Brand Spotlight

Actions

Best Bad Credit Loans, Top 5 Instant Loans in 2022

Happy,Millennial,Indian,Ethnic,Woman,Reading,Paper,Letter,With,Amazing
Posted at 12:18 PM, Apr 19, 2022
and last updated 2022-04-21 12:13:57-04

* This does not constitute as a financial advice article. Make sure to contact a financial advisor if you need financial assistance.

1. MoneyMutual - Best Bad Credit Loans Overall

If you have less-than-stellar credit, you may struggle to obtain an affordable loan from traditional lenders. Though your low credit score may limit your borrowing options, you may qualify for the best bad credit loans through more unconventional lenders.

On top of that, the loan services we’re going to review come with additional perks such as almost instant approval rates, varying loan amounts, transparent rates, and much more.

Check out the ins and outs of these bad credit loan companies to determine which loan platform is the best one for you.Let's get to it!

Disclaimer: This content was paid for by an advertiser. The site’s newsroom and editorial staff were not involved in the creation of this content.

Best Bad Credit Loans:

1. MoneyMutual - Best Bad Credit Loans Overall

Money Mutual (3).jpg
If you have less-than-stellar credit, you may struggle to obtain an affordable loan from traditional lenders. Though your low credit score may limit your borrowing options, you may qualify for the best bad credit loans through more unconventional lenders.

MoneyMutual Pros: 

  • No extra fees
  • Offers within minutes
  • Funds within 24 hours
  • Conducts a soft credit check
  • Helpful resources on website
  • Ideal for low credit scores

MoneyMutual Cons: 

  • No upfront info about APR range

MoneyMutual is an online marketplace that connects aspiring borrowers to various lenders across the country, many of which are willing to lend to individuals with lower credit scores. You can use the network to find payday loans, installment loans, debt consolidation loans and other short-term loans.

Beyond connecting you with lenders, MoneyMutual has little involvement with the loan application, disbursement, or repayment process.

You should also note the lack of APR ranges listed on the website, as it could be a sign that their lenders’ loans for bad credit may have higher interest rates.

MoneyMutual Application Process: 5/5The application process to join the MoneyMutual network is simple and involves a short form. Once you fill out the form, MoneyMutual sends it to lenders that will then reach out to you. Most lenders contact applicants within minutes.

Once you receive an offer with which you’re comfortable, you can complete a more in-depth application process with the lender.

MoneyMutual Credit Requirements: 4.9/5The MoneyMutual website does not specify what type of credit score you need to qualify for a loan via its network.

However, it does state that applicants may qualify for short-term loans so long as they are currently employed or have a regular source of income, make at least $800 per month, are at least 18 years old, are a U.S. resident, and have an active checking account.

MoneyMutual Loan Amounts: 4.3/5MoneyMutual lenders only issue short-term loans, including payday loans, debt consolidation loans, and installment loans.

These types of loans typically come in amounts of up to $5,000. If you need more money, and if you demonstrate responsible borrowing - you can reapply for additional funds when needed.

MoneyMutual APR: 3.7/5The MoneyMutual website lists neither an average APR nor an APR range, which suggests that its lenders may issue short-term loans at high rates.

It is worth noting that its options include payday loans, which historically come with fees that equate to an APR of nearly 400%.

MoneyMutual Speed: 5/5MoneyMutual works quickly. Once you complete the application, you should hear from lenders within minutes. MoneyMutual has no control over how quickly things progress from there, but its website does state that you can receive your funds via direct deposit within 24 hours.

Receive Funds Within 24 Hours

2. SoFi – Most Affordable Rates

Sofi logo 2 (2).png
If you have less-than-stellar credit, you may struggle to obtain an affordable loan from traditional lenders. Though your low credit score may limit your borrowing options, you may qualify for the best bad credit loans through more unconventional lenders.

Loans Starting From $5,000

SoFi Pros: 

  • Loans starting from $5,000
  • Co-signing options
  • Plenty personal loan lenders
  • Favorable loan terms
  • Low APR
  • No fees

SoFi Cons: 

  • No same-day funding
  • Must have a credit score of 680 or higher

If you have good credit but still cannot qualify for an affordable unsecured personal loan with favorable terms, consider SoFi. SoFi offers some of the lowest APRs of any comparable lender and does not charge origination fees, prepayment penalty fees, or any other hidden fees.

As a SoFi borrower, you get access to several enticing perks, including discounted rates for enrolling in autopay, unemployment protection, and access to financial advisors and career coaches.

