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Best Bad Credit Loans Of 2023: Easy And Guaranteed Approval



Best Bad Credit Loans Of 2023 Easy And Guaranteed Approval

Usually, loans are provided to individuals with good credit scores. So, those with a bad credit score might find it extremely difficult to access traditional personal loans that in fact supply you with the money to consolidate debt, pay student loans, medical expenses, and other requirements.

That being said, people with bad credit scores needn’t worry as there are easiest loans specially designed for them known as bad credit loans.

There are some legit lenders who work with such people thereby helping them borrow money for meeting emergencies like refinancing high-interest debt, paying medical expenses, auto repairs, and so forth. For your information, a good credit score as per the scale starts at 670 indicating that scores below this are bad credit scores. With the availability of some online money lenders providing bad credit loans, these individuals can get rid of the roadblock created by bad credit.

However, if you are seeking a bad credit loan, be cautious. Some direct lenders charge very high-interest rates, tack on early payoff penalties, and so on. So, do your homework before accessing such urgent loans and gain a complete idea of the terms of bad credit loans.

A crucial factor that you ought to consider is getting connected with legit money lenders who offer an easy application process and reasonable terms. To help ease your search, we have listed the best online bad credit loan companies based on detailed research and analysis.

These companies are the best ones providing reasonable credit loans and each is selected by considering certain parameters including interest rates, loan amounts, the application process, and much more.

Top 4 Bad Credit Loan Lenders: A Comprehensive Overview

1. Cash USA (4.5/5)

The first on the list s Cash USA which is one of the most trusted platforms for securing a bad credit loan. People with bad credit can easily get personal loans through this platform as they use a large network of lenders that provide reasonable terms and an easy application process. 

Cash USA offers a fast and convenient process for all people with bad credit scores. For getting a loan, you can submit a request by filling out your requirement, financial position, credit score, and location.

Once the lender approves you for a loan, you can receive the requested amount as early as the next business day. Apart from traditional loans, Cash USA also has lenders who offer lines of credit. If you are seeking a bad credit loan from Cash USA, the eligibility requirements are simple and fewer in number.

The requirements include the borrower being at least 18 years of age, a citizen of the United States or a permanent resident, being employed for at least 90 days and meeting the lender’s minimum specific requirements, having a checking account, and providing valid email address and work and home phone numbers. 

An advantage of accessing Cash USA is that they do not charge any fee for requesting a loan. The APR on a personal loan from the network of lenders varies and the rates offered range from 5.99% to 35.99%.

The duration of loans is dependent on the specific loan you opt for and it may range from 90 days to 72 months. 

Once a lender accepts your urgent loan request, you have the opportunity to review the terms of the loan and reach a wise decision.

Your funds can be received directly through your bank account or electronic fund transfer as early as 1 business day. So far, Cash USA has helped thousands of people get the loan that they needed.

This platform uses industry-standard encryption and security measures to protect the personal information of borrowers. 

Loan Range$500 to $10,000
Application FeeZero
APR5.99% to 35.99%
Terms 90 days to 72 months
Funding Within 1 business day

2. Personal Loans (4.2/5)

Next comes the Personal Loans platform that ensures an easy and convenient way to connect with their large network of lenders and easily get personal loans. People with bad credit can get personal loans safely through this platform and with complete ease. 

The personal loan process through Personal Loans is quite straightforward. The platform offers a short loan request form that borrowers can fill out to get loan-guaranteed approval.

The details to be included are the amount required, credit types, and loan reasons (medical expenses, student loans, and so on).

You will also have to provide some personal, banking, and income information. These data are shared with their network of lenders who review your request and decide whether to offer a loan. 

If lenders are willing to provide you with a loan, they will invite you to complete an application on their website.

Once approved, you will be redirected to a loan agreement with terms and conditions including the amount that you have to repay and the repayment time.

Before accepting the offer, make sure to understand the key elements of the loan agreement including the repayment terms and the interest rates. 

The lenders in the Personal Loans network look for a few criteria to approve the easiest loan. The borrower should be 18 years or older, should have a steady income (full-time employment, self-employed, or receive regular disability or social security benefits), have a valid checking account, and have a credit type. These criteria boost the chances of getting a bad credit loan. 

Personal Loans services are free to use with zero hidden fees, upfront costs, and obligations. Based on factors including credit score, repayment history, and others, the interest rate varies and ranges from 5.99% to 35.99%.

