Bad Credit Loans Online: Everything You Need To Know

Last Updated on February 17, 2023

Bad Credit Loans

Table of Contents

What Is Bad Credit?

Bad credit refers to a person’s history of being unable to pay bills on time and the likelihood that they will not be able to make payments on time in the future. This is often reflected in a low credit score. Companies can also have a bad credit history depending on their payment history and current financial situation.

A person (or business) with bad credit will find it difficult to borrow money, especially at competitive interest rates, as they are considered to be riskier than other borrowers. This is true of all types of loans including secured and unsecured varieties although there are options available for the latter.

What Is a Bad Credit Loan?

A bad credit loan is a financial solution for consumers who need help paying their bills, but who have an unattractive credit score and poor credit history. It’s a choice that is left to you when a few missed payments or overspending on your credit cards have weakened your credit score and left you with multiple financial aid options.

Bad credit loans work in exactly the same way a personal loan does. Its money you borrow and pay back in fixed monthly installments, usually over the course of one year, but it could go three years. The loan can be used for just about anything, including consolidating credit card debt, paying off medical bills, buying a car or even making a major repair to your own car. 

Types of Bad Credit Loans?

There are two main options when it comes to getting a loan if you have bad credit: secured and unsecured personal loans

1. Secured Personal Loans

This type of personal loan requires some type of collateral. If you get a loan from your bank, you might secure a personal loan with your home, car, or some other assets. Generally, they offer more favorable rates and terms and higher loan limits, since you have greater incentive to pay back your loan in a timely manner. And if you have bad credit, it may be easier to get a secured loan than an unsecured one.

If you default on the loan, however, you risk losing your home, car or other collateral. The most common types of secured loans are mortgages, home equity loans and auto loans, although some lenders offer secured personal loans.

2. Unsecured Personal Loans

Unsecured loans don’t require any collateral, and the rate you receive is based on your creditworthiness — meaning they may be harder to qualify for if you have below-average credit. Since it’s not secured by an asset, this type of loan typically comes with a higher interest rate and lower loan limits, but you don’t risk losing your assets if you fall behind on payments.

However, there are many lenders willing to provide unsecured personal loans at reasonable rates. Carefully consider which type is likely to best fit your needs.

What Is Considered a Bad Credit Score?

Credit scores range from 300 to 850 and while there is no official start in the ‘bad credit’ category, it is safe to say that if you are under 650 you are considered as a high risk and pay the highest interest rates. People in this category are prime candidates for bad credit loans.

The definition of “good” and “bad” credit score varies from lender to lender. Some will not touch anyone with a credit score below 650, some actually market to consumers with a sub-650 score. So it’s hard to tell what makes you “good” or “bad” on the credit scoreboard, but the acceptable range is something like this:

  • 760-850 – Excellent
  • 700-759 – Very good
  • 660-699 – Fair
  • 620-659 – Poor
  • Scores under 620 – Extremely poor

How Bad Credit Scores Affect Borrowing

Consumers in the good to excellent credit score category (700 and above) enjoy the lowest interest rates and the best loan terms. Consumers in the poor and extremely poor categories (anything below 620) are burdened with high rates and may not be approved for a loan at all. People in the middle (621-699) must weigh the cost of bad credit against the gain they hope to make by using it to pay their bills.

In other words, the higher your credit score, the more likely you’ll get a good deal on a loan. Low credit scores are risky business and borrowers are punished for it with high interest rates.

How to Get a Loan with Bad Credit?

Unless it is an emergency, the first step to getting a loan with bad credit is to improve your credit score so you can afford the loan you need. Start with timely payments, especially for credit cards; and reduce the balance on the card to 30% of the allowed credit limit. Finally, don’t apply for a new loan.

The combination of these three factors (payment on time; low credit usage; no new credit applications) account for 75% of your credit score. It’s not unrealistic to think that an effort on these three fronts could increase your score by 100 points in as little as 3-6 months.

However, if it is an emergency and your loan application has been rejected repeatedly due to bad credit or lack of credit, it may help to ask your bank or credit union’s loan officer for a personal interview to convince them that you are creditworthy.

If you get that interview, be sure you are prepared with documents that prove you’re a good risk. Lending institutions love stability. It definitely helps your case if you can show them that you’ve lived in the same house (or city) and worked the same job (preferably for the same employer) for several years.

