Need urgent money but have bad credit? We’ve all been there. Sometimes life throws unexpected expenses our way and having a bad credit score can make the situation more difficult. Whether your car broke down, a health issue came up, or this month’s rent is due, a loan can help you cover all of that.
But some lenders will not sympathize with your situation and won’t understand your reasons for having a bad credit score. We know how it feels to be in a difficult financial situation, so to give you a helping hand, we made a list of companies that give out bad credit loans with guaranteed approvals.
Depending on the lending company and the terms you agree on, these bad credit loans can turn out to be a blessing. The loan can help you get out of your current difficult situation while also improving your credit score. Your credit score can improve drastically by sending the records of your timely payments to the major credit bureaus.
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These lending companies do not focus on credit score as much and instead require some proof of how you manage your expenses, what your monthly income is, etc.
Many of these online companies will try to take advantage of your vulnerable financial state and try to charge your high fees, annual payment, or just outright scam you. We’ve made this list to help connect you with the best lending companies offering loans for bad credit.
List of Top 5 Bad Credit Loan Companies With Guaranteed Approval
#1. MoneyMutual - Overall Best for Bad Credit Loans
The Las Vegas-based company MoneyMutual was founded back in 2010. MoneyMutual provides a marketplace where people looking for loans can connect with lenders. It acts as a middleman without having any say in the terms between the lenders and loan applicants.
MoneyMutual has a network of around 60 third-party short-term lenders that will work with you even if you have bad credit. They offer many types of loans like payday and installment loans.
To start the loan process, you just need to fill out a simple form with your personal information. The most crucial information is employment status and a minimum monthly income of $800, contact information for you and your employer, a social security number or proof of residence, a valid checking account, and be at least 18 years of age.
MoneyMutual does not charge any fees for its service, but it will give out this information to the network of lenders it works with.
After you fill out the form, a lender may contact you in a matter of hours, where you can proceed with the loan process and negotiate the terms and conditions independently from MoneyMutual. The loan process might take anywhere from a few hours to a few days, but once approved, you will get the money in 24 hours.
Straight-forward application and approval process
User-friendly website and is easy to navigate
Receive loan offers in a matter of minutes
Funds in as little as 24 hours
Educational information on the website
Many types of loans from over 60 lenders
Part of the Online Lenders Alliance
Loans of up to $5,000
Only available for U.S. residents
You must provide an income statement
APR’s can be high for some loans
Features and Advantages
Fast Approval Times
MoneyMutual is great for when you need cash fast. You can get loans in just a few hours. With a network of over 60 lenders, your chance of getting a quick loan is much bigger than with some other lenders.
After getting contacted by a lender and finishing the agreement for the loan, you will get the money in the next 24 hours.
Many Types Of Loans
MoneyMutual offers payday loans and cash advances that provide you with extra cash until the next paycheck, helping you deal with everyday expenses like groceries. Payday loans need to be paid off on your following payday, so lenders will need to know when you get paid, and you need to give them the authorization to withdraw the money from your bank account.
Cash advances work in a similar way. You can get them even if you are at your credit limit. These types of loans typically have very high-interest rates.
Installment loans and loans for bad credit are also offered, which you will need to pay off over a specific time period in scheduled payments. If you can make the payments on time, these types of loans are much better options than payday ones.
MoneyMutual has more than two million customers online. It boasts thousands of positive reviews from people who turned to MoneyMutual as a last resort. Customers loved the variety of offers from different lenders and the quick turnaround times, having funds transferred to their accounts in a matter of hours. Many people who used the service once are also returning buyers.
#2. Bad Credit Loans - Best Loans for Bad Credit Score
Here’s another company that acts as a marketplace where borrowers and loan providers can meet. Bad Credit Loans is a free service where you can fill out the information and get loan offers from lenders without the obligation to accept them.
Your credit might determine if you get an offer from a lender, but Bad Credit Loans’ vast network of lenders will allow you to get bad credit loans with guaranteed approvals.
Founded in 1998, Bad Credit Loans will help you get a loan from $500 up to $10,000 with APR ranging from 5.99% to 35.99%, depending on your credit score.
This Tacoma, Washington-based company will not only connect you with lenders but also provides explanations and education on the types of loans such as business loans, mortgage loans, student loans, auto loans, home equity loans, etc.