The lending period ranges from 90 days to 72 months and the payment frequency is once or twice a month. Loans obtained through Personal Loans charge zero prepayment penalty. 

Once a lender approves your loan request, the fund will be sent directly to your bank account. The estimated time for receiving the requested amount is 5 business days.

Personal Loans ensure the security of borrowers using advanced data encryption technology.

Loan Range$1000 to $35,000
Application FeeZero
APR5.99% to 35.99%
Terms 90 days to 72 months
Funding Within 5 business days

3. Upgrade (4.0/5)

The next on the list is Upgrade which is a platform that helps make wise financial decisions that will let you achieve your goals with ease.

This bad credit loan lending platform offers affordable monthly payment options, low fixed rates, and zero prepayment penalties. This platform is different from others as it is a direct lender of bad credit and other urgent loans. 

The Upgrade platform offers an easy application process to customers. The website offers a short application or loan request form where you can fill in necessary details like the amount required, credit types, loan reason, and so forth.

This can be done based on checking the interest rates and easiest loan terms. Once you submit this form and Upgrade approves you for a loan, different loan options will be presented considering your eligibility requirements. 

The eligibility requirements that you should qualify to get a bad credit loan from Upgrade include a minimum credit score of 580, a minimum debt-to-income ratio of 45%, being 18 years or older US citizen, being a resident of the United States, and having a valid checking account.

If these requirements are to the point, your chances of getting a loan from Upgrade are really high. 

The main services offered by Upgrade include refinancing credit cards, debt consolidation, home improvement loans, and so on. The interest rates for loans that you opt for include 5.94% to 35.47%.

The lending period on Upgrade ranges from 2 to 7 years depending on the type of loan that you require and a few other factors. This platform ensures fixed rates, predictable payments, and zero prepayment penalties

Loan Range$1000 to $50,000
Application FeeZero
APR5.94% to 35.47%
Terms 2 to 7 years
Funding Within a few business days

4. Avant (4.0/5)

Last but not least, we have the Avant money-lending platform. This platform offers tools and solutions that are designed to meet each customer’s specific requirements. Just like Upgrade, Avant is a direct lender of various loans including bad credit loans.

Avant is a platform that lets customers check their loan options, interest rates, and eligibility without the need to fill out an application form.

By allowing such options, the website ensures that you can decide on the apt loan for your needs without risking your lowest credit score.

For an even easier understanding, people can fill in their state of residence on the official page and check the average interest rates and terms there. 

The minimum eligibility requirements for getting a bad credit loan from Avant include a lowest credit score of 580, an annual income of $20,000, being a permanent resident or US citizen, 18 years or older, and having a valid checking account with a credit union or bank. 

To apply for a loan on the Avant website, you ought to provide important information like your credit score, desired loan amount, location, and financial situation via an online loan form.

Once you submit this application form, Avant will present you with the different loan options, the origination fee, and loan amounts for each loan.

Once your request is approved, you can provide your checking account information so that Avant can send the amount directly to your account. 

For on-time loan repayments, Avant offers convenient repayment options. By opting for the autopay option, the website will automatically withdraw monthly payments thereby making sure that you make your payments without any delay. For manual payment, you can choose the Avant mobile app. 

If your monthly payment is late by more than 10 days, the platform will charge an additional amount of $25 from you. An amount of $15 is to be paid if any payment falls through.

So, altogether, Avant is a leading lender that people looking for affordable bad credit loans can opt for. 

Loan Range$2000 to $35,000
Application Fee2% to 5%
APR9.95% to 35.99%
Terms 24 to 60 months
Funding Within a few business days

Understanding Bad Credit 

In simple terms, bad credit refers to an individual’s failure in paying bills on time and the likelihood that the same happens in the future.

This bad credit is reflected in terms of bad credit scores based on the FICO scale. On a scale of 300 to 850, a credit score below 580 is considered to be a low credit score.

Borrowers who fall under this category are referred to by lenders as subprime borrowers and they are seen as riskier. 

A bad credit score might make it extremely difficult to get installment loans for cars, mortgages, businesses, and so on.

This low credit score results from high credit usage, poor payment history, hard credit check inquiries, or too many credit applications. By improving these factors, you can boost your credit score and increase your chance of getting loans. 

