14 Easy Loans for Bad Credit Applicants

14 Easy Loans for Bad Credit Applicants
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Aaron Crowe
By: Aaron Crowe
Posted: April 24, 2019
Our popular “How-To” series is for those who seek to improve their subprime credit rating. Our articles follow strict editorial guidelines.

If you’ve been denied credit in the past, have had bill collectors call you at all hours of the day and night, or have had to pay a security deposit to your utility company, then you probably know you have bad credit. While having bad credit can make your financial life miserable, it doesn’t have to prevent you from getting a loan.

If you’re unsure of your credit score, there are many free ways to obtain this information.

Credit scores range from 300 to 850, with 300 being the lowest possible score. A “bad” credit score is usually considered to be anything below 600. If your credit score falls into this category, here are 14 types of loans that are easy to apply for and be approved for, even with bad credit.

Personal | Business | Auto | Mortgage | FAQs

Personal Installment Loans for Bad Credit with Easy Approval

Installment loans are repaid on a fixed schedule in equal payments over the length of the loan. You’ll know exactly what you’re paying — including interest — each month before accepting the loan so there are no surprises as long as you make your payments on time.

Installment loans are often used for home and auto loans and require those items as collateral in the event you miss several payments. Personal installment loans, however, don’t usually require collateral.

   
★★★★★

4.7

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

See representative example

Personal installment loans from CashUSA.com range from $1,000 to $10,000 and can be paid off between three months and six years. It can take only a few minutes to fill out its secure online form, and if you accept the offer from the lender, the money can be deposited into your account as soon as the next business day.

BadCreditLoans.com allows up to five years to repay a loan as small as $500 all the way up to $5,000. Applicants must have a steady income and a checking account, and won’t be denied a loan because they have a poor credit history.

For a much higher personal installment loan that you can get approved for quickly, PersonalLoans offers loans of up to $35,000. The money can be used for any purpose and can be repaid in as much as six years.

Short-Term Personal Loans for Bad Credit with Easy Approval

If you need a short-term loan for a bill that’s due immediately, but you don’t qualify for an installment loan, then a short-term personal loan may work for you.

These loans can be very expensive and often have high interest rates. Also known as payday loans, short-term personal loans often require the applicant have a job or a regular income of at least $800 per month for approval.

MoneyMutual helps people find short-term loans of up to $2,500 at varying interest rates. For example, a $200 loan with a term of 14 days has an effective APR of 391.07% and would require you to pay back $230. The loan amount can be deposited in your account as soon as the next day.

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

See representative example

CashAdvance.com has requirements that are somewhat stricter than those of other lenders. Borrowers must earn at least $1,000 per month after income taxes, employment must be verified, and they must have a valid home and work telephone number and a valid email address. Short-term loans are available in amounts ranging from $100 up to $1,000.

Business Loans for Bad Credit with Easy Approval

Starting a business often requires a loan to get it off the ground. But even for established businesses, a business loan can be necessary for all sorts of reasons. A business owner may need to increase his or her working capital, hire employees, maintain operating cash flow, or prepare for an expected holiday surge in business. Or, a business may just need to cover unexpected expenses.

For a business owner with bad credit, finding a loan from a bank can be difficult, if not impossible. Peer-to-peer lenders, in which investors lend money directly to small businesses, can help. Here are some to consider:

6. FundBox

Fundbox LogoFundBox offers qualified applicants a revolving line of credit and small business loans, often reaching a decision in less than three minutes, according to the company.

You connect your accounting software or business bank account to FundBox to give it insight into your business. Once approved, the loan is repaid over 12 or 24 weeks. Each week, the amount repaid — minus fees — becomes available to you again. Fees start at 4.66% of the withdrawn amount for 12-week repayment, with equal installments over the 12 weeks. Fees vary, but you always see your weekly repayment and fees before you withdraw money.

7. OnDeck

OnDeck LogoOnDeck offers short-term loans of three to 12 months at 9% interest, and long-term loans of 15 to 36 months starting at 9.99% APR.

For example, a six-month loan of $10,000 at 9% simple interest paid back in weekly payments would total $900 in interest, for a total payback of $10,900, according to the company.

8. FundingCircle

Funding CircleFunding Circle offers larger loans ranging from $25,000 to $500,000 at interest rates starting at 4.99% per year. Repayment terms vary from six months to five years.

