Catholic funding – Catholics Come Home Boston Wed, 01 Sep 2021 14:18:02 +0000 en-US hourly 1 Catholic funding – Catholics Come Home Boston 32 32 Top Lending Companies for the Unemployed – Blog Wed, 01 Sep 2021 14:18:02 +0000 So, the world is returning to normal, and everyone is getting back to work, it seems. But, not everyone is, as many people are still without a job or a source of income, especially in the aftermath of the Covid-19 pandemic. If your savings have run out or your unemployment benefits are drying up, you […]]]>

So, the world is returning to normal, and everyone is getting back to work, it seems.

But, not everyone is, as many people are still without a job or a source of income, especially in the aftermath of the Covid-19 pandemic. If your savings have run out or your unemployment benefits are drying up, you might be worried.

As a solution, loans for those who are unemployed and/or have bad credit do exist. However, keep in mind that these loans should be used only if you desperately need money for an essential good or service (such as an auto repair, a medical expense, or a housing emergency like a leaky roof).

You should make sure you cannot collect further unemployment, apply for public assistance, or work with family and friends to borrow some money. These loans are great when you need them, but they do come with relatively high-interest rates.

If you are ready to learn about the best loans for the unemployed, keep reading.

Top Online Personal Loans Platforms for the Unemployed

Here is our list of the best online platforms to get personal loans even if you are unemployed.

    1. MoneyMutual: Best Short-Term Loans
    1. BadCreditLoans: Best for Bad Credit
    1. CashUSA: A Loan Marketplace
    1. Personal Loans: Free Service Loans

#1. MoneyMutual: Best Short-Term Loans

MoneyMutual is a network of lenders who make short-term loans. The network consists of over 60 lenders that dole out bad credit, payday, installment, and other loans to people who need them.

You just go to the website, fill out all of the forms, and the lenders come to you in seconds. This way, you do not have to go to each site individually, or worse, go to actual payday loan offices.

This site helps you cast a big net and get loan offers quickly. They partner with short-term lenders, making the site a great place to get a fast payday loan if you need to cover essential expenses like a car repair, medical bill, or home emergency.

Rest assured, this company is legit. They were founded in 2010, and their goal is to help the everyday American come up with fast money if they need it. They wanted to make it easy on people already under a lot of stress. So, they networked all of the best lenders together and streamlined the process of getting a quick loan.

How Does It Work? 

Well, this company itself is not a loan company or a bank. It is what you might call a “go-between,” or a middleman. They take your info and pass it along to a network of lenders who then return with their offers.

It is a great way to locate a short-term loan, and since it is online, you can do it all from the comfort of your home.

Once you have selected your loan amount and lender, you will review the terms and conditions carefully. Then, you can accept the loan if you find it suitable to your needs. However, keep in mind that the interest rates, terms, and payment amounts are all determined by the lender, not MoneyMutual. We cannot stress this enough — make sure you fully understand the terms of your loan before you sign. 


Here are a few of MoneyMutual’s best features:

    • Offers short-term loans; the max loan is $5,000
    • Funds deposited in just 24 hours
    • You can compare the rates and terms of many lenders
    • Over two million satisfied customers
    • Sign-up form is easy and takes about five minutes to complete

Next, you will love the variety of loan types offered by MoneyMutual. Let us take a look at what they offer: 

These short-term loans are very common, and they are designed to help you reach your next payday, at which time you will pay it off. These are great if you have paid all of your bills, but suddenly have a surprise expense pop up, such as a car repair.

The loans offered through the MoneyMutual network usually require you to pay them off by the next paycheck, so you must provide that date when seeking a loan like this. You will also need to authorize a withdrawal from your bank account on that day to pay the loan back.

Make sure you can pay off this debt completely, as payday loans are high-interest, high-fee ventures. Therefore, ensure you do not get trapped in a debt cycle over one payday loan.

These are a lot like payday loans, except they are for situations in which you cannot use electronic payment methods to pay a debt. They have steep interest rates and huge fees for just utilizing the service.

Many of the lenders on MoneyMutual will look at your credit score, but they will also look at other factors, such as your monthly steady income, to help determine eligibility for a loan. These loans have higher interest rates but lower eligibility criteria. However, some lenders may not qualify you if you are unemployed, as some require proof of monthly income before they approve you.

Installment loans are to be paid back over a series of scheduled payments. They are good if you have a steady income and can pay them back on time, every time. Just make sure you read the terms carefully, as you might end up having to make a few interest payments based upon the repayment dates of the loan.


    • Many educational resources available on their site
    • Funding by the next business day
    • Loan offers available in minutes
    • Simple and fast approval process
    • No fee to use the service


    • Some loan servicers may not be available in your state
    • Loans may have high-interest rates

Customer Experience 

There are a wealth of reviews provided by those who have used MoneyMutual’s service, and they were overwhelmingly positive. Customers raved about the top-notch customer service provided by the platform, saying they handled all of their questions and guided them through the entire process. Users also praised the flexibility offered by the lenders in MoneyMutual’s network, as they allowed them to make small payments.

=> Click Here to Visit the Official Website of MoneyMutual

#2. BadCreditLoans: Best for Bad Credit

The tagline of BadCreditLoans is, “We help when others can’t.” This is encouraging to the many people who need a bit of financial help but may not know where to turn. It is designed for those of us out there who have poor credit, and it gives us the ability to attain small loans that we can easily repay and use to rebuild our credit.

You could use these loans for a myriad of purposes; but, of course, we only recommend using them for things you desperately need, such as auto or home repairs or medical expenses.

Like MoneyMutual, this is a lending marketplace. The loans do not come directly from BadCreditLoans; but rather, you are connected to an extensive network of lenders who send you loan offers to consider. All you have to do is complete one single application to get these offers.

As you may already know, you should approach these loans with caution. After all, you will be paying higher interest rates and fees for relatively low loan amounts. With that being said, they are the best around for those of us that need help but do not have great credit.

One thing we love about BadCreditLoans is that it has been around since 1998. With over 20 years in the business, we know they are legit. They have traditional lenders as well as tribal lenders for your consideration. In a nutshell, tribal lending involves loans made by Native American loan companies, who operate on tribal land and follow tribal laws instead of federal laws.

Your best bet is to read over the loan terms carefully before you agree to anything to ensure you can pay it back on time and avoid any late fees.


BadCreditLoans has plenty of great features, which are highlighted below.

    • Loans available from $500 to $10,000
    • Form is easy, and funding is fast
    • Funds transferred to your bank account by the next day
    • You can compare rates from all available lenders, which is very convenient

If you are new to the world of loans, start by reading articles on the BadCreditLoans website. They will discuss the different types of loans available, such as student loans, auto loans, personal loans, credit cards, and business loans.

They also have interesting articles about loan scams, which are truly worth the read, especially since such criminals target people with bad credit. In addition to their efforts to educate borrowers, we were also impressed by their contact info displayed prominently on their website to call anytime.

    • Options for Personal Loans

Personal loans are the main service BadCreditLoans offers. This is, simultaneously, a good and a bad thing. For example, one good thing is that you do not have to put up collateral as you do with a mortgage or an auto loan. Meanwhile, the bad thing is that fees and interest rates will be higher, because there is no collateral.

As mentioned before, these loans can be used for anything, but make sure it is something you need to avoid unnecessary debt. Our research found that anyone with a FICO score of less than 500 would not be given a loan higher than $1,000.

It is relatively easy to meet the basic qualifications for a loan with BadCreditLoans. You must:

    • Be at least 18 years old
    • Have a valid email address
    • Provide phone numbers for work and home
    • Have a bank account in your name
    • Have a regular income, whether it is social security, unemployment, self-employment, full-time employment, or disability payments
    • Have proof of being a U.S. Citizen, such as a legal residency or social security number

Moreover, the questionnaire to see the available lenders is three pages long in total, but is not difficult or overly time-consuming.

    • Excellent Customer Service

The customer service representatives of BadCreditLoans are helpful and prompt. However, bear in mind that while you can ask questions about the site itself, any queries you have about your loan have to be posed to that particular lender.

    • Just Four Steps to Get Your Money

Step one is to fill out the request form indicating you are interested in a loan. You will share your credit score, loan reason, and birthdate, along with banking, employment, and contact info. Step two is to review any offers you may have received. Make sure to read the contract carefully.

Step three is to accept your loan and apply an e-signature to indicate you understand the terms of the loan and agree to pay it back. Finally, step four is to get your money in as little as one business day and use it for whatever purpose.


    • Compare multiple lenders at once — competitive interest rates
    • Free service
    • Customer service is easy to contact
    • Offers services to help improve credit score
    • Allows bad credit holders to get quick funds


    • Loans tend to be rather small, especially if you have very poor credit
    • Your information will be sent to many lenders, which could result in marketing calls or emails
    • Interest rates tend to be high for these types of loans

Customer Experience

Many customers have left positive reviews for BadCreditLoans. Some of the features users have highlighted are the helpful customer service agents, the quick loan approval, and the simple application process. Moreover, users loved that they easily and quickly received a loan, despite having bad credit.

=> Click Here to Visit the Official Website of BadCreditLoans

#3. CashUSA: A Loan Marketplace

This is what we call a “loan marketplace” — another term for a network of lenders working together to bring interested borrowers their options. Like MoneyMutual, you can think of this as a “middleman,” as they bring all of the offers to you directly and let you choose which one is suitable for your needs.

You simply submit one application at CashUSA, and they handle the rest. Then, lenders come to you in minutes with offers based on the information you provided.

In our research, we learned the lenders of CashUSA do not perform credit checks on borrowers. This is good news if you have bad credit; however, you will be paying greater interest charges and service fees if you get a loan with this organization.

At a minimum, loans are $500, and the maximum loan amount is $10,000. Additionally, interest begins at a rate of 5.99% and ends at 35.99%.

It is important to keep in mind that CashUSA does not service or finance the loans you are offered. As a result, if you have any questions about your loan or its terms, you will have to contact the lender for more information.


CashUSA has many great features, including:

    • Loans range in value from $500 to $10,000
    • Approval in a matter of minutes
    • Funds transferred directly to your bank account
    • Loans may be used for any reason
    • Good, bad, or no credit accepted
    • Multiple Lenders Available

Part of the reason we love CashUSA is that it is easy to view all of your options. You can cast a wide net and see what lenders are willing to loan you. This is far better than having to call up several different lenders for assistance. Plus, they will only send you lenders who are available in your state.

You will have to fill out a quick form before applying for funding with CashUSA. This form is easy and asks for basic info, such as the last four digits of your SSN, birth year, and zip code. Then, you will click on the “Get Started” button, and this will take you to the full form. Here, you will enter more info, such as the loan amount, your email, and your military status.

After that, you will share the name of your employer, your driver’s license number, bank info, and sources of income. Once you click “Submit”, you will quickly receive offers from lenders. Once you find a loan you like, you will click on it and review the contract page for that specific lender.

You will review the terms, rates, and the amount of the loan. If you decide to go for it, you will have to provide some more specific information based on what that lender requires. Then, once you are approved, your funds will reach you in about one business day.

You will not pay a single penny for simply comparing loan offers and rates using CashUSA. It is like looking through a catalog and comparison shopping for a loan. You have access to an extensive lending network without having to pay anything.

However, when it comes to your loan, any fees and rates you must pay are determined by the lender. Likewise, the terms of repayment, such as the interest rate, amount to be paid, and length of repayment, will be determined by your specific lender and your creditworthiness.

    • They Qualify (Nearly) Everyone

With so many lenders in the CashUSA network, you are sure to get approved for a loan somewhere. However, you do have to meet basic eligibility requirements. What are these requirements, you may ask? 

Let us review:

    • Must be 18 years of age or older
    • Must have a checking account in your name
    • Must be a permanent resident or citizen of the U.S.
    • Must have a phone number and email address
    • Must have at least $1,000 monthly in income
    • You Can Use Your Loan for Just About Anything

While this is a huge perk, we want to stress how important it is that you are taking out loans for things you truly need. Before applying for a loan, you should have exhausted all other options, such as personal savings, help from friends and family, working extra jobs to come up with quick cash, unemployment, or public assistance payments.

We recommend using the loans offered here for housing, medical, or transportation needs.

With that being said, you can use your loans for moving expenses, going on a vacation, wedding costs, buying furniture, or anything else you can think of. It is a great choice if you need money for something banks typically do not finance.

You can easily repay your loan using the lender’s automatic withdrawal method. You will enter your bank account information so the funds can be deposited. This can also be used for autopay, as you can simply have loan payments withdrawn from your account every month automatically. This way, you will never miss a payment, and your loan will be paid on time.


    • No minimum credit score needed to qualify
    • Service is free to use
    • Convenient, safe, and secure platform


    • A minimum income of $1,000 a month is required
    • Interest rates can be very high

Customer Experience

Customers have expressed their appreciation for the services provided by CashUSA in their reviews. They have praised the customer service representatives for being friendly, understanding, helpful, and readily available. Users also love the quick application, approval, and funding processes, along with the low-interest rates.

=> Click Here to Visit the Official Website of CashUSA

#4. Personal Loans: Free Service Loans

Similar to the other loan companies featured in this article, Personal Loans is a network devoted to matching interested borrowers with lenders.

They started in 2017 and are headed in Utah. They do not lend money directly; rather, you can enter your info and compare rates and terms of loans from many lenders.

In our research, this is a company that only provides loans to people who have fair to excellent credit scores. However, they do not appear to offer loans to those with poor credit.

You must also have no accounts over 60 days late, no active or recent bankruptcies, and no patterns of late payments.


Personal Loans has many features that make it stand out, including:

    • Loans from $1,000 to $35,000 offered
    • Rapid approval process
    • Funding within one business day
    • Multi-purpose loans offered

It is good to know that if you would like to use Personal Loans, you can do so without fear of an upfront cost, a hidden fee, or an obligation to pay anything.

With so many lenders in the network, you are sure to find a loan that has a good interest rate.

Whether you would like to start a business, take a vacation, cover an emergency expense, or make a home improvement, these loans can help you.

You can get your money as soon as the next business day if you are approved for a personal loan.

One great thing about Personal Loans is the amount of helpful information they have on their website. Before you do anything else, it would be beneficial to read these articles, so you are a more informed consumer. You can read about bad credit, payday loan consolidation , and tax loans, to name a few. While it might not have anything to do with your situation, these articles are full of knowledge.

    • Excellent Customer Service 

If you have questions or concerns about the site itself, feel free to contact the staff via phone or email. You can contact them Monday through Friday from 6 AM to 7 PM Pacific Time. Just keep in mind they cannot answer questions about your loan, as you would have to contact your lender for that. However, they can help if you have questions about the site and its services.

The requirements for getting a loan are pretty straightforward with Personal Loans. Borrowers must meet the following criteria.

    • Income: You have to have full-time employment, receive regular Social Security or disability payments, or be self-employed. You may have to send a pay stub or proof of income to the lender you choose.
    • Residency/Age/ID: You have to be at least 18 years old, have a valid SSN, and be a permanent resident or legal U.S. citizen.
    • Checking Account: You must have a valid checking account so your money can be deposited once you have been approved.
    • Credit Requirements: Good credit is more likely to get you a loan as compared to poor credit. You must have no accounts more than 60 days old, no recently charged-off accounts, and no active or recent bankruptcies.
    • Different Loans Available

Here are the loan types that Personal Loans offers: 

    • Peer-to-Peer Loans: Borrowers and investors are connected using this method of lending. You borrow from an actual person, not a bank. The lender or investor you will be borrowing from reviews what you are using the money for and decides whether or not it is worth the loan. Loans range from $1,000 to $35,000 with peer-to-peer loans, and origination fees can range from 1% to 5%.
    • Personal Installment Loans: With these loans, you can get a loan ranging from $1,000 to $35,000. You will enter basic personal information and financial info and then review the offers available to you. The lender or lending partner will offer you a loan agreement that is best suited to your financial needs. Once the loan agreement has been accepted, your money will go right into your bank account. Therefore, it is important to carefully review the loan terms before accepting any offers.
    • Bank Personal Loan: You must have at least a credit score of 580 to get this type of loan, and this is a service for people who would like a loan from a local financial institution. You may be able to complete this request online and get your money that way, or you might have to complete the loan application process in person. If you go in person, it is a great way to have the terms and conditions explained to you.


    • Extensive network of lenders available
    • Loan amounts up to $35,000
    • Banks and credit unions are part of the network, which can help you get a loan with more competitive rates
    • Geared toward those with good to excellent credit
    • Free to use service
    • Loan terms go from 3 to 72 months


    • Not ideal for people with poor credit

Customer Experience 

There are many features of Personal Loans that customers who have used this service have loved. A constant praise that is seen throughout multiple reviews was the affordable and reasonable APR provided by the lenders in Personal Loans’ network. Moreover, users have said they trust this service and rely on it to be safe and secure. The transparency provided in the terms and conditions have been a positive note among customers as well. Overall, people appreciated the rapid application process and how quickly they received their funds in their account.

=> Click Here to Visit the Official Website of Personal Loans

Buying Guide: Loans for the Unemployed

Here are some guidelines to follow as you apply for a personal loan. This guide is perfect if you are new to personal loans and not sure what to look for.

Interest rates are not like the rates of other popular loans. Auto loans can be low, depending on one’s credit, or even 0% for very highly qualified buyers. Mortgage rates are dependent on that day’s rate and the buyer’s credit score. But, even if you have excellent credit and apply for a personal loan, you can expect a higher interest rate.

The reason is that unlike a car or a house, you do not have anything to give back if you fail to repay the loan. An auto can be repossessed, and a home can be foreclosed upon, but a loan you took out for a vacation or an expense is different. Thus, the high risk means high-interest rates.

Unlike a car or a mortgage, the term for the average personal loan is about seven years and under. This is good because you should not be borrowing money for longer than necessary; however, you need to be prepared to pay this loan off relatively quickly. So, make sure the terms you agree to are something you can afford to pay on time, every time.

Personal loans can be a lifesaver when unexpected things happen. The roof begins to leak, the engine on your auto blows, or you have to fly out to help a family member in trouble. Most are quick to pull out the credit card when something like this happens, or worse, hit up a payday lender.

The latter is considered predatory, and the interest rates are alarmingly high and could leave you in a cycle of debt for longer than you would like. However, they are attractive because they get you money fast.

