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If you are with bad credit, do NOT get a payday loan. There are many PERSONAL lenders that approve people with bad credit. They offer up to $40,000, and their APRs are between 5.99% to 35.99%. Although there are not 100% guaranteed approval loans, our lenders have the highest possible chance of approval. Think on 90% and more approved loans. Apply with all now, and your chance will be higher.
Lender | Rating | Loan Amount | APR | Min. Credit Score | Best For: |
| 4.9/5.0 | $100 — $15,000 | Up to 35.99% | 0 | Overall |
| 4.8/5.0
| $200 — $5,000 | Up to 35.99% | 0 | Bad Credit Loans Guaranteed Approval |
| 4.7/5.0 | Up to $50,000 | 6.5% — 35.99% | 0 | Poor and Fair Credit |
| 4.6/5.0
| $100 — $15,000 | Up to 35.99% | 0 | Same Day Payday Loans |
| 4.5/5.0 | $100 — $40,000 | Up to 35.99% | 0 | High Risk Personal Loans |
Before we move on, we wanted to show you one video that explains all about bad credit loans. If you want to save time, spend 10 minutes, and you will understand all about bad credit loans.
So, let's get started.
Consider ZippyLoan one of the more well-rounded bad credit loans with guaranteed approval networks we've come across.
First and foremost, ZippyLoan stands out for its expansive network of participating direct lenders offering from $100 to $15,000 to those with less-than-perfect credit. With no credit checks, borrowers with credit scores in the 300 to 580 range can enjoy sub-35.99% APRs, flexible repayment terms, and no origination or prepayment penalties for all types of expenses from debt consolidation to unexpected auto repairs.
Additionally, we are big fans of its speedy online application. Its loan request form takes at most five minutes to complete, and you can expect to receive funds within the next business day.
In short, ZippyLoan is highly recommended for its transparency, competitive rates, and generous borrowing limits.
How to Apply: To submit an instant approval loan request on ZippyLoan.com, visit the homepage, click the "Get Started" button, and fill out the application form accurately. Expect to enter key details such as name, address, date of birth, contact information, employment status, and deposit instructions. In addition, be sure to specify your desired loan amount and the purpose of the loan. Once admitted, await loan offers, each with its own set terms and conditions. Be sure to thoroughly research all direct lenders by visiting their home pages and reading third-party reviews before accepting any offer.
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Terms: ZippyLoan offers a variety of loan products to consumers, including bad credit installment loans, high-risk personal loans, instant online cash advances, and personal loans for bad credit. These loans go up to $15,000 with Annual Percentage Rates (APRs) of up to 35.99%. Repayment terms can extend up to 60 months. As ZippyLoan operates as an online marketplace rather than a direct lender, the specific fees associated with each loan, such as origination fees, prepayment fees, late payment fees, insufficient funds fees, and rollover/extension fees, are determined by the participating direct lenders.
For a better understanding of the potential interest charges (APRs) and fees applicable to your loan, let's consider an example. Suppose you were to borrow $12,900 with a 31% APR, on a 3-year repayment term, and without any finance charges. In this scenario, your total payment would amount to $19,969.73, with estimated monthly payments of $554.71. Over the course of the loan, you would incur $7,069.73 in total interest charges.
Be sure to carefully review the terms and conditions provided by each direct lender through the ZippyLoan platform to ensure you understand all associated costs and obligations before signing on the dotted line.
Looking for a quick $900 to pay for a minor fender bender repair? What about $4,800 to pay for your last college semester? If you have any of these expenses headed your way, consider MoneyMutual.
Why MoneyMutual? For starters, it has hundreds of participating direct lenders ready to offer anywhere from $200 to $5,000 to sub-35.99% APRs. They also provide various loan types, including high-risk personal loans, instant online cash advances, and bad credit loans with near-guaranteed approval.
Another benefit of using MoneyMutual is its quick and easy online application. Its loan request form takes at most five minutes to complete. As long as you meet all eligibility criteria, you should expect to obtain same day approval with multiple competitive loan offers with varying rates and terms. Remember, all these lenders are legit and come nowhere close to providing the 300% and 400% APRs traditional payday, auto title, and pawnshop loans are known for.
In short, we highly recommend MoneyMutual for its diversified offerings, most notably competitive rates in terms of bad credit borrowers who have difficulty qualifying for traditional loans from banks and credit unions.
How to Apply: Applying for a MoneyMutual loan is very easy. On the homepage, click on the bright orange "Get Started" button and follow all of the on-screen questions, providing all of your details, such as desired loan amount, state of residence, contact information, and all deposit instructions before being presented with multiple loan offers (assuming you qualify).
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Terms: MoneyMutual offers a variety of loan products to consumers, including bad credit installment loans, high-risk personal loans, instant online cash advances, and personal loans for bad credit. These loans range in amount from $200 to $5,000 with Annual Percentage Rates (APRs) of up to 35.99%. Repayment terms can extend up to 60 months. As MoneyMutual operates as an online marketplace rather than a direct lender, the specific fees associated with each loan, such as origination fees, prepayment fees, late payment fees, insufficient funds fees, and rollover/extension fees, are determined by the participating direct lenders.
For a better understanding of the potential interest charges (APRs) and fees applicable to your loan, let's consider an example. Suppose you were to borrow $3,600 with a 22% APR, on a 2-year repayment term, and without any finance charges. In this scenario, your total payment would amount to $4,482.27, with estimated monthly payments of $186.76. Over the course of the loan, you would incur $882.27 in total interest charges.
Be sure to carefully review the terms and conditions provided by each direct lender through MoneyMutual's platform to ensure you understand all associated costs and obligations before signing on the dotted line.
For an excellent source of bad credit loans with near guaranteed approval (as long as you meet qualification criteria), look no further than Upstart.
Upstart differs from other reputable lending networks like MoneyMutual with its artificial intelligence algorithms and alternative data points, which do not rely solely on traditional credit scores. Instead, other variables are considered, such as your education, employment history, and monthly cash flow. Thanks to this scoring model, Upstart's AI algorithm accepts 27% more borrowers than traditional scoring models.
