When you know you have bad credit, you may automatically dread the loan application process. But sometimes a financial emergency offers no other option but to look for funding beyond your current bank account. You may find it takes a lot of work to apply for a personal loan, yet you keep getting rejected time after time.
Then you see it: a lender advertising a ‘No Credit Check/Bad Credit OK’ personal loan.
But, should you avoid these types of guaranteed loans? True, you may get approved and receive those funds quickly into your account, but that convenience comes at an extremely high price.
Plus, there are actually plenty of lenders who do perform credit checks and still want to work with poor credit borrowers. They also typically come with better terms and benefits compared to no-credit-check loans.
Best Online Loans for Bad Credit
There are multiple online lenders who may approve your application despite your poor credit. One of the major benefits is that you’ll find longer, more flexible repayment terms. You may even be able to borrow a higher amount if necessary. Plus, these lenders don’t typically require any collateral to secure the loan.
While you still may be hesitant to continue your loan search application by application, wading through denials and scattered loan offers, there is an easier way. Most of our recommendations are actually for lender networks rather than direct lenders.
How does working with a lender network benefit you?
The biggest advantage is that you can fill out just one loan application and reach multiple lenders that work with bad credit borrowers. You could even receive multiple offers so you can compare the terms and conditions side-by-side. This makes it extremely easy to do your due diligence, but in a way that is simple and convenient.
Ready to find out our top three online lenders for bad credit loans? Keep reading for a brief overview of each one.
$500 - $35,000
3 to 72 months
PersonalLoans.com is a loan marketplace that matches you a variety of lenders. For peer to peer lenders, you’ll need a monthly income of at least $2,000 after taxes. Installment and bank lenders, on the other hand, require a $3,000 monthly income. In addition to at least a 600 credit score, all lenders require that you don’t have any late payments longer than 60 days or recent bankruptcies.
Features and Benefits
- Multiple loan types available
- Fast loan decision
- Funds deposited as soon as you accept offer
- Nationwide availability
$2,000 - $35,000
24 to 60 months
As low as 9.95%
Avant has worked with more than 600,000 borrowers with a specific focus on helping to raise your credit scores. In fact, most users see an average of 12-point increase within six months of getting an Avant loan. They also offer an app called ReadyforZero, which can help you reduce your debt.
Features and Benefits
- Trusted by over 600,000 satisfied customers
- No prepayment fees
- Fast approval
- Funds available next business day
$1,000 - $10,000
6 to 60 months
NetCredit is a lender that evaluates applicants on a case by case basis, rather than setting automatic eligibility requirements.
You do, however, have to be a resident in one of the following states to apply: Alabama, Arkansas, Arizona, California, Washington, DC, Delaware, Florida, Georgia, Idaho, Indiana, Kansas, Kentucky, Louisiana, Michigan, Mississippi, Missouri, Montana, Nebraska, North Dakota, New Mexico, Ohio, Oregon, South Carolina, South Dakota, Texas, Utah, Virginia, Washington, or Wisconsin.
Features and Benefits
- ClearCost guarantee. Know exactly what you owe.
- Personalized Loan Options
- Use My CreditBuilder to build credit from your loan
- Check eligibility without a credit check
Clearly, you have multiple options available to find an online personal loan that fits your specific credit needs. Plus, because these lenders offer installment loans, you can actually start to improve your credit scores by making your payments on time each month. If this is part of your borrowing goal, just make sure you confirm that your chosen lender reports to one or more credit bureaus before taking out the loan.
That’s another highlight of working with these lenders. You can receive a personalized loan quote without any obligation to commit to a loan. If you don’t like the conditions or simply get cold feet, there’s no pressure to sign.
Yes, you’ll see new inquiries on your credit report but their impact on your credit score should be minimal in the grand scheme of things. You can also apply for several loans within a short period of time and they should just count as a single hard credit inquiry since you’re just shopping for the best interest rate.
