Loans for Bad Credit

Discover Your Options: Loans for Bad Credit

Has your spotty credit history made your loan applications less likely to be considered by traditional financial institutions?

Do you find yourself stuck relying on payday loans where high interest rates send you into a debt cycle?

Are you worried that the only types of loans available to you have terms and conditions that will send you into bankruptcy?

Fortunately, you don’t need to sweat credit checks any longer. There are a number of online lenders who provide unsecured personal loans to applicants with bad credit.

Join the wizards behind as we investigate various types of bad credit loans, lenders, products, and services.

Get a Loan Despite Having Bad Credit

Okay, your credit score has dropped below the pivotal 600-mark. That means you’re running out of available loan offerings with affordable, reasonable terms and conditions.

Fortunately, there is an option for you out there—that being bad credit loans.

Finally, an easy way to get up to $5,000!

 Need an extra $2,500? BadCreditLoans can help when others can't.

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It’s indeed possible to succeed in your application process with a FICO score below 600. And it isn’t only through predatory payday lenders. More specifically, online platforms exist with low overhead costs, lessening the risk of taking on bad credit applicants.

Yes, you’ll have a more challenging time procuring personal loans with bad credit if you apply through banks or credit unions. However, the lending companies discussed above often specialize in working alongside applicants with lower credit scores. Some of them are specifically for debt consolidation, for instance. Whereas others are more equal opportunity companies.

Bad Credit Loans FAQ

Read on to learn the answers to some of our most frequently asked questions we receive about bad credit loans:

What is a bad credit loan?

Most lenders tend to ask for your credit history when you try to take out a personal loan. Moreover, loan amounts and annual percentage rates will depend on such history. Of course, people with more reliable history and high scores are deemed “creditworthy” and low-risk borrowers. Conversely, when your score is 580 and under, you’re not considered a viable applicant and regarded as high risk.

Unsurprisingly, banks and traditional financial institutions are almost 100% opposed to approving applicants with less-than-stellar credit. Instead, special debt instruments, called bad credit loans, are provided by online personal lending platforms.

Something worth noting about these loans is that they’ll command a far higherAPR (between 18% and 36%) and lesser amounts. Some bad credit lenders won’t go higher than $5,000. Conversely, others might go all the way up to $40–50,000—but they won’t exceed that number.

What are the types of bad credit loans? 

There are secured bad credit loans, which require collateral (eg. home or car) but charge a more affordable APR. Alternatively, unsecured bad credit loans don’t require collateral but charge a vastly steeper APR. Generally, bad credit borrowing is done through a personal lender, meaning it can function as debt consolidation or refinancing. Furthermore, you can use it for your business or emergency purposes, such as home repairs.

How to get a loan with bad credit

Banks are generally a no-go if you need a loan and have bad credit. Some credit unions (eg.Equifax) don’t strictly weigh your credit score and will potentially lend to applicants with low scores. However, you’ll have more luck if you enter “personal loans for bad credit online” into the Google search field.

This way, you’ll find a less traditional lending company willing to accept applicants with lower FICO scores. They weight] many other factors, such as your income and overall credit history. All you must do is fill out the online application, ensure you meet all the requirements, and you’ll likely find out if you’re approved in—at most—a business day.

Where can I get a loan with bad credit?

Payday lenders will lend to you if you have bad credit. Sadly, they can be predatory—and there are even questions about the legality of these companies’ practices. You can reach out to a credit union, who will provide loans to candidates with poor credit. Though it won’t be easy.

Here’s your best option: Online bad credit personal loan providers often accept high-risk applicants at more reasonable interest rates (more affordable than credit cards) and with fixed instalment payments.

Can I get a car loan with bad credit?

Getting approved for car loans is possible even with a credit score in the 500s. However, you’ll generally receive an average 14.25% APR for new car loans and 19.81% for used cars.

How to get an installment loan with bad credit

Personal loans are all installment loans. Provided you apply with a personal loan company that lends to applicants with poor credit, you’ll end up paying in fixed installments over a predetermined period.