With Upstart, you can take out loans from $1,000 to $50,000. Although its minimum borrowing limit is higher than competitors, it compensates for it with competitive APRs from 3.09% – 35.99%. Additionally, repayment terms come in three or five-year increments, which we agree is not the most ideal as many prefer shorter repayment terms in the one to two-year range.
Our only knocks on Upstart are two things. One is its origination fees of up to 8% (not applicable to all lenders), and the second is its rigid eligibility criteria. Unlike MoneyMutual, ZIppyLoan, VivaLoan, and 100Lenders, Upstart is a little more strict (e.g., minimum required credit score of 580 and $12,000 in annual income)
If you're looking for a solid alternative to traditional lending networks like VivaLoans and 100Lenders, give Upstart a shot.
How to Apply: To apply for a loan on Upstart.com, the first step is to visit the "Check Your Rate" button. From there, create an account and fill out the application form, providing all your details, such as your name, address, desired loan amount, loan purpose, and social security number. Be sure to provide consent and authorize a credit check before applying.
Once submitted, you should expect several loan offers with competitive interest rates, loan amounts, and terms.
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Terms: Upstart offers a variety of loan products to consumers, including bad credit installment loans, high-risk personal loans, instant online cash advances, and personal loans for bad credit. These loans go from $1,000 to $50,000 with Annual Percentage Rates (APRs) of up to 35.99%. Repayment terms can extend up to 60 months. As Upstart operates as an online marketplace rather than a direct lender, the specific fees associated with each loan, such as origination fees, prepayment fees, late payment fees, insufficient funds fees, and rollover/extension fees, are determined by the participating direct lenders.
For a better understanding of the potential interest charges (APRs) and fees applicable to your loan, let's consider an example. Suppose you were to borrow $45,000 with a 24% APR, on a 5-year repayment term, and without any finance charges. In this scenario, your total payment would amount to $77,673.51 with estimated monthly payments of $1,294.56. Over the course of the loan, you would incur $32,673.51 in total interest charges.
Be sure to carefully review the terms and conditions provided by each direct lender through Upstart platform to ensure you understand all associated costs and obligations before signing on the dotted line.
VivaLoan is one of the more well-rounded lending networks online today, an excellent source of instant approval on bad credit loans with near guaranteed approval for cash-strapped borrowers.
Participating lenders on the VivaLoan platform are willing to extend anywhere from $100 to $15,000 with much lower APRs than traditional payday auto title and pawn shop loans. In addition, unlike their 300% and 400% APRs, bad credit borrowers enjoy sub-35.99% APRs with flexible repayment terms (from six to 60 months), good for unexpected expenses like unpaid medical bills or much-needed home renovations.
Another benefit to using VivaLoan is easy and fast funding. Submit a loan request form, receive/accept the loan offer, and have funds deposited to your account as quickly as the next business day.
Look to VivaLoans for an excellent source of bad credit loans to quickly take you out of your emergency.
How to Apply: Applying for a VivaLoan loan may be one of the easiest things you do today. To start, visit the homepage and click the "Start Here" button on the upper right navigation menu. From there, you will be presented with a two-page form. One page will ask for intro and income information, and the second will ask for contact and deposit instructions. Complete all questions, submit your application, and get matched with several direct lenders matching your credit profile.
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Terms: VivaLoans offers a variety of loan products to consumers, including bad credit installment loans, high-risk personal loans, instant online cash advances, and personal loans for bad credit. These loans go up to $40,000 with Annual Percentage Rates (APRs) of up to 35.99%. Repayment terms can extend up to 60 months. As VivaLoans operates as an online marketplace rather than a direct lender, the specific fees associated with each loan, such as origination fees, prepayment fees, late payment fees, insufficient funds fees, and rollover/extension fees, are determined by the participating direct lenders.
For a better understanding of the potential interest charges (APRs) and fees applicable to your loan, let's consider an example. Suppose you were to borrow $31,500 with a 24% APR, on a 3-year repayment term, and without any finance charges. In this scenario, your total payment would amount to $44,490.05, with estimated monthly payments of $1,235.83. Over the course of the loan, you would incur $12,990.05 in total interest charges.
Be sure to carefully review the terms and conditions provided by each direct lender through the VivaLoans platform to ensure you understand all associated costs and obligations before signing on the dotted line.
If you're looking for a quick $255 for an unpaid medical bill or $4,800 to pay for fender bender damages, Kansas-based 100Lenders may be the right fit.
Bad credit loan companies on the platform are willing to extend anywhere from $100 to $40,000 to borrowers with credit scores in the 300 to 580 range. In addition, the combination of sub 35.99% APRs, flexible repayment terms, and competitive fee structure allows bad credit borrowers to enjoy many of the same perks as those with excellent credit.
Another benefit to using 100Lenders is its quick and easy application process. Submit a user-friendly online application and get matched to several direct lenders in minutes with near guaranteed approval and funding to your checking or savings account as early as the next business day.
We highly recommend 100Lenders for its instant approval, generous borrowing amounts, competitive terms, transparency, same day processing, and quick loan request process.
How to Apply: To apply for a 100Lenders.com loan, visit their website and complete the online application form. It would ask a series of questions, such as your personal, financial, and employment information. Be sure to answer all questions truthfully and accurately. Upon submission, expect to be matched with several loan offers from its extensive network of direct lenders.
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Terms: 100Lenders offers a variety of loan products to consumers, including bad credit installment loans, high-risk personal loans, instant online cash advances, and personal loans for bad credit. These loans go up to $40,000 with Annual Percentage Rates (APRs) of up to 35.99%. Repayment terms can extend up to 60 months. As 100Lenders operates as an online marketplace rather than a direct lender, the specific fees associated with each loan, such as origination fees, prepayment fees, late payment fees, insufficient funds fees, and rollover/extension fees, are determined by the participating direct lenders.
For a better understanding of the potential interest charges (APRs) and fees applicable to your loan, let's consider an example. Suppose you were to borrow $14,500 with a 33% APR, on a 2-year repayment term, and without any finance charges. In this scenario, your total payment would amount to $19,999.08, with estimated monthly payments of $833.30. Over the course of the loan, you would incur $5,499.08 in total interest charges.
Be sure to carefully review the terms and conditions provided by each direct lender through the 100Lenders platform to ensure you understand all associated costs and obligations before signing on the dotted line.
