Personal loans for bad credit: apply online and get funds fast

A low credit score closes doors at the bank. It does not close them here. Lenders in our partners' network approve borrowers with bad credit every day, because they look at what you earn today, not only at mistakes from years ago.

What are personal loans for bad credit?

Personal loans for bad credit are loans made to borrowers with a FICO score below about 580, or with thin, damaged or recently rebuilt credit. Instead of turning you away for a low score, these lenders review your whole situation: how much you earn, how often you are paid, how your checking account is managed and whether you can afford the payments. If the numbers work, you can be approved even with collections, late payments or a past bankruptcy on your report.

Bad credit loans come in two main forms. A short-term payday loan of $200 to $500 is repaid in one payment on your next payday. A personal installment loan of $500 to $5,000 is repaid in equal monthly payments over several months. Both are available online, both can fund by the next business day, and you can request either one with the same short form on this page.

How to get a personal loan with bad credit

1. Start with a realistic amount. With bad credit, a smaller request is easier to approve. Ask for what you need, not the maximum: $500 is reviewed faster than $3,000.
2. Show your income clearly. Enter your employer or benefit source, your monthly take-home pay and your pay dates. Steady income is the strongest point in your application.
3. Let lenders that accept low scores compete. Your request reaches lenders in our partners' network that work with poor and fair credit, so you are not limited to one decision.
4. Check the payment, then sign. If you are approved, compare the monthly payment with your budget, e-sign and receive the money by direct deposit.

What counts as bad credit?

Most lenders use FICO score ranges. You do not need to know your exact score to apply, but it helps to know where you stand.

Score ranges follow the FICO scale. Each lender sets its own approval rules.

If your score is 500, 520 or 550, you are in the poor range, and that is exactly who bad credit lenders serve. See personal loans for a 500 credit score for that specific situation.

Bad credit loan options

The first three are available through the form on this page. Read more about installment loans, cash advance loans and payday loans online.

Why lenders approve bad credit borrowers

A credit score tells a lender about your past. Your income and bank account tell them about your present, and that is what decides whether you can repay a loan due next month. Lenders that offer personal loans for bad credit put more weight on these points:

• Regular deposits of income into your checking account.
• How long you have been with your employer or benefit program.
• A checking account that is open, active and not heavily overdrawn.
• A loan payment that fits comfortably inside your monthly income.
• Correct identity and contact details that match public records.

Many of these lenders skip a hard check with the big three bureaus and use alternative data instead, such as your bank history or specialty credit reports. So a low FICO score, medical collections or a charge-off from years ago does not stop your application.

Bad credit loans for every situation

Bad credit means different things for different people. Here is how lenders usually look at the most common situations:

Having no credit history is not the same as bad credit, but many banks treat it the same way. Online lenders that look at income are often the easiest place to get a first loan and start building a record.

Bad credit loan requirements

• You are at least 18 and live in one of the U.S. states we serve.
• A regular source of income from work, self-employment or benefits.
• An active checking account in your name that accepts direct deposits.
• A valid government ID and a Social Security number.
• A working phone number and email address.

No minimum credit score is required to apply. Lenders may ask you to upload a recent pay stub or bank statement, or to log in to your bank securely so they can confirm your income in seconds instead of days.

How to get approved with bad credit

1. Check your credit report for mistakes. Errors are common. You can get free reports from all three bureaus at AnnualCreditReport.com and dispute anything that is wrong.
2. Keep your checking account positive. A few weeks without overdrafts before you apply makes your bank history look stronger.
3. Lower your request if you are declined. A lender that cannot approve $2,000 may approve $800.
4. Add a co-borrower or collateral. For larger amounts, a co-signer with good credit or a secured loan can lower your rate.
5. Apply with complete details. Missing pay dates or a mismatched address are a common reason for a no.

What a bad credit loan costs

Bad credit loans cost more than bank loans because the lender takes more risk. The price depends on the loan type, the amount, the term and your state's rules. Here is how the numbers typically look:

Examples for illustration. Your APR and payment depend on the lender, your state and your profile.

Example

$1,000 with a 540 credit score

$1,000Borrowed→$100.46Monthly payment×12Months

At 36% APR, the total cost of credit is $205.52 over a year. A shorter term means a bigger payment but less interest overall; a longer term lowers the payment.

