Easy Personal Loans For Bad Credit in 2021

Easy Personal Loans For Bad Credit
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Ashley Dull
By: Ashley Dull
Posted: November 2, 2021
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It can be difficult to find easy personal loans for bad credit, but with the right information, you can find an online lender that fits your needs. Sometimes emergencies happen right at the worst possible moment, and the only way to resolve the situation is with a personal loan.

Our experts reviewed a range of personal loan options for bad credit borrowers and ranked the top seven based on approval rates, the company’s reputation, and loan terms, among other factors. 

Easy Personal Loans to Get With Bad Credit

If you’re a bad credit borrower, it’s often difficult to find a qualified lender willing to take a chance on you. The good news is that a poor credit score doesn’t have to ruin your chances to get a loan offer. Several emergency loan companies exist specifically to give chances to those with little credit history or with a low credit score. 

  • Short-term loans up to $5,000
  • 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 million 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 $5,000 Varies Varies

See representative example

MoneyMutual is an online lending marketplace that lets borrowers apply to several loan companies at one time. Unlike a direct lender, MoneyMutual acts as a go-between, so borrowers can submit one loan application and get answers from several lenders and save time. 

MoneyMutual gets the top spot on this list because the company has been in business for decades and has a good reputation for connecting borrowers in various credit situations with lenders willing to help them. 

With over 2 million satisfied customers, MoneyMutual has an established presence in the personal loan space. Borrowers can get a decision in minutes and — if approved — receive up to $5,000 within 24 hours.

   
★★★★★

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

As with all of the examples on this list, CashUSA connects borrowers with a network of lenders that specialize in different loan types. Bad credit borrowers gain a strong advantage by applying for multiple unsecured loan options at once because it increases the chance of finding a good fit.

CashUSA works with a wide range of loan companies that offer products for any borrower to choose from. Whether applying for a payday loan, debt consolidation loan, cash advance, or another installment loan, CashUSA’s network includes a representative list of lenders that offer payday loans, debt consolidation loans, cash advances, or other installment loans company. 

It’s worth noting that some CashUSA customers have had to deal with third-party emails and calls after submitting their loan application, but this is a risk with many short-term loan networks. CashUSA loan providers offer loan amounts from $500 up to $10,000, and borrowers can receive their loan funds within 24 hours.

BillsHappen, which launched in 2018 in Plantation, Florida, is a newcomer to the bad credit loan space. While this means that the company doesn’t have as much of a track record as some of the other choices on this list, our research shows that it’s a legitimate company to work with.

As with most lending networks, BillsHappen uses a single loan application and a soft pull on a borrower’s credit history to establish which of its lenders is likely to be a good fit. From there, those seeking easy personal loans for bad credit can work with pre-selected lenders to find the right secured loan or unsecured loan that works for their needs. 

Because BillsHappen is a newcomer to personal lending networks, there aren’t very many reviews, but our experts confirm it is a legitimate company that connects borrowers and lenders, and what reviews there are, are positive.

CreditLoan.com sets itself apart from many others in the bad credit loan industry by having more than one network of lenders. CreditLoan offers a specific network of direct lender companies interested in working with borrowers with a bad credit score. A few questions and a soft pull on your credit report tells CreditLoan which of its networks to direct you to.

While CreditLoan advertises secured loan and unsecured loan products of up to $25,000 on its website, the dedicated lenders in the company’s bad credit network cap their loans at $5,000. The loan amounts may be lower, but $5,000 is still larger than average for bad credit personal loan products. 

CreditLoan provides an answer from its network within five to 10 minutes, and borrowers receive funds by direct deposit to their bank account the next business day after signing their contract with the direct lender of their choosing.

Another long-timer in the business, Bad Credit Loans began connecting borrowers to its direct lender network in 1998. In addition to a wide range of personal loan options, Bad Credit Loans provides education to help would-be borrowers avoid falling into a predatory lender trap or being scammed.

Bad Credit Loans maintains a network of business loan companies for small business owners with bad credit to turn to for a debt consolidation loan, payday loan, or another type of emergency loan. 

The borrower can contact multiple personal loan providers and receive loan amounts from $500 to $10,000 within one business day of approval by submitting a single loan application.

PersonalLoans.com sets itself apart with technology: The site uses an algorithm to evaluate each loan application before offering it to the company’s lending network. While the minimum credit score for borrowers is slightly higher than what’s required for other options on our list, PersonalLoans.com still saves time.

PersonalLoans.com also offers a wider variety of online lender options, including peer-to-peer loans (also known as p2p loans), signature loans, and a variety of secured and installment loan options. 

Some of the participants in the PersonalLoans network may be a better fit if you need a less structured loan option. If you have a decent credit score and want a more precise set of choices in your emergency loan needs, PersonalLoans is a good place to look.

