6 Places to Borrow Money Online

6 Places to Borrow Money Online
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Eric Bank
By: Eric Bank
Posted: November 26, 2019
Our popular “How-To” series is for those who seek to improve their subprime credit rating. Our articles follow strict editorial guidelines.

Consumers with all types of credit can borrow money online. That means you can access a cash loan even if you have bad or no credit, with or without a credit check.

The six loan matching companies we review here specialize in finding you an online loan for bad credit. They all work with lender networks that are happy to consider your loan requests and work with you to provide the loan you need.

These loan companies fill the gap left by many banks that will not issue loans to consumers with poor credit. They also offer convenient and fast service that bank branches can’t match.

Best Places to Borrow Short-Term Money Online

Sometimes, you need a little extra cash to get you through to your next paycheck or benefits check. These two loan companies specialize in short-term cash advances that you repay in a week or two.

  • Short-term loans up to $2,500
  • Online marketplace of lenders
  • Funds available in as few as 24 hours
  • Simple online form takes less than 5 minutes
  • Trusted by more than 2,000,000 customers
  • Not available in NY or CT
  • Click here for official site, terms, and details.
★★★★★

4.8

Overall Rating

Loan Amount Interest Rate Loan Term Loan Example
Up to $2,500 Varies Varies

See representative example

MoneyMutual is a source of short-term cash advances of up to $2,500. You can request a loan despite bad credit because the lenders on the MoneyMutual network look beyond credit scores to get you cash quickly, often the next business day after approval. More than 2 million customers have obtained loans through the lending source.

  • Short-term loan of $100 to $1,000
  • Bad credit is welcomed
  • Large network of lenders
  • Loan decision as fast as a few minutes; funding as soon as next business day
  • Required: Income of $1000+/month and at least 90 days on job
  • Click here for official site, terms, and details.
             
★★★★

3.9

Overall Rating

Loan Amount Interest Rate Loan Term Loan Example
$100 to $1,000 200% - 2,290% Varies

See representative example

CashAdvance.com can get you a short-term cash advance from $100 to $999 that you repay on your next payday. You start by filling out a short loan request form that CashAdvance.com circulates to the lenders on its network, which operate in most states. You then finish applying with the chosen lender.

You need to be a U.S. citizen, age 18 or older, with income after taxes of at least $1,000 per month.

Best Places to Borrow Long-Term Money Online

Perhaps you need a longer-term loan. The following four loan companies can arrange online installment loans with terms of several years or as short as three months. You need not have a good credit score as long as you have a checking account.

   
★★★★★

4.7

Overall Rating

Loan Amount Interest Rate Loan Term Loan Example
$500 to $10,000 5.99% - 35.99% 3 to 72 Months

See representative example

CashUSA.com will work with its lender network to get you a loan if you earn at least $1,000 per month after taxes, even if you have bad credit. Loan amounts start at $500, and you need not submit to a credit check.

You repay in fixed installments for three to 72 months. Once approved, you should receive the loan proceeds deposited into your checking account within a day or two.

CreditLoan has been arranging loans since 1998 and has served more than 750,000 borrowers. The lenders on its network can lend you from $250 to $5,000 despite bad or scant credit. As with all the loan companies in this review, CreditLoan charges no fees for its service. Check out its personal loan calculator to preview your monthly payments.

Bad Credit Loans is a loan matching service where a network of lenders can get you a loan offer after you fill out a short request form. With experience dating back to 1998, it can arrange loans from $500 to $5,000 with terms of three to 60 months to repay.

You must be a U.S. citizen, 18 or older with a valid email address. The network lender will determine the actual APR and terms.

The lenders on the PersonalLoans.com network can offer you a loan from $500 to $35,000. If approved, you’ll have three to 72 months to repay.

You must be at least 18 years old and a U.S. citizen or resident with regular income. You fill out the online request form to access a lender that will set your interest rate and terms. PersonalLoans.com operates in all 50 states.

How Can I Borrow Money Online Instantly?

The online lenders in this review make it easy to apply for a loan in just a few minutes and get an instant decision. It’s amazing how quickly they work.

Each provides a short online loan request form that it uses to match you to a network lender. The purpose of the request form is to qualify you for a loan and to determine which lender best suits your needs.