Personal loans through any of the sites we outlined above can get you funds in 24 hours or less on a regular business day. So, if you need cash fast, a personal loan is a legitimate way to get that money.

Maybe you are looking into personal loans because you would like to use them to pay off your student loans and take advantage of the lower interest rate. But, before you do that, consider the terms of your current student loan and your prospective loan first.

You may end up losing some of the benefits associated with your student loans, such as income-based payments or benefits for being in a certain field, such as the military, public service, or healthcare. So, make sure to think it over carefully before you borrow.

    • Understand Extras and Fees

Some lenders may attempt to upsell you on various products and services. For example, they may recommend an insurance policy on a loan if you pass away before it is repaid, so your family is not stuck footing the bill.

It is completely up to you if you want something like that on your loan, but do not fall for the lender telling you that it is necessary. If they insist you take it, decline the loan, and look elsewhere.

    • Get It for the Right Reasons

Are you getting a personal loan for something that is not critically needed in life? For example, a vacation or an engagement ring? If so, we strongly advise backing away from the loan and seeking out other methods of getting what you want. It is not a good idea to take out a loan for a vacation, as after the fun is over, you are saddled with hundreds or even thousands to pay back.

And, for the engagement ring, we do not advise beginning a new chapter of life with a massive debt load.

It is also not a great idea to use a personal loan as the down payment for a home. The mortgage lender is not going to like seeing you funding your down payment with borrowed money, and it could also adversely affect your ability to get the mortgage at all.

FAQs: Loans for the Unemployed

Here are the most commonly asked questions by our readers when it comes to personal loans:

Q1. How Does One Qualify to Get a Personal Loan While Unemployed?

There is no collateral required to qualify for a personal loan, so it is going to be largely determined by your income, credit score, credit history, credit report, and your debt. Every lender will vary, but they are usually looking for people with credit scores of 600 and up. Of course, you can find lenders willing to go lower. You will just have to see which loans you qualify for using the websites outlined above.

Q2. Could Getting Prequalified for a Personal Loan Impact My Credit Score?

Usually, no. When you are going for prequalification, it is typically a soft pull. A soft pull does not affect your credit score, but you still get the chance to see what lenders can offer you.

 Q3. What Is a Personal Line of Credit?

A personal line of credit allows you to borrow money, repay the amount, and then borrow again for a set period of time. It can be used when you are not too sure about the amount of money required and you need to have a buffer. Moreover, it is a useful type of loan if you are unemployed. However, a personal line of credit can accrue interest, and you will be expected to pay those charges as well.

Q4. Can You Pay the Loan Back Early? Are There Penalties?

This will largely depend on the lender itself, so make sure you read over those terms carefully before agreeing. Some lenders will charge you a fee, while others will not.

Q4. Why Are the Interest Rates on a Personal Loan Much Higher Than a Mortgage or Auto Loan?

The item itself backs a secured loan given for an auto or a home. Therefore, should you default on the loan, the home will be foreclosed upon, or the auto repossessed. This is not the case for a personal loan, so the risk the lender takes loaning you that money is much higher. Thus, the interest rate reflects that.

Q6. What Is an Origination Fee?

This is the cost of processing a loan, and it will vary depending on the lender you go with. Some lenders do not charge such a fee but will raise the interest rate as a means of making up the cost of processing your loan.

Conclusion: Can I Get a Personal Loan If I Am Unemployed?

We hope this article has been helpful for you in your search for a personal loan. Ultimately, you should only borrow for things you need, and do not take out more than you can comfortably repay.

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15 of the best personal loans for bad credit Wed, 01 Sep 2021 14:15:44 +0000 Our goal here at Credible Operations, Inc., NMLS Number 1681276, referred to as “Credible” below, is to give you the tools and confidence you need to improve your finances. Although we do promote products from our partner lenders who compensate us for our services, all opinions are our own. A personal loan may be more […]]]>

Our goal here at Credible Operations, Inc., NMLS Number 1681276, referred to as “Credible” below, is to give you the tools and confidence you need to improve your finances. Although we do promote products from our partner lenders who compensate us for our services, all opinions are our own.

A personal loan may be more expensive when you have bad credit. Shopping around could help you get the best possible deal. (iStock)

Bad credit can make it harder to get a personal loan. And you’ll almost certainly pay more for it than someone with an excellent credit score would.

Still, if you need cash urgently, a personal loan can be a good idea for someone with bad credit because it’s likely to cost less than other options you might consider, like a payday loan or title loan. And repaying your personal loan could actually help improve your credit, since payment history directly affects credit scores.

Here’s what you need to know about personal loans for bad credit, where to find them, and how they work.

Lenders to consider for best personal loans for bad credit

It’s probably safe to say that most lenders prefer borrowers with higher credit scores because they expect those borrowers to be more likely to repay their loans as agreed. To ensure they attract these borrowers, some personal loan lenders set their minimum credit score requirements fairly high. Or, they may have minimum loan amounts that far exceed what you need.

Whether you’re looking for a payday loan consolidation to cover an unexpected expense, or to make a big-ticket purchase, the following Credible partner lenders offer loans to people with credit scores that fall below what’s considered a “good” FICO score —  670 to739.


With a very low minimum score requirement, Avant may be a good choice for many borrowers with poor credit.

Minimum score: 550

Loan term: Two to five years

Loan amount: $2,000 to $35,000

Good for: People with significant credit issues

Best Egg

About half of people who borrow from Best Egg have money in their bank account by the next day.

Minimum score: 600

Loan term: Three to five years

Loan amount: $2,000 to $35,000

Good for: People who need funds quickly

You can compare personal loan rates and learn more about multiple lenders through Credible.


Discover allows you to return the amount you borrow within 30 days and pay no interest — making it great if you aren’t sure you need a loan or will get a windfall soon.

Minimum score: 660

Loan term: Three, four, five, six, or seven years

Loan amount: $2,500 to $35,000

Good for: Borrowers who aren’t certain they need to borrow or can pay back quickly


FreedomPlus offers lower rates for people who use the majority of their loan to pay off their current debts.

Minimum score: Not disclosed

Loan term: Two to five years

Loan amount: Up to $35,000

Good for: People who are paying off debt


Depending on your financial circumstances, you might get multiple rate and term offers from LendingClub’s investors.

Minimum score: 600

Loan term: Three or five years

Loan amount: Up to $40,000

Good for: Borrowers who want flexibility in monthly payments


Once you submit your application, LendingPoint will give you a decision in seconds on whether you’ll get a loan.

Minimum score: 580

Loan term: Two to five years

Loan amount: $2,000 to $36,500

Good for: Borrowers who need a quick decision


With loans of up to $100,000, LightStream can be a great option if you need a larger loan and more time to pay it back.

Minimum score: 660

Loan term: Two to 12 years

Loan amount: $5,000 to $100,000

Good for: Borrowers who need more time to pay back their loan


Marcus by Goldman Sachs

With a Marcus loan, you can earn the ability to defer a month’s payment after 12 on-time payments, which can really help if you’re in a pinch one month (note that you’ll still pay interest during this month).

Minimum score: 660

Loan term: Three to six years

Loan amount: $3,500 to $40,000

Good for: Borrowers who would like to defer a payment once a year

OneMain Financial

With no set minimum credit score required, OneMain could be a good option if you’re looking to establish a credit history.

Minimum score: None

Loan term: Two, three, four, or five years

Loan amount: $1,500 to $20,000

Good for: Borrowers with poor or no credit


Payoff focuses primarily on helping you pay down credit card debt, and offers experts to talk you through the process.

Minimum score: 640

Loan term: Two to five years

Loan amount: $5,000 to $40,000

Good for: People paying off credit card debt


PenFed’s minimum personal loan of $600 is one of the lowest on the market.

Minimum score: 670

Loan term: One to five years

Loan amount: $600 to $35,000

Good for: Borrowers who need a small loan


Prosper is a peer-to-peer lending platform where investors can choose individual loans to fund. The lender specializes in special cases like adoption loans, engagement ring financing, and green energy home improvement loans.

Minimum score: 640

Loan term: Three or five years

Loan amount: $2,000 to $40,000

Good for: People with a specific financial need


If you lose your job, SoFi may offer you forbearance on your personal loan until you get back on your feet — and even help you get a new job.

Minimum score: Not disclosed

Loan term: Two to seven years

Loan amount: $5,000 to $100,000

Good for: Borrowers who need large loans


With a minimum of $1,000, people who need a relatively small loan may choose Upgrade.

Minimum score: 580

Loan term: Two to seven years

Loan amount: $1,000 to $50,000

Good for: Borrowers who need relatively small loans


When making loan decisions, Upstart looks at your education and job history as well — not just your credit score.

Minimum score: 580

Loan term: Three or five years

Loan amount: $1,000 to $50,000

Good for: Borrowers with a non-traditional credit history

The following lender is not a Credible partner lender, but may be worth considering for a personal loan with bad credit.


Peerform is a marketplace lending platform, and could be a good option if you meet debt-to-income ratio requirements, at least one open bank account and meet other requirements.

Minimum score: 600

Loan term: Three or five years

Loan amount: $4,000 to $25,000

Good for: People with a solid income


Credible evaluates personal loan lenders based on minimum fixed rate, term length, fees, discounts, customer experience, time to fund, maximum loan amount and other factors, including — for this article —  minimum required credit scores.

What is a bad credit personal loan?

Personal loans are fixed-rate loans available from a wide variety of lenders that you can use for things like unexpected expenses, home repairs, or to consolidate credit card debt. A bad credit personal loan is simply a personal loan tailored to someone with a poor credit score. It might have higher rates than other loans on the market, but it can still be a valuable financial tool.

Personal loans are usually unsecured, meaning you don’t risk losing your home or car when you take out a personal loan. There are also secured personal loans that use collateral such as a savings account, stocks, or a vehicle to secure the loan. Because they’re secured, these loans may have lower annual percentage rates, or allow larger loan amounts. But if you aren’t able to repay the loan, you risk losing your collateral.

What’s a bad credit score?

Your credit score can range from 300 to 850, with higher scores being better. Good credit generally refers to a score of 700 or higher, with scores above 750 being excellent. A bad credit score is one of around 640 or below.

When determining your credit score, credit ratings agencies will look at:

  • How reliable you are in paying bills on time
  • Your total debt
  • How many financial accounts you have and what type
  • How long your accounts have been open
  • Applications for new loans
  • Any bankruptcies, foreclosures, or debt sent to collection


Why is a credit score important?

The interest rate and loan terms you’re offered generally depend on your credit score — the better your score, the better the interest rate you’ll be able to get. Some lenders set a limit on the minimum credit score a person can have and be approved for a loan. That’s because lenders use credit scores to judge how likely it is that someone will pay back their loan.

But you’re not out of luck with a bad credit score. There are plenty of bad credit personal loans on the market geared toward people with poor credit scores.

To see personal loan lenders and their minimum credit score requirements, visit Credible.

How much will a personal loan for bad credit cost?

Lenders make money on personal loans through the interest rates and fees they charge. The best personal loans for people with good or excellent credit will have low interest rates and no fees. Personal loans for bad credit will typically have much higher interest rates and can have significant fees.

Bad credit personal loan rates

Most personal loan lenders will quote a range of APRs for their loans, with people with the best credit scores qualifying for the lowest rates, and those on the lower end of the credit spectrum getting the higher rates. These different rates can translate into wildly different costs over the life of the loan.

Here’s an example of two scenarios, possibly even from the same lender. The rates used in the example are drawn from Credible’s average minimum rates for different credit bands.

Good credit personal loan

Loan amount: $15,000

Loan term: 5 years

APR: 14%

Monthly payment: $349

Total interest charges: $5,941

Total repayment amount: $20,941

Bad credit personal loan

Loan amount: $15,000

Loan term: 5 years

APR: 27%

Monthly payment: $458

Total interest charges: $12,481

Total repayment amount: $27,481

Even though they’re borrowing the same amount and have the same amount of time to repay the loan, the person with poor credit will pay more than twice the total interest than the one with good credit will pay.

Bad credit personal loan fees

Many personal loans come with fees, though you’ll find some lenders who advertise that they don’t charge them. Some lenders will waive some fees for borrowers with good credit, meaning that only people with bad credit will pay the fees.

The most common fees you’ll see with a personal loan include:

  • Application fees: This is a fee charged to apply for a loan, regardless of whether you accept it.
  • Late payment fee: This fee is assessed if a monthly payment is made past the deadline and any grace period.
  • Origination fee: These are generally charged as a percentage of the loan amount, as much as 8% or more. It’s often deducted from the amount you receive from the loan.
  • Prepayment penalty: This is a fee for paying off your loan early, or paying more than the standard payment.

The pros and cons of personal loans for bad credit

Just like any financial product, personal loans come with advantages and disadvantages. This is especially true for personal loans for bad credit. As you’re shopping around for a personal loan, it’s important to weigh the costs and benefits before committing to a loan.

Pros of personal loans for bad credit

  • Single, fixed monthly payment: Personal loans typically have fixed interest rates, meaning your monthly payment will remain the same for as long as you have the loan. You can also use a personal loan to pay off credit cards and other high-interest debt, leaving you with a single payment.
  • Lower interest rates: When compared with credit cards, payday loans, or some other loans you might consider, a personal loan often has a lower interest rate.
  • Lower risk: Unsecured personal loans don’t put your home or other collateral at risk if you have trouble making payments. Other loans, like home equity loans or a home equity line of credit, do come with the risk of foreclosure if you fall behind on your payments.

Cons of personal loans for bad credit

  • Hard to qualify for: It can be harder to find a lender who will offer a personal loan to someone with bad credit. Fewer options can mean higher costs.
  • Higher interest costs: Personal loans tend to have higher interest rates than secured loans, like home equity loans or HELOCs. Plus, you’ll pay even higher rates if you have bad credit.
  • High fees: Personal loans for bad credit tend to come with higher fees than loans for people with good credit. This can eat into the amount of money you actually receive on your loan.

How to compare bad credit personal loans and lenders

Different lenders can offer very different loan terms, and you might even get different offers from the same lender. When comparing personal loan offers, be sure to keep these points in mind.

  • APR: Also known as the annual percentage rate, this number includes the interest rate and any fees charged on the loan. The APR gives you a better idea of just how much a loan costs. Using it, rather than the interest rate, makes it easier to do an apples-to-apples comparison of two different loans.
  • Fees: Pay close attention to see if the lender charges an origination fee, which is often deducted from the total loan amount you receive. Also ask about other fees, like late charges.
  • Repayment terms: These can be as short as one year and as long as 12. Longer terms mean smaller monthly payments, but you’ll pay more interest long term.

How can I get a bad credit personal loan?

If you’ve weighed the options and think a personal loan is right for you, here’s how to get one.

  • Check your credit score: Knowing your score ahead of time can help you understand the costs you’re likely to face, and give you time to correct any errors on your credit report before applying for a new loan. Under the law, you’re owed a free copy of your credit report every year from each of the major credit bureaus. You can use a site like to get a copy of your reports.
  • Shop around: Many lenders have basic information on their websites about the rates and terms they offer and who may qualify.
  • Prequalify: When you’ve found a few lenders that might be a good fit, go ahead and request a rate quote. You’ll give the lender a little bit of information about yourself, including your Social Security number. Most lenders will allow you to prequalify and check the rates you’d be offered using only a soft pull on your credit, meaning your credit score won’t be affected.
  • Apply: Once you’ve found the quote that works best for you, it’s time to formally apply for the loan. You’ll need to submit more information to the lender, which they’ll use to make a final decision on your loan.
  • Accept your loan: If approved for the loan, you may be able to access the money within a day or two. The money can often be deposited directly into your bank account.

Alternatives to personal loans for bad credit

Personal loans aren’t the only option if you find yourself needing cash fast. Here are a few others you might consider.

  • Borrowing from family or friends: They won’t usually charge you fees, but failing to pay back a friend or family member can strain your relationships.
  • Peer-to-peer lending: With peer-to-peer lending sites, people looking to borrow money are matched up with investors willing to help crowdfund loans. Their criteria may vary and be different from a standard personal loan lender.
  • Balance transfer cards: These cards usually have a 0% or low interest rate for a certain period of time. But it may be difficult to qualify for one with a poor credit score.
  • Home equity loan: If you own your home, you may qualify for these loans. They allow you to borrow against the equity in your property, or the difference between what you owe on your mortgage and what the home is worth. Their interest rates are lower, but be aware, they do involve the risk of foreclosure if you fail to make your payment.

There are other options you should avoid. These include payday loans, which are short-term cash advances with extremely high interest rates that can easily drive you deeper and deeper into debt.

You can see your prequalified rates in two minutes and check rates from multiple lenders at Credible.

Working on your credit to get a better personal loan deal

A good credit score can make it easier to get a personal loan with a good rate and terms. Improving your score before applying for a personal loan could save you money in the long run.

Start by requesting your credit report, and then scour it to make sure all the information is accurate. Sometimes, incorrect account information can be listed on your report, drawing down your score. You can contest incorrect information, and the credit bureau will need to investigate the matter.

Other strategies for improving your credit score include:

  • Paying down credit card debt
  • Paying all your bills on time, every time
  • Avoiding taking on new debt

Prequalifying for a personal loan can help you get a feel for what interest rate you qualify for and how big a loan you’re likely to get. If you’re denied for a loan, the lender may be able to give you areas of your finances you can improve before applying again.

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Best Bad Credit Loans With Guaranteed Approval In 2021 Wed, 01 Sep 2021 14:14:02 +0000 The average loan offered by most lenders is for borrowers with fantastic credit scores. For that reason, people with bad credit scores often find it very hard to access these types of loans. But the good news is, there is now a way for less financially-savvy individuals – who can’t manage their credit score to […]]]>

The average loan offered by most lenders is for borrowers with fantastic credit scores. For that reason, people with bad credit scores often find it very hard to access these types of loans. But the good news is, there is now a way for less financially-savvy individuals – who can’t manage their credit score to save their lives – to acquire a bad credit loan with guaranteed approval.

We all continue to find ourselves in one fix or another. And during such times, we require quick cash to bail ourselves out. For those with a good credit score, this is easy to do as there are loads of lenders out there willing to offer them personal loans for a price. However, when it comes to those with bad credit, finding a lender is never easy.