Common things to bring that prove your credit worthiness include:

  1. Tax returns, W-2s and 1099 forms from at least the last two years
  2. Details of your job history, including salary and pay stubs
  3. List of assets such as home, car, property and where you stand on paying them off
  4. List of unsecured debts such as credit cards and medical bills
  5. Whether you pay or receive alimony or child support
  6. Bank statements for checking, savings and CDs

Not all of these documents are necessary, but if your credit history is poor, anything you can produce that shows that you have taken responsibility for your money will be considered a plus.

Where to Get a Loan with Bad Credit?

There are opportunities for people looking for bad loans, but you will certainly have to shop around to find the interest rates and repayment terms that you can afford.

Major national and regional banks stick firmly to credit scores, so don’t worry unless you’ve taken the time to clean up your credit report and boost your score. If you don’t have time to improve your score, find a loan from the sources listed below.

Credit Union

A credit union, especially one associated with your employer, or one that is community-based, may want to look beyond bad credit and decide whether to lend you money based on your character and your promise to return the money. Think of credit unions like a small community bank many years ago.

The most promising aspect of a credit union loan is the interest rate ceiling of 18%, which applies to anyone, regardless of their credit score. A similar loan from a bank could run you as much as 36% interest.

Almost all credit unions are actively looking for borrowers. If you can afford terms that match your credit history, you are likely to find a credit union somewhere willing to work with you.

If you are a veteran of the armed forces, you might want to approach the Navy Federal Credit Union or PenFed Credit Union. If you are a teacher or government worker, you might check out State Employees Credit Union or Schoolsfirst Credit Union.

Almost every consumer could qualify for some credit union. By joining, you position yourself for much more favorable loan terms, regardless of your credit score.

Home Equity

If you have equity in your home, you can apply for a home equity loan or home equity line of credit (HELOC). Your home is used as collateral, and home equity loans can be obtained regardless of your credit score. The interest rate is usually low, because the loan is secured by the home. Also, the interest you pay on a home equity loan is usually tax-deductible.

It is important to remember that tapping your home equity puts your property in jeopardy if you don’t repay the debt. But if you are disciplined and have a reliable income, it is an inexpensive way to borrow from a reputable lender when you have bad credit.

Peer-to-Peer Lending

Peer-to-peer lending, also known as P2P lending, has been around since 2005. It’s an online platform that allows you to get a bad credit loan directly from another individual or group of individuals rather than from an institution. Potential borrowers post a loan listing on various peer-to-peer websites, indicating the amount needed and what it’s for. Investors review the loan listings and choose borrowers they wish to fund.

Your credit score is still a factor, but since an individual investor has much greater leeway in how factors are weighted, these loans are often more readily available for people with bad credit. Lending standards are significantly more lenient and interest rates are usually lower than those offered by traditional lenders. In addition, peer-to-peer websites help evaluate risk for the lender, while verifying the lender’s credentials for the borrower.

Online Personal Loans

These lenders are basically banks that do not have offices. They do their job online and offer bad loans for things like debt consolidation and home repairs. Their main attraction is that they work fast. They can make decisions in minutes and deposit funds into an account in hours or days. Many have no application fee or pre-payment penalty.

Online personal loan applications are simple and easy to fill out. Credit scores are only a part of the decision-making process so this could be an appealing option if you have bad credit or no credit. In fact, some personal loan lenders have their own credit-score model and don’t use FICO scores. Other factors considered include whether you have a college degree, the school your degree came from and your employment history.

Secured vs. Unsecured Bad Credit Loans

If your credit score does not impress banks, credit unions or online lenders, the best chance to get money you need is through a secured loan. A secured loan is one in which you borrow against an asset you own, such as a home, car, boat, property, savings or even stocks.

The lender will hold the asset as collateral against you defaulting on the loan. Secured loans offer lower interest rates, better terms and access to larger amounts of money than unsecured loans. 

An unsecured loan has nothing more than a promise that you will repay behind it and could be very difficult to get from most banks. Banks are willing to make unsecured loans to their best customers – people who have the income and credit history to prove they will repay the loan but are very cautious about lending money otherwise.

An unsecured loan is no risk for the borrower, but high risk for the bank so you can expect considerably higher interest rate charges and little flexibility on qualifying or terms of the loans.

Some banks will make secured loans based on the amount you have in a savings account or the value of any stocks you own. The value of getting a secured loan against savings or stocks is that you will not need to liquidate the asset so when you have paid off the loan, you still own the savings or stocks.

However, if you plan to use savings or stocks as collateral, most financial advisors suggest you liquidate them and use the money to pay whatever debt you are trying to settle rather than take out a loan.


