by 100. Ideally, it will be 36%.
How to calculate credit utilization ratio?
You take the credit balance and divide it by the credit limit and just multiply by 100. Ideally, it is between 30%-40%.
When it comes to their palette of loans, they offer the following: Auto Loans, Bad Credit Loans, Personal Loans, and Student Loans. But if you already have a loan, you might not qualify for another. If you apply for a loan with them, they rate the following things:
- Payment history – 35%
- Amounts owed – 30%
- Credit history length – 15%
- Types of credit in use – 10%
- New credit – 10%
In order to get a loan, you must:
- Be 18+
- Have an active bank account
- Have consistent income
- Don’t have an active bankruptcy case
Unlike Personalloans.com, they don’t work on weekends and holidays. And just to note here, if you apply for an auto loan, with whichever brand you choose, you should also be familiarized with the following fees that you will be charged:
- Dealers fee
- Manufacturers fee
- License and registration fee
- Sales tax
- Tag fee
- Title fee
- Extended warranty offers
- Car security
- Simple application
- Calculator which you can use to work out the interest rate before applying
- TRUSTE verified, and SSL, McAfee certification
- You can’t apply if you are from New York or Connecticut
This brand has a different bag of reviews, but with a bit of digging, you can find that the negative reviews come from people that were denied a loan.
Factors to consider before applying for a loan
What are the steps
Whichever brand you choose, they follow the same steps, more or less. You just fill out that simple form and wait to be contacted by some of the lenders.
The lenders will get you familiarized with their policy and terms and conditions. Don’t rush, first see more lenders’ proposals. Before even connecting with a lender or submitting the request, prepare the documents they ask for.
If you have a very low credit score, we strongly advise you to get a co-signer as you will get a lower interest rate. If you choose this option, ask for the documents from the co-signer, and apply for your credit.
- Only ask for the amount needed
When applying for a loan, everybody thinks that the more you get, the better. But, we advise you to ask for just the amount you need since these kinds of credits have a considerable interest rate, even if the cosigner has a good score. In some companies, it can vary from 5.99%-35.99%.
- Only apply strictly for one loan at a time
You can get easily sucked into debts. You should strictly apply for one loan at a time. That way, the next loan will have a better chance of approval, and you won’t need to make a debt consolidation, even if that is an option for you. We don’t advise you to do that.
Stick to the dates and pay off your debt on time. If you don’t have a steady income and are unsure whether you will have the money, choose some of the brands listed here that allow you to change the due date.
How to rebuild your credit?
If you have a bad credit score and you just can’t find a co-signer, then the only option for you is to rebuild your credit. But, how can that be done?
When borrowing loans with bad credit from the brands mentioned above, you can have bad credit, but they measure other qualities like paying your bills on time. So, before applying for credit, make sure your bills are paid on time.
- Focus on credit cards balancement
A credit card balance is the whole amount of money that you owe with your credit card. The balance increases when purchases are made and decreases when debt payments are made. Why is this important? Credit card balances increase your credit utilization ratio, which can, in all cases, reduce your credit score.
- Use credit cards sparingly
Because of the reason mentioned above and to prevent increasing your debts, use credit cards just when you need to. When applying for bad credit loans, this could cause the denial of credit.
What does it mean to consolidate your loans? As we mentioned earlier, you should take one loan at a time. But if you already have multiple loans, then combine them into a single, larger debt for more favorable payoff terms – a lower interest rate, lower monthly payment, or both.
- Scrub your credit report clean
When you take out a loan and repay it, there are cases in which this won’t be recorded on the report; thus it will show the debt as active. So, you should always check your report and make sure everything is being noted in time.
Frequently Asked Questions about Bad Credit Loans
Q. Why can bad credit hurt?
Bad credit can hurt you a lot. Why do I use the word hurt? Because it can affect the process of getting a house, they won’t let you rent one because of bad credit, you won’t be given house insurance, and all this is rooted in the fact that bad credit is connected with false claims. You won’t get the job you wanted. Also interesting is that they won’t let you lend a car because research has shown that bad credit scores are even connected with a higher rate of car accidents.
Q. Are the mentioned brands lenders?
All the brands mentioned here are not lenders, they are the bridge between a borrower and a lender. You would ask why not just contact a lender directly? Why bother contacting this kind of company? The answer is simple, if you contact lenders directly, you would have a higher interest rate, also they may connect you with lenders that you wouldn’t consider.
Q. How to stay protected from scams?
With so many brands for bad credit out there, it is hard to distinguish which ones are reliable. Stay with the brands that we recommended, and you will be safe. If you are still not convinced and want to research a bit, pay attention to the next thing: don’t get a loan if the website first asks you to deposit a specific fee for the credit; if they give you a loan without first meeting a particular requirement; and last but not least, it is a scam if you need to pay an individual or someone not registered some sum beforehand.