In this article, therefore, we decided to help out our readers by reviewing the top bad credit loan providers and exploring the easiest ways to acquire such a loan regardless of your credit score!

Top 3 Bad Credit Loan Providers

If you have not been able to improve your credit score but require a personal loan to take care of pressing needs for one reason or the other, you are in luck. Bad Credit Loans are loans issued to people with poor credit.

With a growing population of people battling with bad credit, this is created an opportunity for bad credit loan online companies. In subsequent sections, we will review the bad credit loans offered by:

1. MoneyMutual Bad Credit Loans

MoneyMutual is an online loan company that offers bad credit loans to borrowers who would otherwise not get loan opportunities from other lenders. This loan company has an extended credit rating threshold for borrowers with poor credit scores, and they offer different types of Loans. Here are their bad credit loan categories.

Payday Loans

Payday Loans are special loans issued to salary earners. They are called payday loans because lenders expect them to repay the loan on their next payday. The terms of MoneyMutual’s payday loans vary depending on so many factors.

Installment Loan with Bad Credit

This is another type of Bad Credit Loan offered by MoneyMutual lenders. People with very bad credit and who cannot afford to service a payday loan with their next paycheck can opt for this loan. This option has a longer repayment tenure, so borrowers can pay back over several months. However, note that the repayment plan varies from one MoneyMutual lender to the next.

No Fax Bad Credit Loan

This option is not different from the other loans discussed this far. It gets its name from the fact that it is easy to apply for, and loan disbursement is fast without the use of fax machines.

Short term loans for bad credit

Short-term loans are for emergency purposes. Borrowers with bad credit can access this loan facility to clear short-term responsibilities. In addition, the loan tenure for this loan is much longer, so you can spread your repayment across several installments.

Cash Advances

Cash Advances are small loan amounts issued at short notice, and they attract lower interest rates compared to the other loan options offered by MoneyMutual lenders.

MoneyMutual Lending Process

If you want to borrow a bad credit loan from MoneyMutual, these are the steps to take:

  • Log onto and submit your details for a lender to review
  • A lender will forward you an offer for your perusal and acceptance
  • You grant approval to the lender to retrieve the loan and interest from your bank account at a set date and time (usually on your payday)
  • You receive the funds from the lender within the next 24 hours after contract details are agreed

Once you fill out your details on the platform and submit, your document will be submitted to MoneyMutual partners, who will contact you within a short time. You will be redirected to their website to complete the registration process.

Borrowers in the US looking for guaranteed bad credit loans can use MoneyMutual to connect with interested lenders. The process is fast and convenient, and your privacy is guaranteed.

Loan Requirements

The loan requirements vary depending on the lender interested in offering you the loan. MoneyMutual does not issue loans directly to borrowers but is only a conduit for such loans. Therefore, terms and conditions are dictated by lenders only, but you are at liberty to reject a term that is unfavorable to you. However, here are some general requirements that most lenders will demand before they lend out money.

  • You must be a US citizen and at least 18 years old
  • Earn at least $800 monthly with a verifiable income source
  • Own a checking account
  • Personal requirements by the lender

Benefits of using MoneyMutual

You may have suffered a bounced check, declared bankruptcy, or defaulted on your payment, but it doesn’t matter. There is always at least one lender waiting for you at MoneyMutual. On this platform, you enjoy

  • A wide network of lenders
  • Flexible repayment plans
  • Less stringent eligibility criteria
  • Competitive interest rates
  • Multiple loan options

2. BadCreditLoans

BadCreditLoans is another reputable platform for guaranteed loan approval even with bad credit. This platform assists entrepreneurs and skilled workers looking for quick loans but with limited opportunities. On this platform, there are lenders willing to lend cash to high-risk borrowers. Some of the partners working with this platform are tribal lenders. Tribal lenders are lenders who issue loans at interest rates higher than the average rate offered by state lenders. However, they are not subject to state laws but tribal and federal laws.

So regardless of your current credit rating, you will definitely find a lender on this platform.

BadCreditLoans Service

BadCreditLoans is an online loan platform and not a direct lender. The platform is merely a free online platform for borrowers and lenders to interact. As a borrower, you simply visit the platform and indicate your need to borrow money by filling the online form. Once your form is submitted, the information will be communicated to lenders on the platform who will offer you loans that you are not under any obligation to accept.

BadCreditLoans has an advanced proprietary technology that markets your data to interested lending partners scores a large network. The platform will also advertise loan opportunities posted by different lenders to you as well. Furthermore, other credit-related services will be marketed to you as well.

The good news with this platform, like the others reviewed in this article, is that your personal information will not be revealed to lenders without your permission. The only thing that will be communicated is your intention to apply for a loan and nothing more.

How to apply for BadCreditLoans?

The process is relatively simple. All you need to do is

  • Log onto the website and fill out the loan application form
  • Submit the form
  • Lenders will review your information and contact you with their loan products
  • Select a loan that meets your requirement
  • Accept the terms and conditions
  • Receive the loan into your bank account

Loan Requirements

The Requirements for accessing a loan on this platform depend on the lender. The good thing about BadCreditLoans is that you don’t have to waste your time searching for a lender whose requirements you meet. The lenders will be the ones to contact you if you are eligible for their loans. However, you need to be:

  • A US Citizen
  • Be at least 18 years old
  • Have a checking account

Benefits of using BadCreditLoans

BadCreditLoans is a reliable platform if you want a quick loan despite your poor credit. Here are some benefits of using the platform:

100% free

This service is free, and you don’t have to pay any money to access the large network of lenders. All you need is an internet connection and a device to access the platform


The interest rates and conditions attached to the loan will be communicated to you, and you are not under any obligation to accept the loan if it does not suit you. This means that you are free to walk away if the terms are unfavorable.

Privacy & Security

Your privacy and information are secure. The platform has advanced security encryption to protect your information from hackers. Furthermore, your sensitive information will not be sent to lenders; only your intention to borrow a loan will be made known to them without your identity flooding the internet.

Available round the clock

BadCreditLoans is available to users round the clock, making it a great platform to apply for a loan at short notice.

No extra charges

You don’t pay any extra fees for loans you borrow via the platform. BadCreditLoans only connects you with a lender, and they don’t charge you for the service.

Large lender network

There are so many lenders on the network, so your chances of finding a lender are high.

Utility Services

BadCreditLoans also connects you with support services to help you repair your credit in case you are not able to find a lender willing to give you a loan. With the help of credit repair experts, you can improve your credit rating.

3. CashUSA

Another very good platform where you can access a bad credit loan is none other than CashUSA. On this platform, there are credit personal loan lenders willing to offer you a loan even with bad credit. The loan amount issued to you will depend on the special Eligibility requirements of the lender interested in issuing you the loan. Also, the interest rates are never the same as different lenders have their independent rates attached to the loans that they offer. On average, the loans available on CashUSA have varying tenure ranging from 3 months to 72 months and interest rates ranging from 5.99% -35.99%.

If you are interested in applying for a loan via this platform, your current credit rating will determine how much you are eligible for and at what interest rate. Once you find a loan facility whose terms you are comfortable with, you can follow through with the process and have the amount deposited into your checking account. Like the other platform reviewed thus far, you are not under any obligation to accept any loan on CashUSA, and there are no extra costs for using the platform.

How to apply for a loan via CashUSA:

The application process is relatively straightforward. All you need to do is:

  • Visit CashUSA’s website and fill the loan application form
  • A lender will contact you and make you a loan offer
  • Review the terms and conditions and sign off on the loan
  • Have the loan amount deposited into your checking account

The loan amount available in CashUSA ranges between $500-$10,000, depending on your credit rating and state. However, here are general eligibility requirements most lenders demand before they issue loans to borrowers. The borrower must be:

  • 18 years old and above
  • Earn at least $1000 after tax
  • Have an email address
  • Operate an active checking account
  • Provide a phone number and house address
  • Must be a US citizen or a permanent resident in any US state

These are some of the eligibility requirements demanded by lenders, but there may be more requirements. Extra requirements will be communicated to you by the lender you deal with.

Benefits of using CashUSA

Here are some of the benefits of applying for a bad credit loan via CashUSA.

Fast and Convenient

The process is fast and convenient and is all done online. You don’t have to visit the office of the lender or submit physical documents of any kind. Once you submit your online form and are eligible for a loan by any lender, the process can be completed within minutes. It’s that easy.

Quick cash

Cash disbursement is immediate once your loan application is approved. There are no waiting times or unnecessary delays. If you have faced one frustration or the other in the past applying for a personal loan, rest easy because, with CashUSA, your experience will be different. The cash is disbursed in under one working day.

Privacy Guaranteed

No one likes to be in debt, and most importantly, no one likes to have their loan application made public. With CashUSA, your personal information will be protected from prying eyes since the platform is safe and secure.

Convenient repayment plan

The loans on CashUSA have flexible repayment plans that will reduce the repayment burden on you to pay back at short notice. With so many lenders willing to give you a loan, you will definitely find a lender offering you an extended repayment plan.

What is bad credit?

Bad credit is a situation where a borrower has an active credit debt left uncleared in one or all three credit bureaus. For those who may not know this: the credit bureau curates comprehensive data of all unpaid credit over a certain period. These credits come in different forms, such as:

  • Loan Application
  • Number Of Approved/Rejected Loans
  • Credit Card Approvals
  • Credit Card Loans
  • Foreclosures
  • General Debts Unpaid

Suffice to say that all your credit transaction are stored in your credit report, and lenders use this document to evaluate your loan application. So a bad credit is evidence of a debt pile-up left uncleared by an individual.

How do lenders evaluate a loan application?

When you approach a lender for a loan, the lender uses the data in your credit report to calculate your credit score. The higher your credit score, the lower the level of risk you pose to the lender; the lower your credit score, the higher the level of risk you pose to the lender. So, in a nutshell, lenders use your credit score to evaluate your ability to repay the loan you are applying for. They also use the score to decide the amount to loan you and the interest rate to charge for the loan.

In the same way, some property owners also use your credit history to determine your creditworthiness when it comes to fulfilling your financial responsibilities as a tenant as far as paying your rents.

So when it comes to applying for loans, people with bad credit are seen as high-risk borrowers, and high-risk borrowers mostly do not get the loans they apply for because they fall under the red list of many lenders.

Five main factors that cause bad credit:

Several factors cause many people to have bad credit. In this section, we review some of them:

1. Late debt payment

Paying your debt is one thing, but paying it on time is another. If you delay your payments or financial obligations, your overall creditworthiness will be impacted more than you can imagine.

For example, your payment history represents 35% of your total credit score. So, if you have delayed making payments for more than 30 days, your creditor may post this information in one of the credit bureaus and this data will be registered against your profile.

A consistent delay on most of your payments will eventually begin to affect your credit ratings without your knowledge. This is why financial advisors warn against late payments of debts. Some common examples of late payments that may affect your credit score and cause you to have a bad credit include

  • Late utility bills payment
  • Late credit card payments
  • Late payments to lenders

So defaulting on your debt consistently will affect your credit score and, if left unchecked, will reduce your chances of getting a conventional loan.

2. Debt transfer

Having your debt transferred from a lender to a debt collector is one sure way of ruining your credit score. Some lenders have a standard practice of either selling their debt to an agency or hiring the agency to help them retrieve the money owed. This is a bad situation to be in if you have to deal with a debt collection agency. These third-party agencies, having had the debt transferred to their account, update this information with the credit bureaus. Once your profile is registered by such an agency as a loan defaulter, it will reflect poorly on your history. Repairing your profile will take a lot of work, starting with paying back the money borrowed.

3. Bankruptcy

Bankruptcy is another way people get bad credit. For example, business people may end up filing for bankruptcy if their businesses are no longer able to meet their financial obligations like paying their debt. In such a situation, they have no option but to file for bankruptcy so that the authorities can grant them legal protection. In such a scenario, the financial rating of such a business entity will be destroyed.

Even worse is the impact the filing will have on the individual who filed the bankruptcy claim. The record will be registered with the business owner’s profile and will stay that way for at least seven years. Unfortunately, if you have ever filed for bankruptcy for your business, lenders will not be too keen to give you a loan because your credit score will be badly affected.

4. A debt charge off

Debt charge-offs are very common and have been for a very long time, but what does it mean? A debt charge-off is a situation where a lender gives up hope after several unsuccessful attempts to get back money borrowed to an individual. Even though the lender stops coming for the loan, the record still remains in the borrower’s credit history.

For example, if you have an account you use to purchase a service or a product and you are charged the value of the purchase from the account. If you fail to pay for services or products purchased and the lender or product provider blacklists the account because you refused to pay what you owe, the debt remains in place even though the account is no longer active. Debt charge-offs reduce your credit ratings, and the account is registered in your credit profile for at least 7 years.

5. Loan default

Loan defaults are just like debt charge off. The only difference is while the latter is for a service or product you did not pay for, the former is for the cash borrowed from a lender but not repaid. Lenders forward the information of defaulters to the credit bureau, and once this happens, the reputation of such a borrower will be damaged, so much so that other lenders will reject future loan applications by the borrower.

Benefits of Bad Credit Loans

Most people who have bad credits do not have access to conventional loan facilities, and the few who are lucky even to have their application looked at are placed through a tough process. At the end of the day, they may not even get their application approved. But with a base credit loan, they can meet urgent financial needs at short notice. Here are some of the benefits of bad credit loans

Debt consolidation

One of the benefits of payday loan consolidation is that it allows you to consolidate your outstanding debt. With the proceeds from the loan, you can pay off other creditors. What this does is that it reduces your indebtedness while ensuring that you only owe a single entity. In this case, that will be the bad credit loan lender. Moreover, as you pay off your other debt, your credit score will improve.

Meet pressing needs

Bad credit loans grant you cash access to meet urgent financial needs despite being in debt. With a rising debt profile and a static income, meeting immediate needs is not easy, especially when no one is willing to lend you money because of your bad credit. With a bad credit loan, however, you can stay afloat for the time being.

Improve your credit score

Although we have mentioned this point before, it is one of the greatest benefits of bad credit loans, especially if you use the loan to settle other debts. For most people, their debt profile doesn’t rise overnight. Similarly, repairing a bad credit will not happen overnight either. It takes time, but as you pay off your debts one after the other, your credit score will begin to improve. As your score improves, you will be able to better access credit lines.


If you have a poor credit score and you have been looking for loans for bad credit online, all the websites reviewed in this article are rich sources to get in touch with bad credit loan lenders. The guaranteed loans available on these platforms have flexible eligibility requirements, and loans are disbursed as quickly as possible after the loan is approved by the lender.

However, before you sign off the loan, make sure you are comfortable with the terms and conditions offered by the lender. If you don’t like what is offered, you are free to reject the loan and wait until you find a loan that fits your requirements.

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Best Debt Consolidation Loans in September 2021 Wed, 01 Sep 2021 14:12:40 +0000 Editorial Independence We want to help you make more informed decisions. Some links on this page — clearly marked — may take you to a partner website and may result in us earning a referral commission. For more information, see How We Make Money. American consumers had a total of $820 billion in credit card […]]]>

We want to help you make more informed decisions. Some links on this page — clearly marked — may take you to a partner website and may result in us earning a referral commission. For more information, see How We Make Money.

American consumers had a total of $820 billion in credit card debt at the end of 2020, according to the Federal Reserve Bank of New York. Although total debt obliglations were lower in 2020 than in the years before, consumer debt (credit cards, auto, and personal loans) still accounted for 5.4% of American households’ disposable income.

If you have a lot of high-interest debt, such as credit card debt, personal loans, medical loans, or payday loans, a debt consolidation loan could be a good option. If you consolidate this debt into a single loan with a lower interest rate than your existing debt, you can save on interest, pay off your debts faster, and streamline your finances with one monthly payment.

Keep in mind that a debt consolidation loan only makes sense if you can get an interest rate that’s lower than the current interest rate of your existing debts. You should also take into account any fees. Always comparison shop between multiple lenders to get the best rate possible, then run the numbers yourself to see if a debt consolidation loan makes sense for your personal situation.

If you’re looking for a place to start, here are our picks for the best debt consolidation loans.

Best Debt Consolidation Loan Rates in September 2021

LightStream 2.49% to 20.49% (0.5% autopay discount included) 2 to 7 years $5,000 $100,000 Not specified
SoFi 4.99% to 19.63% (0.25% AutoPay discount included) 3 to 7 years $5,000 $100,000 680
Payoff 5.99% to 24.99% 2 to 5 years $5,000 $40,000 640
Best Egg 5.99% to 29.99% 3 to 5 years $2,000 $50,000 640
Marcus by Goldman Sachs 6.99% to 19.99% (0.25% AutoPay discount included) 3 to 6 years $3,500 $40,000 Not specified
Discover 6.99% to 24.99% 3 to 7 years $2,500 $35,000 Not specified
Rocket Loans 5.970% to 29.99% (0.3% AutoPay discount included) 3 to 5 years $2,000 $45,000 540

How We Chose These Lenders

This list does not represent the entire market. We began by analyzing the most commonly reviewed and searched-for debt consolidation loan rates. We only included lenders that offered loans marketed specifically as debt consolidation loans. However, it’s worth noting that other lenders offer personal loans that can be used for debt consolidation purposes too. Then, we cut out any lenders based on the following criteria:

  1. We eliminated lenders that don’t make it easy to find essential loan information like APRs, fees, minimum and maximum loan amounts, and available loan terms on their websites without entering an email or other personal information. Many lenders prominently display this information on their sites, making it easy to compare to other lenders. If you are in the market for a debt consolidation loan, we’d recommend a transparent lender that doesn’t require personal information for a rate comparison.
  2. We ruled out any lenders whose max APR exceeds 30%. Since the goal of a debt consolidation loan is to consolidate your existing high-interest debt into a single loan with a lower interest rate, we believe that it makes sense to feature lenders whose average interest rates are lower than the average credit card interest rate. Keep in mind that the rates listed on lender websites are only general ranges with the minimum and maximum rates. The rate you qualify for will likely fall somewhere between and will depend on factors like your credit score and loan term. The only way to know the exact rate you’ll get is to prequalify or apply for a loan. 
  3. Our list only features direct lenders rather than intermediaries or loan marketplaces. We also ruled out credit unions, which have unique membership requirements and limit the number of people who could easily consider them for a loan. Credit unions can offer competitive rates to those who qualify; check your local area or use a credit union locator to compare rates.
  4. Also, none of these lenders charge any fees or penalties for early payments or otherwise paying off your loan early. We don’t think you should ever have to pay a fee to get out of debt faster. We will never recommend a personal loan that includes such a fee or penalty.
  5. Finally, we eliminated any lenders that did not have an A rating or higher with the Better Business Bureau

The above rates and loan information is accurate as of August 23, 2021. The NextAdvisor editorial team updates this information regularly, though it is possible APRs and other information changed since it was last updated. Some lenders may offer a rate discount if you pay with AutoPay. If the advertised rates include an AutoPay discount, it will be clearly marked. Also, some loan offerings may be specific to where you live. Keep in mind that the longest loan terms and largest loan amounts may only be available to borrowers with the best credit.