The company’s website has an easy-to-use calculator so borrowers can see how much repayments would be. Just click on the number of years you need to repay the loan, indicate how much you want to borrow, and the calculator will give you payment information. The calculation is based on rates offered to its most creditworthy borrowers, so you may need to get a personalized rate.

Auto Loans for Bad Credit with Easy Approval

Ninety-five percent of American households own a car. It can be difficult to hold a job without one, and can even be seen as a sign that a guy isn’t dateable.

If money and bad credit are holding you back from buying a car, there are auto loans available for people with bad credit. These are called subprime auto loans and often come with requirements that include proof of income, employment of at least six months, and personal references. You may also need a down payment of $1,000 or 10% of the vehicle’s selling price. Applicants must also be able to afford car insurance and have a debt-to-income ratio of less than 50%.

  • Network of dealer partners has closed $1 billion in bad credit auto loans
  • Specializes in bad credit, no credit, bankruptcy and repossession
  • In business since 1999
  • Easy, 30-second pre-qualification form
  • Bad credit applicants must have $1500/month income to qualify
  • Click here for application, terms, and details.
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Interest Rate In Business Since Application Length Reputation Score
3.99% - 29.99% 1999 3 minutes 9.5/10

Auto Credit Express specializes in helping borrowers with bad credit, no credit, past bankruptcy, and repossession. Bad credit applicants must have an income of $1,500 per month to qualify. The company website lists the minimum credit profile score at 525 to qualify for a loan.

Borrowers can improve their credit score by making on-time payments for this type of subprime car loan, which could help them get better loan terms on their next vehicle purchase.

Car.Loan.com puts car buyers in touch with local car dealers to find the best option for their financial situation, including auto loans for bad credit. After you fill out an online form, the company will get back to you within 24 hours and can set up a meeting with a finance manager at a car dealer near you.

MyAutoLoan matches applicants with up to four lenders with offers for a loan to buy a new or used car or to refinance an existing auto loan. If approved, an online certificate or check is sent to the borrower within 24 hours.

The site’s calculators give buyers an estimate of the interest rate they’ll pay on a loan and how much they can afford.

Mortgage Lenders for Bad Credit with Easy Approval

Many loan programs are designed to help people with mediocre credit buy a home. For people with bad credit — even scores as low as 580 — the Federal Housing Administration, or FHA, backs home loans that require only a 3.5% down payment.

Military veterans can get a better deal by applying for loans backed by the Department of Veterans Affairs that require no down payment and no private mortgage insurance (PMI).

If you don’t qualify for either of these programs, there are lenders that specialize in helping people with low credit scores get a mortgage:

  • Options for: home purchase, refinance, home equity, and reverse mortgage
  • Lenders compete for your business
  • Receive up to 5 offers in minutes, and pick the best offer for you
  • Founded in 1996, LendingTree has facilitated 55 million+ loan requests and $250 billion+ in closed loan transactions
  • Click here for official site, terms, and details.
★★★★★

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Interest Rate In Business Since Application Length Reputation Score
Varies by Applicant 1996 7 Minutes 9.0/10

In business since 1996, LendingTree has a good reputation for helping homebuyers. After filling out an online application that takes about seven minutes, applicants can receive up to five loan offers in minutes from which they can select the offer that best fits their needs.

The company says that most of its customers receive loan offers of 5% or less for 30-year, fixed-rate mortgages and that it gets customers a mortgage APR 0.78 percentage points lower than that of the competition.

  • Options for: home purchase, refinance, cash-out, and debt consolidation
  • The nation's largest online lender
  • Allows applicants to buy a home with a minimal down payment (as little as 3.5% down)
  • In some cases, down payment can be a gift from a relative or nonprofit organization
  • Get pre-approved for free – before you shop for your new home – and get more bargaining power
  • Avoid paying Private Mortgage Insurance with PMI Advantage program
  • Click here for application, terms, and details.
★★★★★

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Overall Rating

Interest Rate In Business Since Application Length Reputation Score
Varies by Applicant 2000 6 Minutes 9.0/10

Another large provider of home loans, Quicken Loans offers mortgages with as little as 3.5% down. The down payment can be a gift from a relative or a nonprofit organization.

To apply, you’ll have to provide details about how much money is in each account you want it to consider when approving the loan. This can include checking, savings, and retirement accounts, and stocks and other assets.

