Getting a loan with bad credit and getting a loan that you need quickly are two different things. But if we combine them, you become an easy target for unscrupulous lenders who only want to manipulate people whose only option is getting predatory payday loans with high interests. That is how they get people into a vicious circle of debt.
Watch our video that shows how people with bad credit can get a personal loan.
In this guide, we will be fast too. We understand that people who want money fast probably don’t have too much time to research online. Give us 10-30 minutes, and you can be sure that you even don’t have to read other articles online! We will walk you through many options based on your financial situation (credit score, current debt, how fast you need the money, and so on). We won’t talk only about loans but give you many more options to get money without even registering with personal loan companies. We will also talk about the danger of “easy payday loans,” what risks are hidden there, how to avoid them, and how you can use them in rare cases. And of course, we will also talk about personal loans for people whose credit score is not so bad. We will give you many more options.
Let’s get started!
The most important questions before we start are:
Can I get a personal loan if I have bad credit?
Yes! You can get a personal loan at a reliable rate. You just need to be more selective. These days, the loan market is much more flexible than a few years ago. There are options for everyone.
How fast do you need the loan?
If you need the money fast (for example, today), this is a problem, and your options can be limited. In this case, do all you can to increase the time frame. If you get a quick loan, you mean a few days or a week, don’t worry. We have a lot of time to work on choosing the best option for you.
Is my credit score really bad?
Many people don’t have a perfect credit score, but this does not mean that their credit is bad. Bad credit means different things to different lenders. You will find legitimate lenders with no credit score requirements in the list below ‒ they start at 0.
Basic Tips Before Applying for Personal Loans Online
Rule number one if you want to get the best personal loan for bad credit:
Shop around and compare offers
Every lender will give you different terms, and there is no better way to make the right decision than by comparing different offers. Register with many companies and get quotes. You won’t make a mistake. With every legitimate loan company, registration is absolutely free and very fast. Also, when you receive offers from them, you absolutely have no obligations to accept them. Get many offers and compare.
Wait for a few days if you have that much time
When you register and complete their application process, you will start receiving offers instantly. Some of them will be there in a few minutes, but others you will get in several days. So, wait until you compare all offers available to you.
Best Personal Loans for People With Bad Credit 2022
ElitePersonalFinance has researched over 100 biggest companies in the lending business. We focused on those who work with people with bad credit. We carefully analyzed their reputation, terms, interest rates, and APR, loan amount, additional and hidden fees, as well as their minimum credit score requirements. We picked some of the best companies available to you.
Make sure you go through all of them because each is designed for a specific group of people. Some work better for secured loans, others for unsecured ones. Some will give you a lower amount of money if you have really bad credit. Others require a minimum credit score but give more money on better interest terms. And because we know that you need the loan fast, we extracted all of the important details for each loan. This will help you make your decision faster.
If you are in a bad financial situation, you don’t have too many options. If you need fast cash and are a step away from risking your financial future by getting easy payday loans and probably getting into a debt cycle, try BadCreditLoans first.
Bad Credit Loans is a company targeting people with really bad credit. According to their website, their APR is 5.99% to 35.99%. If you have really bad credit, your APR will be close to 35.99%. But there are also chances that you won’t receive an offer with a higher APR, or you won’t receive any offer at all (this typically happens when your financial situation is really bad and the lender thinks you cannot pay the money back). And although the APR of 35.99% seems too high, it is still within the personal loan limit (a personal loan is one with APR less than 35.99%). This is still much better than getting a payday loan with an average APR of 400%.
The loan amount offered by BadCreditLoans is between $500 and $10,000. This can work great for people with really bad credit who want up to $3,000 really fast. Of course, if your credit score is not that low, you can try to qualify for an amount of up to $10,000.
Although we can’t compare BadCreditLoans with traditional predatory payday lenders, we still recommend that you read the fine print carefully before signing the contract because there are still chances to get into a debt cycle.
The good news is that there are no fees to register with this company and no obligations to accept their offers. BadCreditLoans.com is not a lender but a marketplace. They recommend that you discuss the contract with the lender carefully before you sign it. You can receive an offer in less than 10 minutes, and if you accept it, you will get the loan the same day.