Lender Overview


Overview: A division of Truist Bank, LightStream offers fee-free debt consolidation loans with no fees for borrowers with good to excellent credit.

Pros: LightStream charges no fees on its loans and offers the Rate Beat program, which will offer a rate 0.1% lower than rates from competing lenders for the same loan term, with certain conditions. LightStream also offers a $100 Loan Experience Guarantee, where if you’re not satisfied with the service you received and explain why in a questionnaire, the company will send you $100.

Cons: LightStream requires you to go through the entire application process (including a hard credit inquiry, which can affect your credit score) to know the exact rate you’ll get, making it hard to shop around and compare with other lenders.

Current APR 2.49% to 20.49% (0.5% autopay discount included)
Loan Term Range 2 to 7 years
Loan Amount $5,000 to $100,000
Prepayment Penalty None
Origination Fee None
Minimum Credit Score None specified
Minimum Annual Income None specified
Co-Borrower Allowed? Yes
Cosigner Allowed? No
Unsecured Debt Consolidation Loans Yes
Secured Debt Consolidation Loans No


Overview: SoFi offers no fees, a way to prequalify online, and other perks. But loan eligibility is limited to those with good credit scores and who are currently or soon-to-be employed or have another source of income.

Pros: SoFi charges no origination fees or late fees (although you’ll still be on the hook for interest on late payments). SoFi offers an unemployment protection program that will pause your payments and provide job placement assistance if you lose your job.

Cons: SoFi has stricter eligibility requirements than other lenders on this list. In addition to credit score requirements, you also have to be currently employed, have sufficient income from other sources, or have an offer of employment that starts within 90 days to qualify for a loan. Finally, SoFi loans are not available to residents of Mississippi.

Current APR 4.99% to 19.63% (0.25% AutoPay discount included)
Loan Term Range 3 to 7 years
Loan Amount $5,000 to $100,000
Prepayment Penalty None
Origination Fee None
Minimum Credit Score 680
Minimum Annual Income None specified, but employment or alternative income is required
Co-Borrower Allowed? Yes
Cosigner Allowed? No
Unsecured Debt Consolidation Loans Yes
Secured Debt Consolidation Loans No


Overview: Payoff by Happy Money specializes in debt consolidation loans and has lower credit score requirements than some other lenders on this list. You can also prequalify online without a hard credit check.

Pros: Payoff has a minimum FICO credit score requirement of 640, which is considered in the “fair” range by Experian. This makes Payoff more accessible to those who may not have good or excellent credit. Keep in mind, though, that credit score isn’t the only determining factor lenders use when deciding whether to grant you a loan. Payoff members also get free monthly FICO score updates.

Cons: You need to have at least three years of established credit to qualify for a Payoff loan. In addition, Payoff loans aren’t available in Massachusetts, Mississippi, Nebraska, and Nevada.

Current APR 5.99% to 24.99%
Loan Term Range 2 to 5 years
Loan Amount $5,000 to $40,000
Prepayment Penalty None
Origination Fee 0% to 5%
Minimum Credit Score 640, and three years of established credit
Minimum Annual Income None specified
Co-Borrower Allowed? No
Cosigner Allowed? No
Unsecured Debt Consolidation Loans Yes
Secured Debt Consolidation Loans No

Best Egg

Overview: Best Egg offers debt consolidation loans with a quick application process and the option to prequalify online. Like Payoff, Best Egg offers loans to borrowers with “fair” credit (640 and above).

Pros: Best Egg has a quick online application process, allowing you to receive funds in as little as one business day.

Cons: Although Best Egg offers loans to those with fair credit, getting the lowest APR advertised requires you to have an annual income of at least $100,000 and a minimum FICO credit score of 700.

Current APR 5.99% to 29.99%
Loan Term Range 3 to 5 years
Loan Amount $2,000 to $50,000
Prepayment Penalty None
Origination Fee 0.99% to 5.99%; at least 4.99% for loan terms longer than four years
Minimum Credit Score 640; 700+ for the lowest APR
Minimum Annual Income $100,000 minimum individual annual income for the lowest APR
Co-Borrower Allowed? No
Cosigner Allowed? No
Unsecured Debt Consolidation Loans Yes
Secured Debt Consolidation Loans No

Marcus by Goldman Sachs

Overview: Marcus, a subsidiary of Goldman Sachs, offers fee-free debt consolidation loans for borrowers with good-to-excellent credit.

Pros: Marcus offers an on-time payment reward where if you pay your loan on time and in full every month for 12 months, you can get an interest-free payment deferral for one month. Marcus also charges no origination fees, sign-up fees, or late fees.

Cons: Although Marcus doesn’t specify a minimum credit score needed to qualify for a loan, it does say you’ll need good or excellent credit (700-850) to get the lowest rates.

Current APR 6.99% to 19.99% (0.25% AutoPay discount included)
Loan Term Range 3 to 6 years
Loan Amount $3,500 to $40,000
Prepayment Penalty None
Origination Fee None
Minimum Credit Score None specified; borrowers with scores of 700-850 can get lower rates and larger loan amounts)
Minimum Annual Income None specified
Co-Borrower Allowed? No
Cosigner Allowed? No
Unsecured Debt Consolidation Loans Yes
Secured Debt Consolidation Loans No


Overview: This popular banking and credit card company also offers debt consolidation loans with no origination fees, flexible repayment terms, and same-day decisions in most cases.

Pros: Discover charges no origination fees, and no other fees, as long as you pay on time. Discover offers a same-day decision in most cases, as well as an option to pay off creditors directly. If you change your mind about needing the loan, you’ll pay no interest if you return the loan funds within 30 days.

Cons: You need a minimum household income of $25,000 to qualify for a Discover loan. In addition, you can’t use the loan to pay off a secured loan or directly pay off a Discover credit card.

Current APR 6.99% to 24.99%
Loan Term Range 3 to 7 years
Loan Amount $2,500 to $35,000
Prepayment Penalty None
Origination Fee None
Minimum Credit Score None specified
Minimum Annual Income $25,000 household income
Co-Borrower Allowed? No
Cosigner Allowed? No
Unsecured Debt Consolidation Loans Yes
Secured Debt Consolidation Loans No

Rocket Loans

Overview: Rocket Loans, a subsidiary of mortgage company Quicken Loans, offers debt consolidation loans for people with “poor” credit, although you may pay higher interest rates.

Pros: Rocket Loans requires a minimum credit score of 540, making it a viable option for people with “poor” credit. Rocket Loans offers online preapproval as well as same-day funding.

Cons: The maximum interest rate for Rocket Loans is on the high side of the spectrum for this list, although the minimum interest rate is on the low side. Keep in mind that the exact interest rate you’ll get depends on your credit score, and those with poor credit will typically get higher rates. Rocket Loans only offers two loan terms: 3 years and 5 years.

Current APR 5.970% to 29.99% (0.3% AutoPay discount included)
Loan Term Range 3 to 5 years
Loan Amount $2,000 to $45,000
Prepayment Penalty None
Origination Fee 1% to 6%
Minimum Credit Score 540
Minimum Annual Income $24,000
Co-Borrower Allowed? No
Cosigner Allowed? No
Unsecured Debt Consolidation Loans Yes
Secured Debt Consolidation Loans No

What is Debt Consolidation?

Debt consolidation is when you consolidate multiple sources of debt — for example, credit cards, personal loans, payday loans, or medical bills — into a single loan. Some common reasons for consolidating debt include:

  • Simplifying your finances by combining your debt into a single monthly payment
  • Consolidating high-interest debt, like credit card debt, into a lower-interest loan
  • Consolidating debt with a variable interest rate into a fixed-rate loan
  • Reducing your monthly payment by getting a longer loan term
  • Being able to budget better with fixed, monthly payments

The two most common ways of consolidating debt are balance transfer credit cards and debt consolidation loans. With a debt consolidation loan, you take out a loan to pay off your existing debt and pay off the new loan over a fixed time period. A balance transfer credit card comes with an introductory 0% APR, making it a good move if you qualify for one of these cards. Whether you use a balance transfer credit card or a debt consolidation loan, it is essential to make a plan to pay off the consolidated debt before the loan term ends or an introductory APR expires.

What is a Debt Consolidation Loan?

A payday loan consolidation is a type of personal loan taken out for the purpose of consolidating debt. Although many lenders offer products specifically called debt consolidation loans, they’re typically the same as personal loans and have the same loan terms and APRs, just under a different name. Some debt consolidation loans might offer benefits geared toward those looking to consolidate debt, such as the option to pay your lenders directly through the loan provider, saving you a step.

Debt consolidation loans typically fall into two categories: secured and unsecured. Secured loans require you to put up an asset — such as a home or car — as collateral, which the lender can seize if you default on your loan. Unsecured loans don’t require collateral. Because secured loans are less risky for the lender, they typically have lower APRs and credit score requirements. However, be careful when taking out a secured loan; if you fall behind on your payments, you could lose your collateral. In general, you want to avoid trading any unsecured debt for secured debt since that increases your risk.

Benefits of a Debt Consolidation Loan

A debt consolidation loan can help you pay off debt and improve your financial health when used correctly. Some benefits of a debt consolidation loan include:

  • Lower APR. If you have high-interest debt like credit card debt, you may be able to consolidate your debt into a loan with a lower APR. A lower APR means you’ll pay less interest over the life of the loan, and you may even be able to pay off your debt faster as a result. Keep in mind the exact rate depends on factors like your credit score and debt-to-income ratio, so you’ll need to prequalify for a loan or get a quote to see your rate. A debt consolidation loan is likely not a good idea if you can’t get a lower APR than your current one. Also, be aware that fees may cut into your savings; before taking out a debt consolidation loan, always crunch the numbers to see how much you can save.
  • Regular, fixed-rate payments. If you have lots of credit card debt with no plan to pay it off, a debt consolidation loan can help. With a debt consolidation loan, you’ll make regular monthly payments with a fixed payoff date to help you budget better. You’ll also get a fixed interest rate, as opposed to a variable APR with credit cards, eliminating any surprise changes in interest charges.
  • Streamline your finances. If you have multiple sources of debt, such as several credit cards or personal loans, combining them all into a single monthly payment can simplify your finances and help you better keep track of your payment deadlines. A single missed payment on a credit card or loan can result in hefty fees or a significant drop in your credit score. A debt consolidation loan can help you avoid missing payments by reducing the number of separate bills you need to pay.

Keep in mind, a debt consolidation loan will only help you if you go in with a plan to pay off the debt. Before taking out a debt consolidation loan:

  • Calculate the interest and fees to make sure you’re saving money
  • Build the loan payments into your budget
  • Keep track of payment deadlines to make sure you don’t miss a payment.

Debt Consolidation Loan vs. Balance Transfer Credit Card

One popular alternative to a debt consolidation loan is a balance transfer credit card. A balance transfer credit card is a credit card that offers a 0% APR introductory period, which typically ranges from 6 to 20 months. You can use a balance transfer credit card to consolidate debt by putting your existing debts onto the credit card and paying it off before the introductory period expires, thus paying no interest on the balance. (Though you may have to pay a balance transfer fee, usually around 3%.)

The biggest draw of a balance transfer credit card is paying off the balance before the introductory period expires and, consequently, paying no interest at all. Having a plan to pay off debt is even more important when using a balance transfer card, or you’ll be stuck with high APRs once the introductory period ends. The best balance transfer cards are typically available only to those with good or excellent credit, making them less accessible than personal loans for those with poor or fair credit.

Personal Loan Balance Transfer Credit Card
• Installment loan
• Fixed interest rate for the loan term
• More options for those with poor or fair credit
• May charge an application fee, origination fee, prepayment penalty, and other fees
• Credit card
• 0% APR introductory period, then high variable APR
• Fewer options for those with poor or fair credit
• May charge a balance transfer fee, a monthly credit card fee, and other fees

Alternatives to a Debt Consolidation Loan

In addition to balance transfer credit cards, there are several other alternatives to debt consolidation loans or personal loans for consolidating debt. These include:

Home Equity Loan or HELOC

You can tap into your home equity for immediate cash with either a home equity loan or home equity line of credit (HELOC). A home equity loan is a secured installment loan where you borrow a lump sum and pay it back, with interest, over a fixed period. A HELOC is a revolving line of credit that works like a credit card, where you can withdraw as much cash as you need (up to the credit limit) during the draw period and pay it back during the repayment period.  Home equity loans and HELOCs use your home equity as collateral and may have lower rates than unsecured personal loans or credit cards. Be aware, though, that if you default on the loan, the lender could foreclose on your house.

Cash-Out Refinance

Similar to a home equity loan or HELOC, a cash-out refinance also lets you use your house as a means of accessing cash. The process just works differently. With a cash-out refinance, you take out a new mortgage with a larger value than your current mortgage, pay off your old mortgage with the money, and keep the difference as cash. Since mortgage rates are relatively low right now, a cash-out refinance may be a better deal than a home equity loan, HELOC, or personal loan.

Credit Counseling

If you’re struggling with debt, many credit counseling agencies offer services to help you make a debt repayment plan and get your finances back on track. Credit counseling is different from debt settlement, where for-profit companies negotiate with your creditors in an attempt to get them to settle your debt for less than the total amount owed. Debt settlement companies typically charge hefty fees for their services, and settling your debt for less than the original amount can severely hurt your credit score. Credit counseling is typically offered for free or for a small fee by nonprofit organizations.

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How To Get A Debt Consolidation Loan With Bad Credit Wed, 01 Sep 2021 14:09:27 +0000 If you have below-average credit — typically below a FICO score of 670 — you can improve your odds of being approved for a debt consolidation loan by spending a few months working to improve your credit. If you can redirect the money you spend on nonessential expenses toward paying down debt, you may get […]]]>

If you have below-average credit — typically below a FICO score of 670 — you can improve your odds of being approved for a debt consolidation loan by spending a few months working to improve your credit. If you can redirect the money you spend on nonessential expenses toward paying down debt, you may get better terms from lenders that specialize in debt consolidation loans for bad credit and will take your recent efforts into consideration.

Benefits of a debt consolidation loan

Someone might get a debt consolidation loan for one of several reasons. The biggest benefits of a debt consolidation loan include:

  • Simplified finances: A debt consolidation loan rolls multiple monthly payments into one. Having only one lender and one monthly bill to worry about could help you pay off your debt more consistently and avoid missed payments, which lower your credit score.
  • Lower interest rate: It’s generally only wise to get a debt consolidation loan if you can get a better interest rate than what you’re paying on your debt now. If you’re paying an average of 16 percent to 20 percent on your credit cards and you can get a debt consolidation loan for 14 percent APR, you’ll save money overall.
  • Fixed payment: Most debt consolidation loans have fixed interest rates and a set repayment term, so your monthly payment will be the same every month — unlike monthly payments on credit cards.

How to qualify for a debt consolidation loan

Every lender sets its own requirements for borrowers looking for debt consolidation loans. However, every lender will look at your credit score, income and debt-to-income ratio to determine how capable you are of repaying your loan. Often you’ll need a credit score of around 650, although bad-credit debt consolidation lenders exist; these lenders may accept credit scores of 600 or even less. Just remember that the lower your credit score, the higher your interest rate.

4 steps to getting a debt consolidation loan for bad credit

If you’re struggling to get out of debt and think a payday loan consolidation can help, you’ll likely have to have a credit score in the mid-600s, a history of timely payments and sufficient income to qualify. However, every lender has its own requirements. Start with the following steps to help you find the right personal loans for debt consolidation and boost your chances of approval.

1. Check and monitor your credit score

Lenders base loan decisions largely upon the condition of your credit. Generally, the lower your credit score, the higher the interest rates lenders will offer you on financing. To qualify for a debt consolidation loan, you’ll have to meet the lender’s minimum requirement. This is often in the mid-600 range, although some bad-credit lenders may accept scores as low as 580.

Many banks offer free tools that allow you to check and monitor your credit score. Once you know your credit score, it’s easier to identify lenders that may be willing to work with you. Not only are there lenders that specialize in loans for people who have bad credit, but many list credit score requirements on their websites.

2. Shop around

It’s rarely a good idea to accept the first loan offer you see. Instead, do your research and compare loan amounts, repayment terms and fees from multiple sources, including local banks, national banks, credit unions and online lenders. This process can take time, but it might save you hundreds, if not thousands, of dollars.

The easiest starting point may be online lenders because you can often view your rates with a soft credit check, which won’t hurt your credit score. However, it may also be worthwhile to check offerings with your existing bank; if you have a good relationship with a bank or credit union, it may be more willing to overlook below-average credit.

3. Consider a secured loan

Personal loans for debt consolidation are typically unsecured, meaning they don’t require collateral. If you’re having a hard time getting approved for an affordable unsecured debt consolidation loan, a secured loan might be worth considering.

Secured loans require some form of collateral, such as a vehicle, home or another asset. The collateral usually has to be worth enough to cover the loan amount if you default. Because of this, it’s typically easier to get approved for a secured loan than an unsecured one, and you may even qualify for a better interest rate.

4. Wait and improve your credit

If you’ve tried everything and can’t find a loan that will help you save money, it may be best to hold off and take some time to establish a better credit score.

Make it a goal to pay your monthly debts on time every month for several months in a row. It’s also a good idea to focus on paying down credit card balances and eliminating all nonessential monthly expenses, such as subscriptions and eating out frequently.