Bad Credit Loans

Though some lenders do not provide loans to people with bad credit scores, a few lenders do provide loans. So, the loans provided to people with bad credit are known as bad credit loans.

Such lenders are ready to lend money to people with the lowest credit scores between 580 and 600. Based on the lender, the minimum credit score requirement varies. 

The interest rates for bad credit loans are calculated by lenders by considering certain factors like the amount required, your creditworthiness, annual income, and so on.

Due to bad credit scores, customers receive urgent loans with high-interest rates and lower loan limits. Boosting your credit score is the only option to avoid high interest and loan limits. 

How We Ranked The Best Bad Credit Loan Lenders

It is evident that people with bad credit scores have a hard time finding the best lenders who provide legit personal loans. This is the sole reason for listing the best online bad credit loan lenders that suit each customer’s needs.

During our process of selection, we did consider certain parameters for choosing the best lender out there. The following are the factors that we considered for adding an online bad credit lender to our list:

1. Eligibility Requirements

People with low credit scores do not qualify for the minimum eligibility requirements put forward by most lenders.

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So, while choosing the lenders, we looked for ones that are generous and considerate about the customers’ credit scores. Some lenders also do not specify the minimum credit score.

Most of the lenders listed here mention minimum eligibility requirements that include 18 years or above, being a US citizen or permanent resident of the United States, having valid contact details, and having a legit checking account.  

2. Loan Amounts

In the case of providing a considerable amount, lenders look at the credit score and payment history of borrowers. For people with the lowest credit scores, getting high amounts is not possible.

This is why we have selected lending platforms that offer significantly the easiest loan amounts of at least $10,000. Some of the best lenders providing high amounts include Avant and Upgrade.

3. Loan Terms

A loan term is nothing but the time provided by direct lenders to borrowers for repaying the loan. For people with high credit scores, longer terms are offered.

For bad credit customers, the repayment time tends to be short and the monthly payments are high. So, while selecting the lenders, we have opted for ones that provide the easiest loans with a repayment time of 7 years.

At the same time, some of these online lenders offer a period of 90 days that you can opt for if you can pay faster thereby minimizing the interest. 

4. Interest Rates

Lenders benefit from offering loans to people by charging an amount as interest. Interest is a percentage of the amount that you have to pay in addition to your loan amount.

Interest obtained by personal loans is called the Annual Percentage Rate (APR). The interest rate is usually high for bad credit loans.

That being said, the unsecured loans offered by the lenders listed here are available at interest rates ranging from 5% to 36%.

5. Speed of Funds

When applying for a loan, borrowers would want the amount as soon as possible. Usually, the application process and processing of the amount are time-consuming.

So, while choosing the bad credit loan companies, we opted for ones that offer instant funds and ensure easy application.

These lenders ensure funds within a few business days so that customers can meet their requirements on time.  All the lenders listed here offer funds through direct deposit. 

6. Application Process

The first step to getting an installment loan is the application process and unfortunately, this takes so much time. Most lenders have lengthy pages for applications that borrowers take time to fill out and submit.

So, we have only chosen the best lenders who ensure a fast and convenient application process. These bad credit loan companies ask for very few details that can be submitted in just a few minutes. 

Types of Bad Credit Loans

There are plenty of bad credit loan options available out there. Each loan is different and comes with its own unique features. Here, we have listed the different types of bad credit loans available for people with low credit scores:

Secured and Unsecured Bad Credit Personal Loans

Personal loans are further classified into secured and unsecured bad credit loans. 

Secured loans are the ones that are supported by collaterals. Some of the common secured loans include car and mortgage loans.

The collaterals that back these loans are your home or car. In case of failure in repayment, the bank or institution that provides the loan can seize the collateral.

The collaterals for a secured loan include real estate, vehicles, stocks, insurance policies, bank accounts, and high-end collectibles. 


  • Low-interest rates
  • Borrowing limits are more considerable
  • The repayment period is extended


  • The risk is involved for the borrower because failure in repayment leads to losing collateral like homes, vehicles, etc.

Unsecured loans, unlike secured loans, don’t require collateral. Due to this lack of collateral, lenders provide loans based on your credit score and payment history.

So, often, these loans have a higher interest rate than secured loans. This indicates that unsecured loans are riskier for lenders. People with bad credit scores tend to get secured loans more than unsecured ones. 