Their requirements are pretty standard. You have to be at least 18 years old, have a valid phone number and email address, provide proof of citizenship or legal residency, hold a checking account, and have a regular income for at least 90 days either through a job, disability, or Social Security.
Update! PersonalLoan is different now. They have switched to something they call the VIP publisher network. In brief, their lenders’ network is much bigger and more flexible, so the chances of getting approved are about 2-3 times higher than a few months ago.
APR is 5.99% to 35.99%.
Loan amount is $1,000 to $35,000.
Loan terms are 3 to 72 Months.
Easy and fast approval if you meet their criteria.
They work with people with bad credit, but not too bad.
PersonalLoans.com is a huge loan marketplace and now a lender itself. In brief, you register with them, submit your application, and PersonalLoans tries to find you offers from different lenders. Because of their huge network of lenders, you can receive really competitive offers if you meet their criteria (Note that although PersonalLoans can work with some people with bad credit, people with really bad credit or a bad financial situation probably won’t get approved).
PersonalLoans.com works with three different types of lenders with different minimum requirements. Let’s review them and their requirements in brief.
P2P lenders. They require a minimum credit score of 600 and a minimum verifiable income of $2,000.
Bank lenders. They require a minimum credit score of 580 and an income of at least $3,000.
Personal installment lenders. They require a minimum credit score of 580.
Requirements are similar to those most of the loan companies have: You must be 18 or older, be a U.S. citizen or permanent resident, have a valid ID, a regular income, a checking account, and a good credit score (If your score is not that good, you can still get a loan but the APR will be higher and the amount probably lower).
Additional requirements for all lenders (even with bad credit history):
You mustn’t have had an account with a late payment for longer than 60 days or a recent bankruptcy.
You can’t have any recent charge-offs or a regular pattern of late payments.
For people who meet their criteria, Personal Loans can be really great. We highly recommend this site.
The application process is easy:
Be sure that you meet the criteria that we’ve discussed above. Because if you don’t, you will waste your time, you probably won’t be approved, and even if you are somewhere on the border of their requirements, you will get offers that are not so good for you (much higher APR, low loan amount …).
Fill out an online loan form.
Provide your contact information and bank account details so that our lenders can determine your loan eligibility.
Then we will send your request to their network of lenders.
You will be forwarded to a loan agreement where the lender will explain their specific terms and conditions if approved. Read them carefully! If you have questions, ask the lender and when you get the answers, ask them where you can find them in the contract!
Accept the loan if you agree. The amount will be deposited into your bank account very fast, typically on the next business day if you do so.
Upgrade Disclaimer: Personal loans made through Upgrade feature APRs of 5.94% – 35.97%. All personal loans have a 2.9% to 8% origination fee, which is deducted from the loan proceeds. The lowest rates require Autopay and directly pay off a portion of existing debt. For example, if you receive a $10,000 loan with a 36-month term and a 17.98% APR (which includes a 14.32% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 in your account and would have required monthly payment of $343.33. Over the life of the loan, your payments would total $12,359.97. The APR on your loan may be higher or lower, and your loan offers may not have multiple term lengths available. The actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges may increase the cost of your fixed-rate loan. There is no fee or penalty for repaying a loan early. Upgrade’s lending partners issue personal loans. Information on Upgrade’s lending partners can be found at https://www.upgrade.com/lending-partners/.
Upgrade is a relatively new company, but it is growing fast. It has been on the market for about 3 years only, but many big personal finance sites have decided to review it. And not only that, but they have also placed it at the top of their charts.
Use Upgrade if you meet these criteria. Your credit score is 600 or higher. You end up with $1,000 or more after paying your monthly bills. In brief, this means that they care about your actual income. It is important to them that you can actually repay the loan. Upgrade can also help people who have recently lost their job, but in this case, read the fine print carefully because there is a $10 late fee after the 15-day grace period.
APR range: 5.94% – 35.97%.
Upgrade offers unsecured loans between $1,000 to $50,000.
Terms: 3 – 5 years.
Debt-to-income ratio: 40%.
Upgrade has an A rating on BBB.
Upgrade offers unsecured personal loans. They don’t require you to put any collateral on it. Their rates are fixed, but you have to be careful about late payments or subsequent charges that increase the loan amount.
If you a loan with them, you have to visit Upgrade and complete their application. They will ask you a few basic questions there to try to find the best loan for you. Of course, it’s free to apply, and there is no obligation to accept any loan offers if you don’t like them.
