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’ payday loans.
With no credit check loans 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 online lenders for bad credit loans? Keep reading for a brief overview of each one.
Features & Benefits
- Flexible borrower requirements
- Loan request can be approved within minutes
- Money deposited as early as 1 business day
- All credit types accepted
CashUSA connects borrowers with lenders. Each application is sent to the lender most likely to lend to the borrower. Because it works with a variety of credit profiles, it is not only a poor credit loan broker.
Interest rates vary depending on the lender, so make sure you read through the terms for each emergency loan before you choose. Applying online only takes a few minutes, and funds are often available the next day.
Loan Amount$1,000 – $35,000
Loan Term3 to 72 months
Features & Benefits
- Multiple loan types available
- Fast loan decision
- Funds deposited as soon as you accept an offer
- Nationwide availability
You can get a loan through PersonalLoans.com with credit scores as low as 600. Each lender in their network offers its own unique interest rates.
The quick and easy online application only takes minutes. You’ll have a decision within a business day of submission.
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. They will 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 bad 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 it’s worth applying because you know their basic guidelines you need to meet.
Take a look at the following two short-term loans for bad credit so you can see how they stack up to loans with no credit check for comparison.
Loan Amount$500 – $10,000
Loan Term3 – 60 months
APR5.99% – 35.99%
Features & Benefits
- No cost 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
Bad Credit Loans is an online lender marketplace that allows you to connect with multiple lenders by filling out a single application. The service is 100% free.
Once you’re approved, your lender will provide you with the APR, loan fees, and other terms.
Read through the terms, compare all the offers you’ve received, and only accept the loan you’re most comfortable with. You are not obligated to accept the personal loan from any lenders that you are matched with.
Loan Amount$1,000 to $10,000
Features & Benefits
- Poor credit or little credit history is OK
- Excellent customer reviews
- No prepayment penalties
- Only available in 37 states
NetCredit is a direct lender that might be able to fund your needs quickly. Plus, if you change your mind about the loan, you will be able to return it within one business day.
If your needs can be covered with a loan of $10,000 or less, then you should consider working with NetCredit. They also offer lines of credit to customers in some states.
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 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 consider no credit check loans?
It may be tempting to apply for ‘no credit check loans’ like payday loans, 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 limited amount you’ll be able to borrow.
Most lenders that offer no credit check loans 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 non-sufficient 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.