If you happen to be a long-time customer at your bank and had a good record until some recent mishaps, it’s possible you could talk them into an agreement that would provide you a bad credit loan on a short-term basis.

The loan limit probably won’t be very high and it would really be a good-faith gesture on the part of your bank because there likely is no policy regarding this. But the bottom line is that it’s only possible if you ask. It doesn’t cost anything to try.

How to Pick the Right Lender for your Bad Credit Loans?

Choosing the right lender for your bad credit loans is an important decision. Even though your options may be limited, you’ll want to shop around and compare lenders to see who will offer you the best rates and terms.

The lender you choose should help you feel comfortable and knowledgeable about the bad credit loans process. You should look for a lender who will tell you in advance about the entire process of obtaining a loan, especially the requirements for obtaining a loan.

Clarity and visibility are necessary requirements for any financial partner. You should receive documentation on the requirements, rates and costs associated with your loan.

When you’re in financial distress, you can easily be tempted by companies that promise an easy way out. There is no easy way out. If you come across any of these loan fiddles, politely turn your back on the lender and run!

  1. Companies that ask for fees upfront. They might call them “application fees” or “document fees” but they’re essentially asking to get paid before they do anything. Very bad sign.
  2. Companies that request personal information, including social security number, bank account number or credit card without first providing you a loan agreement in writing.
  3. Companies that request a wire transfer of money. Verify the company’s address and maybe even check with the state attorney’s office in that city to see if there have been any complaints.
  4. Companies with no state registration. If they’re lending money, they’re required to register with the state. Ask to see the registration and the verify it.
  5. Website reviews. You should be suspicious if every single review gives five stars and says wonderful things. That doesn’t mean it can’t happen, it just means you need to verify that the reviews are authentic before believing everything you see or hear.

Best Bad Credit Loans Online

As with any business, some companies gain a reputation as a place to go for a certain product, and that is the case with bad credit loans. While your credit score will keep you from getting a great APR, you can still find interest rates that are much lower than what you are likely to find on payday loans. Our recommendations for the best bad credit loans online have flexible eligibility requirements and relatively low rates for the credit range.

Avant: Best Online Loan

Avant offers the best overall personal loan to borrowers with credit challenges. If you qualify for funding, you could receive up to $35,000. Interest rates start as low as 9.95%. Although Avant charges an administrative fee, the maximum amount it charges (4.75%) is lower than what you may see from other comparable lenders.

Other important information:

  1. Minimum/maximum amount you can borrow: $2,000 to $35,000
  2. APR range: 9.95%–35.99%
  3. Fees: Avant may charge an administrative fee up to 4.75% that comes directly out of your loan. The lender charges late fees and dishonored payment fees as well.
  4. Recommended minimum credit score: 600
  5. Other qualification requirements: Besides checking your credit score, Avant will review your income to see if you qualify for a loan and how much you can borrow.
  6. Repayment terms: 24 to 60 months
  7. Time to receive funds: Loan funds may be deposited in your account as soon as the next business day.

First Tech Federal Credit Union: Best Maximum Loan Amount

Founded in 1952, First Tech Federal Credit Union is geared towards major technology-geared companies (though anyone can join the Financial Fitness Association for $8). Interest rates start as low as 7.70% and they offer personal loans up to $50,000.

Other important information:

  1. Minimum/maximum amount you can borrow: $500 to $50,000
  2. APR range: 7.70% – 18%
  3. Fees: None
  4. Recommended minimum credit score: Reported to be 600, but not stated on website
  5. Other qualification requirements: You should be at least the age of majority in your state, a U.S. citizen or living in the U.S. with a valid visa, have a valid email address and have a verifiable bank account.
  6. Repayment terms: Choose between 24 and 84 months (two or seven years).
  7. Time to receive funds: As soon as the same business day.

Navy Federal Credit Union: Best for Small Loans and Veterans

This credit union offers some of the best rates for those with less than stellar credit and one of the only financial institutions that offer such a low loan amount — starting at $250. Terms start at 6 months and you can secure a co-signer to help you qualify for a better rate.

To be eligible for membership, you need to have ties to the Department of Defense, the armed forces, or the National Guard. Otherwise, you’ll need to be a veteran or have an immediate family member who has a Navy Federal membership.