Bad credit loans with guaranteed approval specialize in providing same day funding opportunities to those with limited to no credit history who may need help qualifying for traditional loans from banks and credit unions. They are typically offered by alternative lenders who focus less on a minimum credit score and more on the ability to repay, factoring in criteria like income and debt-to-income ratio.
Here are some of the following characteristics of bad credit loans with guaranteed approval:
Credit Requirement: No minimum credit score is required. This allows people with credit scores in the 300 to 580 range to easily qualify.
Higher Than Average Interest Rates. Bad credit loans with guaranteed approval often come with higher-than-average interest rates of up to 35.99% APR, thanks to the increased risk of lending to bad credit borrowers.
Lower Borrowing Limits. Given the reason above, it's not uncommon for bad credit loans with guaranteed approval to offer limited loan amounts. However, reputable online marketplaces like VivaLoans and MarketLoans can offer up to $15,000 and $40,000, respectively. Of course, any loan offer will be contingent on factors like your income, debt-to-income ratio, and employment status.
Shorter Repayment Terms. In addition to higher-than-average interest rates and lower borrowing limits, bad credit loans with guaranteed approval usually have shorter repayment terms. Many online marketplaces advertise anywhere from six months to 72 months, but may be on the lower end of the range.
Some bad credit lenders may even require weekly or bi-weekly payments to reduce risk.
Building Credit. It is essential to know that not all bad credit loans with guaranteed approval companies report on-time payments to credit bureaus. We highly encourage all borrowers to seek lenders reporting on-time payments as it's easier to get more favorable loan terms with lower interest rates and flexible repayment terms from traditional options (banks and credit unions)
Overall, the best bad credit loans with guaranteed approval offer a vital lifeline to bad credit borrowers looking to cover unexpected expenses, paycheck apps, or any emergency needs that require fast and easy cash to one's account by the next business day.
Do you want to get guaranteed approval on your next bad credit loan? If so, it is important to remember that there is no such thing as guaranteed approval. However, even loans with the least strict eligibility criteria require some semblance of a pulse.
For example, all instant approval and same day approval bad credit loan companies require that you are 18 or older with legal residency in the United States (citizenship or permanent residence), a minimum monthly income of $800 a month, and a favorable debt-to-income ratio.
Regarding debt-to-income ratios, a good baseline is typically 36% or lower, with a preference for single-digit percentages. Remember, your debt-to-income ratio is calculated by adding up all your monthly debt obligations and dividing the total by your gross monthly income.
For example, if you incur $1,500 in total monthly fixed and variable debt payments with a $4,000 gross monthly income, you would have a 37.5% debt-to-income ratio ($1,500 / $4,000 x 100).
Rest assured, even if bad credit loans do not offer guaranteed approval, they offer the highest chances of approval.
The loan types with the highest rate of approval or payday, auto title, and pawnshop loans.
However, we highly discourage borrowers from going anywhere near them for the following reasons:
Exorbitant APRs and Fees. With these three loans, expect APRs of 300% and 400%, respectively, on top of rollover and extension fees are higher for every two-week extension. For perspective, a 400% APR $300 payday loan on a two-week repayment term with a $60 extension fee will result in a total borrowing of $1,560. All from only $300 in principal!
Lack of Transparency. Payday, auto title, and pawnshop loans often lack transparency and deceptive practices, misrepresenting marketing jargon, hidden fees, and other misleading information about the total cost of borrowing. Any lack of understanding of a loan could result in a vicious debt cycle that could take several months (or even years) to recover from.
Collateral in Danger. Auto title and pawn shop loans require collateral (e.g., vehicle or a money market account) when lenders issue up to a percentage of the item's value (usually up to 50%). With auto loans known for their high default rates, it's not out of the question for your vehicle to be seized.
One common denominator around instant approval payday, auto title, and pawnshop loans is their outrageously low borrowing limits, usually no more than $1,000. However, lenders at reputable online marketplaces like Money Mutual and Upstart offer higher borrowing amounts (up to $50,000) and near guaranteed approval with sub 35.99% APRs, a much more manageable rate.
Bad credit loans can be used for all expenses, including the following (not an all-inclusive list):
Debt Consolidation. This means combining multiple high interest debts into a single lower interest rate loan. For perspective, a 2-year $3,000 loan with a 35.99% APR and no finance charges will result in a total borrowing cost of $2,159.20 versus $1,439.40 for a lower, 23.99% APR loan, a $719.80 difference that could be better put to use elsewhere!
Home Renovations. Does your kitchen need to be remodeled? What about a bathroom renovation, basement conversion, or energy-efficient upgrades to your home to save on utility bills? If so, these can be easily managed with bad credit loans with guaranteed approval. Worried about the loan amount? Don't worry. Bad credit direct lenders from reputable online marketplaces like MarketLoans and 100Lenders offer as high as $40,000 for these purposes.
Emergency Expenses. Bad credit loans can be used to cover Urgent expenses like unpaid medical bills and skyrocketing auto Repair bills, especially if you do not have a rainy day fund with six months worth of savings.
Improving Credit. Often bad credit loans with near guaranteed approval can be taken out to help individuals rebuild their credit, with regular on-time payments reported to the three major reporting credit bureaus, which are Equifax, Experian, and TransUnion.
When you have a low credit score in the 300 to 580 range, finding a same day bad credit loan with competitive rates in terms may take time and effort.
Here are our top tips on finding the best bad credit loans with guaranteed approval:
Strengthen Your Credit Profile. The first step is to visit annualcreditreport.com to pull a credit report from each of the three major reporting credit bureaus. Do you have a 450 credit score? Would paying off an outstanding balance or disputing reporting errors bump your score by a projected 70 points or more? A 70 point increase could pay immediate dividends, meaning the difference between a 31.99% and a 35.99% APR.
If you have extra time before your next same day bad credit loan application, bump your score!
Research Multiple Lenders. The first step is to submit loan requests to at least two marketplaces to get several competitive loan offers from lenders specializing in same day approval bad credit loans. Next, perform exhaustive research comparing APRs, repayment terms, and fee structure. Finally, check for third-party reviews with positive customer feedback and ratings.