             
★★★★

3.9

Overall Rating

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

See representative example

Sometimes you don’t need large loan amounts but a smaller sum to take care of a minor emergency before payday. CashAdvance.com specializes in cash advance loans with a lender network that includes payday lenders and other unsecured personal loan companies. 

A payday loan or cash advance can provide a flexible way to handle temporary cash flow issues for a borrower with a bad credit score. The loan term is more challenging to pay back and the interest rate is likely to be higher with these loans than with other loan types, but cash advance options typically have a lower minimum credit score requirement. 

CashAdvance.com makes it easy to find a payday lender or similar option and provides borrowers the confidence that they’re dealing with a company that has been in business since 1997 and is a member of the Online Lenders Alliance.

What Is an Easy Personal Loan?

An easy personal loan is a loan option available to borrowers with a bad credit score and less strict requirements regarding credit bureau reports. The loan amounts can vary a lot from one personal loan lender to another and by the type of short-term loan the borrower seeks.

Most easy personal loans have minimal requirements, and some lenders in the space specialize in bad credit borrowers. Applications for these loans don’t require much documentation and income requirements are also generally more lenient.

Image of an approved loan application on a laptop.
Easy personal loans have minimal approval requirements and are usually based on your ability to repay the loan.

Easy personal loan options include different types of secured personal loan and unsecured loan products, including payday loan, peer-to-peer loan, and cash advance loan options. Many times these types of loans come with a higher annual percentage rate (APR) and a stricter repayment term, but for people who need emergency funds, they can be a good choice to keep the cash flowing.

How Do I Apply For a Personal Loan?

It’s easy to apply for a personal loan, but you should ensure you have everything you need before getting started. Almost every online lender requires at least the following information:

  • Proof of identification: Generally a photo ID, but some lenders are flexible and will allow any government-issued identification
  • Proof of income: Pay stubs, invoices, or other documents that show you make the minimum income required by the lender.
  • Proof of address: Lenders generally accept utility bills or similar bills to verify you are a U.S. resident.
  • Proof of age: Your ID document may also prove this, depending on what you use. Borrowers must be 18 years of age.
  • Bank account for direct deposit: Lenders need a routing and account number to distribute your funds. It’s quick and easy to open a bank account if you don’t yet have one.
  • Proof of citizenship: Most lenders require a passport, birth certificate, or another document to prove you are a U.S. citizen. Some lenders will offer loans to non-citizens but require visa or green card information.

If you don’t have all of your documents but want to get started right away, most lender networks allow you to begin your application and return to it once you have your documents ready.

Apart from the documents, you typically only need to fill out your loan application and possibly provide additional details about your situation (income, expenses, and so on) once you connect with a direct lender. 

Once the loan approval goes through and you receive your loan offer, you’ll have to sign a contract specifying your repayment term, annual percentage rate, and other loan terms. From there, you can typically expect to receive your loan payment within one to two business days.

What Can I Use the Loan For?

Once you’ve received your loan proceeds, you can use them for just about anything you want. While some loan products are intended for a specific use, once a personal loan has been deposited into your bank account, the money is yours to use as you see fit.

A personal loan is not a student loan, and we counsel against trying to use a personal loan in place of student loans for several reasons. Loan proceeds from a personal loan may be helpful for many expenses, but the interest rates may be higher and the repayment terms shorter, which makes repayment more challenging.

However, easy personal loans are a good option if you experience a sudden emergency expense, such as a home repair or car repair. Personal loans are also reasonable for covering unexpected expenses such as emergency travel or an urgent medical bill. Depending on the repayment term and interest rate, you can also use a personal loan to pay off credit card debt. 

A personal loan can help you cover any expense for which you need a lump sum of money that can’t wait for you to save up from your paycheck to pay it.

What Will My Interest Rate and Monthly Payment Be?

Your annual percentage rate (APR) and monthly payment depend on several factors. Credit history, the loan amount, the type of loan, and the duration of the loan term all play roles in the interest rate and payment installment. 

There’s a strong chance your interest rate will be higher if you have a low credit score. Another reason for a high annual percentage rate is the repayment term: Short-term loans tend to have a higher interest rate than those with a longer loan term. 

Chart showing the average personal loan APR by credit score.

Personal loans can vary dramatically on interest rates and monthly payments. The type of loan you choose can be the difference between an APR closer to 10% and an interest rate of 300% or higher. Cash advances and payday loans often have very high interest rates because they’re meant to be paid off within seven to 90 days.

In addition to the interest rate and monthly payment, some personal loan lenders require an origination fee, which may be taken out of the loan payment you receive. While not every company charges this fee, it’s worth verifying before you sign your contract.