  • Easy to OwnSM programs give options for those with lower income, limited credit history, and low down payment needs.
  • Provides the potential for minimal out-of-pocket expenses with seller contributions.
  • Offers loans that don't require monthly mortgage insurance.
  • Requires less cash upfront for your down payment and closing costs.
  • Click here for application, terms, and details.
★★★★★

4.5

Overall Rating

Interest Rate In Business Since Application Length Reputation Score
Varies 1852 6 Minutes 8.0/10

Wells Fargo is a large bank with branches across the country. Borrowers with bad credit may not consider it an option at first glance, since many large banks prefer borrowers with at least good credit.

But Wells Fargo offers home loans that call for as little as a 3% down payment on a home purchase to help people with bad credit. The bank also has a temporary payment reduction program that lowers payments for the first three years of the loan to help people get used to a monthly mortgage. The money saved can go toward reducing other debts in the meantime. Buyers should be aware that they must be able to handle the payment increases when the temporary lower payments end.

Which Online Loan Company is Best for Bad Credit?

If you have bad credit and are shopping for the best online lending company to help you get a loan, be sure to compare loan terms so you can find the loan that best fits your needs. This should include comparing interest rates, repayment length, fees, and what your total loan cost will be upon completing the loan payments. Make all of these calculations before accepting a loan offer.

High interest rates are usually the biggest factor in the cost of the loan. The more you pay in interest, the more the loan will cost you. Be sure you can afford the loan payment each month in addition to your other expenses.

Chart of Interest Rate Impact on Monthly Auto Loan Payments

Stay away as much as possible from companies that charge fees, penalties, or require collateral. Most online companies that refer customers to lenders shouldn’t charge fees because they earn their money from a commission if you’re approved for and accept one of the loans it helped connect you to.

Also, look for an online loan company that specializes in offering people with bad credit scores the financing they need, including car, home, and personal loans.

Dealing with only one lender when shopping for a loan is a mistake with any type of loan, but especially with a home loan. It’s likely to be the biggest loan of your life, so finding the best deal is worth your time. A good mortgage loan officer can help point you in the right direction so you can overcome any problems before they arise.

How Can I Borrow Money if I Have Bad Credit?

Having bad credit doesn’t have to stop you from getting a loan if you’re starting your own business, need a loan to buy a car or home, or just need a personal loan to cover your bills until your next paycheck.

Many lenders specialize in helping people with bad credit and may offer more flexible payment options because they know you might have difficulty making payments.FICO® Score Range

With many of the online companies we’ve listed, you can apply for a loan quickly and get a response within minutes to see the types of loans you qualify for. It’s an easy way to shop for multiple loan offers at a time so you can evaluate what is best for your situation.

Having bad credit doesn’t have to be forever. By paying back a loan on time each month, you can improve your credit score over time so you can qualify for better terms from lenders in the future.

How Can I Get a Loan without a Credit Check?

Many of the loans detailed above require credit checks. But you shouldn’t worry if you have bad credit. These lenders specialize in working with poor credit and are willing to loan you money if you meet other minimal requirements, including having a steady job that earns at least $1,000 per month.

If you have no credit history at all, a credit check won’t turn up anything, so it may be necessary to find a lender that doesn’t do credit checks.

Short-term loans — also called payday loans — are available without a credit check. You may have to show the lender a paycheck stub or other proof of income, but a credit check won’t be required.

Screenshot of Three Credit Reports

Lenders that don’t perform credit checks are generally payday lenders offering short-term loans with exorbitant interest rates.

These loans have high interest rates, so use them for short-term cash needs and be prepared to pay them back quickly — often within a few weeks. More lenders are using alternative data that isn’t included in a credit report to establish whether someone poses a risk as a new borrower, according to Experian. This includes personal information such as your income, employment history, and a bank account in good standing.

If you want to approach a bank or lender directly to see if it offers loans without a credit check, you may want to bring some documents to show you’re financially stable. These can include your tax returns for the past two years, pay stubs, bank statements, credit and debt documentation, borrowing history, and evidence that you’ve made progress paying off loans.

Poor Credit Shouldn’t Prevent You from Obtaining Financing

People with bad credit are often hit with bad news when seeking financing. But having bad credit doesn’t mean losing the ability to borrow money when you need it.

Many companies focus on helping people with bad credit get the financing they need, whether it’s installment loans that offer steady payments borrowers can budget for or specialized loans for short-term and long-term financial needs such as buying a car or house. Payment terms can be flexible, and you don’t have to work for months or years to improve your credit score before applying.

You can improve your credit score over time with on-time payments so it is high enough to qualify for better loan terms in the future.