To get started with Bad Credit Loans, you need to fill a form providing information about the loan amount, estimated credit score, and reason for the loan. Moreover, you need to provide personal information like date and age, social security number, contact, and employment information like monthly earnings, duration of employment, employers’ contact information. Finally, add your banking details, and lenders will perform a soft background check on your finances.
Compares offers from multiple lenders
Flexible terms and payments
Options for unsecured personal loans
Information about each lender provided
Loans of up to $10,000
Based and regulated in the U.S.
Fast and easy application
Installment loans can improve your credit score
Receive the money within 1-2 business days
People with very low credit scores might not get loans above $1,000
APR’s can get very high
Features and Advantages
A cool little feature of Bad Credit Loans is comparing offers from lenders. Once you complete the online form and it’s forwarded to the network of lenders, you will most likely get multiple offers. You can compare these offers side-by-side to see which one will best suit your needs.
Bad Credit Loans does not charge you anything for providing services. Instead, it may get a commission from a lender if you choose to work with one.
Loans for Different Needs
Bad Credit Loans works with lenders who offer multiple types of loans for different needs. For example, if you don’t qualify for a traditional FHA or USDA mortgage loan, it will connect you with lenders that work with mortgage loans for bad credit. Other types of loans include student loans, personal loans, auto loans, and business loans.
Bad Credit Loans has helped even the people with the worst credit scores get loans when they need them. It has been in the business for quite some time, so naturally, it has amassed thousands of reviews from satisfied customers. People enjoyed the customer service, the number of offers from lenders, and how fast they got access to the money. The only complaints were over high-interest rates, but those are not determined by Bad Credit Loans and are agreed between the third-party lenders and the borrowers.
#3. CashUSA - High Chances of Loan Approvals
Similar to other companies on our list, CashUSA acts as a bridge between borrowers and various lenders. You can get a bad credit personal loan for up to $10,000 even if you have a terrible credit score. However, having a bad credit score can seriously influence interest rates. The APR varies from 5.99% to 35.99%.
CashUSA works with both state lenders and tribal lenders, which can come in handy when you’re not able to qualify for traditional lenders. You may also be able to get an unsecured loan, meaning you don’t have to put up collateral such as your car.
To get started with CashUSA, you fill out a simple form providing information about your name, age, email, social security number, approximate credit range, checking account, official job title, monthly income, how much you need to borrow, employers contact information, whether you own a house, etc.
After you provide this information, CashUSA will send this form to its network of lenders for review. Once you get an offer from a lender, it’s crucial to look over the deal and contract to see if the terms and APR are to your liking. Once agreed upon, the loan money will be deposited into your account in as little as 24 hours.
CashUSA also provides free educational materials that will help you better understand loans and the benefits and consequences they can bring.
Quick and convenient application process
Vast network of state and tribal lenders
Available in all 50 states
Loans are tailored to your financial status
Loans of up to $10,000
Over a million monthly users
Education center with beneficial information
Protects your data and privacy using encryption and a secure system
Requires a lot of detailed personal information
Might be selling your data to advertisers
Features and Advantages Free Service
CashUSA is not a lender, so it won’t charge any fees for the service. Any contract fees or interest rates you might pay are negotiated between you and the lender separately from CashUSA. In this regard, you can use CashUSA just to see what kinds of offers you will get.
Many loan services will have a minimum credit score requirement. With CashUSA, there is almost a 100% guarantee you will get an offer from a lender. The interest rates might be higher because of the risk of working with bad credit, but you will still get the loan.
Excellent Education Center
CashUSA has one of the most extensive education centers about everything related to loans, debt, and personal finances. You can learn about banking, credit, finances, and more. Articles are published regularly to help educate you on how to manage your finances better.
CashUSA has been providing quality service for a while. It has proven that it can get loans for even the worst credit scores, especially for smaller amounts of money. People have also praised them for the speed of deposit. Typically, you will receive your funds in 24 hours.
#4. Personal Loans - Best Company for Personal Loans
Founded in 2001, Personal Loans has been in the game of online lending for a while now. As with the other companies on our list, Personal Loans does not provide the loans itself. It only works as a middleman between lenders and borrowers.
Personal Loans offers the most diverse loans, ranging from $500 to $35,000. You can get a $500 loan with a 90-day repayment period. It has a vast network of lenders, and if none of them are willing to work with you, Personal Loans can further send your information to third-party lenders that could potentially provide a loan.