Remember to consult with each direct lender's fine print. Thoroughly read through representative loan examples (with total borrowing costs), states of operation, credentials, Online Lenders Alliance (OLA) membership, and the lender's third-party data-sharing policies for a total picture.
Consider Loan Terms and Repayment Options. We highly recommend using an APR calculator to understand the total cost of borrowing fully. For each direct lender, input your loan amount, finance charges, interest rate, and repayment term to discover your total cost of borrowing, including estimated monthly payments, total interest, and total payments.
By following all of these suggestions, you'll be on your way to finding a loan that meets your financial situation while rebuilding credit over time.
To compensate for the higher-than-average interest rates offered by bad credit loans (up to 35.99% APR), we highly recommend employing the following strategies to secure the lowest rate possible:
Before anyone applies, we highly recommend pulling out your credit score. Ways to do so include paying your bills on time (every time!), lowering your credit utilization ratio, disputing credit reporting errors, and maintaining a diversified credit mix which lets lenders know you can manage multiple credit lines responsibly.
Disputing credit reporting errors cannot be underestimated. For example, it's common to see a 50 or 100-point drop due to incorrect personal information, accounts loans not belonging to you, inaccurate account statuses, duplicate accounts, incorrect payment history, and similar errors that could easily mean the difference between a 21.99% APR and a 29% APR.
Fortunately, successful disputes are usually resolved within 45 business days, depending on the creditor and/or credit bureau.
If you wish to file a dispute with Equifax, Experian, or TransUnion, each credit bureau offers three ways to file:
Experian
● Webpage: https://www.experian.com/disputes/main.html
● Phone: 1-888-397-3742
● Address: Experian, P.O. Box 4500, Allen, TX 75013
TransUnion
● Webpage: https://dispute.transunion.com/
● Phone: 1-800-916-8800
● Address: TransUnion LLC, Consumer Dispute Center, P.O. Box 2000, Chester, PA 19016
Equifax
● Webpage: https://www.equifax.com/personal/disputes/
● Phone: 1-866-349-5191
● Address: Equifax Information Services LLC, P.O. Box 740256, Atlanta, GA 30374
Shop Around. Never settle for the first lender that offers you competitive rates. Instead, be sure to shop around and compare a minimum of three direct lenders, carefully reviewing interest rates, repayment terms, and fees to find the one with the lowest cost of borrowing.
Consider Secured or Cosigner Loans. If higher-than-average APRs of up to 35.99% are hard to stomach, consider secured or cosigner loans for lower interest rates. Secure loans require collateral (e.g., vehicles or $9,000 Tag Heuer watches), where lenders award loan amounts up to a percentage of the item's value (usually up to 50%).
In turn, cosigner loans require a second person with a strong credit history to help you secure lower interest rates. However, they are equally responsible for the loan, with any loan default negatively affecting your credit score. Consider it ideal for parent-child or spousal relationships with a healthy trust factor.
All in all, shopping around, improving your credit score, disputing credit reporting errors, and looking towards alternative lending opportunities with secured and cosigner loans are all excellent ways to secure the best personal loans for bad credit with the lowest interest rates possible.
Direct or Non-Direct Lenders: Which Should I Pick?
You'll often hear the terms direct and non-direct lends in the lending industry. In short, they are two types of lenders borrowers can seek all kinds of loans from, including but not limited to high-risk personal loans, bad credit installment loans, and instant online cash advances.
For starters, direct lenders are financial institutions that issue loans to borrowers without the help of intermediaries or brokers. In turn, non-direct lenders like MoneyMutual and VivaLoan operate as intermediaries, connecting prospective bad credit borrowers with a network of legit direct lenders offering competitive rates and terms.
Unlike direct lenders, non-direct lenders do not manage the underwriting process, dictate long-term/interest rates, or have any relationship with the borrower requesting the funds other than providing their application form to retrieve multiple competitive Loan offers.
To decide between a direct or non-direct lender, keep the following in mind:
Efficiency. Since direct lenders manage the entire loan process, expect higher decision-making Authority and faster loan processing times.
Loan Terms and Rates. As opposed to a single direct lender, which has its loan terms, interest rate, and fee structure, none direct lenders Like Money Mutual can offer you instant access to multiple legit direct lenders, allowing you to shop around, research, and compare various offers in one easy at-a-glance view.
Personalized Service. With direct lenders, expect more direct service with dedicated customer support lines, including phone and email, and reliable Financial education resources like helpful blog articles and additional credit-building tools. In turn, non-direct lenders like VivaLoans generally do not play a role in trying to offer personalized service, as they do not make any direct cash loans or credit decisions.
Third-Party Reviews. Generally, you can expect direct lenders to have a wider pool of customer reviews and ratings on published third-party websites like Trustpilot. In turn, it's much more limited for non-direct lenders like VivaLoans and 100Lenders. However, these are only lending networks that pair you with direct lenders so that you can sort out third-party reviews on actual direct lenders on your own.
All in all, direct and non-direct lenders have advantages and disadvantages. Look to direct lenders for more personalized service and Direct lenders for access to a wider pool of loan options for your financial situation.
Should I Consider a Secured or Cosigner Loan to Get Low-Interest Rates?
Concerning interest rates, here are the key similarities and differences between security and cosigner loans.
Collateral vs. Cosigner. With secured loans, collateral such as a vehicle or precious watch is required, reducing the chances of lender risk. In turn, cosigner loans rely on the co-signer's creditworthiness with shared responsibility of repaying the loan. Therefore, if any party fails to pay the debt, expect both credit scores to be affected.
Risk and Responsibility. With secured loans, the borrowers assume all risk with the potential seizure of collateral in case of loan default. With cosigned loans, both borrower and cosigner share equal responsibility, with damaging drops to one's credit score with one or more late payments.
Qualification. Secured loan APRs are based on the borrower's credit score history, with 300 to 580 credit scores generally seeing 31% to 35.9% APRs. In turn, cosigner loans rely on a co-signers credit worthiness, with high credit scores in the 650 to 800 range resulting in lower interest rates, longer repayment periods, and limited to no fees.
Keep in mind that both secured and cosigner loans have advantages and disadvantages. Be sure to carefully review both options, including your collateral's value and your cosigner's willingness to participate.
What Is the Difference Between Payday and Personal Bad Credit Loans with Guaranteed Approval?