“Make a short-term plan that ensures you’re consistently allocating money towards debt payments every month,” says Steve Sexton, CEO of Sexton Advisory Group. “Once you’ve built momentum for a month or two, request a meeting with your bank or credit union to review your efforts and apply for a debt consolidation loan. You’ll have better luck with a bank or credit union vs. an online lender because you can show that you’ve already started taking the steps to paying down your debt and correcting the issue.”

It’s also a good idea to get a copy of your three credit reports, which you can do for free once a year (or weekly through April 2022 through, and check for errors. If you find any, you can dispute them with the three credit reporting agencies, Equifax, Experian and TransUnion.

Where to get a debt consolidation loan with bad credit

With so many lenders out there, it can be overwhelming trying to decide where to begin. Here are some good places to start your search.

Credit unions and local banks

Local banks and credit unions will typically check your credit when you apply for a personal loan, just like any other lender. Yet these local financial institutions may be willing to offer you more leeway if your credit isn’t in great shape, particularly if you’ve already built a positive relationship with them.

If you’re a customer of a local bank or a member of a credit union, you can talk to a loan officer about whether you qualify for a personal loan (and what the rate and terms are, if you do). The institution may look beyond your low credit score and take into account your entire financial history, personal circumstances and relationship with the bank or credit union.

Online lenders

Online lenders are good places to look for debt consolidation loans if you have bad credit, as they may be more likely to approve you for a bad-credit loan than a traditional brick-and-mortar bank.

With an online lender, you can often:

  • Compare rates without impacting your credit score.
  • Apply quickly and easily, without lots of paperwork or the need to visit a branch in person.
  • Get funds within a week, or even in as little as one business day.

“Most online lenders will be more flexible in providing these types of loans,” says Ash Exantus, director of financial education at BankMobile, an online bank.

With that said, online lenders frequently charge high APRs for bad-credit debt consolidation loans. You also have to watch out for origination fees that could add to your overall cost of financing and cut into your loan proceeds.

In particular, when reviewing online lenders for a potential debt consolidation loan, it’s important to know whether the company you’re considering is a direct lender or a third-party lender, Sexton says. “Working with a third-party lender can sometimes involve additional costs and fees, so it could benefit you to seek a direct lender to avoid these costs.”

If you’re considering debt consolidation loans for bad credit, here are some online lenders you may want to check out:

  • LendingClub is reported to have a minimum credit score requirement of 660. APRs range from 8.05 percent to 35.89 percent on debt consolidation loans from $1,000 to $40,000.
  • Upstart requires applicants to have a minimum credit score of 600 or higher to qualify for a debt consolidation loan. Qualified borrowers may be able to take out loans from $1,000 to $50,000 with an APR range of 8.94 percent to 35.99 percent.
  • Avant’s minimum FICO score is 580. However, the company says that most customers who receive loans have a score of between 600 and 700. If you qualify for financing, you may be able to borrow $2,000 to $35,000 at an APR between 9.95 percent and 35.99 percent.
  • OneMain Financial doesn’t specify a minimum credit score on its website, but it has a track record of working with borrowers who have fair and poor credit. The APR range on debt consolidation loans with OneMain Financial is 18 percent to 35.99 percent, and borrowers may qualify for loans from $1,500 up to $20,000.

Summary of the best bad-credit debt consolidation loan options

Lender Minimum credit score APR range
LendingClub 660 8.05%–35.89%
Upstart 600 8.94%–35.99%
Avant 580 FICO 9.95%–35.99%
OneMain Financial Not specified 18%–35.99%

How to manage your debt consolidation loan

Once you’ve obtained the funds from a debt consolidation loan, it’s important to manage the money responsibly. Here are some ways to help pay off your debt consolidation loan without racking up new debt.

Create a budget

After being approved for a loan, draft a budget outlining how you will repay the money each month, ensuring that you’ll be capable of doing so.

“Know ahead of time how much you’re going to have to pay each month,” Exantus says. “If the amount that you’re going to pay is not conducive to your current budget, then it would not make sense to proceed with a debt consolidation loan.”

Alternatively, you may want to immediately reduce some of your current discretionary expenses to ensure that you have enough cash on hand to repay your loan each month.

Pay off all debt immediately

Once the funds from the consolidation loan have arrived in your account, the first thing you should do is pay off all of your debt.

“Some people will receive the money and proceed to use it for other purposes, or will fail to pay off the entirety of their debt,” says James Lambridis, CEO of DebtMD. “This will only put you in a worse off financial situation.”

Set up automatic payments

Once you have your debt consolidation loan, see if your lender offers autopay. Many do, and some will even give you a discount for setting it up. It’s a good way to potentially lower your interest payments if your poor credit resulted in a high rate. It will also help keep you on track — especially important for your credit, since making timely payments on your loan is one of the best ways to raise your credit score.

Resolve any spending issues

Finally, you’ll need to acknowledge and resolve any ongoing spending issues you may have. Without addressing the behavioral money patterns that caused the problem in the first place, it’s easy to fall right back into debt, Sexton says.

This includes trying not to reach for those credit cards again once they’ve been paid off, as you don’t want to end up back at square one.

Alternatives to a debt consolidation loan

Debt consolidation may not be the best option for everyone. If you can’t qualify for a debt consolidation loan with a lower interest rate than you’re currently paying, you might want to consider some of these alternatives instead.

Do-it-yourself fixes

There are a few ways to alter your financial plan without involving third parties. To start tackling your debt, you can:

  • Overhaul your budget. Compare how much you’re spending with how much you earn and see where you can cut costs to free up more money for debt elimination.
  • Renegotiate the terms of your debt. If you’re struggling to meet your minimum payments, your lenders might be willing to lower your interest rate or work with you in other ways.
  • Ask for a due-date adjustment. You might be able to schedule all of your payment due dates near the same day. While this isn’t the same as consolidating your debt, it may help you keep track of your obligations more easily.

Debt management plan (DMP)

The National Foundation for Credit Counseling (NFCC) is a nonprofit financial counseling organization with member agencies around the country that offer debt management plans (DMPs).

In a way, DMPs are another type of debt consolidation for bad credit. While in the program, you make one lump-sum monthly payment to your credit counseling agency that covers multiple bills for the month.

The agency, in turn, pays each of your creditors on your behalf (generally at a lower negotiated interest rate). Most debt management plans take three to five years to complete.

That said, going through this process typically results in a notation on your credit report that you’re on a debt management plan. Though the notation will not impact your credit score, new lenders may be hesitant to offer you new lines of credit.

Home equity

If you own a home and have significant equity in it, you may be able to take out a home equity loan to consolidate your debt. A home equity loan isn’t technically a debt consolidation loan, but it might help you score a low interest rate, because the loan is secured by your home.

Just keep in mind that while using your home’s equity may help you qualify for financing and possibly secure a lower interest rate, there’s significant risk involved as well. If you can’t keep up with the payments, you could risk losing your home to foreclosure. It’s best to pursue this option only if you’re certain that you won’t have problems repaying the debt.

Ways to leverage your home equity for financing include:

  • Home equity loan. Sometimes called a second mortgage, a home equity loan is a lump-sum, fixed-rate loan that homeowners can take out using the equity in their homes as collateral.
  • Home equity line of credit (HELOC). A HELOC is another type of financing that is secured by the value of your home. Rather than borrowing a lump sum at a fixed interest rate, you take out a line of credit — similar to a credit card. This gives you access to funds whenever you need them, up to a maximum borrowing limit. As you pay down your balance, you can borrow up to that limit again.
  • Cash-out refinance. With a cash-out refinance, you take out a new mortgage for more than you currently owe on your home. From there, you can use the leftover funds to pay off your debt.

What to do if your situation is dire

Debt consolidation loans and the alternatives noted above are best for people who can qualify for a low interest rate. If you’re drowning in debt and can’t afford your monthly payments, it might be wise to consider credit counseling, debt settlement or bankruptcy.

While these options aren’t ideal, they may be your ticket to getting some relief.

Credit counseling

A credit counseling agency can help by acting as a middleman between you and your creditors. A credit counselor can help you understand your credit report and suggest steps for improving your credit score and achieving financial stability. Some credit counseling agencies even offer limited services for free.

If you’re struggling to manage your debt, credit counselors can also set you up with a debt management plan. Credit counseling agencies typically have contracts with creditors with lower interest rates than what you may be currently paying.

Debt settlement

Debt settlement goes one step further than debt management. Debt settlement companies like National Debt Relief and Freedom Debt Relief work with you to settle your debt for less than what you owe.

The caveat is that you typically need to pay enough into an account with the debt settlement company before it will begin negotiations with your creditors — often at the expense of making your regular monthly payments, forcing you to default.

If you default on your debts, it could damage your credit score even further, which can take a long time to rebuild.

However, there are also some positives to consider when proceeding with debt settlement, Exantus says. “If your credit is bad already, then allowing your current debt to stay delinquent is not a negative thing because eventually, it will save you money because you’re paying a lower amount to your creditor than what you originally would have paid if the debt consolidation company didn’t intervene.”

Remember, however, that reaching a zero balance on your debt won’t make past late payments or other derogatory notations disappear from your credit report. You’ll still be stuck with the negative account on your credit report for up to seven years from when it went into default (though it should impact your score less and less over time).

Debt settlement services also come with fees, sometimes regardless of whether the company is successful at negotiating down your debt.


If you’re experiencing financial hardship and even debt settlement doesn’t sound possible, bankruptcy may be your only option. Depending on the type of bankruptcy you file, you may need to place your assets under control of a bankruptcy court and agree to give up most or all of your wealth.

Note that declaring bankruptcy doesn’t discharge all types of debt — for example, you still have to pay student loans and child support debt. Bankruptcy will also remain on your credit report for up to seven to 10 years. Because of this, it could be years before you’ll qualify for certain types of credit again.

That being said, filing for bankruptcy can give you a second chance to rebuild your finances. With diligence, your credit can eventually recover as well.

If you’re considering bankruptcy, consult with a bankruptcy attorney to get advice about your best path forward.

Watch out for predatory lenders

If you’re considering a debt consolidation loan, keep in mind that some lenders are predatory in nature. This is especially true of lenders that work with people who have low credit scores. They’ll often charge exorbitantly high interest rates and a variety of additional fees.

Online companies like OppLoans, for instance, charge triple-digit APRs. That said, it’s nowhere near as pricey as payday loans, which can charge APRs of up to 1251.43 percent.

Accepting a loan with such a steep interest rate can be extremely expensive and may cause you to go deeper into debt. Plus, using a predatory lender defeats the purpose of a debt consolidation loan, which is to make it easier to pay down your debt.

“Sometimes it’s hard to spot who are predatory lenders as it relates to the consolidation loans, especially when you have bad credit,” Exantus says. “Anybody who offers you anything may seem like a win. The important thing is to read the fine print. Do not get into any agreement without fully understanding what that is going to cost you.”

Predatory loans are those that benefit the lender at the borrower’s expense, Sexton adds. The warning signs include:

  • The interest for your credit rating seems too good to be true.
  • The lender is pressuring you to act quickly.
  • The lender is pressuring you to take out a risky or expensive loan.
  • The lender is asking you to lie on your application.
  • The fees or terms suddenly change at closing.

The bottom line

Regardless of how you get rid of your debt, it’s important to have a plan for accomplishing your goal. It can be discouraging if you can’t find a good debt consolidation loan or if you’re faced with the prospect of debt settlement or bankruptcy. But don’t let that discouragement stop you from taking action. If you can avoid letting an account go to collections while you decide, do so.

Also, keep in mind that debt consolidation loans are a temporary fix. They don’t address the core problem of how you got into debt in the first place. If you opt for a debt consolidation loan, be sure to take additional steps toward financial stability, like creating a budget, curbing your overspending and looking for additional income opportunities. You should also avoid racking up new balances on accounts you just paid off.

Finally, be cautious about jumping on any loan you can qualify for just to pay off your debt quickly. Taking out a predatory loan to pay off your current debt is exchanging one problem for another.

Learn more:

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Best Online Personal Loans of August 2021 Wed, 01 Sep 2021 14:05:48 +0000 Personal Finance Insider writes about products, strategies, and tips to help you make smart decisions with your money. We may receive a small commission from our partners, like American Express, but our reporting and recommendations are always independent and objective. This post was last reviewed and updated on August 2, 2021. The best online personal […]]]>

Personal Finance Insider writes about products, strategies, and tips to help you make smart decisions with your money. We may receive a small commission from our partners, like American Express, but our reporting and recommendations are always independent and objective.

The best online personal loan lenders of August 2021

Rates are current as of August 2, 2021.

If you find you’re in need of some fast cash to do things like refinance your credit cards, improve your home, or take a vacation, a personal loan could be a good option for you. With a personal loan, you apply to borrow a certain amount of money. The lender will show which offers are available to you based on financial factors such as your credit score, debt-to-income ratio, and ability to repay the loan.

Keep in mind that some lenders have minimum credit score requirements that may make you ineligible for a loan with them. Other lenders may allow you to qualify for a loan with a poor credit score, but could saddle you with high interest rates as a result.

Be sure you’ve exhausted other options before choosing to take out a personal loan, such as borrowing money from a friend or family member, a home equity loan, or in some cases, a credit card. These options may offer lower interest rates than a personal loan.

If you want to turn to an online personal loan provider, here are a few of the best places to start your search.

PFI Best lightstream Logo Banner



Lightstream’s personal loans are best for those with good credit. While you can qualify for a loan with a minimum score of 660, you won’t be able to take advantage of Lightstream’s lower rates without a score of around 800. The lender also has slightly more stringent eligibility requirements than some of our other top picks, including several years of credit history, stable income, and few or no payment delinquencies on your credit report.

If you’re looking to borrow a large sum of money, Lightstream’s maximum loan amount of $100,000 is significantly higher than most of the other lenders on our list. Its minimum APR is the lowest of all the lenders on our list of top picks, reducing the overall cost of your loan.

On the customer relations side, Lightstream topped J.D. Power’s 2020 rankings for personal lender satisfaction and has an A+ rating from the Better Business Bureau.

Read Insider’s full review of Lightstream here.

Check Rates »

PFI Best SoFi Logo Banner



SoFi has the highest minimum credit score requirement of any lender on our list — you’ll need at least a credit score of 680. But if you do qualify, you may like the lender’s low rates, high range in loan amounts, and unique perks.

Even if your credit history isn’t immaculate and you aren’t eligible for SoFi’s lowest rate, the company’s maximum APR is the lowest on our list. SoFi offers a higher maximum loan amount than most other lenders, allowing you to take out up to $100,000. SoFi also came in fourth in J.D. Power’s 2020 rankings for personal lender satisfaction.

Additionally, the company charges no origination fees and has no late payment penalty, lowering the overall cost of your loan. If you lose your job through no fault of your own, SoFi also has an unemployment protection program. If approved for the program, SoFi will put your loans into forbearance, suspending your monthly payments. It’s worth noting that interest will continue to accrue on your loan when it is in forbearance.

Read Insider’s full review of SoFi here.

Check Rates »

PFI Best Avant Logo Banner



Avant is one of the easier lenders to qualify for on our list — its minimum credit is just a guideline, not a requirement, but most Avant borrowers have a credit score between 600 and 700. However, you can likely get a lower rate elsewhere if you have a high credit score. Credit cards may also offer a lower APR, provided you’re eligible.

If you are looking for a smaller loan, Avant’s $2,000 minimum is lower than most comparable lenders. Avant funds loans quickly — if the company approves your loan by 4:30 p.m. CT Monday through Friday, funds are often put into your account by the next business day.

Avant also has excellent customer service hours, with its phone line open at least 13 hours every day of the week. The lender also has a strong mobile app, which is something not all lenders offer.

Read Insider’s full review of Avant here.

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PFI Best Payoff Logo Banner



Payoff could be another good option if you have a lower credit score, as its minimum requirement of 640 is relatively low. If you have a good credit score, Payoff also offers one of the lowest APRs of lenders on the list.

Payoff personal loans are specifically designed to help borrowers eliminate high-interest credit card debt. This means you are limited in what you can use your loan for — you should choose a different lender if you aren’t aiming to consolidate credit card debt.

The company doesn’t charge any prepayment fees or late fees, but may charge an origination fee between 0% to 5%. Payoff also has one of the slowest money transfer times of any personal loan company, as it takes between two to five business days to have money deposited in your account.

Check Rates »

PFI Best Marcus by Goldman Sachs Logo Banner


Marcus by Goldman Sachs

Marcus by Goldman Sachs is the only lender on this list with an unspecified minimum credit score. Generally, you will need a credit score of 670 or above to qualify for a good rate. Marcus’ rates are competitive with comparable lenders.

A unique feature of Marcus is that the company offers an “on-time payment reward.” If you pay your loan on time and in full every month for one year, you can forgo a month of payments and interest will not accrue during that period. Your loan will then be extended by one month.

The company’s minimum loan length of three years is higher than most other lenders on this list. If you want to consolidate your payments over fewer years and save on interest, you may consider another lender. However, Marcus doesn’t have any prepayment fees, so if you wanted to pay off your loan before its term expires, you can do that.

Marcus also came in second in J.D. Power’s 2020 rankings for personal lender satisfaction.

Check Rates »

PFI Best Upstart Logo Banner



You may qualify for a loan more easily with Upstart than with some of the other lenders on our list — the minimum credit requirement for Upstart is 600. As a result, if your credit score is low, you might end up paying a high APR and could potentially get a better deal elsewhere.

Upstart offers the smallest loan amount of all the lenders on our top picks, so if you just need a little cash to tide you over, this could be the lender for you. Additionally, the company usually funds loans within one business day, which is useful if you need your money fast.

Read Insider’s full review of Upstart here.

Check Rates »

Online personal loan credit score requirements

The credit score you’ll need to qualify for a loan will depend on the particular lender, though you’ll likely qualify for a better rate with a higher score.

If you need to access your credit report, you can get it at no cost from any of the three major credit bureaus on weekly through April 20, 2022. This report will give you information about your payment and credit history — though it won’t provide you with your credit score. Looking over your credit report can help you spot errors and find areas for improvement.

You can get your score for free on your credit card statement or online account. You can also buy it from a credit reporting agency.

Credit scores range between 300 and 850. Here’s how scores break down, according to FICO:

  • Very poor: 300 to 579
  • Fair: 580 to 669
  • Good: 670 to 739
  • Very good: 740 to 799
  • Exceptional: 800 to 850

Checking your rates with most companies will not impact your credit score because a majority of lenders will only generate a soft credit inquiry when showing you personalized rates. However, if you choose to accept a loan, lenders will likely conduct a hard credit inquiry, which may negatively affect your credit score. A hard inquiry offers a lender a comprehensive look at your credit history.