This Houston company will come in handy when you need bad credit loans with guaranteed approvals. To apply for a loan, you start by filling out a simple form. You provide personal information, contact information, banking information, and things like loan amount and reason for the loan. If you meet the citizenship, age, and banking requirements, lenders will contact you to offer you a loan, and you can negotiate the terms.
Personal Loans offer peer-to-peer loans, personal installment loans, and personal bank loans. All of these require you to have an income of at least $2,000 per month.
Get funds in as little as 24 hours
High loan ceilings of up to $35,000
Options for short repayment plans, so you don’t overpay interest
Easy application and approval processes
Extensive network of potential lenders
Repay loans in up to 72 months
Well-designed and informative website
Based in the U.S.
APR’s can get very high
There is a chance your request does not get approved
Features and Advantages Simple Online Form
A significant advantage of Personal Loans is how easy it is to get connected to lenders. Filling out the online form will take you a few minutes, and that form is sent through the network of lenders as soon as you submit it.
The application is run through the algorithm and connects you with lenders seamlessly.
Quick Funding Times
The whole process of getting a loan with Personal Loans is efficient. The application takes no time, and once you get approved for a loan, you will have it in your checking account the following business day. When you’re in dire need of money, fast funding is crucial.
A cool feature of the website is that it lets you see the many lenders and how they stack up against each other. You can compare your options for loans side-by-side, seeing how well you fare overall and allowing you to choose the best fit.
People generally like working with Personal Loans, saying that fast funding with relatively low APRs is all they were looking for. Customers have had solid experience with the lenders provided by Personal Loans, and we saw many comments complimenting the quality of the customer support staff.
Millions of consumers are using Personal Loans, and for a good reason, Personal Loans does the same thing as other companies on this list, but with some better options. It has more flexible terms, higher upper limits, longer repayments, and varied loan types.
#5. Credit Loan - Best Interest Rates for Emergency Loans
Credit Loan will provide loans to just about anyone in dire needs. Founded in 1998, Credit Loan has served more than half a million people with bad credit scores. Credit Loans wants to give a chance to everyone, and most likely, you will get a loan approved. But as with all risky loans, APRs will be high, and the maximum loan amount will vary.
Credit Loan is an excellent choice for getting loans from $250 to $40,000. The site is free and will connect you with lenders that are online immediately. To get started, you submit your information, get connected to a lender, and if approved, you will have the funds in your account within 24 hours.
You can get many types of loans, including auto loans, bad credit loans, personal loans, and student loans.
What’s also cool about Credit Loan is the regularly updated blog that has tons of information about banking, personal finance, loans, etc. This is great for people to learn a thing or two about finances. It teaches you how the credit score is calculated, hard vs. soft pulls, how to calculate loan repayments, etc.
Loans of up to $40,000
Has been in business since 1998
Excellent educational and informational materials
Personal information is protected and secure
Funds deposited in 24 hours
Verified by TRUSTe
Applying for a loan takes less than 5 minutes
Detailed descriptions for loan types
Loan tools and calculator
Bad credit applicants may incur high APRs
Features and Advantages
The loan calculator asks for the type of loan, loan amount, term (months), and interest rates, and it will show you how much you need to pay each month. Moreover, you can use this tool to compare APRs from different lenders.
Education About Loans
Credit Loan has a great educational blog we’ve already touched upon, but not only that, it offers a lot of education about the types of loans. For example, if you want to learn about Auto Loans, it will teach you how to calculate if it’s worth it, should you buy or lease, and more. There are also lender and bank reviews on the site where you can see who you’re dealing with.
Credit Loan cares about your privacy and keeps your information secure. Credit Loans is verified by TRUSTe and has certifications like McAfee SECURE, meaning you are safe while browsing the website. This is very important because you wouldn’t want personal information about your finances to fall into the wrong hands.
We’ve gone through multiple third-party review sites, and Credit Loan has some of the best ratings by customers. People were satisfied with the fast loan approvals and how fast they got their funds. It’s the perfect site for getting personal loans. Moreover, people liked how Credit Loan states which lenders it works with and even had reviews about them.
Other compliments went in the way of the helpful customer support that will assist you with any problems. The negative reviews we read come from people who didn’t get approved for a loan, which means they’ve had insufficient credit scores and payment history.
Credit Score Explained
We’ve spent all this time talking about bad credit loans with guaranteed approvals, but we haven’t touched on the subject of what is a credit score and what makes up a bad credit score.
What Is a Credit Score?