Direct Lenders vs Lending Networks

Once you prequalify, you are automatically transferred to a lender’s website where you complete the application process. Typically, you’ll provide income and residence information that the lender will use to evaluate your request. If you meet the lender’s requirements for income and other factors, you’ll be offered a loan with a specified APR and repayment period.

You are under no obligation to accept the loan offer, but there is a time limit to decide whether to take it. The offer can be made so quickly that it makes sense to take a minute to carefully evaluate it.

Ask yourself whether you can afford the repayment terms and interest rate. If you decide to proceed, you can expect to receive the loan proceeds within a business day or two.

The lender makes it easy to repay the loan. On each payment date, the lender will access your bank account and collect the amount due.

You don’t have to write a check or remember to transfer the money — the lender sets it all up. Your task is to ensure that you have sufficient money in your account on the payment date, lest you be charged overdraft and late fees.

Can I Borrow Money Online with No Credit Check?

Banks use credit checks to evaluate the riskiness of a potential borrower. They may use one or more of the three national credit bureaus (Experian, TransUnion, and Equifax) to check your credit score and perform a hard inquiry on your credit report.

That hurts your credit score by about five points, although your score will recover within a year. But the lending companies reviewed here all offer no-credit-check loans that will not affect your credit score.

To approve loans without a credit check, these lenders will need to verify that you:

  • Are at least 18 years old
  • Are a U.S. citizen or resident
  • Have a checking account
  • Have a regular income from an employer, Social Security, or some other source

If you meet the lender’s criteria, you can be offered the loan without a credit check. Bear in mind that the APR the lender will charge is dependent on its perception of your creditworthiness.

Without a credit check, the lender will naturally have to charge a higher APR because of the added credit risk the lender is taking on. That’s the cost of having bad or no credit.

One alternative is to boost your credit score before applying for an online personal loan. This requires some lead time, but you can take a few steps to quickly improve your credit score:

  • Review and correct your three credit reports. You can get them for free at AnnualCreditReport.com. The credit bureaus must respond to your request to fix your reports, and removing mistaken derogatory information will immediately increase your score.
  • Use Experian Credit Boost to immediately add a dozen or more points to your credit score. This free feature gives you credit for your utility and rent payments, as well as benefits, and it’s free.
  • Resolve delinquent accounts and collections. You can ask a collection agency to remove itself from your credit report as part of your settlement with it.
  • Reduce your credit balances, and make sure you repay each account without missing any due dates.

Taking these steps may raise your credit score enough to allow for a credit check and access to a lower APR.

Can I Get an Online Loan without an Income?

Truthfully, you cannot get an online loan without some form of income. The good news is that your income does not have to come from employment. Here are some alternative sources of income that can qualify you for an online loan:

  • Social Security retirement benefits
  • Social Security disability benefits
  • Social Security survivor benefits
  • Federal or state welfare programs
  • Pension income
  • Annuity income from insurance contracts or retirement accounts
  • IRA required minimum distributions
  • Unemployment benefits
  • Regular payouts from lottery winnings
  • Trust income
  • Guaranteed royalties
  • Rental income

As you can see, unemployed individuals have many possible alternative income sources that will suffice for the online lenders reviewed here. You will also have to meet the requirements for citizenship/residency and age. All the online lending services require that you have a bank account for the transfer of loan proceeds and repayments.

You could consider alternatives to online personal loans if you can’t prove any sources of income, such as:

  • Loans from friends and family. These can be easier to obtain and have very flexible terms. Beware of souring important relationships.
  • Credit card cash advances. If you own one or more credit cards that offer cash advances, you can obtain cash without filling out an application form.
  • Asset-backed loans. You may be able to arrange a cash-out refinance loan backed by your home or car. Typically, you can receive cash up to the equity you own in the asset. The equity is the difference between the asset’s value and the loan balance.

While these are all valid alternatives, you should not pursue loans you cannot repay, as this can further damage your credit and could result in bankruptcy.

Compare Rates and Terms from the Comfort of Home

Loan matching services make it easier to borrow money online. By filling out one short loan request form, the service will interrogate its network of lenders and find you one or more willing lenders.

By using any of the loan companies reviewed here, you can compare rates and terms without cost or obligation, all from the comfort of home. As always, only borrow what you need and make sure you repay in full and on time. Doing so can help you improve your credit score and reduce the interest rates you’ll have to pay in the future.