Bad credit personal loans and payday loans fundamentally differ in borrowing amounts, repayment term flexibility, and fee structure.
APRs. Whereas bad credit personal loans top APRs at 35.99%, traditional payday loans often exceed 400% APRs, translating to up to $30 for every $100 borrowed. With the potential for consecutive rollover/extension fees up to $60 and bank-issued overdraft/insufficient funds fees, it's common for payday loan interest and other finance charges to surpass the principal eventually.
Borrowing Amounts. Bad credit personal loans from reputable online marketplaces like MoneyMutual and MarketLoan can offer up to $40,000. It's a welcome change from traditional payday loans, which specialize in smaller dollar loans of up to $1,000.
Repayment Terms. Whereas payday loans are off for short two to four-week repayment terms, bad credit personal loans can be repaid in as little as one month up to five years (60 months), allowing for a more manageable repayment schedule. Note the longer the repayment term, the more total interest charges are paid over the life of the loan.
Reporting to Credit Bureaus. Most payday lenders do not report on-time payments to Experian, Equifax, and TransUnion. In turn, many bad personal credit loan companies do, allowing borrowers to establish credit history and bump up credit scores over time with regular on-time payments.
In short, bad credit personal loans offer higher borrowing amounts, longer payment terms, and credit bureau reporting ability than short-term payday loans. Therefore, carefully review all loan terms and conditions based on your financial situation.
Not all bad credit loans with guaranteed approval run no credit checks. Specific terms and requirements vary depending on the lender, loan amount, and applicable state laws.
Remember, bad credit personal loans tend to factor in other eligibility criteria, such as your legal residency, state of residence, income, debt-to-income ratio, bank account activity, and employment record.
For example, ZippyLoan requires that you are 18 years of age or older with a government-issued photo ID, a minimum monthly income of $800 a month, and a non-resident of New York, West Virginia, Oregon, or the District of Columbia, as it is not licensed to operate in those states.
As with all loans, review your loan carefully and offer terms and conditions, including whether or not credit checks are conducted.
To become a more informed consumer, it is essential to understand the difference between no credit checks versus soft credit checks versus credit checks and the financial institutions that adhere to each.
No Credit Check. No credit check loans are loans that do not require a minimum credit score. Instead, eligibility is based on other factors such as income, debt-to-income ratio, employment status, and bank account information. Three popular types of no credit check loan companies include payday auto title and pawn shop loans.
However, all three no-credit-check loan types offer outrageously predatory rates (upwards of 300% and 400% APR), inflexible repayment terms, and excessive renewal fees of up to $60 for every two-week extension. On top of that, there are also indirect fees to worry about, such as bank overdraft/insufficient funds fees due to multiple failed automated withdrawals by the lending company.
Thankfully, reputable online marketplaces like MoneyMutual and ZippyLoan do all for no credit check loans and much more favorable rates, including high borrowing limits (up to $40,000), sub-35.99% APRs, repayment terms as long as 60 months, and no origination or prepayment penalties.
Soft Credit Check. Also referred to as a soft inquiry, this type does not impact your credit score. Instead, it allows all kinds of lenders (including banks, credit unions, and online lenders) to check on your credit history without asking for your permission. They are often marketed as being used for information purposes and provide general direction on your creditworthiness.
You'll often find soft credit checks conducted with pre-approval offers and background checks, especially introductory rate credit cards.
Similar to hard credit checks, lenders will have access to your credit report, credit score, and payment history for any outstanding debts.
Credit Check. Also referred to as a hard inquiry, hard credit checks dive deeper into a borrower's credit history to make an informed lending decision. They are typically conducted when you apply for a loan, credit card, mortgage, student loan, or similar lines of credit where lenders need a full background check on your credit history.
Unlike soft credit checks, hard inquiries do have an impact on your credit score. However, the effect is temporary and usually lasts up to 12 months. However, one way to minimize any impact on your credit score is by conducting multiple hard inquiries within 14 to 45 days, which lets lenders know that you are likely shopping around, not being outright rejected over and over for loans.
If you're doubtful that multiple hard inquiries within a 14 to 45-day period will not impact your credit score, reach out directly to credit bureaus and lenders to see if the number of inquiries you perform follows within this " look back window."
If you plan on limiting the number of credit applications, be sure to do your research. Look for as many pre-qualification options as possible. Alternatively, many online tools allow you to receive an estimate on the likelihood of obtaining approval across different loan types.
Soft credit checks and hard credit checks are generally done by traditional banks, credit unions, online lenders, mortgage lenders, credit card issuers, and similar financial institutions.
The small emergency high-risk loans should be heavily considered based on several factors, such as the urgency of the situation, interest rates/fees, your ability to repay, the potential impact of your credit score, and any alternative options.
For starters, the urgency of the situation needs to be addressed. Typically bad credit loans with near-guaranteed approval are meant for pressing financial concerns like unpaid medical bills, broken auto repairs (preventing you from getting to work), or overdue $9,000 hospital invoices that are in danger of being escalated to collections. A small emergency high-risk loan may be needed to address these emergency cash needs.
Secondly, one has to consider interest rates and fees. Bad credit loans with guaranteed approval have higher than average interest rates of up to 35.99%, thanks to the increased risk lenders take. So carefully review all interest rates, fees, and repayment terms with a careful reading of all fine print before committing to any one direct lender.
Thirdly, take your repayment capability in mind. Are you able to repay a loan within the required time frame? Bad credit loans with guaranteed approval tend to have shorter repayment terms (one to three years) than traditional loans for banks and credit unions, so we highly advise using an APR calculator to input your desired loan amount, APR, and repayment term to calculate estimated monthly payments.
These estimated monthly payments should keep your debt-to-income ratio healthy. However, if it forces your DTI to exceed 40%, you may have issues paying for other things.
Fourth, be sure to explore alternative options. Sometimes bad credit loans with guaranteed approvals are taken out when you only need paycheck gap coverage. For example, 0% interest cash advance apps like Earnin and Brigit serve this purpose by issuing advances of up to $100 per day or $750 per pay period, repaid with your next paycheck in two to four weeks. These are typically used to handle smaller dollar expenses.
Lastly, remember the impact on your credit score. Some high-risk or bad credit loans with guaranteed approvals lenders may report non/late payments to one or more credit bureaus.