Other important information:

  1. Minimum/maximum amount you can borrow: $250 to $50,000
  2. APR range: 7.49% – 18%
  3. Fees: None
  4. Recommended minimum credit score: 580
  5. Other qualification requirements: Need to be an existing Navy Federal member
  6. Repayment terms: Choose between 6 and 60 months
  7. Time to receive funds: As soon as the same business day

LendingPoint: Best Post-Bankruptcy Personal Loan

Qualifying for a personal loan can be especially tricky if you’ve filed bankruptcy in the past. But if your bankruptcy has been discharged for at least 12 months, LendingPoint might be willing to work with you.

LendingPoint offers loans to borrowers in 49 states and Washington, DC with credit scores as low at 585. Qualified applicants can borrow up to $25,000 and interest rates start at 9.99% up to 35.99%.

Other important information:

  1. Minimum/maximum amount you can borrow: $2,000 to $25,000
  2. APR range: 9.99%–35.99%
  3. Fees: LendingPoint charges origination fees as high as 6%.
  4. Recommended minimum credit score: 585
  5. Other qualification requirements: You should be 18 years or older, provide a state or federal ID and Social Security number, and have a bank account in your name. You also need a minimum annual income of $20,000.
  6. Repayment terms: 24 to 48 months
  7. Time to receive funds: Once you’re approved, you can receive funds as soon as the next business day.
  8. Restrictions: If you live in the state of West Virginia you cannot receive a loan through LendingPoint.

OneMain Financial: Best In-Person Loan Experience

If you prefer to do business with a lender face-to-face, OneMain Financial may be a good fit. The lender has almost 1,600 branches in 44 states where it offers unsecured personal loans to borrowers with less-than-perfect credit. Interest rates start at 18% and qualified applicants may be able to borrow up to $20,000.

Other important information:

  1. Minimum/maximum amount you can borrow: $1,500 to $20,000
  2. APR range: 18%–35.99%
  3. Fees: Origination fees can be a flat fee from $25 to $400 or 1% to 10% of your loan amount, depending upon your state of residence. Late fees also vary by state and can be as high as $30 per late payment or 15% of the size of your monthly payment.
  4. Recommended minimum credit score: 580
  5. Other qualification requirements: OneMain Financial will consider the following when you apply for a loan: your credit history, income, debts, and any collateral you wish to provide. 
  6. Repayment terms: The term length maybe 24, 36, 48, or 60 months.
  7. Time to receive funds: You could receive your funds the same day you’re approved if you opt to pick them up in person. Direct deposit may take one to two business days.
  8. Restrictions: If you’re pre-qualified for a personal loan with OneMain Financial, you’ll need to visit a branch and meet with a loan specialist in-person to complete the application process.

PenFed Credit Union: Best Credit Union

Technically a credit union, anyone can join if they joinNational Military Family Organization or the Voices for America’s Troops for $17 each. In addition to a myriad of banking products and services, PenFed Credit Union also offers personal loans for members who have a minimum credit score of 580. Plus, rates are competitive, starting at 6.49%.

Other important information:

  1. Minimum/maximum amount you can borrow: $500 to $20,000
  2. APR range: 6.49%–17.99%
  3. Fees: None
  4. Recommended minimum credit score: 580
  5. Other qualification requirements: PenFed will consider your credit history, income and debts when applying for a loan, plus your co-borrower if applicable.
  6. Repayment terms: Term length may be from 6 to 60 months.
  7. Time to receive funds: As soon as the next business day
  8. Restrictions: You need to become a member of the credit union in order to get a personal loan.

Rocket Loans: Best for Fast Funding

Rocket Loans is part of the Quicken family of companies and now offers same day funding for their personal loans. Applicants can check their initial rate without affecting their credit score and the ability to receive a rate discount by signing up for autopay.

Other important information:

  1. Maximum/minimum amount you can borrow: $2,000 to $45,000
  2. APR range: 7.161%–29.99% with autopay
  3. Fees: Borrowers need to pay an origination of 1%–6% origination fee that’s deducted from your final loan amount; $15 late fee
  4. Minimum recommended credit score: 580
  5. Other qualification requirements: Applicants need to be the age of majority in their state and a U.S. citizen or permanent resident.
  6. Repayment terms: 36 to 60 months
  7. Time to receive funds: Can be as soon as the same business day
  8. Restrictions: Individual applications only

LendingClub: Best Peer-to-Peer Lending

LendingClub is one of the most reputable peer-to-peer lending companies, helping to facilitate more than $55 billion in personal loans since 2007. The lender offers a pre-qualification option for applicants to check their rates without affecting their credit score, which starts at 10.68%.

