Poor credit loans online
Bad credit loans for people with poor or no credit
If you have good credit, making ends meet when you have urgent expenses is relatively easy. However, when you have bad credit you have significantly fewer options to choose from and the costs for getting a loan with poor credit are often much higher. 24CashToday helps you understand all your options when it comes to finding the best online loan for bad credit.
On this page:
- What is a bad credit loan?
- How does the coronavirus affect bad-credit loans?
- What are the best personal loans for bad credit?
- How to get a loan with bad credit?
- Can I get a bad credit loan with guaranteed approval?
- Can I get an online loan with no hard credit check?
- What is considered a bad credit?
- Why is credit score important?
- How can I improve my credit in order to get a better loan?
- What are the risks of bad credit loans?
- What are the alternatives to bad credit loans?
What is a bad credit loan?
Bad credit loan is a common term for a range of personal loans which are available to people with poor credit scores or no credit history.
While the credit score is still being considered and will prevent borrowers with low credit from getting a low APR, there is still a chance to get a poor credit loan with easy approval and affordable credit rate.
Due to the impact of COVID-19 pandemic, many offline and online direct lenders are adjusting their services, including loan terms and application criteria. Some lenders have decreased their approval rates, while others consider additional factors when evaluating bad credit loan applications. This means that borrowers with less positive credit history will face more limited borrowing options.
24CashToday tries to minimize the impact of COVID-19 on borrowers by offering a contact-free online loan application and increasing the chances of finding the right bad credit loan lender faster.
For more information, please see our COVID-19 info page.
What are the best personal loans for poor credit?
There are several types of personal online loans, both secured and unsecured, that consider applicants with bad credit, each loan option has its positive and negative features. Keep in mind that there is no guarantee that you will get any of these loans if you have a credit score below 600.
Here is a comparison table which will help you better understand which bad credit loan is the best for your needs:
|Payday Loans||Installment loans||Title loans|
|Short-term. Up to 2 weeks.||Long-term. 60 days to 24 months.||Long-term. 30 days to 24 months.|
|Unsecured. No collateral required.||Unsecured. No collateral required.||Secured. Car title is used as collateral.|
|Repaid in lump sum.||Repaid in monthly installments.||Repaid monthly.|
|Bad credit accepted.||Bad credit accepted.||Bad credit accepted.|
|Maximum loan amount is $1,500||Maximum loan amount is $10,000||Maximum loan amount is $25,000|
|Average APR is 450%||Average APR is 300%||Average APR is 35%|
To check if you qualify for a bad credit payday loan online please visit this page.
How to get a loan with bad credit?
Check if you are eligible
Before applying for a loan with poor credit score, make sure that you meet these requirements:
- You are of legal age in your state
- You have a stable income source and can prove it
- You have a valid photo ID, such as driving license
- You have an active email & phone number
- You have an active bank account
Complete the online application
To apply for a bad credit loan at 24CashToday, please go to our online loan application
The application process is as simple & quick as it can get. You will be asked to provide your personal information, provide your employment information, and banking details. If you are unemployed, you still may apply if you have a stable income source which can be verified.
Get instant decision on approval
After submitting, you will receive an immediate decision on your short-term loan application. Most lenders will not check your credit background, so you can easily submit even with a less-than-perfect credit score.
Receive your cash fast
If approved, e-sign the documents to accept your loan offer. The lender will transfer your money as soon as the next business day. Some online lenders offer same-day deposits if you meet certain criteria.
For more information about same-day funding, please see our same-day loans page.
Can I get a bad credit loan with guaranteed approval?
The simple answer is "No". There is no such thing as "guaranteed approval bad credit loans". This is a common practice among irresponsible lenders and brokers when they claim to offer "guaranteed loans for bad credit" which is not true.
No lender can offer a 100% guarantee on loan approval because one takes a risk when issuing a loan and the loan can be given only to people who can prove that it will be repaid. No lender will give an unsecured loan if the borrower has no income source to pay it out and has a bad credit history.