Use the payday loan calculator to try other amounts and terms before you apply.

Installment loans for bad credit

If you need more than a few hundred dollars, a bad credit installment loan is usually the better choice. You borrow $500 to $5,000 and repay it in equal monthly payments, often over 6 to 24 months. Because the cost is spread out, each payment is smaller than a single payday payment, and you know the exact payoff date from day one. Many installment lenders also let you pay off early without a penalty, which cuts the interest you pay.

With bad credit, expect a higher APR than a bank would charge someone with excellent credit. The trade-off is access: you can get the money you need now, from a lender that judges you on your income. Choose the shortest term with a payment that still fits comfortably in your budget, and you will pay the least interest. Read more about installment loans for bad credit.

Bad credit loans cash: how fast you get the money

Bad credit loans cash out as fast as any other online loan. Once you accept your offer, the lender sends the money by ACH to your checking account, usually by the next business day. If you are approved early on a weekday, some lenders fund the same day, and a few can push funds to your debit card within minutes. Want cash in hand? Withdraw it from any ATM as soon as the deposit posts. See same day loans for the fastest options.

Bad credit loans with no hard credit check

Many lenders that serve bad credit borrowers do not run a hard inquiry with Equifax, Experian or TransUnion. They check your identity, your income and your bank history instead, and some use specialty credit databases. That means checking your offer will not lower your FICO score with these lenders. If a lender does plan a hard pull, it should tell you before it happens. Learn more about no credit check loans and how they work.

Bad credit loans for gig workers and the self-employed

Drive for a delivery app, clean houses or run a small business? You can still apply. Without pay stubs, lenders look at your bank statements to see how much comes in each month and how regular it is. Three months of steady deposits usually tell them what they need. Enter your average monthly income after expenses, list your business or platform as the income source and be ready to share recent statements. Linking your bank account securely during the application is often the fastest way to confirm self-employed income.

What happens after you apply

Within minutes of sending your request, a lender that works with your credit profile can review it. If it can help, you are shown an offer with the amount, APR, monthly payment and total cost. Some lenders ask for one more step, such as a photo of your ID or a quick bank verification. Once you e-sign, the loan is scheduled for deposit, and your first payment date appears in your agreement. If no lender can approve the amount you asked for, try again with a smaller request.

Use your loan to rebuild your credit

Some installment lenders report your payments to one or more credit bureaus. Paying on time every month adds positive history to your report, and over time that can move your score from poor to fair. Ask the lender whether it reports to the bureaus before you sign. Other habits help too: keep credit card balances low, pay every bill on time and avoid opening many new accounts at once. A year of on-time payments can make your next loan much cheaper, and some lenders offer returning customers higher limits and lower rates.

Turned down before? Try again

A no from your bank or credit union does not mean every lender will say no. Banks often set a minimum score of 660 or higher, while lenders in our partners' network work with scores far below that. If you were declined elsewhere, apply here with an amount that fits your income. See second chance payday loans for borrowers who were turned down recently.

How to avoid bad credit loan scams

Borrowers with bad credit are a target for scammers, so it pays to know the warning signs. A real lender never asks you to pay a fee before you receive your loan, never asks for payment by gift card or wire transfer, and always gives you a written agreement with the APR and total of payments. Be careful with anyone who promises approval before seeing your application, calls you out of the blue with an offer you did not request, or pressures you to sign right now. When you apply through Payday Online US, the request is free, the form is encrypted and the lender's name is on every offer.

Bad credit loans in your state

Each state sets its own rules on loan amounts, fees and terms, and those rules apply no matter what your credit score is. In most states you can get both payday and installment loans. In states with lower rate caps, such as New York, Pennsylvania and West Virginia, lenders offer personal installment loans instead. See the state rules table for your state's limits.

Bad credit loans vs. other options

For a fast decision with a low score, an online lender is usually the quickest route. If you are a credit union member, ask about a payday alternative loan too, and compare the two offers.

Why apply online with bad credit

Applying online keeps things private and quick. You do not have to explain your credit to anyone face to face, and one request reaches several lenders, so you are not counting on a single yes. You see every offer's APR, payment and total before you decide, and you can decline at no cost. Start with payday loans online or pick an amount: a $500 loan, a $1,000 loan or a $2,000 loan.