We recommend considering all the above factors before deciding whether a small high-risk emergency loan is right for you.
Bad credit loans with guaranteed approval from reputable marketplaces like MoneyMutual, ZippyLoan, and VivaLoan offer same day approval, not same day funding. Therefore, the earliest you will get loan proceeds is by the next business day, assuming your application is approved by a daily 5 pm cut-off.
The only loan proceeds offered by bad credit/cash advance companies which can be disbursed the same day are from 0% interest cash advance apps like Earnin and Brigit. However, depending on the amount, you must pay a small expediting fee, anywhere from $0.99 to $6.99.
However, it is essential to remember that 0% interest cash advance apps have much lower borrowing limits than bad credit loans with guaranteed approval. Therefore, they are best used to cover paycheck apps, not large-scale expenses like fender benders, water heaters, and emergency medical bills that can easily be in the thousands of dollars.
If you wish to increase your credit score before any bad credit loan application, we highly recommend the strategies below:
Keep Your Credit Utilization Low. According to FICO, credit utilization accounts for 30% of your credit score. It's the ratio of your credit limit versus outstanding balances. For example, a $25,000 credit limit and $9,400 in balances equals a 37.6% ratio, just shy of the recommended 40% (although optimal in the single digits, e.g., 7% to 10%)
For reference, the credit utilization ratio formula is (outstanding balances/credit limit) * 100
Regularly Check Your Credit Report. Due to identity theft, you might be surprised with errors, discrepancies, or outright false information on your credit report.
Best practice is to visit annualcreditreport.com once a year (or upon loan application) and pull a free copy from each of the three credit bureaus—Equifax, Experian, and TransUnion, checking for the following (not an all-inclusive list):
Even a single successful dispute can boost your credit score by 80 points or more. However, do not expect any immediate increase, as dispute resolution can take over 45 business days (depending on the creditor and credit bureau).
One of the worst things you can have is a low credit score in the 300 to 580 range. This range qualifies you for much higher interest rates than traditional loans from banks and credit unions.
If you're wondering why your credit score is low, it is important to understand the contributing factors, which may include the following reasons (not an all-inclusive list):
Payment History. With 35% of your FICO score attributed to payment history, any late payments, escalated accounts to collections, delinquencies, or bankruptcies can hurt your credit score. Typically, it would help if you had a 30-day late before it's posted to your credit report, but some direct lenders may escalate the collections on a 60 or even 90-day late (depending on their policies).
Some direct lenders may not report any activity to credit bureaus at all.
If you have one late payment (30 days, 60 days, or 90 days late), you can expect your credit score to drop by several points. The number of points it will drop depends on your credit history and the credit bureau scoring models. The higher your credit score, the heavier the drop.
No Credit Mix. The more types of credit accounts you have (e.g., student loans, mortgages, credit cards, and bad credit loans), the better the impact of your credit score. For example, if you have ten revolving credit cards and no other lines of credit, lenders may assume you do not know how to handle different debts responsibly.
High Credit Utilization. If your credit utilization ratio is over 40%, you can expect your credit score to be lower. Therefore, we recommend paying down all outstanding balances as low as possible, preferably in the single-digit percentages versus your available credit limit. For example, you're in fantastic shape if you have a $10,000 Chase Sapphire rewards credit card limit and an average monthly balance of $700.
Negative Public Records. If you have a recent history of bankruptcies, foreclosures, and other debts on public record, you can expect your credit score to tank for several years. The best way to escape this situation is by making consistent on-time payments and paying down outstanding balances over time. But remember, there is no easy, quick fix except for credit reporting disputes due to bureau/creditor errors.
Not Watching Your Credit Report. Did you know that you may deserve a credit score 50 points higher than what you have now? With one in five Americans experiencing errors on the credit report, we recommend visiting annualcreditreport.com and pulling free credit reports from each of the three major credit reporting bureaus – Equifax, Experian, and Transunion.
It is not uncommon to see an account open that should be marked as closed, incorrect balances, or even outright fraudulent activity due to identity theft. With identity theft being one of the leading types of fraud in the country, it's no surprise that it could also extend to credit reporting.
By now, you should be fully informed on all aspects of boosting your credit score and the reasons for less than optimal ones.
To avoid bad credit loans, we highly recommend practicing steps to manage your finances.
Here are our favorite strategies:
Emergency Rainy Day Fund. The best way to handle unexpected expenses is to save three to six month of living expenses in a separate checking account. One way is to set up automatic deductions from your bi-weekly paycheck with transfers to a Fidelity money market or high-yield savings account. If you can afford it, 10% of your bi-weekly income is an excellent place to start.
Minimize Debt. Be sure to be strategic about managing and reducing your debt. Prioritize paying off high-interest debt first. Alternatively, apply the depth snowball method, which focuses on paying off the smallest balances first. Log all outstanding debt balances, minimum monthly payments, and interest rates to start this process. Order is key!
Tracking Spend. We strongly advocate using financial management apps like Mint.com, Simplifi, and Truebill to track your spending and control automated monthly subscriptions. They allow you to observe incoming cash flow and expenditures, provide tools to categorize your spending better and identify poor spending habits to cut unnecessary expenses.
Remember, establishing a rainy day fund, minimizing debt, and tracking spending require patience and discipline. Over time, your finances will improve, avoiding the need for bad credit loans to cover emergency expenses.
It would help to stay on top of budgeting and expense tracking to avoid bad credit loans with guaranteed approval.
One of the best ways to do this is by using budgeting apps like Mint.com, Rocket Money, PocketGuard, and Goodbudget.
Mint.com. Calling itself the number one most downloaded personal finance app, Mint.com is a wizard that helps you track your income and expenses. All your accounts can be viewed in one place with automated insights on your cash flow and spending behavior. It even offers a bill negotiation service, which Mint claims have helped save a combined $2M for all of its members.
Other services include a bill payment tracker, free credit score report, budgeting tools, subscription management, and even an Investments service where you can chip in towards your favorite stocks.
Rocket Money. With over 3 million members to date and an average review rating of 4.5 stars across 22,000+ reviews, rocking money is a force to be reckoned with. Features include personalized budgeting, expense tracking, spending alerts, financial goal setting, customized insights, and tips on how to help you save a few extra bucks every month to enjoy your life.