If you don’t qualify for a loan with your preferred lender or are receiving a higher APR than you can afford with another, here are some tips you may consider to improve your credit score:

  • Ask for and review a copy of your credit report. Look for any errors on your report that may be tanking your score. If so, reach out the credit bureau to talk about rectifying the mistake.
  • Maintain low credit card balances. Keeping a credit utilization rate — the percentage of your total credit you’re using — of 30% or less will prove to lenders that you can manage your credit appropriately.
  • Devise a system for paying bills on time. Your payment history makes up a significant percentage of your credit score, and lenders like to see consistent and reliable payments in the past. Set up calendar reminders or automatic payments so you don’t fall behind.

Other personal loans we considered

  • OneMain Financial personal loans. OneMain is a solid option for borrowers with low credit scores, but you can only borrow up to $20,000. The company also doesn’t lend to residents of Alaska, Arkansas, Connecticut, Massachusetts, Rhode Island, or Vermont. Read Insider’s full review here.
  • Upgrade personal loans. Upgrade has relatively low credit score requirements and offers next-day funding to most borrowers, but charges hefty origination fees and doesn’t allow co-signers.
  • PenFed Credit Union personal loans. While PenFed offers relatively low rates and a range of loan terms, you’ll need to become a member to get your loan funded.
  • Rocket Loans personal loans. Rocket Loans offers same day funding for some loans. But borrowers can only choose from two repayment term lengths and you’re not able to take out a joint or co-signed loan.
  • Best Egg personal loans. Best Egg offers low rates to borrowers with good credit, but if your credit score is lower than 640 you won’t be eligible for a loan with the lender. Read Insider’s full review here.
  • LendingClub personal loans. LendingClub has a relatively high maximum APR, and you may get your funding more slowly than with another lender. Read Insider’s full review here.
  • Discover personal loans. Discover’s maximum limit for personal loans is $35,000, which is lower than most other lenders on our list.

Which lender is the most trustworthy?

We’ve only selected online personal loan lenders with no public controversies in the last three years. We’ve also compared each institution’s Better Business Bureau score.

The BBB measures businesses’ trustworthiness based on factors like their responsiveness to consumer complaints, truthfulness in advertising, and clarity about business practices. Here is each company’s score:

All of our top picks are rated A or higher by the BBB. Keep in mind that a high BBB score does not guarantee a positive relationship with a lender, and that you should continue to do research and talk to others who have used the company to get the most comprehensive information possible.

Frequently asked questions

How did we pick the best online personal loans?

Personal Finance Insider’s mission is to assist smart people in making the best decisions possible with their money. With that in mind, we compared many different online personal loan lenders, digging into the fine print so you don’t have to. We evaluated several factors to determine the best lenders, including:

  • Annual percentage rates: The lower the interest rate you have to pay on your loan, the better. So we focused on lenders who have solid rates for people with fair or better credit histories.
  • Loan term length: We looked for personal loans with a variety of repayment lengths.
  • Loan amount range: We know some people are looking for a small amount of cash, while others are looking to take out a substantial amount. We found lenders with a variety of minimum and maximum loan amounts to best fit your needs.
  • Minimum credit score: Depending on your credit score, you may be eligible to take out a loan from some lenders and may not qualify with others. We picked lenders with a range of minimum credit scores so you have options no matter your credit history.
  • Trustworthiness: Borrowing from an honest lender is often a top priority for many people. We made sure each lender had an A or above grade from the Better Business Bureau to provide the most transparent lenders possible.

Are online personal loans legitimate?

Yes, online loans with a reputable lender are perfectly safe to take out. Read reviews of the company online, look for additional information about the company, and ignore offers that seem too good to be true. Look for personal loans that are backed by a Member FDIC bank or NCUA accredited credit union.

You can watch out for potential scams by looking out for these telltale signs:

  • The lender doesn’t ask about your payment history or credit score.
  • The lender’s website is unsecured.
  • The lender guarantees approval.
  • The lender isn’t transparent about fees.
  • The lender coerces you into taking out a loan immediately.

What can I use an online personal loan for?

You can use an online personal loan for a variety of purposes, though the list fluctuates depending on the lender. Some common reasons include:

This list is not exhaustive, and you should check with your individual lender to see what options they offer.

What’s the difference between an online personal loan and a payday loan?

A payday loan consolidation is designed to bridge the gap between paydays, so term lengths are much shorter than personal loans.  They also come with incredibly high APRs — the average interest rate on a payday loan is roughly 400% — so if you happen to miss a payment, the high interest rate could trap you in a cycle of debt quickly.

Payday loans also have lower minimums, which generally start around $50. This is much lower than the smallest amount you can borrow with a personal loan, which is $1,000 on our list of top picks.

Payday loans usually have more lax requirements than personal loans. Many payday lenders don’t run a credit check or even ensure you have the ability to repay the loan. Payday loans are also banned in many states due to predatory lending practices, whereas personal loans are generally accessible across the country.

How much will an online personal loan cost?

This depends entirely on how much you’d like to take out, what APR you receive from your lender, and how long it takes you to pay off the loan. The higher the loan amount and APR, the more a loan will cost you. With a longer term length, you will spread out your payments over an extended period so your monthly payments will be smaller, but you will pay more in the long run.

How quickly can I get my money? 

Depending on the lender, you can get your money as soon as the same day. Usually, a lender will send the money fairly quickly after the application is approved, but there is often no guarantee on the speed of the process.

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Best Payday Loans Online 2021 Wed, 01 Sep 2021 14:03:02 +0000 The reviews and statements published here are those of the sponsor and do not necessarily reflect the official policy, position or views of Observer. This post contains affiliate links. If you purchase products through these links Observer will earn a commission. Living from paycheck-to-paycheck, you might not be able to save up money for any […]]]>
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Living from paycheck-to-paycheck, you might not be able to save up money for any unexpected situations. Also, trying to get a loan when your credit score is already affected is yet another difficult task. So, what next? 

Getting an online payday loan consolidation might be a suitable solution. However, it is pertinent to mention that these types of loans usually come with hefty interest rates, and some lenders might exploit you for the situation you are dealing with. 

In order to avoid any such undesired happening, we have come up with a list of trusted, reputable, and free sources that can link you with a lender online from which you can borrow the required amount and get it transferred to your bank account the same day or the next. 

This will not only save you from becoming prey to fraudulent people but will also save you from those tiring in-person meetings. 

Last but not least, there is also a chance that online lenders might charge lower interest rates than traditional ones. So, let us get started.

Top 5 Best Online Payday Loans 

In our opinion, loans provided by MoneyMutual are the best payday loan providers among all. 

  1. MoneyMutual: Best Overall Same Day Loan Provider 
  2. BadCreditLoans: Top Payday Loan Provider  
  3. CashUSA: The Easiest Loans to Get
  4. Credit Loans: Best Online Payday Loan for Instant Approval
  5. Personal Loans: Best Online Payday Loan for Bad Credit 

#1. MoneyMutual – Best Overall Same Day Loan Provider 

Best Personal Loan Provider for Bad Credit

Contrary to conventional payday loan stores, which limit you to a few daytime hours to apply for loans, MoneyMutual allows you to apply for the loan amounts at any hour of the day — be it midnight or early morning. Also, minimum effort is required to get the job done since it takes only a few minutes to fill out the form and submit it. Also, a credit check is not a priority.

Please note that MoneyMutual itself is not a lender; instead, it acts as a bridge between the lender and the borrower. And, it does not charge anything for doing so. 

With MoneyMutual, you can get up to $2500 transferred into your account within 24hrs. The trust of 2,000,000 users in MoneyMutual is a self-evident truth that supports the fact that it is the most credible source to rely on for payday loans. 

It has over 60 lenders in its community, and once you have filled and submitted the request form, MoneyMutual forwards it to all of them. Then, the lender reviews your request, and on accepting it, the platform connects you and the borrower directly. 

You will then be redirected to the website of the lender to review the terms and conditions. If you find everything suitable, you can accept it; otherwise, you have the full right to turn it down without being liable to pay any hidden charges.

So, even if you have a bad credit score, MoneyMutual has you covered as long as you are 18 years old or older and you earn $800 monthly. 

Lastly, if a payday loan is not the solution to your problem, the platform also has the option of small short-term personal loans. 

Click here to learn more about how MoneyMutual works on the official site

Other Options to Contemplate with Payday Loans

In addition to MoneyMutual, the following are our favorite options. While some of the below-discussed companies might not offer payday loan facilities, they do have the option of personal loans. You can borrow as little as $250 to as much as $35000 and repay it in easy installments. 

The benefit to personal loans over payday loans is the low APR offered. 

Let us have a detailed look at what the company has to offer and how it works.

#2. BadCreditLoans – Top Payday Loan Provider

Best Emergency Loans For Bad Credit Borrowers


This Washington-based company mainly focuses on providing loans to people with a poor credit check. You can not only bear your sudden and unplanned expenses with the help of BadCreditLoans, but you can also get your score repaired.

If you unfailingly manage to pay the installments on time, there is a chance your bad credit scores will get better since the company reports all of your performance to credit bureaus.

With BadCreditLoans, you can borrow up to $10,000 at interest rates that range from 5.99% – 35.99%. However, the amount that can be lent to you might vary depending on your score. 

So, no matter why you want a loan, whether for debt consolidation, auto repair, medical expenses, taxes, or vacations, you can get the amount transferred straight into your bank account within one business day if you are 18+ and have a regular source of income, e-mail address and phone number, legal residency or SSN as proof of your valid citizenship, and a personal checking account. 

The initial process is pretty straightforward and easy. To begin with, you have to fill out a form that requires some basic information, like the reason for which you want a loan, the area you live in, your full name, and whether or not you are active military. 

In the second step, another page of the form pops up, and some detailed information is required, like how long you have been living in a particular area and everything regarding your employment — including your net income, the name and phone number of your employer, etc. 

Then, you are required to complete the third and last page of the form. Here you will have to enter details regarding your upcoming payday and bank account and then finish the form by entering your phone number. 

The process might sound a little too lengthy, but trust us, it only takes a few minutes. However, if you compare running after lenders individually and doing meetings with them, you will realize this is a way better option. 

Once a lender reviews your request, they will share the terms and conditions with you. Make sure you go through each and every part of it. If you find everything suitable, go for it; otherwise, feel free to decline the offer. 

On accepting the offer, you will have to give your e-consent. It is likely the funds will be transferred to your account in one business day. 

Click here to learn more about how BadCreditLoans works on the official site

#3. CashUSA – The Easiest Loans to Get

The Easiest Loans To Get


No matter if you need $500 or $10,000, CashUSA will find someone to lend the amount to you in no time. This U.S.-based company connects borrowers with low credit scores to lenders for free; often without a credit check. So, despite the type of loan you are planning to get, be it a payday loan or a personal loan, one thing is for sure, you will not regret choosing CashUSA.

The eligibility criterion set by the company is not strict since the restriction of minimum score is not imposed. CashUSA demands no different information than the rest of the companies, which is your correct name and date of birth, whether or not you are active military, and other traditional contact details. 

Having a steady income of $1000 monthly and a personal account is a must for the approval of your request. And, once your request is approved by a lender, the terms and conditions set will be made accessible to you for review. However, do not rush when this stage arrives. Take your time and make a wise decision. You are not obliged to accept the offer if it is unsuitable. 

If you accept the offer, make sure to pay back the installments timely to avoid any undesired complications. For payments, all you have to do is keep the amount due in your account, and it will automatically be drawn on the decided date. 

In addition, the industry-standard encryption used by CashUSA ensures the safe transfer of funds. Also, you can be assured of the fact that your personal information is in safe hands. To have a more in-depth knowledge of how the site works and what the data collected from you is used for, feel free to visit the official website and review their privacy policy

Click here to learn more about how CashUSA works on the official site

#4. Credit Loans – Best Online Payday Loan for Instant Approval

Guaranteed Bad Credit Loans

Credit Loan

Established in 1998, Credit Loans aims to help people get funds in the hour of need despite poor credit scores. Generally, the platform enables you to borrow as low as $250 and as much as $40,000, but individuals with low scores can only get up to $5000. 

By using Credit Loans, you can apply to multiple lenders for funds at once. This helps you avoid the exhausting process of finding and meeting with lenders individually. 

The process starts with filling out the basic, required form. The information required is similar for each company; however, the peculiar thing about Credit Loans is that they satisfy their customers by telling them why each blank needs to be filled. This boosts the customer’s trust in the company.  

Once you submit the form, your request is instantly processed and is accessed by the lenders available. In no time, you will receive an email regarding loan offers. You can choose any offer you find suitable and accept it; but, before doing that, make sure you have carefully reviewed the terms and conditions. 

Despite the fact you have the pre-approval on your loan request, please remember that nothing is definite until formal paperwork is completed. 

This is because, during the earlier steps, a soft credit check is run, but, if the lender finds something unsuitable during the final/hard inquiry, they can still step back. However, if everything goes fine, you can give your final consent, and the funds will be available to you in no more than 24hrs.  

Apart from the loan services offered by the platform, it also educates people regarding the typical but most important financial issues. This, in our opinion, is a great initiative, as it lets you enjoy multiple benefits under one roof. 

Lastly, the official website of Credit Loans is a safe and secure platform. The TRUSTe Seal is proof of that. However, make sure to give their privacy policy a read before you get started. 

Click here to learn more about how Credit Loan works on the official site

#5 Personal Loans – Best Online Payday Loan for Bad Credit

Best Personal Loan Provider


This Utah-based company might be the best option for you if you are planning to get an installment, peer-to-peer, or bank loan urgently since the platform processes your request swiftly. 

The flexible repayment options offered by the company add to its functional versatility, which is a big plus. You can borrow as low as $1000 and as much as $35,000 and repay the loan in up to 72 months with the typical APR that ranges from 5.99% – 35.99%. 

Here, it is pertinent to mention that the company does not play any role in deciding the interest rate; it completely depends on the lender. 

The eligibility criterion set by Personal Loans is no different than other companies. You need to be a minimum of 18 years old, have proof of your valid citizenship, a regular source of income (with proof), and a personal checking account. 

Coming to how things work on Personal Loans, it would be apt to let you know in advance that the process is not different from Money Mutual, Credit Loans, or other companies on our list. 

You start by filling out the form that appears on the website’s home page and then submit it. Soon after that, the platform forwards your request to the lenders. Then, on receiving an offer by the lender, you will have the chance to either accept or decline it. 

If the agreement suits you, and you accept the offer, the lender might ask you to submit some more personal information to proceed. 

After the approval process is completed and you both have agreed on common terms, your funds will be provided to you in up to five business days, depending on the lender’s method of transferring the amount. 

Click here to learn more about how Personal Loans works on the official site

FAQ About Online Payday Loans

Q1. What is the most reputable payday loan company?

First, we should know about the best way of borrowing a short-term loan to meet our urgent needs at a crucial time. Obviously, one of the best options you can choose is a payday loan. 

But, the question is, which is the most suitable marketplace for this sort of borrowing? Indeed, it is MoneyMutual, which has been proved to be the top online marketplace for borrowing a loan promptly and comfortably. 

There are some sound reasons behind considering MoneyMutual the best one. Numerous people, more than two million, have experienced and benefited from this online marketplace for lending and borrowing. Its first and foremost job is to connect people with lenders all over the country. 

One of the salient features of MoneyMutuals is the easy way of filling in the application form. It only requires about five minutes to complete. Once you have applied for the loan, your job is over. 

Then MoneyMutual’s work starts, where they forward your biodata to their efficient network of moneylenders. This is the way it seeks the most suitable lenders for you who can offer a loan instantly, which may be up to $2,500.

On your acceptance of the offer, the required amount is transferred directly to your account within a day. 

It is pertinent to clarify that MoneyMutual itself is not a payday lender. It is rather a lender organizational network. It just acts as a bridge between borrowers and lenders. 

The rest of the job is that of the lenders, who apprise you of the terms and conditions of the loan offer, like rate of interest, date of repayment, and other service charges. So, make sure you opt for the offer you think is the best for you.           

You can turn down one offer if its terms do not suit you, and you have a choice to choose another one which you think is better for you.  

Q2. Are there any legit online payday loans?

Of course, all of the above-discussed lending networks are legitimate. They are real and actually work with lenders who offer legal online payday loans.

There is a criterion of judging a true and lawful payday lender. The legitimacy of a lender lies in the fact that they must possess a working license of money lending in the state of which you belong. The license must be displayed with all clarity on the website of the company. 

In case you are doubtful about the legitimacy of a payday loan lender, you can bear it out by consulting the legal forums of your state. It will help you to recognize the companies which deliberately escape the state laws.

No wise person would like to work with and accept an illegal money lending company. Such illegitimate companies take undue advantages like charging excessively high interest rates and imposing huge penalties.

Q3. What is the easiest loan to be approved?

Generally, the lenders do not hesitate to grant comparatively smaller amounts of loans. The reason is that, in smaller loans, no risk is involved for the lenders. Moreover, in smaller loans, the conditions like a credit check, credit history, and credit scores become secondary considerations for the lender. 

However, one of the main demerits that becomes a hurdle in the approval of a loan is a low credit score, for which you have to pay a higher interest rate. If your score is good enough, you can get a loan at a lower interest rate and more easily.

Some of the money lending organizations offer the lowest amounts of payday loans, around $100 to $250. Such a small amount of payday loan can be borrowed on the softest terms. It requires an income of just $1000 monthly. 

Try not to opt for the lenders that charge hefty interest rates, as it would not be favorable for you. In this article, we have reviewed some very decent yet legitimate companies that have no hidden charges. 

Q4. Would it be possible for me to get a loan if my credit score is 450?

Simply the answer is yes. The 450 credit score makes you eligible for a payday loan. But this low score will certainly deprive you of the benefits of which a higher score and attractive credit history can provide. 

The credit score table begins from 300 and goes up to 850. Credit scores ranging from 300 to 500 are below average and become the cause of extremely high interest rates of loans. A 450 credit score in America is too poor to be considered. 