A credit score usually refers to the FICO credit scoring system. FICO (Fair Isaac Corporation) is the industry standard scoring system used by most lenders and banks.
The FICO score is a 3-digit number based on information from your credit report. The FICO number helps lenders decide on the likelihood of you repaying a loan. The FICO score determines how much you can borrow, how many months you will need to repay, and interest rates. Having a higher FICO score will net you better conditions on your loan.
FICO Score Ranges
Lenders set their own ideas of a good FICO score that may vary, but in general, credit rankings go as follows:
FICO scores below 580 signal a poor credit rating, and you’re considered a risky borrower.
FICO scores of 580 to 668 are rated fair, and many lenders will approve a loan.
FICO scores of 670 to 739 are good, and this score is slightly above the U.S. average.
FICO scores of 740 to 799 are considered very good, and you’re a very dependable borrower.
FICO scores of 800+ are considered exceptional, and you will get the best possible terms and conditions on your loan.
Most companies on our list connect people with scores from 500-600 that are considered risky, with lenders that are willing to work with them.
How the FICO Score Is Calculated
You can check your credit score for free once a year, using AnnualCreditReport.com. Your credit score is a collection of a couple of things:
Payment history 35% - paying bills and monthly payments on time improves your score.
Credit utilization 30% - the amount of available credit you use up from all credit cards.
Length of credit history 15% - how long have your accounts been open, and how often do you use them.
Credit mix and types of credit 10% - the mix consists of credit cards, loans, and accounts you have.
New credit 10% - how many accounts have you recently opened. Having too many accounts and new credit is considered risky.
Benefits and Negative Effects of a Bad Credit Loan
Getting a bad credit loan does not necessarily mean it’s a bad thing. Bad credit loans can improve your current situation and have positive effects.
It’s simple, really. A loan can get you the money you need right now, and if you can afford to pay your monthly payments on time, it will positively impact your credit score. Paying back a bad credit can affect your payment history positively. A loan will also diversify your credit mix, and having a positive track record on different types of debt, will improve your credit score.
Bad credit loans are much better than maxing out your credit cards, which would harm your credit score by driving up your credit utilization rate.
Bad credit loans usually have high interest rates, so repaying it will cost you a lot more than it would on a good credit score. Also, there are drawbacks to the way lenders check your credit history.
Your credit score is hurt when lenders perform a hard pull on your history. Hard pulls happen once you apply, so make sure that when you explore options from lenders, they only do soft pulls on your history, which do not hurt your score.
Tips for Improving Your Chances of Getting Approved
Having a higher credit score is how you improve your chances of getting a loan, and we will show you a few tips on how to do so.
Have Your Documents Ready
Lenders will want information regarding employment, proof of monthly income, identity, banking information, and more.
Having the proper documentation ready will help you go through the lending process quicker and more efficiently. Websites that act as a marketplace for lenders and borrowers will have you fill out quick forms with all this information, but lenders can further ask for additional information, and having it handy will help.
Get a Cosigner With Good Credit
If you have a friend or family member who would be willing to act as a cosigner on your loan, then that is a great idea. Having a cosigner will increase your chances of getting a loan approved, and you could get better terms because the cosigner’s credit score is also taken into consideration.
Only Take What You Need
Never get a bigger loan than you need to help your current situation. Taking on a more considerable debt can sometimes be tempting, but we do not recommend this. For example, if you need $2,000 and apply for a $5,000 loan, it is considered risky, and the lender may doubt your ability to repay that amount.
Make a Payment Plan
Remember to include the monthly payments in your budget and always have them ready.
Making on-time payments is very important because being late on payments might net you additional fees. Paying on time will not only help you avoid penalties but will have a positive effect on your credit score.
Failing to pay will only further your complex financial situation and get you further into debt. You will be asked to pay higher interest rates, and the cost of the loan will also increase.
Don’t Apply for More Than One Loan
If you’re in a rush to get the money and try to apply for multiple loans, don’t do it. Applying for multiple loans can potentially hurt your score because of hard pulls, and the lender can see that you applied for more than one loan. So it will hurt your chances of a lender lending you the money.
Pay Off Past Debts
Lenders who give out bad credit loans with guaranteed approvals will most likely look at your debt-to-income ratio. The ratio is calculated when your monthly debt payments are divided by your monthly income. Having this ratio around 36% and below will drastically increase your chances of approval. Consider paying off past debts that won’t cost you much but will decrease your debt to income ratio.