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  • Low risk for the borrower
  • Doesn’t require collateral
  • Fast and more convenient application process than a secured loan


  • Risk is higher for lenders indicating that borrowers would have to pay high interests

Student Loans for Bad Credit

Student loans for bad credit customers are also made available by online lenders. Regarding student loans, a good credit score is a must.

But, now, there are federal student loans for people with bad credit and these loans do not require a credit check. The repayment terms offered by federal loans have great flexibility.

This flexibility extends to forgiving borrowers working in public service or choosing certain repayment plans. 


  • Makes higher education attainable for those from low-income categories 
  • Repaying the student loan is a great way to increase your credit
  • A student loan is a catalyst for better and more successful career choices 


  • A failure of paying student loans might lead to added interest, added fees, and wage garnishment

Auto Loans for Bad Credit

Auto loans for bad credit are loans that come under the secured loans category. They tend to ask for your car as collateral.

So, if you fail to repay the loan, the lender will seize your car. The eligibility requirements for auto loans depend on the lender and dealership. 


  • Helps spread the cost of repayment
  • People can find a car that suits their budget
  • Improves credit score


  • This might lead to a tighter budget

Payday Loans for Bad Credit

Payday loans are nothing but small-dollar loans usually up to $500. These are short-term loans that can be repaid once the borrower receives the next paycheck which is about 2 to 4 weeks after getting the loan.

This loan is a relief for people with bad credit as they do not require a credit check. That being said, payday loans have many risks and huge fees.


  • Payday loans are easy to access
  • Fewer requirements than in other types of loans
  • An unsecured loan that doesn’t require collateral


  • Entering into debt is a risk for this loan

Home Equity Loans and HELOCs for Bad Credit

Home equity loans are provided to those who have enough equity in their home. So, for this bad credit loan, your home is the collateral that will be repossessed by the lender if you fail to repay the loan amount. 


  • The fixed interest rate with set monthly payments
  • Interest rates are low
  • HELOCs are easy to obtain


  • Foreclosure and becoming underwater the loans are the risks involved

When Should You Apply for a Bad Credit Loan?

The following are the situations in which you can seek a bad credit loan:

  • Your low credit score has caused your loan requests to be rejected by most lenders 
  • Situations when you have failed in making your credit card payments
  • There are no other ways to opt to manage your current debt
  • When your financial position has become better and you can repay a loan to improve your credit score

How to Qualify for a Bad Credit Loan?

There are some factors that you can consider for increasing your chances of getting a bad credit loan. They are listed below:

  • Take a look at your credit score

Through a credit-providing website or credit card provider, check your credit score. This is the first thing you should do before searching for the best lender online. By knowing your credit score, you can learn the loans that you can get and those you can’t. 

  • Prove that you can repay the loan

Once you access the lender, make them believe that you can repay the loan amount. Some lenders are ready to offer loans to people with low credit if their earnings have improved over time. 

  • Submit collateral 

The next thing you can do is provide collateral so that the lender’s risk reduces and your chance of getting a bad credit loan increases.

This is because, in case of defaults, lenders can easily seize the collateral and sell or auction it to recover the loan amount.

  • Apply with a co-signer or co-applicant

Try applying for a bad credit joint loan with a co-signer or co-applicant who is creditworthy. So, even if you have a bad credit score, your chances of getting a joint loan increase due to the good score of the co-applicant.

Finding the Best Bad Credit Loans

Here are some tips that you can follow to find the best bad credit loans available in the market:

Look for the best rates

It is best to look for rates by using lending platforms. The biggest advantage of these platforms is that they view multiple offers at once. So, based on your credit score, you can choose the loan with the best rates.

Go for the best offer available

The next thing you can do is choose the best offer available. As per your budget, go for the loans with the best monthly payment and interest rate.

Also, make sure to see how much the loan will cost for the whole term and stick to the ones that are worth it.

Check for additional fees (origination fees)

Some online bad credit loan elders charge no origination fees, late payment fees, or prepayment penalties from borrowers.

At the same time, there are a few lenders who charge some or all these fees from customers. So, make sure to check the fee structure along with the potential interest rate.

Analyze the customer support options of the lender

Before settling for a bad credit loan from a lender, make sure to check their customer support service as well as reviews posted by verified customers.

It is always better to opt for lenders with a good customer support team as this will be really helpful when you encounter issues with payment or face a financial crisis during the repayment period. 