You can also earn points for making smart money moves, which you can convert to cash or put toward your SoFi loan.

You can use SoFi loans for a variety of purposes. These include home improvement, credit card consolidation, travel, and a wedding.

SoFi Application Process: 4.7/5SoFi’s application process begins with a prequalification application. If you prequalify, SoFi will conduct a hard inquiry into your credit history.

A hard inquiry will adversely affect your credit score. However, the lender likely will not invite you to complete the application process if your chances of qualifying are anything but strong.

SoFi Credit Requirements: 3.5/5In terms of the best bad credit loans available, SoFi has some of the most stringent credit requirements. To qualify for a loan from this lender, you need a minimum credit score of 680.

If SoFi rejects you despite your having a strong credit standing, you can request clarification.

SoFi Loan Amounts: 4.8/5

SoFi is not in the business of issuing small, short-term loans, so this is not the lender to go through if you merely need quick funds for an emergency. However, if you’re looking for a more sizeable personal loan, it can come through.

Its loan amounts vary from $5,000 to $100,000, though the minimums may be higher depending on state laws.

SoFi APR: 5/5What sets SoFi apart from its competitors is its affordability. The interest rates on its loans range from 6.99% to 21.78%, which are extremely competitive. You can also receive a 0.25% reduction for enrolling in autopay.

SoFi Speed: 4/5Though its website does say it can issue same-day funds, in most cases, it takes 2 to 3 business days for SoFi to distribute funds. This may prove problematic for individuals who need immediate loans to cover emergency expenses.

3. CashUSA – Most Trusted Lending Platform

cashusa (2).jpg
If you have less-than-stellar credit, you may struggle to obtain an affordable loan from traditional lenders. Though your low credit score may limit your borrowing options, you may qualify for the best bad credit loans through more unconventional lenders.

CashUSA Pros: 

  • Simple application process
  • Varied loan amounts
  • Lenient eligibility requirements
  • Decision within minutes
  • Quick loan approval rate

CashUSA Cons: 

  • Checking account required

CashUSA is a platform that connects borrowers to lenders across the nation, thereby giving users more options for their borrowing needs.

Founded more than 20 years ago, CashUSA is one of the most trusted resources for cash loans. It partners with some of the most reputable lenders in the industry and offers secure, convenient, and simplified services.

CashUSA Application Process: 4.7/5CashUSA’s application process begins with a simple prequalification process that requires your date of birth, ZIP code, and the last four of your Social Security number.

From there, you enter the amount you wish to borrow, select your reason for needing funds, identify your credit type (poor, fair, good), and provide your personal and employment information.

This information helps the platform narrow down which lenders to send your information to.

The only reason CashUSA doesn’t receive a 5/5 for the application process is that, in exchange for its fee-free service, the platform warns that it may sell your information to non-loan marketers.

CashUSA Credit Requirements: 4.6/5The website doesn’t say what your credit score needs to be to qualify for a loan from one of its partners. It does, however, reassure aspiring borrowers that the requirements are “simple and few in number.”

To qualify, you need to be at least 18 years of age, a U.S. resident, and able to provide valid contact information.

You must also show proof of employment for the past 90 days and bring in $1,000 per month from a reliable source. Finally, you must have an active checking account.

CashUSA Loan Amounts: 4.5/5Of the best bad credit loans platforms and lenders, CashUSA is one of the best for accessing some of the most flexible loan products in the industry. Through CashUSA, you can secure a loan of between $500 and $10,000.

CashUSA APR: 4.5/5The APRs on loans you can obtain through CashUSA are relatively reasonable, given that its lenders cater to bad credit applicants. The APR range is between 5.99% and 35.99%, which is far better than the rates proffered by MoneyMutual lenders.

CashUSA Speed: 4.5/5CashUSA scores slightly lower in terms of speed than MoneyMutual, as the website does not state how long you must wait for lenders to reach out to you. However, once you pick a lender and accept an offer, you should receive your funds within one business day.

Decision Within Minutes

4. BadCreditLoans – Most Transparent Lending Marketplace

Badcreditloans (2).jpg
If you have less-than-stellar credit, you may struggle to obtain an affordable loan from traditional lenders. Though your low credit score may limit your borrowing options, you may qualify for the best bad credit loans through more unconventional lenders.