Q. How to calculate my FICO score?
It’s impossible to calculate your credit score yourself. As mentioned above, there are a few things that should be taken into consideration when calculating. However, in order to have an approximate measurement, you can go to www.myfico.com.before applying and see where you stand.
Q. Does it cost you anything to use these websites?
The answer is no. The previously mentioned websites don’t charge you for their service. The lender is paying them the fee for connecting them with you.
Q. How soon will I get the money?
Just Personalloans.com works 24/7, so you will get the money in 24 hours maximum. The others work Monday to Friday, also they don’t work on holidays, and you will get the money on the next business day.
Q. How will I know if a lender decides to lend you money?
After submitting your information, lenders will review it and determine if they like to work with you. If a lender decides to make you an offer, you will be transferred to the lender’s website.
Q. What are the terms of your loan?
These websites are not a lender so that information isn’t available on them and we can’t share this information with you. Once a lender decides to work with you, they will send you all the terms and conditions of your loan offer. It will include the interest rate, dates for repayment, finance charges, and more.
Different lenders offer different kinds of loans, as explained above. Remember, you have a choice whether or not to accept the loan offer. If you don’t agree to the terms, you can decline and resubmit a request to find another lender.
Q. Will these brands make a “soft” pull on your credit?
These brands may do a “soft” pull on your credit score to help you choose the lender to connect with. Lenders in their networks may also conduct a “soft” pull and/or a “hard” pull. Typically, a “soft” pull is done initially, and then a “hard” pull may be done after by a lender. Their lenders could do multiple credit pulls.
Q. Do they serve non-US countries?
At the moment, their services are available only in the US. Maybe this will change in the future, but for now, you can only make a request if you are a US resident.
Q. Can you request a loan over the phone?
At this time, the best way to submit a request is through their online form. However, if you need help with the online form, they have a customer support phone number to call for assistance.
Q. What if I apply and don’t get offers?
If a lender decides to make you an offer, most of them will present you with an electronic signature page immediately on their website where the loan terms, fees, and rates are detailed, and you can then decide about the lender. If you were not forwarded to this page, feel free to reapply.
Q. What if you put your bank name, but it doesn’t go through?
Some banks have numbers or special characters in the names, and if this is the case, just write the letters and try again.
Q. What to do when you get an error when submitting the proposal?
Make sure you don’t have an old browser, we recommend Google Chrome or Mozilla Firefox. If you have a good browser and still have issues, please contact them through the contact form. Tell them what URL you were on, what you were doing when the error appeared, and the error message you got.
Q. Can I know if I qualify for their credit before submitting a proposal?
The answer is no, only after you submit the form, the lenders decide if they want to make you an offer or not.
Q. What is an APR?
An APR is a calculation that takes the interest rate into account and any other additional fees a lender may charge to repay the loan. For example, a car loan APR is the rate you pay that accounts for the interest charged plus all other fees you have to pay to get your loan.
Q. Can unemployed individuals qualify for bad credit loans?
One of the good things is that anyone who is not formally employed can get a loan. You do not always need a steady source of income or a steady job for a lender to decide to approve your credit request.
If a lender obtains evidence that you have sufficient funds in your account, they may go ahead and approve your request for short-term funding. Besides, the lender here considers various income sources, not just the one from employment. Therefore, it is possible to receive a loan online if you are unemployed and have a poor credit score.
Q. Is there a risk in purchasing bad credit loans?
Whenever you get a loan, regardless of the kind, you take on some level of risk, and while most loans are unsecured, meaning you don’t need to provide collateral, you still risk damaging your credit score from the major credit bureaus if you don’t keep up with monthly payments.
Just to recap, why do these brands exist as such? They appeared because 4 in 10 Americans can’t come up with $400 in an emergency. If you are in this category and come across this article, consider yourself lucky. Why should you choose any of these brands? They have helped a minimum of 1 million users each, and most of them shared their positive feedback on their sites or other sites for bad loans such as trustpilot, bad credit.org, or similar.
If you read this far, you are ready to make an educated decision, and you can easily choose the most applicable brand. They all have simple forms to fill and several loans to choose from, and they don’t charge an origination fee to connect you with lenders. You can apply and get a loan in 24 hours if you apply on a working day. Just with Personal Loans you get the loan in 24 hours, even on weekends, with their third-party employees.
If you are not sure if you want to apply yet, read some of the blog articles of CashUSA, and inform yourself on this topic. So, get your secured loan, build up your dream home, or buy that car that you always wanted to have, get over with the trouble of paying your bills, and get that peace of mind at last.