Best Short-Term Loans for Bad Credit
If you’re looking for a short-term loan or cash advance, consider one of these lenders. You could qualify for a loan that lasts as little as 90 days. The amount of your loan will be limited with such a short repayment term, but it could still cover you during a short-term emergency. Plus, limiting the amount of your loan when you have just three months to repay the funds is a good way to make sure you can keep up with your payments.
Since these lenders do perform a credit check, you can shield yourself from the potentially predatory lending practices of those who don’t require one at all. You also still get to compare multiple offers for those that act as loan matching networks.
While a flexible credit score is acceptable with these lenders, you’ll usually need to meet some specific income requirements. This helps lower the risk for the lender. The benefit for you is that you know upfront whether or not it’s worth applying because you know their basic guidelines you need to meet.
Take a look at the following two short-term loan options for bad credit so you can see how they stack up to loans with no credit check for comparison.
$500 - $10,000
6 to 72 months
CashUSA.com offers a broad range of loans, including short-term loans as brief as 90 days. To qualify, you must have an after-tax income of at least $1,000 each month. CashUSA.com will automatically withdraw your payment from your bank account each month on your due date.
Features and Benefits
- Flexible borrower requirements
- Loan request can be approved within minutes
- Money deposited as early as 1 business day
- All credit types accepted
$500 - $5,000
3 to 60 months
A loan marketplace, BadCreditLoans.com can potentially match you with multiple lenders after filling out just one application. They do have a requirement that you have a consistent income for at least 90 days, whether it’s from income, disability, or social security.
Features and Benefits
- No obligation or fee to check loan approval
- High approval rate despite credit history
- Funds available as soon as next business day
- Assisting people with bad credit since 1998
No matter what type of short-term or installment loan you choose, make sure you’re entirely comfortable with the repayment period. Any lender, regardless of whether or not they check your credit, is sure to charge expensive fees if you’re late on your payments.
Create a repayment plan that includes a backup in case you hit another financial snag somewhere along the way. Once you’ve repaid your loan, start squirreling away cash into an emergency savings fund. Even if it’s just a little extra set aside from each paycheck, you can rest easy knowing you have a small contingency plan in case of another rainy day.
Should you get a no-credit-check loan?
It may be tempting to apply for a payday loan or other type of loan that doesn’t require a credit check, but first, make sure you know exactly what you’re getting yourself into. Payday loans generally come with extremely high interest rates. However, they’re often called financing fees and even though it may seem like a small amount, it’s actually a lot compared to the small amount you’ll be able to borrow.
Most lenders that bypass the credit check also require that you link up your checking account so they can automatically take out your funds on the date repayment is due. This detail makes it incredibly important to track your finances and make sure you have the money in the account. Otherwise, you will pay some hefty nonsufficient funds fees.
If you know you won’t be able to repay the loan, you’ll likely be able to roll over your loan for an extended period. Unfortunately, that comes with an entirely new set of fees. You can start to see how you can quickly end up owing a substantial amount more than when you started with payday loans.
If you take out this type of loan, you should definitely proceed cautiously with a strong plan to repay your borrowed funds.
How to Borrow with Bad Credit — Worry Free
Be wary of jumping straight into a loan with a lender that doesn’t run a credit check. No matter what kind of lender you choose, whether for a personal loan or any other type of financing, it’s important to research your options and compare different offers.
No two lenders are alike. Each one will place a different level of importance on credit history, income, and other factors. And the way they schedule your repayment terms could affect how comfortably you can make your payments. It’s not just about getting approved, it’s also about successfully making those loan payments, whether they’re due in a single lump sum or spread out over several months.
Do some shopping and get a feel for what realistically works for you. You don’t have to be stuck with a loan that gets you trapped into a cycle of debt. Explore your options so you can make a decision you feel good about.
Even if you need cash fast, there are plenty of lenders offering bad credit loans with much more favorable terms. When you look in the right place, you may be pleasantly surprised at the choices that are available, regardless what your current credit situation may be.