Can I Prequalify Before I Apply?

Yes! This is actually the best aspect of working with a lending network instead of applying for individual loans. Each online lender network uses its criteria to prequalify you for a variety of loans.

Working with any of the options in this list is simple: You fill out one short form, and the lending network uses its own criteria and performs a soft credit pull. That quick credit check doesn’t affect your credit score the way a hard credit check can.

From there, the network matches your information to the available personal loan lenders in its network. Since the prequalification step isn’t as intensive as what lenders often use to determine loan approval, it’s still possible to have your final application declined. 

However, by giving you multiple options and taking the time to compare your profile with the available lenders, you’re more likely to be approved. And, of course, you don’t have to worry about damage to your credit report with each credit bureau when you prequalify. Prequalification doesn’t risk making a bad credit situation worse. 

Can a Personal Loan Help Build My Credit?

Whether a personal loan will help build your credit depends on a few factors. If the lender you work with reports your payments to any credit bureau or all of them, then paying the loan back on time can help you improve your credit score.

Credit bureau logos.
Your loan will help you build credit if the lender reports to the major credit bureaus and you consistently make your payments on time.

Most payday loan and cash advance loan companies don’t report payments to the credit bureaus. In those cases, taking these loans won’t help build your credit score. 

Most of the lending networks in this list include payday loan and cash advance loan companies, so if you want to build your credit, be sure to verify that the loan product you choose will report your account to the credit bureaus.

What Are The Signs of a Predatory Lender?

If you already have bad credit, ending up in the clutches of a predatory lender would only make things worse. To avoid signing a contract with a predatory lender, it’s a good idea to know some of the signs. 

Some basic red flags for predatory lending include:

  • High interest rates: While the annual percentage rate for personal loans tends to be higher than that of those for products like a mortgage or student loan, a wildly high interest rate is a sign to steer clear.
  • Excessive or hidden fees: The lender you work with may charge a few fees, such as an origination fee, but fees charged in advance of receiving your loan proceeds or high fees that significantly reduce the overall amount you receive are a sure sign that something is wrong. An origination fee should be a small percentage of your total loan amount if the company charges one.
  • Prepayment penalties: Fees or charges for paying off your loan in advance of the deadline are a major feature of predatory lenders. These charges may also show up in fees for paying over the minimum due or similar tactics.
  • Balloon payments: Check your repayment terms before signing your contract. Predatory lenders often claim a low monthly payment, but the contract requires a large payment at the very end of your loan term.
  • Bait-and-switch tactics: If a loan company offers one interest rate and repayment term upfront and a much steeper rate or more difficult terms in the application or loan approval, don’t sign! Bait-and-switch tactics are a common tool of predatory lenders to prey on desperate borrowers. 

Avoid lenders that have any of the above terms within the loan agreement.

What’s The Difference Between Secured and Unsecured Loans?

The difference between secured loans and unsecured loans is what the loan approval is based on and a few of the loan terms. Secured loans include auto title loans, mortgages, and a few other products. In a secured loan, the value of the asset is the basis of the loan amount.

Secured loans generally have a lower interest rate and sometimes longer repayment terms than unsecured loans because the asset you use as collateral is a physical object, like a car or home. The risk to the lending company is lower, so qualifying is easier.

An unsecured loan, like a cash advance, payday loan, or some other easy personal loan, doesn’t use collateral. The lender determines loan approval based on credit history, income, and other factors that indicate how likely a borrower is to pay the loan back in time

Unsecured loans may be the easiest option if you have bad credit, especially if you don’t have assets to use as collateral. If you don’t own your car, home, or other valuable items with which to secure a loan, unsecured loans can be a quick way to solve a temporary financial emergency.

Can I Get a Loan With No Credit Check?

It is possible to get a loan with no credit check, but almost all legitimate lenders will perform at least a soft credit check before approving your loan. Predatory lenders tend to offer loans with no credit check required because they target the most vulnerable people.

Example costs of a no credit check loan.

All of the lending networks in this list use a soft inquiry to confirm basic facts about your credit history and match you with the right lender. If you have bad credit, it may be easier to work with a lender that won’t look at your credit history at all. However, it’s a better idea to work with a lender that specifically caters to people with bad credit scores. 

Bad credit lending companies still do a credit check before loan approval, but knowing that your credit will be low, the companies are less likely to decline you on that basis alone.

Compare Easy Personal Loans For Bad Credit Online

For people looking for easy personal loans for bad credit, the options can seem difficult to navigate. Fortunately, instead of applying to several lenders one at a time, lending networks make it easy to submit one application and get several loan offers. 

You can easily compare different loans and find the one that matches your needs, regardless of your credit history.

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