If approved, your personal loan will be deposited really fast in less than a day.
There hasn’t been any good opportunity for people looking for bad credit loans so far. But now, there is OneMain. This is a well-known and established company which is almost 100 years old. It has a BBB Rating of A+.
What is typical for most personal loans that work with bad credit is that most of them have a minimum credit score required (typically 600-640). OneMain doesn’t have this requirement, and people with a credit score below this range are welcome.
This company is really flexible because they offer both secured and unsecured loans. If you want money fast, you have really bad credit and are ready to put something you have as collateral, such as your car. Then you can get a personal loan with OneMain. Although they don’t provide clear information on their APR, you can expect it to be between 17.59% and 35.99% for unsecured loans. However, for secured car loans, their APR starts from 9.99%. Expect an amount between $1,500 and $25,000. There is no minimum debt-to-income ratio requirement.
Peerform is slightly different than the companies we have reviewed in this post on fast and easy loans for people with bad credit for one reason. If you work with them, you will have to wait 1-2 weeks to get your loan. But for people who can wait for this much, Peerform can be a great company that you mustn’t skip. They are one of the best-known peer-to-peer lending platforms. They focus on people with bad credit, but not lower than 600. Also, there is no minimum income requirement. Your debt-to-income ratio has to be 40% or less. If you are here to consolidate your debt and don’t have a long credit history, then Peerform can perform great for you.
Their site has a rating of A on BBB.
APRs range between 5.99% to 29.99%.
Loan Amount: Only unsecured loans between $4,000 to $35,000.
Loan Duration: 3 – 5 years.
Late fees are $15 or 5% of the payment amount, but there is a 15-day grace period. Let them know, and there won’t be any late fee.
Are you in the process of building credit? If so, note that if you regularly release your payments with Peerform, they report your activity to TransUnion, which leads to improving your credit report.
Avant is a great pick for people with bad credit looking for fast unsecured loans. Bad credit is ok for them, but not less than 580. Below this value, you won’t be accepted. People with poor credit can apply, but their interest rate will be high. People with over $40,000 per year can benefit from getting a great APR. They are a top-rated company looking to consolidate their debt. The customer support is great.
A+ Rating on BBB!
APR: 9.95% to 35.99%.
Loan Amount: $2,000 to $35,000.
Loan Duration: 2 – 5 years.
Late fee: $25 with a 10 day grace period.
No minimum debt-to-income ratio is specified.
Personal Loans for Bad Credit vs. Payday Loans
There is neither a set definition of the term payday loan nor the exact law that describes the difference between these two types of loans. However, the difference between them is pretty obvious.
A personal loan is repaid in installments (for example, one payment per month). These loans are high, typically between $1,000 to $50,000, and the APR is under 35.99%.
A payday loan is typically a short-term loan of $500 or less, very high ARP (400% on average), and it has to be repaid in one time (typically in 2 weeks or a month) – on the next payday.
The gap between these two is obvious. Therefore, a new term has emerged in the lending industry – alternative payday loans. The easiest way to define this term is that alternative payday lending is everything between personal and payday loans, meaning APRs between 35.99% and 400%.
What is typical for companies offering alternative payday lending is that they try to be more flexible based on the person’s profile. For example, people with very bad credit have to play very close to the terms that a payday loan company has determined. But step by step, if they start repaying the loan on time, educate themselves, increase their credit score, and so on, they get awarded with a lower interest rate and a higher loan amount allowed. So, alternative payday lending looks much closer to a typical personal loan company for people with a credit profile above average, repay their loan on time, and have a reliable income.
We have decided to use these terms separately – payday, alternative payday, and personal loans. But there is no clear definition of them. For example, there are some alternative loans, where if you have really bad credit or a financial situation, you will pay higher interest than with payday loans, which we set to 400%. People in a relatively stable financial situation can also get close and even better terms than some personal loan companies can offer. Some financial experts say they are close to predatory in some cases.
Here is a list of the best alternative payday loans in 2022
What Is an Installment Personal Loan and Can I Get it If I’m With Bad Credit?