Things To Consider Before Availing Of A Bad Credit Loan

Before availing of a bad credit loan, the following are the things that a borrower should keep in mind:

  • Do detailed research and examine the benefits and services offered by various lenders. Select a bad credit lender who offers a low-interest rate so that you do not find it difficult to repay the loan amount. 
  • Make sure to check your eligibility before applying for a bad credit loan so that you can prevent frequent rejections. This will help stop the damage that might be caused to your already low credit.
  • Get complete clarity about the terms and conditions of bad credit loans so that you do not fall for traps and meet with a crisis later.
  • It is important to evaluate your financial position and repayment capacity before getting a bad credit loan so that you do not fall into further debt

The reputed online lenders that are specialized in providing bad credit loans are the ones listed here. Any person with a low credit score can reach out to lenders like Personal Loans, Avant, Upgrade, and Cash USA to get a fast and convenient loan that suits their requirements. 

Lenders Providing Bad Credit Loans

For those with poor credit scores, there are a few options for getting bad credit loans. One is obviously banks and the other two are listed below:

  • NBFCs (Non-Banking Financial Companies)– There are many NBFCs that offer bad credit loans to people with low credit scores but they charge high-interest rates from the customers. These companies are much more flexible than banks when it comes to considering credit scores. Even for scores less than 360, certain NBFCs offer sanctioned loans.
  • P2P Lending (Peer to Peer)- P2P websites are lending websites that offer bad credit loans and other types of loans to people. The amount that borrowers can get is up to 5 lakhs with tenures ranging between 1 year to 5 years.

How To Identify Bad Credit Loan Scams?

The online loan industry is flooded with many lenders providing bad credit loans. People with bad credit scores seek loans due to emergencies and this is misused by various online lenders.

So, if you are not well-informed about this industry and the scam that exist, you may easily fall for traps. Here are some indicators of bad credit loan scams that you can look for:

  • Not checking the credit history is a major indicator. Lenders should always know about your credit score to calculate the interest rates and repayment terms. So, if an online lender approaches with the claim that they provide bad credit loans without the requirement of credit history, you can be assured that they are not legit.
  • An important criterion that every online lender should follow is getting registered in every state where they intend to provide loans. So, make sure to check the licensing of the lender that you decide to get a loan from. For this, you can visit the official website of the lender and in case no registration details are given, you should back out.
  • Another thing is to keep an eye on lenders who come with suspicious advertising. A legit bad credit lender needn’t approach you and advertise their unsecured loans. In case a lender sends a message or mail advertising their loan services even though you haven’t approached them before, you can assume that they are scams. 
  • Lenders who are not legit put pressure on you to take loans without reviewing their loan types, terms, eligibility criteria, and so on. This is done to keep you aloof from their deceptive practices. Legit lenders give you enough time to analyze their process and if any lender pushes you, make sure not to approach them.


So, it is clear that there are many lenders out there providing personal loans for people with bad credit scores. This indicates that people with low credit can approach legit online lenders to get loans for meeting emergencies.

For this, you have to do solid background research, compare the different options available, and find the right lender. Right now, many online bad credit lenders are available, and getting to know which lender is legit can be a real task.

This is why we have listed the best online lenders providing different loan options to people with bad credit scores. Each lender has a unique process and all of them ensure fast and convenient loans. Based on your requirement, credit score, and other factors, you can approach any of these lenders who will make sure that you get the right loan suiting your situation.

Though bad credit loans are available, it is always better to improve your credit score so that you can access better loan options at low-interest rates. 


What are the eligibility requirements for a bad credit loan?

To get a bad credit loan, you have to qualify for the following requirements:
👉18 years and above
👉A citizen or permanent resident of the United States
👉A salaried or self-employed person
👉Capable of repaying the loan amount on time

What credit score is bad credit?

A credit score below 580 is considered to be bad credit. People with a score below this range can seek bad credit loans.

How long does it take to get a bad credit loan?

Most online lenders make sure to carry out a fast and convenient process so that borrowers can get loans within a few business days. 

How to apply for a bad credit loan?

To apply for a bad credit loan, visit the official website of the lender, fill out the application form, and submit the necessary documents. The lender will review all these and then approve the loan. 

How much money can be borrowed with bad credit?

The loan limit is calculated by the lender based on your creditworthiness and income. People with bad credit scores should expect only a minimum loan limit.

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