BadCreditLoans Pros: 

  • 100% free service
  • Flexible loan amounts
  • Competitive APR range
  • Transparent and honest

BadCreditLoans Cons: 

  • Personal bank account required

Like MoneyMutual and CashUSA, BadCreditLoans is a marketplace that connects aspiring borrowers with hundreds of lenders across the nation.

It was founded in 1998 for the sole purpose of helping people with bad credit obtain the financing they need to get through tough times.

BadCreditLoans forms its policies and partnerships based on what is best for the end-user. Its website boasts several helpful resources for spotting and avoiding scams, paying down loans, building up credit and the like.

BadCreditLoans Application Process: 4.7/5The application process for BadCreditLoans is nearly identical to that of CashUSA. To instantly prequalify, simply input your ZIP code, date of birth, and the last four digits of your Social Security number.

If you prequalify, the site will prompt you to input your contact information, employment information, and reason for requesting a loan. You must have an active bank account.

BadCreditLoans Credit Requirements: 4.7/5BadCreditLoans maintains a minimum credit score requirement of 500 for aspiring borrowers. If you have a score lower than 500, you may qualify for amounts smaller than $1,000 if you can prove that you meet the other requirements.

Other requirements include having a source of regular income, an active bank account, and a valid email address. You must also be 18 and a U.S. resident.

BadCreditLoans Loan Amounts: 4.2/5Like CashUSA, BadCreditLoans works with lenders that offer flexible loan products for various needs. You can get a loan as small as $500 or one as large as $10,000.

However, if your credit score is lower than 500, you will not be able to qualify for any more than $1,000.

BadCreditLoans APR: 4.5/5Also like CashUSA, BadCreditLoans works with lenders that offer some of the most competitive APRs for bad credit loans. Through this platform, you can find the best bad credit loans with APRs from 5.99% to 35.99%.

BadCreditLoans Speed: 4.5/5BadCreditLoans.com does not specify how quickly you will receive your funds if and when approved. However, customer reviews suggest that you will receive offers within minutes of submitting an application and funds within a day of accepting an offer.

100% Free Service

5. ZippyLoan – Great for Flexible Borrowing

Pastel Brown Real Estate Interior Photo Collections Banner
If you have less-than-stellar credit, you may struggle to obtain an affordable loan from traditional lenders. Though your low credit score may limit your borrowing options, you may qualify for the best bad credit loans through more unconventional lenders.

ZippyLoan Pros: 

  • Low borrowing minimums
  • Decent borrowing maximums
  • No minimum credit score requirement
  • Fast approval and fund disbursement
  • Credit reporting

ZippyLoan Cons: 

  • Potential for high APRs
  • No guarantee of a match for low credit

ZippyLoan is a platform that partners with a wide range of lenders that specialize in everything from short-term payday loans to more traditional personal loans.

As such, it caters to a wide range of borrowers with varying needs and credit scores.

Of the many platforms that connect bad credit borrowers with bad credit lenders, ZippyLoans offers the most flexible lending options when it comes to amounts and terms.

ZippyLoan sets itself apart from its competitors by offering advantageous credit reporting. If you make your payments on time, it will report those payments to your creditors, which can help boost your credit score.

ZippyLoan Application Process: 4.7/5ZippyLoan’s application process is brief and should take you no more than 5 minutes to complete. Once you hit submit, ZippyLoan will send your information to lenders that cater to people within your credit score range and that issue the type of loan you desire.

Interested lenders will reach out to you within minutes of receiving your information. If you are interested in a lender’s offer, you would complete an official application through the lender.

ZippyLoan Credit Requirements: 4.6/5ZippyLoan does not maintain credit requirements. Regardless of your score, the platform will try to match you with a lender.

However, be forewarned that there is no guarantee you will receive a match. If your credit score is 500 or lower, ZippyLoan may not have a partner that is willing to assume the risk that comes with lending to you.

ZippyLoan does have a few basic requirements outside of credit scores. It requires you to have a steady stream of income and that you are 18 or older.

ZippyLoan Loan Amounts: 4.8/5ZippyLoan caters to borrowers with a variety of needs that may range from something as minimal as paying an overdue utility bill to funding a home renovation. Through ZippyLoan, you can access a bad credit personal loan as small as $100 to one as large as $15,000.

ZippyLoan APR: 3.9/5ZippyLoan is not transparent about its partners’ APR ranges on its website, hence its low score. However, because it offers both short-term, payday type cash advances and more traditional personal loans, it’s safe to assume that the rates it offers range from the standard low of 5.99% to 35.99% or higher.