Like Mint.com, it also offers a subscription management service that helps you identify recurring subscriptions with automated cancellations. So far, Rocket Money has canceled more than 1 million subscriptions for its members, so it's a very effective service!
PocketGuard. Promising to" take full control of your finances," PocketGuard is a well-regarded money management app that offers a bill payment tracker, debt payoff planning, and budget category. However, arguably its strongest feature is its personalized insights, where your spending patterns are thoroughly energized to offer suggestions on managing your money, cutting back on expenses, and keeping your budget in check.
Goodbudget. Unlike Mint, Rocket Money, and Pocket Guard, Goodbudget is an envelope budgeting system allowing users to allocate income into different categories. Calling itself a " virtual budget program," it's an innovative way to save for larger expenses. Our only knock on the service is its less-than-stellar user interface with a cluttered homepage and haphazard instructions. Look at this one only after Mint, Rocket Money, and Pocket Guard.
All in all, any of the four above money management apps will go a long way toward helping you become more financially educated and reduce the likelihood of taking out bad credit loans with guaranteed approval in the future.
Over the past five years, coupon browser extensions have exploded in popularity thanks to convenience in helping users find and apply coupon codes When shopping on any commerce site. They automatically scan the web for all available coupon codes and apply them to your purchases, which helps you avoid manually "flipping" or emailing coupons to your email address.
Plus, they only take up a little space, working in the background. Once you reach a product page or upon checkout, your coupon browser extension will automatically fire and apply one or more discounts to your cart.
Plus, most are compatible with the three major browsers – Mozilla Firefox, Google Chrome, and Microsoft Edge.
Here are our top six coupon browser extensions:
Honey. Arguably the most popular coupon browser extension, PayPal-owned Honey has an extensive database of coupons. On top of deals, it offers additional perks like price trends, which lets you know how much a product costs over a specified period. We are also big fans of its "Honey Gold" program, which allows you to redeem points for gift cards.
Capital One Shopping. Formerly known as Wikibuy, Capital One shopping is a coupon/price comparison hybrid, instantly allowing you to identify lower prices for products already in your shopping cart. In addition, you can view the same product and pricing information across multiple retailers, so it's not uncommon to start your search for a product on one website before purchasing it on a second website.
One of its best features is Capital One Credits, which operates similarly to Honey's "Honey Gold" program in redeeming credits on select purchases for gift cards.
Capital One shopping is highly rated, with over 12,000 reviews averaging 4.5 stars or higher on the Google web store.
Klarna. One of the more popular "Buy Now, Pay Later" (BNPL) services, Klarna also offers a well-reviewed browser extension that offers exclusive discounts from participating retailers. However, its coupon and price comparison options are less robust than Honey and Capital One Shopping. Look to the Klarna coupon browser extension if you already use its payment service.
OctoShop. The lesser-known Octoshop is a coupon browser extension that allows you to compare prices across multiple retailers and take advantage of the lowest price. However, it focuses more on price comparisons rather than coupons. Pairing OctoShop with a coupon king like Honey, Capital One Shopping, or RetailMeNot is your best bet.
Coupon Birds. Coupon Birds is one of our favorite coupon browser extensions thanks to its simple UI and large coupon selection. However, it's more limited than Honey and Capital One shopping because it doesn't automatically compare prices across multiple e-commerce retailers. Nevertheless, if you want to avoid clogging up browser resources or if you are an irregular shopper, then Coupon Birds may be a solid choice.
RetailMeNot Deal Finder. With over 900,000 users, RetailMeNot offers one of the more popular coupon browser extensions, with input from 20,000+ stores. Like Honey and Capital One shopping, it finds and applies promo codes at checkout with exclusive offers and even cash-back opportunities via PenPal or Venmo.
By using any of the above six recommended coupon browser extensions, you'll be on your way to saving with your favorite e-commerce retailers in no time.
With unexpected expenses catching us off guard occasionally, one of our best recommendations is to have a rainy day fund. Rainy day funds set aside a minimum of 6 six months' worth of savings to pay for unexpected expenses to avoid taking out a bad credit loan.
Arguably the number one benefit of a rainy day fund is financial protection. Whether it's a broken fender bender, skyrocketing energy bills, or fixing a flooded basement, a rainy day fund with six months' worth of living expenses allows you to avoid high-interest rate loans or credit card debt.
Another benefit to rainy day funds is to avoid death itself. Remember that bad credit loans have higher than average interest rates of up to 35.99% APR, which can result in high-interest payments and debt cycles if you fail to repay the loan on time. By having an emergency rainy day fund, you can avoid taking out bad credit loans and their potential stresses.
To set up a rainy day fund, follow the steps below:
Set a Savings Goal. The first step is to determine how much you wish to save. Look for a minimum of three months, although a six month cushion is much more favorable.
Automate Savings. Your employee might arrange automatic transfers from paychecks to checking accounts if you are employed. Alternatively, you can set up automatic transfers from your checking to a savings account, converting it into a non-negotiable expense. A third option is to leverage your online brokerage.
For example, Fidelity has high-interest savings accounts or money market funds to which you could automatically withdraw a percentage of your bi-monthly paycheck. We highly recommend against active stock Investing as it will restrict your liquidity amidst volatile market conditions.
Create a Budget. No rainy day fund is complete without setting a healthy monthly budget. Review your income and expenses to identify areas of opportunity where you can cut back on unnecessary costs. For example, unused gum subscriptions on Netflix could cost $75 a month, which is better than elsewhere.
By following the above strategies and establishing a rainy day fund, you will be on track to reduce the chances of taking out a bad credit loan with guaranteed approval.
Are you looking for ways to cut down on your monthly expenses? Do you have your eye on a 40% debt-to-income ratio that you wish to drop ASAP?
To avoid the chances of taking out a bad credit loan with guaranteed approval, here are four smart money management strategies to consider:
Use Budgeting Tools. We are strong advocates of money management apps like Mint.com and Simplify. These budgeting tools allow you to track income and fixed/variable expenses to monitor spending habits and identify areas of opportunity. One of our most often used features is its categorization tools which allow you to break down expenses by category by week, month, and year.