You can read more about guaranteed approval loans on this page.
Can I get an online loan with no hard credit check?
Yes. Most online lenders perform only a soft credit check which does not affect your credit history like hard checks. Your creditworthiness and ability to repay the loan are two main factors which lenders consider when applying for an unsecured loan with bad credit.
If you do not want the lender to rely on your poor credit history, but still need a loan, then considering a secured loan can be an option. Secured loan lenders do not need to check your credit since the loan is supported by a collateral.
For example, a title loan is a no hard credit check loan for people with poor credit scores.
What is considered a bad credit?
Credit score ranges vary based on the credit scoring model used and the credit bureau that pulls the score.
According to FICO, a credit score from 300 to 579 is very poor or bad. Fair credit score starts from 580 to 669. According to Experian – one of the three major credit bureaus – bad credit is a credit score below 580.
Credit scores are calculated differently depending on the factors used in the credit scoring model, such as payment history, amounts owned, length of credit history and so on.
Why is credit score important?
Having a good credit score & credit history means getting more options to choose from when you need a loan. Lenders are willing to offer good borrowing terms and lower APR for people with Good, Very Good and Exceptional credit scores. One the other hand, if you have a poor credit score, it means that lenders think you have a high risk of delinquency.
According to FICO - one of the major credit bureaus - about 61% of consumers with credit scores below 579 are likely to become delinquent (source) on a credit-related account. This is why it is so hard to get a loan with low APR when your credit score is suffering.
How can I improve my credit in order to get a better loan?
Unfortunately, there is no simple & quick way to improve your credit score. Not only it requires effort and discipline, but it may also take months, even years, depending on the causes of your rating, to see any positive improvements in your credit score.
Here are a few options how you can fix your bad credit:
Debt consolidation loans for bad credit can replace multiple debt balances with higher interest rates, such as payday loans or credit cards, into one new loan with lower APR. This will likely raise your credit scores over the long term if you do not miss any payments. Having a lower average APR is also a great benefit of consolidating you expensive loans into one.
Please see more about this topic on our debt consolidation page.
Pay bills on time
Making payments on time to your lenders and creditors is one of the biggest contributing factors to your credit scores—making up 35% of a FICO Score calculation (source). Past problems like missed or late payments are not easily fixed so try to prevent them in the first place.
Avoid hard credit checks
There can be two types of inquiries into your credit history, often referred to as "hard credit check" and "soft credit check". A typical soft inquiry might include checking your own credit or online lenders that check your file to determine if they want to send you pre-approved loan offers. Soft credit checks will not affect your credit score.
Hard credit checks, however, can negatively affect your credit score for anywhere from a few months to two years.
Dispute any errors on your credit reports
You should check your credit reports at major credit reporting bureaus for any inaccuracies. If you find any errors, try to sort it out with the credit bureau without delays, since incorrect information on your credit reports could be damaging your credit scores. Monitoring your credit regularly can help you spot errors in advance.
What are the risks of bad credit loans?
There is always a risk involved in taking any loan, especially if you struggle to make on-time payments, as you will end up with additional charges and fees. With a bad credit loan the risks are even higher, since these are the most expensive loans one can get with a poor credit score.
If you fail to make your payments, you may find yourself even in deeper debt with no chance of taking another loan. In some cases, bankruptcy is the only way to give yourself another chance.
To minimize the risks, always use the loans responsibly and keep an eye on your credit score, current debts, and income stability.
What are the alternatives to bad credit loans?
When you need money quickly to deal with urgent expenses, a bad credit loan might seem like the best option, but you should always consider non-loan options before looking for a bad credit loan.
Here are some better options to try first:
- FFF - Fools, Family, or Friends - these are the first places to look for help
- Reach out to non-profits, religious organizations, and charities
- Try selling something on Craigslist that you do not need, but it has value.
- Credit unions can offer support to those going through financial difficulty.
- Use your own savings for as long as you can to avoid taking loans.
- Pawn shops can offer you a loan if you have a valuable collateral.