Other important information:

  1. Maximum/minimum amount you can borrow: $1,000 to $40,000
  2. APR range: 10.68%–35.89%
  3. Fees: 1% to 6% origination fee; $15 late fee or 5% of unpaid balance (whichever amount is more)
  4. Minimum recommended credit score: 580
  5. Other qualification requirements:
  6. Repayment terms: 36 to 60 months
  7. Time to receive funds: Up to 10 business days depending on form of payment
  8. Restrictions: Loans not available for U.S. territories and Iowa residents

Upgrade: Best Personal Loan With a Co-signer

Headquartered in San Francisco and founded in 2017, Upgrade offers those with bad credit the ability to take out a personal loan with a co-signer. Many other lenders that allow co-signers tend to have membership requirements or higher rates. Upgrade allows applicants to borrow up to $35,000 starting at a rate of 7.99%.

Other important information:

  1. Maximum/minimum amount you can borrow: $1,000 to $35,000
  2. APR range: 7.99%–35.97% with autopay discount
  3. Fees: 1.5% to 6% origination fee; $10 late fee
  4. Minimum recommended credit score: 580
  5. Other qualification requirements: The applicant’s credit history and debt-to-income ratio may be taken into consideration
  6. Repayment terms: 36 to 60 months
  7. Time to receive funds: Applicants may receive their loan proceeds as quickly as the business day
  8. Restrictions: To receive the lowest rates, borrowers need to sign up for autopay

Your Local Credit Union: Best Payday Alternative Loan (PAL)

If you’re suffering with severe credit problems and need a small-dollar loan to get you through an unexpected financial emergency, a payday alternative loan (PAL) is worth considering. PALs are issued by some federally insured credit unions. You can locate a credit union near you at

The maximum amount you can borrow with a PAL is currently just $1,000. But the interest rate is capped at 28%, making PALs a more affordable option than payday loans and even some online personal loans for bad credit.

Other important information:

  1. Minimum/maximum amount you can borrow: Up to $1,000
  2. APR range: 28% (current maximum)
  3. Fees: Application fee cannot be more than $20
  4. Recommended minimum credit score: No credit check required with many credit unions
  5. Other qualification requirements: Requirements vary from lender to lender, but may include direct deposit participation, on-time payment history with other loans from the credit union, and verification of employment.
  6. Repayment terms: 1 to 12 months
  7. Restrictions: You should check with your individual credit union to see if PALs are available and if any restrictions apply

Frequently Asked Questions about Bad Credit Loans

How can I fix my credit in order to get a better loan?

If you want more loan options with better terms, work on improving your credit. Although the process can take time, there are several things you can do to raise your credit score:

  • Pay your bills on time. Having a history of timely payments indicates to credit agencies that you’re a reliable borrower. If possible, set up automatic payments with your bank for at least the minimum balance due each month.
  • Pay down your debt. By decreasing your overall debt balance, you improve your debt-to-income ratio. One good way to do this is the debt avalanche method, where you focus on paying off the highest-interest debt first. You can also start by paying off the smallest debts first and gradually working your way up.
  • Use credit score-boosting programs. Some credit cards are designed to help you boost credit, reporting your timely payments to all three of the major credit bureaus. Some companies, like Experian, also offer programs that allow you to add items like utility and phone bills to your credit history.
  • Leave unused credit cards open. Even if you have a credit card that you never use, it’s best to leave the account open; credit bureaus favor accounts with long histories. Keeping unused credit cards also increases the amount of overall credit you have, which improves your credit utilization ratio.
  • Don’t open too many credit cards at the same time. Every time you open a credit card, the lender will do a hard pull of your credit report, which temporarily damages your credit score. If you’re looking to consolidate debt using credit cards, it may be best to start with one balance transfer credit card and focus on paying off any remaining debt on your old cards.
  • Fix errors on your credit report. Make sure to periodically read through your credit reports and contact the credit bureaus with any errors that may be lowering your credit score. You are entitled to one free credit report from each of the bureaus each year, and some banks will even provide you with a monthly credit score update. If you notice any patterns you can’t explain, follow up with the bureaus as soon as possible.

Do I need collateral to get a bad-credit loan?

Every lender has its own specific requirements. Most personal loans are unsecured, meaning you don’t have to put down collateral. However, borrowers with bad credit are less likely to qualify for these types of loans. If you fall in this group, you may want to search for a secured loan. If you’re considering a secured bad-credit loan, you’ll need to provide a form of collateral.