A personal loan is one of the most common types of loans that you will find. Personal loans can be used for almost any purpose, although in some cases, based on your financial situation, it would be better to find other types of loans. Typical features of personal loans are:
They are installment-based. Installment loans are paid back in installments (monthly payments).
High loan amount. Typically, people get $1,000 to $50,000. The repayment period is typically 1-5 years.
Low APR. With banks and credit unions, you will probably find some better offers than with online personal loans. But if you compare them with payday loans, for example, then personal loans are much better. We always say that a personal loan has an APR lower than 35.99%.
Personal loans typically come with a fixed interest rate. This means that the rate doesn’t change while the loan lasts. Note that some personal loans have variable interests. The downside of a variable interest rate is that it can change under any circumstances, like not repaying the loan on time, changes in your credit score, and so on.
Disadvantages of personal loans:
Note that in the application process, lenders won’t perform a hard inquiry. They lower your credit score by a few points. After the approval, the lender will perform a hard inquiry, which will lower your credit score by a few points.
Some of the online loan sites are big platforms where many lenders do business. Some of them are predatory scam lenders. Be careful about them. Carefully read the fine print before you sign.
Personal loans can be secured and unsecured. Although many bad credit personal loans still have restrictions for people with really bad credit (high APR, low loan amount, or they will just not give you money because they feel they will risk with you), secured loans can change this entirely. If you put something in collateral, for example, your car. Then you can significantly increase your chances and find many better offers for you. However, you have to be sure that you will repay the loan on time. If not, then you are putting your possessions at stake. The same goes for the cosigner. If you find a cosigner, you will get much more reliable offers. But if not paid on time, the loan can put this person in a dangerous situation, risking their financial situation and probably your relationship with them.
These days, getting a fast installment personal loan with bad credit is not a problem!
Obviously, if you have a better credit score, you will get better loan terms. But there are so many companies that want to attract people these days. So, people get loans. Also, how low is your credit score actually? There is a difference between bad credit and really bad credit. Although different lenders use different algorithms to check the credit risk, here is a table that will give you a great example of how this looks:
Exceptional (800 to 850)
Very Good (740 to 799)
Good (670 to 739)
Fair (580 to 669)
Very Poor (300 to 579)
Here is what interest rates for personal loans look like, on average:
720 – 850: 10%
690 – 719: 15%
630 – 689: 20%
300 – 629: 30% or more if you are with a really bad credit
Easy Payday Loans – Fast Problems!
If you are looking for fast cash and have bad credit, payday loans seem tailored to your needs. But the dangers of getting payday loans are huge. Payday loans are risky, and you have to avoid them. To explain why and what can happen if you get payday loans, let’s start with a basic explanation of what payday loans actually are.
Little cash, typically less than $500. Some states regulate the amount of these loans, which is most often $500.
The loan is repaid in a single payment on your next payday or when income is received from another source such as a pension or Social Security. Typically, this period of time is 2 weeks to a month.
For every $100 you get, you have to pay back $10 to $30, according to CFPB. That is really a bad deal because this would mean an APR of 400% or even more in some cases.
The Real Problems With Payday Loans and Why You Should Avoid Them
Most personal finance sites state that the main problem is the high interest that you pay. For $300, you will have to repay $345 in 2 weeks. But in fact, this is not the main problem! The main problem arises if you can’t repay the loan on this date, so read the next point.
Risk of being trapped in a debt cycle. Unscrupulous lenders want exactly this! That’s why they actually don’t care about your credit report (they know very well that it is low) and the ability to repay the debt! If you can’t repay the loan on this date, they offer you to rollover. This means paying all fees on this day (in our example, $45). But they do not reduce the principal amount that you owe. And then they repeat this until you repay the principal amount. Unfortunately, stats by CFPB found that the average payday borrower remained in debt for almost 200 days.
Why are Payday Loans Common and So Many People Use Them?
It’s a fact that millions of Americans use payday loans, and yet no one discusses that. Stats show that only 1 in 5 people pay them on time. So, are there cases where you should go with payday loans?
Let’s say that you are a young person with new credit history who has just started a great and well-payed job. You have some emergencies or need to cover some costs that you have really fast. But time is money, and you don’t know or don’t have the time to research the big loan market and find better rates for you. So, you are sure that you will repay the loan on the given date, or if not, you understand the consequences fully. Let’s say that you are sure that you will pay the amount and say goodbye to payday loans for a long time. In this case, get it.
