While some people try to avoid bad credit loans, others find them lifesaving. Viewpoints may be different, but there is one thing obvious: a bad credit loan may be a reasonable analog to loans from traditional financial institutions. Thus, people with bad credit usually shop around for alternative personal loan lenders that can help them cover financial emergencies.
Unsecured loans for bad credit are typically offered by online lenders. These loans are known for bad-credit-friendly options, almost instant approval, and fast money funding. However, it may be tough to find an acceptable loan offer. Thus, if you don't know where to start, consider our pick of the best bad credit loans with no credit check and guaranteed approval.
What Are The Best Bad Credit Loans?
Choosing the right lender always matters as it determines everything, from interest rates to the amount of your monthly payment. Please, meet 1FirstCashAdvance – a reputable service with the best bad credit online loans.
1FirstCashAdvance – Best Overall Loans for Bad Credit
1FirstCashAdvance is a connecting service aimed to match you with the right loan provider. The company works with multiple lenders and offers a full range of bad credit cash advances for both short-term and long-term needs. The service is free, so you don't have to pay any origination fee to apply. It accepts borrowers with any credit scores and works with lenders that don't perform hard credit checks. Borrowers typically note their convenient application form and a fast money deposit directly to a bank account.
Eligibility Criteria
- Reach at least the age of 18;
- Have a Social Security Number and a valid ID;
- Prove your income is enough to fulfill your debt payment obligations;
- Have an active bank or savings account;
- Enter your personal, contact, and employment data in a loan request form.
Pros
- Day and night online application;
- No minimum credit score requirement;
- Doesn't affect your credit score;
- Fast money access within one business day after you've signed a loan agreement;
- Free service with no origination fees.
Cons
- Short-term loans may be banned in some states;
- Expensive loan options may be offered for bad credit borrowers.
Short Guide on Unsecured Personal Loans for Bad Credit
A personal loan for bad credit is an unsecured loan that was created to substitute loans from traditional financial institutions. Thus, it is an option that allows low credit score borrowers to get the loan amounts they need. Typically, you can use loan proceeds for any purpose, from emergencies to covering your credit card payments.
Bad credit personal loans may be either long-term or short-term financial solutions. Loan terms range from 3 days to 60 months. Therefore, a loan amount and a payment schedule also vary. You can borrow from $200 to $15,000 and repay the money either in fixed monthly installments or in one lump sum by your next paycheck.
Types of Loans for People With Bad Credit
Basically, there are three types of online bad credit loans:
- Payday loans. Online payday loans for bad credit are short-term solutions with limited loan amounts and repayment terms. A payday loan offers from $200 to $1,000 and requires you to pay off the whole balance in one large sum by your next paycheck. An interest rate on such a loan may be pretty high;
- Installment loans. An installment loan is a type of online loan that allows you to obtain up to $5,000 and repay the money in equal monthly payments within up to 24 months. It also offers a high annual percentage rate;
- Personal loans for bad credit. Personal loans for poor credit are similar to traditional loans from banks and credit unions. They provide up to $15,000 loan amounts for up to 60 months and at a lower interest rate. But get ready to meet more eligibility requirements.
Reasons for Getting a Bad Credit Personal Loan
Most lenders usually allow borrowers to use loan funds to cover any needs or wants they have. Borrowers usually use urgent loans to cover unexpected expenses or financial emergencies. You can also use emergency cash advances as debt consolidation loans to combine all your existing debt into one. A debt consolidation loan may be a good way to avoid late or missed payments.
Can I Get a Personal Loan With Bad Credit?
Yes, you can! All you need is to choose the lender that offers bad credit score options. Most online loan providers usually don't set minimum credit score requirements for same-day loans. Thus, you're welcome to apply with any credit score if you can prove you have enough income to make your loan payments.
Do No Credit Check Loans Really Exist?
Unlike a credit union, a direct lender doesn't check your credit report details through major credit bureaus, so applying for a loan doesn't hurt your credit history. At the same time, lenders usually check your credit background through alternative means. So, “no credit check” is usually equal to a “soft credit inquiry.”
Bad Credit Loans' Analogs
If online personal loans don't suit you for some reason, here are a couple of available alternatives:
- Secured loans. A secured loan allows you to get the funds you need by using your property as collateral;
- Joint personal loans;
- Pawn shop loans;
- 0% APR credit cards.
FAQ
What Is The Best Personal Loan for Bad Credit?
The best unsecured personal loan is the one with a suitable minimum loan amount, a flexible term, simple requirements, and a low APR and origination fee.
Am I Guaranteed Loans for Bad Credit?
Although borrowers with low credit scores are considered, submitting a form doesn't guarantee loan approval. Thus, you can get a negative personal loan decision too.
How Much Money Can I Borrow With Poor Credit?
Minimum loan amounts vary depending on the particular lender and the state. A maximum loan amount depends on the loan type, your income, and your overall creditworthiness.