For example, pie charts can break down your mortgage, student, and other lines of credit into actual percentages for a quick bird's eye view of your debt-to-income ratio.
By getting a breakdown of your expenses, you'll be better equipped to cut down on unnecessary ones.
Use Coupons. Do not estimate the power of a coupon. Instead, install Firefox or Chrome plugins for automatic coupon issuing when you hit e-commerce checkout pages. Five recommended browser coupon extensions include Honey, Rakuten, the Caramelizer, Coupon Cabin, and Capital One shopping.
Plus, installing browser coupon extensions eliminates the need to visit online coupon websites to "clip" coupons and send them to yourself. However, keep in mind that this does not apply to in-person redemptions.
Watch Out for Subscriptions. Living at a fast pace, it's not surprising to rack up subscriptions you didn't even think you had. These recurring monthly charges could cause a serious dent in your budget, easily missed with a casual glance at your bank or credit card statement.
Put any unneeded recurring subscriptions on the chopping block. For example, are you no longer visiting the gym? Has your Netflix watching been cut back due to a new job? If so, look to reevaluate and cancel if necessary.
Plan Your Meals. With the average Two CheeseBurger McDonald's meals now averaging over $8 nationwide, food costs have skyrocketed thanks to rising inflation and Federal Reserve action. This presents an opportunity to plan and prep your meals. You can save hundreds of dollars a month by avoiding takeout by preparing meals.
To get started, buy your groceries in bulk, set aside one or two hours on Sunday afternoons to prepare meals, and stick to your diet. Nowadays, you can get 1 pound of beef for less than $6, which could be used for two or three meals (a much cheaper alternative to a one-shot $8 Whopper Jr. meal from Burger King).
All in all, using budgeting tools/coupons, watching subscriptions, and planning your meals are all healthy ways to reduce your monthly expenses.
To compile this guide on best bad credit loans with guaranteed approval, we performed exhaustive research, starting with a wide pool of more than 30 online lending networks. Out of the 30, we narrowed them down to a top five based on the following criteria:
Interest Rates and Fees. Arguably our number one criteria, pay attention to interest rates and fees. Ensure that APRs do not exceed 35.99%, representing a maximum threshold mandated by state usury law. Additionally, ensure no prepayment or origination fees.
Most commonly associated with personal loans and mortgages, prepayment and origination only increase total overall loan cost, charging a percentage of the loan amount to pay for administrative fees, cost of processing, and lost income in interest charges. All of this is nonsensical to pay!
Transparent Terms and Conditions. Every one of our recommended lending networks has well written disclaimers near the footer of each web page, citing high-level details about its status as non direct lenders (intermediaries earning a fee or commission), privacy policies, states of operation, representative loan examples depicting total borrowing costs, and other helpful details to inform borrowers.
Loan Flexibility. Repayment options are repairable anywhere from six months upwards of 60 months with bi-weekly or monthly payments, making it easier to manage your loan. Refrain from paying attention to extension/refinancing options, as extending any loan equals poor money management. That's why bad credit loans with guaranteed approval from legit online marketplaces are better than the short two to four-week repayment terms offered by traditional payday, auto title, and pawnshop loans.
Application Process. All loan requests form should be at least five pages, taking five minutes to complete. For example, 100Lenders compartmentalizes its questions with a progress bar (across five or six pages). In contrast, VivaLoans has a simple two-page form, one for Introduction & Income and the other for Contact & Deposit information.
Gather your supporting documentation, complete/submit the loan request form, and obtain near guaranteed approval and funding to a valid checking or savings account by the next business day.
Remember 256-bit SSL encryption to keep your data safe. Kudos to any lending network that is a member of the Online Lenders Alliance (OLA), a trade organization that promotes industry best lending practices protecting lenders and borrowers from lack of transparency with resources and support to members.
By ensuring your chosen lending network adheres to the above, you're virtually assured of competitive rates and terms, blowing traditional payday, auto title, and pawn shop loans out of the water.
Before applying for a bad credit loan with guaranteed approval, what should I consider?
When considering a bad credit loan with guaranteed approval. We encourage you to pay attention to interest rates/fees, repayment terms, lender credibility, and alternative options such as 0% cash advance apps and traditional loans from banks and credit unions.
How do bad credit loans with guaranteed approval differ from traditional loans?
Bad credit loans with guaranteed approval have looser eligibility requirements than traditional loans, often requiring no credit check with only age verification (18 years of age or older) with a recurring monthly income and an active checking or savings account for loan proceeds.
What maximum loan amount is available for bad credit loans with guaranteed approval?
The maximum loan amount available for guaranteed approval of bad credit loans depends on the lender. Expect anywhere from $100 upwards of $100,000, with most lending networks operating in between. For example, VivaLoans offers first loans from $100 to $15,000, whereas MoneyMutual offers $200 up to $5,000.
Refrain from assuming you are eligible for the maximum loan amount. Many direct lenders will offer less than your desired loan amount, thanks to your income, debt-to-income ratio, employment, and other factors.
Do I need collateral to secure a bad credit loan with guaranteed approval?
In most cases, the bad credit loans you'll find that reputable online marketplaces like MoneyMutual are unsecured, meaning no collateral is required.
Can I repay a bad credit loan early without any penalties?
Bad credit loan policies depend on the lender. Only a few direct lenders charge origination and prepayment penalties, which we are highly against, as paying interest charges should be enough.
Will taking out a bad credit loan affect my credit score?
Whether or not a bad credit loan affects credit scores depends if the direct lenders report account activity to credit bureaus. Making consecutive missed payments may sometimes escalate your account to collections, quickly dropping your credit score by 100 points or more. Be sure to stay on top of payments at all times.
Can I apply for a bad credit loan online?
Yes, applying for a bad credit loan online is very easy. Online marketplaces like ZippyLoan and 100Lenders exist for that purpose, offering quick and easy loan applications that take no more than five minutes to complete.
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In short, the best bad credit loans with guaranteed approval offer an excellent opportunity for individuals to obtain quick and fast cash for emergency expenses. Whether it's an unpaid medical bill or an impromptu trip to Disney World that needs to be addressed pronto, it's good to know sub-35.99% APRs, longer repayment terms, and little to no fees will make all the difference.