In brief, we want to explain that there are some rare cases when payday loans work.
But keep in mind that payday loans are not always the best deal for you.
Get a payday loan only if you know what you are doing!
Do you know that you will pay more than with other personal loans? Do you understand the risk of not paying the loan on time? Are you OK with paying more interest and a bunch of hidden fees? Are you in payday loans only because you want to save time on researching? Are you sure that you will say goodbye to payday loans for the next few years after you repay the loan?
If the answer to all these questions is yes, then you probably know what you are doing.
ElitePersonalFinance is a personal finance site that provides transparent information and helps people make better financial decisions instead of manipulating where to go and who to buy from. We don’t mess with your money. Your money, your choice.
Ok, you got one payday loan because you needed money fast, and you repaid it. This has to be the last time that you got a payday loan. If you plan to get loans often, start working on your credit score and learn more about the loan market. Next time, you will get much safer and cheaper options.
Payday loan laws by states?
Do you know that payday loans are not legit in some states? In other states, they are legit but regulated by state laws. In others, they are not regulated at all. Here is a list of payday loan laws by state.
Many people can benefit from credit unions and banks. The easiest way to differentiate them:
Banks are for-profit organizations. They offer lower interest rates and high fees.
Credit unions are non-profit organizations. Their customers own them. They typically offer high interest rates and lower fees.
Local credit unions work with people with average and even ban credit. Their interest rates are lower than those of online personal loans. They serve great to members who live, study, or work in a particular area. If you meet their requirements, you have to pay a one-time membership fee and a deposit of up to $25. Then, you can apply for a loan. You can get both secured and unsecured loans at a fixed rate. The downside of credit unions is that they perform a hard inquiry on your credit file, which lowers your credit score.
We highly recommend checking all these options when you apply for a personal loan because you can get better offers.
Credit Cards for People With Bad Credit
Have you tried to apply for credit cards? Do you know that there are many credit cards available for people with bad credit? For most of you, getting a credit card will work much better than a personal loan. When you receive the card, you can spend all of the money on it within a day. You will then be required to pay the interest fee until you get it back on the card. You will also be required to pay the minimum monthly payment. If you don’t pay the money back, this minimum is typically a few percent.
ElitePersonalFinance has a great list of credit cards that can help.
It would be ridiculous to advise you to work on your credit report now if you need quick cash because improving a credit report is not a fast process. Also, we presume that you don’t have the time to read now. But there are things that you have to understand on this topic now.
How to get your credit report
Everyone can get a free copy of his credit report from AnnualCreditReport.com. Every American can get a free yearly credit report from this site, run by the Government.
You can also get a credit report and more benefits like credit monitoring and identity theft protection from sites like CreditSesame and CreditKarma for free. Some sites offer paid credit monitoring and more advanced identity theft protection. We wanted to let you know that ElitePersonalFinance has advanced articles, especially in the identity theft section for people interested in that topic. So, when you have time, you are welcome to read more from us.
If you need a FICO score, which most lenders use, you can get it from the official My FICO site, but it is expensive. There are many ways to get a FICO score for free, as some of the loan companies reviewed here give free FICO scores if you get a loan from them.
Read it and fix errors
Many credit reports contain errors, and people don’t know this until they read them. Although increasing your credit score is a long process, it is great to find some errors because you can instantly request that they be deleted, and your credit score will increase.
Today is probably not a good day for you because you have bad credit and want fast money. Bad credit steals money from you every day. But bad credit can lead to more days like this … Having a great credit report is important. Building great credit requires time. When you have time, we invite you to start with our article on how to increase your credit score.
Tips to Get a Loan
Getting a secured loan will definitely increase the loan amount that the lender will give you and lower your interest fees even if you have bad credit. But this has one big disadvantage. You have to put something in collateral, such as a car. This works great for people who are sure that they can pay back the loan on time. If not paid on time, the lender has the right to seize the collateral from you.
Avoid lenders who don’t want to check your credit history, repayment ability, and other financial circumstances
Most of them are predatory lenders who only want to get you into a debt cycle. They don’t care about your credit report means that they don’t care if you can pay the money back but only want to get you into a cycle of debt.