Careful statistical data reveals that the percentage of people having 450 scores in the U.S. is 127.9%, which eventually means they are spending 27.9% more than they should. It is suggested that for the maintenance of good credit,  you must keep the ratio of your average credit utilization less than 30%. 

However, a low credit score and a high debt ratio do not become a hindrance in getting a payday loan from a lender. Your eligibility for a payday loan depends upon the status of your regular income. 

Money Mutual requires you to have a minimum monthly income of $800 to get your payday loan approved. Your source of income can be a regular nine to five job, a pension, disability benefits, or Social Security.

Q5. What are alternatives to costly payday loans?

You might find payday loans unsuitable, especially if you have a poor credit score, because you will be subjected to unreasonable and unjustified rates of interest with huge fees. 

The general public is off and on caution by the Federal Trade Commission about such exploitation and malpractice. But, those who do not have enough knowledge can fall prone to many scams. 

In case you are unable to pay such a payday loan, you can encounter problems. Also, late payments and missing installments may create never-ending issues for you. 

Payday loans are unsecured and unbound. Such loans do not require any pledges, and the duration of repayment is very short. Sometimes, you become liable to make full payment with immediate effect.

The lender may require an automatic withdrawal of the due payment from your account. The other option you can go for is the installment loan. This type of loan is repaid with a decided amount on a monthly basis. You can benefit yourself from an installment loan on soft terms.

Applying for loans online could not have been easier since you have been provided with a variety of online networks of payday and personal loan lenders above.

Additionally, the options of getting a payday loan are not restricted to money lenders only. You may look for your relatives, friends, and well-wishers for a small loan to meet your immediate needs. However, you must be efficient enough to pay them back according to your commitment to them. 

This kind of loan is the easiest one. The only risk involved is that you may lose your precious relationship if you fail to fulfill your promise of paying back the loan according to your commitment. Your agreement, with all of the terms and conditions, including the repayment time frame, must be in black and white.

The next option is that you may use your credit card to get a cash advance. It depends upon the credit limit of your credit card as to how much cash you can borrow. You are entitled to get the 20% of the existing limit of your card.

The annual percentage rate on cash loans will be much bigger than those when buying commodities. You can cut down interest fees if you manage to pay back the credit balance quickly. So, the sooner, the better. 

If you lack the required balance on your cards, the mortgage option is left for you to apply for a loan. In this case, you can pledge any of your possessions, including your house or car, against the amount of the title loan.  Mind you, the lender will confiscate the mortgaged asset if you fail to make the payment of the loan.

Q6. Can I get a payday loan without having a bank account?

Having a bank account is an essential requirement of the lending networks for granting a payday loan to the applicant. Therefore, a borrower must have a checking account in their own name. In this account, the cash granted by the loan provider is deposited.

The following are the other essential requirements.

  • The age of the borrower should be 18 years.
  • Borrower should be either a citizen or a permanent resident of the U.S.
  • Their monthly income should be at least $800, excluding taxes.
  • They must have contact numbers of their home or workplace and an active email address.

Fulfillment of all of the above-mentioned requirements does not mean that your loan is approved. Some lenders might require you to provide additional access to your personal information. 

They like to have direct access to your checking account to make an automatic withdrawal of the loan payments on the due date. This account is also used by the lender for depositing the amount of the loan.

In case you lack funds to repay the loan, you must request your lender in anticipation of the extension of the date. This will provide safety to your credit score from any damaging effect. If you do not have a checking account, you may use your savings account for the same purpose.

There is another alternative for getting your loan approved if you have no bank account at all. Your debit card can be used for this purpose. You can get the amount in cash, or a check can be sent to you at the address you provided

In any case, you will have to communicate with your lender about the option you intend to use for receiving and paying back the amount of the loan beforehand. 

Q7. Being a part of the Federal Credit Union, can I get a loan?

If you are connected with the Federal Credit Union, you can borrow a short-term loan as an alternative to payday loans. The amount you can receive is up to $2,000. 

The costs that you will have to bear for these loans are below the conventional ones. You can decide your loan term and its repayment.

The revised rules of the National Credit Union Administration are:

  • The time to repay the loan ranges from  1 to 12 months.
  • The members of Federal Credit Union have the privilege to get payday alternative loans soon after becoming members. They will not have to wait.

The payday alternative loans aim at helping out the members of Federal Credit Union in giving up the idea of other loans of small amounts. It helps them build up their credit records.

Q8. Are there any plus points of payday loans?

Since payday loans are advantageous, people prefer to opt for them the most. In a time of financial crunch, when you have no other option, a payday loan works. It provides you with cash to meet your urgent needs promptly. 

The nature of an emergency may be different, but it does exist in one way or the other. One may face an emergency in the form of paying utility bills. Others may have to pay the installment of his car loan to save it from being confiscated.

You can enjoy the facility of online payday loans even if you have bad credit, because you will most likely get the approval within no time. 

Q9. Are there any downsides of payday loans?

The worst disadvantage of a payday loan is that it has a high-interest rate. Mostly, the borrowers with bad credit opt for payday loans and they can create a cycle of debt.

Thus, they have to pay the cost of their bad credit in the form of paying high interest rates. This is because they are seen as high-risk to lenders; therefore, they are charged excessively.

The rates of payday lenders for the borrowers of bad credit scores are 391%  APR, or in some cases, it goes higher than that (as much as 2,290%).

Additionally, some other disadvantages have also been observed, which are discussed below:

  • Using the Loan for the Wrong Cause 

Although payday loans are exclusively meant for emergency purposes, many borrowers utilize this loan for current expenses like paying rent and utility bills, which is unwise.

  • Difficulty in Managing Monthly Expenses

Your mismanagement in the utilization of payday loans can increase your trouble instead of decrease it. The average earning of a borrower is $30,000 per annum. 58% of such imprudent borrowers get into trouble when they make recurring expenses with payday loans.

  • Tight Repayment Schedule 

The threat of the repayment of payday loans remains impending. Since, in most cases, the online lender has direct access to the borrower’s checking account, they withdraw the installment of the payment of the loan from the borrower’s account, leaving no option for the borrower to pay all other payments. 

However, some of the lenders recommended by us are lenient in permitting you to repay the loan on a monthly basis, instead of weekly, with comparatively lesser interest rates.

  • Not Affordable for Some Individuals

A normal payday loan uses 36% of the borrower’s total income. However, a large number of borrowers can bear only 5% of interest for a loan after covering the basic expenditures.

  • Loan After Loan Is Needed

Large numbers of payday loan borrowers, almost 80%, have to borrow a fresh loan within a couple of weeks for the repayment of the previous payday loan. It is like creating a vicious cycle of debt where the borrowers are trapped.      


Any unexpected circumstance can quickly upset your financial position. In such situations, you can fall back on the payday loan facility. But, the condition is that you must have the capacity to pay back the loan without affecting your expenditures in routine.

The online lending marketplaces we have recommended for you can serve this purpose. You have a choice to go for the option that suits you the most. The procedure to apply for a payday loan is quite simple, and above all, you can get the cash instantly. 

The thing that is most important is to review the terms and conditions thoroughly, no matter if it is a payday loan or a short-term personal loan. To avoid regretting it later, pay attention today. 

Even borrowers with bad credit can qualify for this type of loan. The rates of interest can be higher than your expectation and affordability. However, you can manage to make it favorable for you if you pay promptly and regularly. With wise planning, you can easily avoid paying more than the actual amount due. From our top picks today, we would personally recommend considering MoneyMutual for your money needs. 

This post contains affiliate links. If you purchase products through these links Observer will earn a commission.

Best Payday Loans Online 2021

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Best Personal Loans for Bad Credit for 2021 Wed, 01 Sep 2021 14:01:48 +0000 Poor credit affects people from all walks of life. A low credit score may result from expensive medical treatments, career setbacks, or improper financial management. Whatever your case, if you have poor credit, the good news is you have several loan options available. Below, we look at the best personal loans for bad credit. Lending […]]]>

Poor credit affects people from all walks of life. A low credit score may result from expensive medical treatments, career setbacks, or improper financial management. Whatever your case, if you have poor credit, the good news is you have several loan options available. Below, we look at the best personal loans for bad credit.

Lending Sources for People With Bad Credit

Loan Aggregators

Loan aggregators are not direct lenders but, multi-lender marketplaces that give you access to various lenders. Aggregators collect the financial and personal information on your application and match you with lenders who serve your credit level.

Each lender who participates in loan aggregator platforms has individual credit scores and income requirements, but some serve all credit profiles. Loan aggregators are ideal if you are looking for an unsecured loan with poor credit.

You can choose from several online payday loan consolidation , but the most reputable platforms are Fiona and Credible.

Credible is a loan aggregator providing you with the opportunity to get loan offers from one or more lenders. With Credible, you complete and submit a single loan application and then receive offers from lenders within minutes.

Loan programs from Credible include refinance student loans, private student loans, personal loans, credit cards, and mortgages.

Fiona is another popular loan aggregator available to people with all credit scores. This platform uses a soft credit pull, so you can shop around for loans without worrying about taking a credit hit. Fiona’s products include personal loans, credit cards, and student loan refinancing products.

Personal Loan Lenders

Getting a loan from online personal loan lenders is a quicker and easier alternative than dealing with a loan officer at your local bank branch. You can apply online, and the entire process takes only a few minutes.

Applying with personal loan lenders also allows you to compare offers from various lenders and select the best rates. Here are some popular personal loan lenders to consider:

Monevo offers a convenient process for finding loans of up to $100,000 online, and you can compare loan offers from as many as 30 lenders with a single application. Some of Monevo’s lenders serve credit levels with scores from 450.

OppLoans offers loan amounts of up to $4,000, with interest rates ranging from 59% to 99% APR. The company’s interest rates are high, but there are no minimum credit score requirements.

The benefits of taking a personal loan from OppLoans include funding within two business days. OppLoans can also report your payment history to the three credit bureaus to improve your credit profile.

Upstart accepts borrowers who are new to credit, including recent graduates and students. Loan amounts from Upstart range from $1,000 to $50,000 and interest rates range from 6.16% to 35.99% APR.

LendingClub offers loans of up to $40,000 and charges an origination fee of 3% – 6% of the loan amount. You can select a term of either 36 or 60 months with an APR ranging from 8.05% to 35.89%.

P2P lenders

Peer-to-peer (P2P) lenders are platforms that match borrowers with individual lenders. Each P2P company offers unique investment and lending products. For example, some P2P lenders offer unsecured loans, while others offer asset secured loans.

Popular P2P lenders include Prosper and LendingTree.

Prosper is a peer-to-peer lending marketplace where you can apply for personal loans with terms of three to five years. If you qualify as a borrower, you can get a loan of $2,000 to $40,000 with no collateral.

The minimum criteria to qualify for a Prosper loan includes a debt-to-income ratio below 50% and no bankruptcies in the past year. You don’t need a minimum income to qualify, and you can use the loan for any purpose, including debt consolidation, medical expenses, and home improvements.

LendingTree is a loan comparison website that is free to use. Lending products available through LendingTree include home loans, credit cards, personal loans, and student loans. You can also find a loan on LendingTree to start a business.

How Does the Coronavirus Pandemic Affect Bad-Credit Loans?

In response to the COVID-19 pandemic, many lenders and banks allowed their existing borrowers to postpone their loan payments or waive fees. However, to mitigate their risks, many lenders increased the minimum requirements prospective borrowers have to meet.

Since the start of the COVID-19 pandemic, lenders and financial institutions changed loan requirements such as minimum income, credit score, business experience, or loan usage restrictions. Some lenders now also require that you submit a business plan or financial statements with your loan application.

Related: 6 Financial Lessons to Learn from the Coronavirus Pandemic

While it is more challenging to get a loan with a bad credit during the coronavirus pandemic, you have several options available.

If you lost your job due to the pandemic, you might be eligible to get a coronavirus hardship loan. Credit bureaus and financial institutions offer this personal loan as short-term relief to help their communities.

You should also shop around for the best rates. Currently, interest rates are low, and if you qualify for a bad-credit loan, your borrowing costs will be relatively low. Some lenders specialize in bad-credit loans, and you should find out what pre-qualification options they have available.

When searching for loans, start with the financial institutions where you already have accounts. A bank is more likely to approve a loan for existing clients.

Related: Best Bank Accounts for Bad Credit

Loan Sources to Avoid

If you have a low credit score, you may think you should take what you can get. However, some loan sources’ borrowing costs are too high, and you are better off spending the time to find a loan with the best rates. Below, we look at loan sources to avoid.

Subprime Loans

Various lenders offer subprime auto loans to borrowers with low credit scores. However, subprime loans are generally expensive and come with high interest rates. Some subprime interest rates are three times higher than those for an average auto loan.

Subprime auto lenders are willing to extend loans to borrowers with low credit scores because of the high profit potential. If you fail to make your loan payments, some lenders will have no problem repossessing your car and selling it to the next borrower.

You also run the risk of a loan default, which will lower your credit rating even further. In some states, you will remain liable for the outstanding loan amount after repossession.

No-Credit-Check Loans and Guaranteed Approval Loans

The loan sizes and repayment mechanisms of no-credit-check and guaranteed approval loans are similar to those of installment loans. However, the interest rates and hidden fees of these loans are significantly higher. For example, the APR on a guaranteed approval loan can be as high as 500%.

Payday Loans

With payday loans, you borrow the amount you need from the lender and pay it back when you receive your next paycheck – along with an additional fee. These loans typically don’t involve a credit check or application process, but they come with a high borrowing cost.

A payday lender can charge a fee of up to $30 or higher for every $100 you borrow. Even a relatively low fee of $15 for a payday loan of $100 amounts to an annual interest rate of 390%.

Payday loans may seem like the ideal short-term solution if you need cash immediately. However, with the quick turnaround times for these loans, borrowers often need to repeatedly renew their loans, which ramps up fees.


How to Choose the Best Bad-Credit Loan Company

Several factors determine the best bad-credit loan company for your needs and financial situation.

  • Eligibility requirements: Before lenders extend you a loan, you have to meet specific requirements. Institutions will typically list minimum credit scores, minimum income, and maximum debt-to-income ratio as requirements.
  • Interest rates and loan fees: The borrowing costs of a loan are significant in choosing the best bad-credit loan company. While these costs are generally higher for borrowers with bad credit, you should spend some time shopping around and find the cheapest loan.
  • Repayment term: A short loan repayment term is best if you want to minimize interest or do not want to remain in debt for long. On the other hand, if you want to reduce your monthly loan repayments, select a loan with a longer repayment term of 6 to 12 months.
  • Lender: If you prefer to do business in person, consider applying with your local bank branch or credit union. Online lenders such as loan aggregators don’t provide a personal service, but their interest rates are generally the lowest.

Types of Bad-Credit Loans

Cash Advances

A cash advance is a short-term loan that credit card issuers offer their clients. When you take out this loan, you’re borrowing cash against your card’s available balance. A cash advance is one of the most convenient types of bad-credit loans, but they are expensive.

Cash advance fees are the most significant expenses of cash advances. You’ll either pay a flat fee per cash advance or a percentage of the cash amount. The interest on a cash advance is typically much higher than the rate on purchases. The interest will also start accruing immediately upon approval.

You should only consider this type of loan if you have an emergency. If you rely on cash advances to pay for everyday expenses, consider using the services of a credit counselor.

Related: Best Cash Advance Credit Cards

Bank Agreements

Bank agreements are minimal overdraft agreements or short-term loans that banks offer their clients as part of their financial products. Banks typically offer agreements to clients with low credit scores. However, to be eligible for these loans, you may have to meet several requirements that include a steady income.

A short-term loan or overdraft agreement is ideal if you need funding fast for a specific purpose. Bank agreements are not suitable to fund everyday expenses, as their interest rates and fees are relatively high.

Contact your local bank branch to find out if they have bank agreements available.

Personal Loans

A secured or unsecured personal loan is a standard form of credit, allowing you to consolidate multiple high-interest debts or make a large purchase. Personal loans generally have a lower interest rate than credit cards, and their loan limits are high, but you need to meet several requirements to qualify.

With a secured loan, the lender requires collateral — for example, your home or vehicle. An unsecured loan, on the other hand, doesn’t have any collateral requirements.

If you have a low credit score, you’ll find it easier to get a secured loan. Unsecured loans generally have a higher interest rate and low loan limits, but you don’t run the risk of losing your assets if you fail to make the payments on time.

Home Equity Loans for Poor Credit

Home equity loans are similar to secured personal loans. With this type of loan, you borrow a lump sum of cash, using your home’s equity as collateral. If you fail to pay the loan’s fixed monthly installments, the lender has the right to seize your property.

A home equity loan is easier to get than an unsecured personal loan if you have a low credit score, provided that you have a property to offer as collateral. The interest rates of home equity loans are generally lower than those of personal loans and credit cards.

Whether or not this loan is ideal for you depends on your risk tolerance. If your income is too small to support your lifestyle and make your monthly loan repayments, you run the risk of losing your home.

Home Equity Line of Credit (HELOC) for Poor Credit

In essence, HELOCs are similar to home equity loans. You borrow from a lender such as a bank or credit union with your home as collateral. However, instead of borrowing a lump sum of cash, a HELOC allows you to borrow money as you need it — similar to a credit card.

This type of loan is ideal for funding long-term projects, for example, multiple home improvement projects over a year. A HELOC is relatively easy to get if you have a low credit score, but you have to repay the funds at a variable rate.

Related: Can You Really Pay Off Your Mortgage Early with a HELOC?

Student Loans for Poor Credit

A common problem among students is that they don’t have the credit history to get a loan and pay for their education costs. In many cases, education funding is not the purpose of standard personal loans.

Student loans for poor credit are often the only way to get funding for tuition fees, textbooks, and accommodation. If you have a low credit score, the lender may require a qualified person to co-sign the loan agreement.

The rates and fees of student loans vary from lender to lender. If someone is willing to co-sign your agreement, shop around to find the best rates. A high interest rate can increase your borrowing costs significantly over the long run, so it is critical not to accept the first loan offer you receive.

Learn More: 

How to Spot Bad-Credit Loan Scams

Fraudsters often use bad-credit loan scams to access your sensitive personal information or collect upfront collateral or fees without lending you any money.