ZippyLoan Speed: 4.9/5Per the ZippyLoan website, you can receive your funds within one business day of submitting your request, provided you submit your request by 5:00 pm CST.

Fast Approval Rate

Best Low Score Credit Loans: FAQs

What Is a Short-Term Loan?

Short-term loans require little to no collateral and typically come with high-interest rates. The high rates serve two purposes: They reduce the risk for lenders and encourage early repayment.

You may have noticed that several of the lenders on this list offer short-term loans to bad credit borrowers.

Short-term loans are loans that you must repay in a year or less — sometimes within weeks.

What Is a Good Interest Rate for a Bad Credit Loan?

Bad credit loans come with a broad range of interest rates, ranging from 5.99% to 35.99% or higher. For this reason, it is important to shop around before you accept any offer.

However, know that the worse your credit score is, the higher your interest rate is likely to be. It is unlikely that, if you have poor credit, you will qualify for the more affordable 5.99% rates.

If possible, you should avoid bad credit personal loans with an interest rate that is higher than 36%. Once a rate exceeds a certain percentage, it becomes unaffordable for many borrowers.

Can I Prequalify for Loans for Bad Credit Without Further Hurting My Credit Score?

Each of the lenders on this list offers a prequalification process that involves them reviewing the information you provide to estimate how much you can borrow and at what rate. A prequalification is only as accurate as the information you provide.

If you want to avoid unnecessary dings to your credit, it is important that you are honest about your debt, income, and credit score upfront. If you are, prequalification can be fairly accurate in pointing you toward loans for which you have a high chance of qualifying.

Before you submit an official application with any one lender, make sure that it offers the best rate and terms. You don't want to undergo a hard inquiry just to decide at the least minute to go with a different offer.

Will a Bad Credit Loan Me Help Build My Credit?

improve-credit-score.jpg
If you have less-than-stellar credit, you may struggle to obtain an affordable loan from traditional lenders. Though your low credit score may limit your borrowing options, you may qualify for the best bad credit loans through more unconventional lenders.

You should also look for doable terms, such as a repayment period you can work with. If you need funds quickly, look for a lender that issues same-day or next-day funds like MoneyMutual.

A bad credit loan may help you build your credit score.

If you already have revolving credit — a type of credit that does not have a fixed number of payments, such as credit card credit — then adding installment credit to the mix can help boost your score. This is because the bureaus like to see that you can handle various types of credit.

That said, while unsecured personal loans can help strengthen your score by adding to your credit mix, they will only be as effective as you are responsible for.

If you cannot afford to make on-time payments, or if you miss payments, your score will suffer.

What Is a Bad Credit Score?

How lenders classify a bad credit score depends on which scoring model they use: VantagePoint or FICO. Under the VantagePoint model, bad credit is a score of between 300 and 600 on your credit report.

FICO, on the other hand, considers a score within the 300 to 579 range bad.

A fair credit score is anywhere from 601 to 660 or 580 to 669 under each respective model.

How Do I Choose the Best Bad Credit Loan for Me?

The best bad credit loan for you is affordable, of an amount that will help you accomplish your goals, and accessible for someone within your credit range.

Top 5 Personal Loans For Poor Credit:

To sum up, we highly recommend MoneyMutual as the best bad credit loan service, due to its quick approval process, stellar reputation, and diverse loan amounts.Thanks for reading!

 Best FeatureEligibility RequirementsLoan Amounts
MoneyMutualBest resource for short-term and installment loansLenient income requirement of just $800 per month; no credit score requirementUp to $5,000
SoFiMost affordable rates680 credit score$5,000 - $100,000
CashUSAPartners with lenders that offer competitive rates90-day work history and income requirement of $1,000 per month$500 - $10,000
BadCreditLoansBuilt for bad credit borrowersMinimum credit score of 500; income requirement of $1,000 per month$500 -  $10,000
ZippyLoanOffers a broad range of loan types and amountsNo credit score requirement$100 - $15,000

Choosing the Best Personal Loans for Bad Credit

A bad credit loan can help you better your financial situation and accomplish your costlier life goals.

However, before you accept a loan offer, do your own research and make sure that the loan you accept is the most affordable for your unique situation.

An affordable loan is one that has a low APR and comes with doable repayment terms that you can easily meet. With a bit of patience and research on your part, and with help from the resources in this guide, you can find the best unsecured loan for your needs.

To sum up, we highly recommend MoneyMutual as the best bad credit loan service, due to its quick approval process, stellar reputation, and diverse loan amounts.Thanks for reading!