Using a cosigner with better credit to sign for your loan
In this case, the lender will check the consigner’s credit history to determine the amount’s interest rates. If your cosigner has a much better credit report than you, then you will get better terms. But this has one big disadvantage ‒ if you can’t repay the loan, you put the co-signer at a huge risk. They are responsible for payments if you fail to do it. You risk their finances and probably your relationship with this person.
No one can be sure that they will repay the loan on time, although some people, based on their financial situation, are 99% certain. However, others can’t say this even with a 50% possibility. Before getting the loan and in the whole process of repaying it, there is one positive thing. This can motivate you to start finding ways to make more money, like online business and so on. And also, it can change your spending habits. When a person deals with their own money, not everyone can do it seriously. But when you are dealing with money that is not yours, when you have secured your car, for example, when you know that you risk your financial future, this can change considerably.
Get a free loan time
Not a single saving expert will agree with me because this strategy will cost you money. But the product that you buy actually is freedom, less stress, and free loan time. What do I mean by that? Many saving experts will say not to get more money than you need, … so you will pay more interest, pretty obvious. Let me give one example with my first loan. I was from a bank, and the amount was $10,000, the interest rate was 7%. The total amount that I had to repay was about $700 over the amount. Ok, but this amount was over the actual amount that I needed. In fact, I needed about $5,000-$7,000 to cover my business expenses. The money that I got over this amount helped me start repaying the loan. So, when my financial situation was not great in the first few months, I had the money to repay the loan and absolutely did not care about it. Instead, I focused on my business and how to make more money from it. And it worked. Because this free-loan time helped me a lot. How much did I lose? Let’s say that I got a big part of $7,000. The interest that I had to pay was around $490. This means that the difference was only $210. Some people with great saving habits will criticize me, for sure. But in my situation, things looked like that. For those $210, I bought a few months of financial freedom, and instead of wasting this time, I focused 100% on my business, finding ways to make much more money and repay my loan faster. The next advantage – no one can predict what will happen in life. We always have some unexpected costs in our lives. So, putting some money in my pocket on the side was really a great idea. Of course, this was only one example of where this worked. Let’s say that you have a regular income, a great and reliable job that gets you a lot of money on time. Let’s say that you only needed a loan one time in your life to cover some unexpected expenses. Let’s say that you can count exactly the amount you need and how much you can repay. In these cases, I wouldn’t recommend that you apply my strategy. Count how much you need exactly, discuss with your lender how much and when you can pay it back, and go on with no extra amount. If you are sure that you know what you are doing, then go on.
Read the fine print
Read the contract carefully and if you have questions, ask the lender. Check for hidden fees. Note that people who sign the contract in an office and offline in some cases will be made to sign it fast without reading. Just sign here and there, and here is the money – they will say … You have full right to read it carefully before signing it.
Avoid payday loans and auto title loans
These are predatory. Interest rates are high, and it is easy to get into a debt cycle.
We highly recommend that you go with licensed companies that are BBB-accredited
Most of the companies listed in this guide are rated A+ on BBB. Make sure that the company is legit by checking loan law regulations by states. You should also check their physical address and whether their site is secure. You should apply only if you are sure about these things.
Try to avoid loans
Are you sure that getting a loan is your last chance? If not, we have completed a list with options to help you avoid loans or significantly lower the amount you need. Here is a list of tips on how to avoid loans.
Ask for a grace period
If you can’t start paying the loan in the next few months, ask for a grace period of time. Many loan companies can agree on a few months grace period when they won’t require you to pay anything.
Increase your credit report
It would help if you started working on your credit report, so next time you need a loan, you will receive many more offers, a high amount of money, and a lower APR. Your credit score actually steals a lot of money from you. It’s not only about loans. Your low credit score will cause your problems.
Don’t get a loan if you are not sure that you can repay it
If you need money, you have to start working on your financial situation instead. Getting a loan fast when you have bad credit and not being sure whether you can repay it will only get you in a debt cycle.
Getting a loan fast if you have bad credit is possible. The amount that you will receive is low, and the APR is high. That is why we highly recommend that even if you are in such a situation, this is the last time you read this article – How to get a loan with bad credit quickly and easily. Next time, we will be happy to see you on our page on the best personal loans. Improving your credit score is not that difficult. It requires some basic knowledge, time, and habits. We would really be happy if we were of help to you.