  • No approval process: Before making you a loan offer, authorized financial services and credit providers will obtain and check your credit report and assess your income and payment history. A lender who extends a loan offer without evaluating your financial situation is likely a scammer.
  • Unsolicited calls:  If you haven’t recently applied for a loan, reputable lenders will not contact you via phone or email with an unsolicited loan offer. When a lender calls you, requests your personal information, and guarantees approval without doing a credit check, be careful.
  • The lender tries to pressure you: Scammers often try to pressure targets into accepting their loan offers by offering low interest rates for a limited time. Reputable lenders don’t use hard-sell tactics, and their loan offerings are generally consistent over time.
  • No license to operate in your state: According to the Federal Trade Commission, all lenders should register as credit providers in the state where they do business.
  • Upfront payments: Legitimate lenders will never require upfront cash payments before starting the application process. Another red flag is if the lender asks for loan repayment in the form of a prepaid credit card or gift card.
  • No secure website or physical address: When researching a lender, ensure that its website address for any sensitive data entry starts with “HTTPS” and displays a padlock symbol before you enter your personal information. The website should also list a physical address for the company.

What Is Considered Bad Credit?

Different credit scoring models exist for determining a person’s creditworthiness. The three main credit bureaus — Experian, TransUnion, and Equifax — developed VantageScore®, a model that many lenders use:

  • 300 – 499 (very poor)
  • 500 – 600 (poor)
  • 601 – 660 (fair)
  • 661 – 780 (good)
  • 781 – 850 (excellent)

Several factors can lower your credit score. For example, if you repeatedly miss payments on your credit card, apply for a lot of credit in a short time, or frequently change your address, your credit score will drop.

Bankruptcy, court judgments, and mistakes on your report can also harm your credit score. If your credit score is low, lenders will see you as a high-risk borrower, reject your application, or offer you credit at a higher rate.

Fortunately, there are steps you can take to improve your credit score.

How to Improve Your Credit (Experian Boost)

The most effective way to increase your credit score is with Experian Boost™, a free service allowing you to link your telecom and utility accounts to your Experian credit report. Every time you make an on-time payment to the linked credit accounts, your credit improves.

To sign up for Experian Boost, you must have at least one active account, such as a credit card.

Examples of eligible payments you can link include:

  • Landline and mobile phones
  • Cable, satellite, and internet
  • Gas, electric, and solar
  • Water and sanitization
  • Streaming subscriptions, including Netflix®, HBO™, Hulu™, Disney+™, and Starz

Learn More: 

Document Requirements for a Loan Application When You Have Bad Credit

When applying for a loan with bad credit, you need to submit several documents. The specific documents a lender requires depend on the loan type, but they generally include:

  • The lender’s loan application: Each lender has specific application forms you have to complete and submit.
  • Proof of identity: Most lenders require two identification documents, such as your passport, state-issued ID, driver’s license, or Certificate of Citizenship.
  • Proof of address: Documents such as a utility bill or rental agreement proves your lifestyle’s stability.
  • Income-verification documents: Lenders require income-verification documents for bad-credit applications, including recent pay stubs, tax returns, 1099s or W-2s, and bank statements.
  • Vehicle details: If you apply for an auto loan, you have to provide your vehicle’s make, model, VIN, and resale value.
  • Reason for your application: If you have bad credit, the lender may require that you furnish a written explanation of your situation and extenuating circumstances — for example, divorce, job loss, or medical problems.


The amount you can qualify for with bad credit depends on several factors, including the loan type, your credit score, and the lender’s loan policy.

Whether the loan is secured or unsecured also determines the loan amount. In the case of a secured personal loan with collateral, you can borrow higher amounts, even if you have a low credit score.

Personal loan amounts generally range from $1,000 to $50,000. However, to borrow at the high end of this range, you will need a sizeable, steady income and an asset you can put down as collateral.

It is possible to get a loan if you are unemployed, especially if you earn regular income in the form of stock dividends, Social Security benefits, disability income, or child support. If you can back your application with an excellent credit score, lenders may grant you a loan if you are unemployed.

Unemployed applicants with a low credit score are rarely successful with loan applications. In these cases, lenders are often apprehensive about making loan offers, even if you’re applying for a secured loan with a high-value asset as collateral.

If you are applying for an unsecured loan, you don’t have to put down collateral. Unsecured loans are viable options for borrowers who don’t own assets. However, if you have a low credit score, lenders are more likely to qualify you for secured loans.

Borrowers often prefer to apply for loans at credit unions, which are not-for-profit institutions that offer loans at lower interest rates and with more flexible terms.

If you have a low credit score, credit unions and banks are not your best options. Financial institutions implement standard qualification procedures that include assessing your credit history, collateral, and cash flow.

The loan officers of credit unions are more subjective in their evaluation than banks, especially if you have a deposit with them or add a co-signer. However, if your credit score is below the institution’s cut-off level, your application is unlikely to be successful.

With some loan types, lenders don’t require a credit check, but they compensate for the increased risk by charging high interests and fees. Additionally, lenders who don’t do credit checks tend to implement more aggressive collection tactics, including your assets’ repossession.

When a lender doesn’t require a credit check, make sure you don’t walk into a loan scam. In these cases, the lender will often charge an upfront fee.

Most lenders require that you have a checking account so they can gauge your banking and payment history. If you don’t have a checking account, you can still get a loan, but you will likely have to offer collateral. You can also apply for payday loans without a checking account, but this type of loan is expensive.

Final Thoughts

Are you looking to apply for a loan with bad credit? You have several options available to secure a loan at affordable rates and fees. Start by improving your credit score with Experian Boost, and organize your finances to ensure that all your payments go out on time.

When shopping for loans, stick to reputable lenders such as banks, credit unions, online loan aggregators, and Peer-2-Peer lenders. Collect as many loan offers from lenders as you can, and make sure that you accept the offer with the lowest interest rates and fees. The loan term should also fit your financial situation.

Before accepting a loan offer, ensure that there are no limitations so that you can use the loan for whatever purpose you want.

Read More:

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Loan consolidation company relieving Americans of payday loan debt amid Covid-19 pandemic Sat, 14 Aug 2021 07:00:00 +0000 Oakland Park, Florida (PRWEB) August 14, 2021 Covid-19 hit the world by surprise in March 2020, and since then life has taken a dark turn. This pandemic has gripped the world by the neck, from the loss of families and friends to the virus, to job losses and business failures. As businesses close their doors […]]]>

Covid-19 hit the world by surprise in March 2020, and since then life has taken a dark turn. This pandemic has gripped the world by the neck, from the loss of families and friends to the virus, to job losses and business failures. As businesses close their doors and citizens face wage cuts, payday loans have become the order of the day.

Payday loans are advances that lenders give to individuals, which they repay when they receive their paycheck. They are suitable for covering medical emergencies, accidents and unforeseen bills. But they can be a trap if you borrow more money than you can afford. Defaulting on such loans comes with outrageous rolling costs and insane interest.

These loans are attractive and tempting. Creditors know how to target the weak points of consumers, leaving them no choice but to seize them. They use persuasive language to make the deal seem too good to resist. Here are some of the reasons payday loans are great:

  • They have a high likelihood of approval
  • Lenders offer adjustable amounts of money
  • Payday loans come quickly in an emergency
  • When used well, payday loans can be a reliable way to supplement your sources of income.

Although sometimes it is inevitable to borrow these loans, consumers should avoid them like the plague. They have higher interest rates than regular bank loans. “Some companies will entice you with this offer and destroy you with the interest rate. If you have fallen into this trap, do not despair, there is still hope ”, advises National payday loan relief.

Most of the people know the disadvantages of these payday loans, but they borrow anyway. This is because they seem to be an instant helping hand. They are convenient because they do not require guarantors and credit checks. Plus, they don’t feel like a burden. Some people feel embarrassed when borrowing from family and friends, so they opt for payday loans.

“A lot of people love payday loans because of their embarrassment; Do you know that uncomfortable feeling that comes with borrowing from family and friends? Payday loans don’t come with such a shame, ”National Payday Loan Relief (NPDLR) noted. It is advisable to avoid payday loans. Instead, consider other alternatives, like asking friends and family for help. If the payday loan is inevitable, stick with one lender.

“Payday loans tend to be risky, but depending on the situation, it can help under the circumstances. The bottom line about payday loans is that you are trying to find an alternative. If you have to use a payday loan, try to limit the amount and only borrow what you can afford to pay with your next paycheck, and of course, still have enough to make it to the next payday. », Advises NPDLR.

So what about after getting stuck in a payday loan cycle debt? Do you accept defeat and live a miserable paycheck life?

There is a way out of payday loan debt. The NPDLR has developed various initiatives that help you pay off your debts in less time and even at lower rates. First, they have a payday loan consolidation program which allows you to pay multiple loans simultaneously with a single loan.

“Debt consolidation is a service offered by loan relief service providers to facilitate debt refinancing by taking a loan from the consolidator and using it to repay multiple loans owed to other debtors,” explains NPDLR. This program is what people struggling with loan debts from multiple creditors need to regain their financial freedom. This shortens the repayment time and the final amount you repay.

“Debt consolidation is a relief for personal finances because it allows you to pay off multiple debts simultaneously using a single low interest loan. It also relieves you from nagging phone calls from lenders, among other benefits. Wondering how this loan consolidation program works? It’s pretty self-explanatory. The consolidator takes all the responsibility for the debt clearance, such as negotiating better rates, payment schedule, etc.

“The consolidation company will take care of the rates, fees, renegotiation of terms and all that is expected of you is to pay off your debt in friendly monthly installments through the loan consolidation company.” Why pay a consolidation company to do all of this when you can negotiate your way to pay low interest? To the extent that you can do these things yourself, a consolidator who is familiar with payday loans and the rules governing lending institutions has a better chance than a layman. “Getting such an agreement can be difficult if you try to renegotiate your loan with the creditor on your own,” warns the NPDLR.

There is another solution for consumers with multiple payday loan debts; debt settlement. You use this method as a last resort, after trying other ways to settle your payday debts. Here, you hire a debt management professional or a legal firm to advise you on the options available. It is not easy to negotiate debt cancellation and other settlement options on your own; that’s why you need to look for an expert. “While it is quite possible to do this yourself whenever dealing with complex legal and financial matters, it is always recommended that you contact a lawyer or professional firm who has experience in this type of situation. questions, ”advises NPDLR. .

“Once you’ve negotiated a nice deal that both parties have signed, you can finalize the matter. Sometimes this can include writing off the entire debt, but more often there will be a payment plan for a partial amount of the original amount. It’s a good way to save money while reducing monthly payments to a more manageable level. The lower monthly payments leave room for more savings. Saving money is a habit for all of us if accepting payday loan debt interferes with this crucial habit. The money saved gives us hope for a better future and the ability to meet a need if it arises.

“Money is a guarantee that we can have what we want in the future. Although he does not need anything at the moment, it ensures the possibility of satisfying a new desire when it arises, ”said Aristotle. Suzie Orman, one of the bestselling personal finance authors, says you need to correct the root cause of your financial problems to gain financial freedom. This is why it is essential to speak to an expert for legal and financial advice. “The only way for you to permanently take control of your financial life is to dig deep and fix the problem at the root,” wrote Orman, who is the author of over 25 million books on finance.

Payday loans are at the top of the list of root causes of financial problems for most Americans. When you get the first advance, you pay it off with your next paycheck. If the remaining amount cannot support your lifestyle until the next payday, you borrow another loan. This cycle cannot save you a dime, and your dream of financial freedom delays another day. The main cause of debt accumulation is a lack of budgeting, which results in overspending on unnecessary things. Getting financial advice helps you avoid falling into the same trap by developing better financial habits and comprehensive financial advice.

“As a debt settlement company, NPDLR feels obligated, as our duty, to educate and educate our clients on how to avoid making the same mistake twice. We provide debt advice. financial and credit counseling to all those who wish to learn and improve each day. Financial credit counseling will give you an idea on how to improve your finances and your credit score in your future spending, ”noted NPDLR. financial advisor can even help you with other alternatives to pay off your payday loans, such as mortgage refinancing. This is a very fragile subject and requires expert advice to save money. If you go for it blindly , you risk getting into more debt.

“When you refinance your loan, you’ll want to get a better deal. When you decide to consider how refinance my mortgage, you’ll want to make sure you’re making the right decisions for this, ”advises NPDLR.

There are other alternatives to turn to when payday loan debt gets out of hand. These are:

  • Financial Debt Management Services
  • Bankruptcy filing
  • Financial debt and credit card advice
  • Payday Loan Debt Settlement

NPDLR offers other loan and credit management services to help clients take charge of their financial well-being. These include:

  • Debt repayment calculator that gives customers an overview of their accumulated debt and payment schedule
  • Credit card debt relief program to help credit card debtors pay off their credit card loans
  • Payday Loans Map to help clients find payday loans and debtor protection areas in their state
  • Debt Settlement Agreement Template Clients Can Use to Write Their Debt Settlement Agreements

About National Payday Loan Relief

NPDLR is a debt settlement company known across the United States for helping you get out of payday loan debt. They help you recover from payday loan debt through their loan relief and consolidation program. Their fundamental values ​​are to be united, reliable, well informed and negotiators. The mission of the NPDLR is to be an efficient and reliable payday loan assistance service provider, helping Americans in all states. They also pride themselves on over 20 years of professional service, with financial experts and qualified lawyers.

For more information on National Payday Loan Relief and Debt Consolidation Services, visit their website or contact them by phone or text at (888) 407-4521 or email: info @ nationalpaydayloanrelief .com. Their physical address is 3221 NW 10th Terrace, Oakland Park, FL 33309.

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What’s new: Friday August 13, 2021 Fri, 13 Aug 2021 04:00:02 +0000 REDUCED GAS RATE INCREASE: The NY State Public Service Commission, in its three-year tariff plan for gas companies in Northern State of National Grid, drastically reduced the rate hike demanded by the utility giant. Rates are frozen in the first year, with increases limited to 2% in the second and third years. The commission adopted […]]]>

REDUCED GAS RATE INCREASE: The NY State Public Service Commission, in its three-year tariff plan for gas companies in Northern State of National Grid, drastically reduced the rate hike demanded by the utility giant. Rates are frozen in the first year, with increases limited to 2% in the second and third years. The commission adopted and amended a joint proposal signed by businesses, service staff, environmental groups and business groups which, among other things, contains provisions that promote energy efficiency, demand response, geothermal deployment and electrification options to meet customer energy needs while working to reduce demand for natural gas and further minimize the need for additional gas infrastructure.

Upstate companies under the National Grid umbrella include Brooklyn Union Gas Company (KEDNY) and KeySpan Gas East Corp. (KEDLI).


THE PSC AGREEMENT EXCLUDES THE FUNDING OF THE PIPELINE: Two major events impacted the development of the Public Service Commission program joint proposal with National Grid: enactment into law of the Climate Leadership and Community Protection Act [CLCPA] and the coronavirus pandemic (COVID-19). The CLCPA sets out leading New York policy goals in addressing global climate change caused by greenhouse gas emissions from fossil fuel extraction and combustion and other activities. Importantly, the adopted joint deal does not include funding for the final phase of the controversial Metropolitan Reliability Infrastructure (MRI) project, a 7-mile natural gas distribution pipeline in North Brooklyn, and disrupts temporarily the construction of the last phase.

The proposal also requires gas companies to first meet the metrics, or targets, of demand reduction initiatives before seeking cost recovery from this and other infrastructure projects.


CATHOLIC SCHOOLS ANNOUNCE BACK-TO-SCHOOL HEALTH PROTOCOLS: As the number of childhood infections continues to rise, elementary schools and parish academies in the Roman Catholic Diocese of Brooklyn will have new COVID-19 security protocols in place when the new school opens on Wednesday, September 8. guidance from the American Academy of Pediatrics and the Center for Disease Control and Prevention (CDC). Therefore, Catholic academies and parish schools in Brooklyn and Queens will require that all students, faculty and staff wear masks on the first day of school.

School officials will continue to encourage vaccinations, social distancing, hand washing and hygiene, while maintaining rigorous daily cleaning and disinfection of facilities as well as improved ventilation.



LAYING LAYING FOR NEW HOUSES IN BED-STUY: Land was laid Thursday for Bed-Stuy North & Central Phase I development in Bedford-Stuyvesant, a project that will create 11 housing units on 13 scattered lots, i.e. nine (9) three-family buildings and two (2) two-family buildings, totaling 31 residential units, located on Bainbridge Street, Chauncey Street and Patchen Avenue, Rochester and Bergen avenues, and Buffalo and Atlantic Avenues. SRBuild is the developer of what will be the fourth project funded by HPD’s Open Door program. It will provide both affordable homeownership and rental options.

Representatives from the New York City Department of Housing Preservation and Development (HPD), Community Preservation Corporation (CPC) and SRBuild, LLC, as well as City Council member Robert E. Cornegy, Jr.


GOOD NEWS FOR MENTAL HEALTH PATIENTS: UnitedHealthcare to pay approximately $ 14.3 million in compensation to consumers affected by its policies that excluded treatment for mental health and addiction disorders from coverage. New York Attorney General Letitia James and the United States Department of Labor (USDOL) have negotiated landmark agreements to resolve allegations the health insurance giant has illegally denied health care coverage for health mental health including psychotherapy and addiction treatment to thousands of Americans. As a result of these agreements, New York law and federal law require health insurance plans to cover treatment for mental health and substance abuse disorders in the same way that they cover physical health treatment.

As part of the deal, UnitedHealthcare will pay $ 9 million to more than 20,000 New Yorkers with behavioral problems who have received denials or reductions in reimbursement.


DON’T REFUSE THESE FILM TRUCKS: The film production industry has proven to be a major boost in New York City’s economic recovery, according to a report released Thursday by the Mayor’s Office of Media and Entertainment (MOME). This 2021 New York Film and Television Industry Economic Impact Study provides details on the importance and contribution of the film and television industry to the economy of New York City. The industry was already at its peak in 2019, creating an estimated 185,000 jobs, $ 18.1 billion in wages and $ 81.6 billion in total economic output. Despite the impact of COVID-19, during which television and film productions were closed from March to June 2020, the industry has come back with a vengeance.

Global production has reached pre-pandemic levels, with at least 34 projects filmed in the field in all five boroughs by the end of August 2021. The groundbreaking report comes just as New York City begins to collapse. recover from the pandemic.

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