How much can I borrow?

Personal loans are commonly anywhere from $1,000 to $50,000. With that said, you may not qualify for all loan amounts; lenders may reserve higher loan amounts for people with higher credit scores, and some states have required minimums and maximums. You can find out how much you are eligible to borrow by going through a lender’s prequalification form.

Can you get a small loan with bad credit?

You can get a small loan with bad credit, but you’ll have to ensure that you’re not applying for a predatory loan. Many smaller loans under $1,000 come from payday lenders, which charge astronomically high interest rates. If you’re looking for a relatively small loan, it’s best to shop around with more reputable lenders first. Most lenders set their lowest loan amount around $1,000, but you may have more luck finding a loan for a few hundred dollars with your local bank.

Can you get a loan if you’re unemployed?

Employment is one of many factors that lenders consider when you apply for a personal loan. It’s still possible to get a personal loan if you’re unemployed, but you’ll likely have to compensate with a high credit score and proof of a regular source of income. This can include Social Security benefits, child support, investments, disability income and more. If you have poor credit and you’re unemployed, it will be harder to convince lenders to extend you a loan.

Is there risk in bad-credit loans?

As a borrower, you take on some risk whenever you accept a personal loan. If you default on a secured personal loan, for instance, the lender could seize your collateral, and your credit score could take an even bigger hit. With any type of loan, you also risk racking up even more debt if you don’t pay bills on time.

With bad-credit loans, specifically, much of the risk comes from predatory lenders. Payday lenders and scammers are more likely to target people who have trouble qualifying for loans elsewhere; it’s important to vet any company with bad-credit loans that seem too good to be true.

Can you get a loan with no credit check?

There are no-credit-check loan companies, but if you’re considering this route, proceed with caution. Companies that don’t check credit often compensate by charging an exorbitant amount in interest, sometimes upward of 400 percent. Because of this, it’s best to start your search with traditional banks or reputable online lenders, some of which extend loans to people with credit scores below 600. If you do choose to borrow from a no-credit-check lender, keep an eye out for any potential loan scams.

Can you get a loan without a checking account?

It is possible to get a loan without a checking account, but your options are likely limited. Generally, without a checking account, you’ll have to either put up collateral or turn to payday lenders, which can be predatory and charge extremely high interest.

What’s the easiest loan to get with poor credit?

If you have bad credit, it’s likely easiest to get a loan from a payday lender or other no-credit-check lender. However, just because that’s the easiest option doesn’t mean it’s the best. The convenience of these types of loans often comes at the cost of high APRs, short repayment periods or even loan scams.

To get a loan with bad credit, we recommend starting with the lenders we review above. Many of these have prequalification options, allowing you to see your eligibility and rates so you can easily compare lenders. While not every lender will accept borrowers with poor credit, many do.

Can you get a personal loan with a credit score of 550?

It can be difficult to get approved for a personal loan with a credit score of 550, especially if the loan is unsecured. If you get approved for the loan, there is a good chance that the loan will have a high APR and lots of fees.

If you are unsure if you’ll qualify due to your credit score, you may have a better chance with the help of a co-signer who has good credit. However, while the job of a co-signer isn’t to make the monthly payments for you, co-signers do hold some responsibility if you fail to pay and could see their own credit score impacted.

How long does it take to get my loan?

From application to disbursement, it could take anywhere from a few days to a few weeks to get your loan, depending on the lender. Typically an online lender’s process is the quickest. If you apply with a bank or credit union, the approval process may take longer.

To expedite the process, gather the information you’ll need to apply for the loan. This might include your Social Security number, employment information, income information and financial history. Being prepared when you apply allows the process to advance more quickly.

How will applying for a poor-credit loan impact my credit score?

When you apply for a personal loan, the lender will run a hard credit inquiry to assess your creditworthiness. Because of this, you’ll likely see your credit score decrease a few points.

That said, the long-term credit benefits that come with a personal loan can outweigh the few points that may get temporarily knocked off your credit score. You can also prequalify for many loans before officially submitting an application; this allows you to see whether or not you qualify with a lender without activating a hard credit check.


Before applying for a loan, make sure you understand what you are spending your money on and how much you really need. Try not to borrow more than you can repay, and make sure you can handle monthly payments along with your other obligations.

Remember to compare lenders to find the Best Bad Credit Loans for you. Look at several lenders and compare interest rates, fees, and other terms. Take a close look at the situation so you can choose the loan that will work best for you.

Leave a Comment