Factors to Consider When Getting a Loan on Bad Credit
There are many factors to consider before getting the best possible loan for bad credit. If you’re planning on getting a personal loan online, consider the following criteria.
It goes without saying that interest rates play a significant role when deciding to take out a loan. It’s in your best interest to get a loan with an affordable interest rate. Always make comparisons of the interest rates offered by multiple lenders. Having a better credit score will get you much better interest rates.
Some credit lenders will offer a fixed interest rate for all types of credit. But there is also a variable interest rate that fluctuates with the index rate.
Terms and Conditions of the Agreement
Once you get in touch with a lender that is ready to give you a loan, the loan agreement will be given to you. Always read the terms and conditions of the contract very carefully. The deal will also include information like amount loaned, APR (Annual percentage rate), time period, etc.
By reading through the terms and conditions carefully, you make sure that the loan is acceptable for you and you have no issues. You need to be certain that you can make the payments in time without causing you problems.
Additional Charges and Fees
Taking up a loan can incur other charges like late payments, commencement, inadequate funds, bounced checks, transaction processing fees, and more. Some lenders might charge fees, and some don’t.
There are also origination fees that can be adjusted to the loan. This depends on the lender, and some lenders charge a fee for delayed payments, while others give out the additional time of two weeks before charging a fee.
Be Wary of Scams
The online money lending business is full of scammers. People looking for bad credit personal loans are especially prone to get scammed because they are more likely to have an urgent need for money.
Newbies can easily get scammed, but we have some advice to help you avoid it. Fraudulent lenders will not be interested in your payment history. This is a huge red flag because payment history is one of the most important factors lenders consider.
Scammers are usually interested in getting advance fees and fees for the documentation. They will most likely demand some sort of payment using your prepaid card. Avoid lenders like these at all costs.
FAQs Regarding Bad Credit Loans How Do I See What My Credit Score Is?
Each year you have the right to request a free credit score assessment put together from your yearly credit history from the three bureaus. To get a copy of your credit score, you can visit annualcreditreport.com.
Plenty of institutions like banks and government agencies will gladly do a free FICO credit score assessment. Knowing your exact FICO credit score will help you when negotiating the terms with a lender.
What Are the Setbacks of Having a Bad Credit Score?
A bad credit score will have a negative impact on your life. It can hold you back from growing your business or buying a house because you will fail for a secured loan when applying for one. Even if you do get a loan, the terms and interest rates won’t be favorable.
Also, you can’t benefit from something like a line of credit when you urgently need it. You will face financial restrictions on getting student loans, loans for a car, personal loans, and credit cards. Having a bad credit score is not the end of the world, and it can be improved through good financial practices, but keeping it on a solid level is recommended.
How Can I Improve My Bad Credit Score?
There are a couple of things you could do to improve your score: Keep track of your score and get yearly reports, take care of your installment payments on time, pay your bills, don’t overuse credit cards, and keep them low relative to their limits, don’t use too many credit cards, avoid applying for multiple loans, etc.
You can also build up your credit with the help of professional financial advisors, but that could cost you a lot of money. All in all, if you keep paying or payments on time and have a stable and solid income, your credit score will increase.
How to Get a Personal Loan With a Bad Credit Score?
Our article is all about getting bad credit loans with guaranteed approvals. Online lending is more forgiving for bad credit scores, but that doesn’t mean that these types of loans will come cheap.
Having a bad credit score won’t stop you from getting a loan with any of the services we’ve shown you here, but it does mean higher interest rates. When you have bad credit, you are considered a risky customer, so, naturally, you will be given higher APRs.
How Much Money Can You Borrow When You Have a Bad Credit Score?
When using online lenders, you can typically get loans ranging from $500 to $35,000. But the amount you can loan is determined by the lender. The lender can decide on a limit based on your income and creditworthiness. Large limits are reserved for people with good credit scores or at least people with high monthly incomes.
If you want to borrow a more significant sum of money, consider improving your credit score before applying.
Bad credit loans are a good solution to unfortunate events as compared to secured loans. Life sometimes brings unexpected expenses like weddings, car repairs, home repairs, etc. As long as you can afford them, bad credit loans can turn out to be a blessing.
Make sure to carefully read what we’ve discussed, use your free credit check, compare multiple lenders before applying, create a monthly payment plan, and use everything at your disposal to get a favorable loan.
All that is left now is to take out that loan and get immediate help from the comfort of your home.