Did you wake up one day and decide to do your best to have bad credit? No? We did not think so. You might have shopped around for the best mortgage rates only to get too frequent credit checks and resulting bad credit.
Usually, it is prolonged illnesses, bankruptcy, or heavy student loans that can get you a bad credit score. These may be justifiable problems that tend to drain your finances. However, financial history makes it almost impossible to get your bad credit loan approved.
But, many personal loan lenders do not care about why you got a bad credit score. They seem to reject loan applications without digging deeper. No true businessperson goes out of their way to give bad credit loans.
It does not matter what led to having a bad record, it boils down to trust. Lenders likely will not trust you to repay your loan, and they will not go the extra mile. While this may seem unfair, we can understand it. But, it is not all bad news.
Some lenders understand your plight and the need to get quick loans even with bad credit. Therefore, they are willing to work with loan companies who act as an intermediary between you and those who want to lend you money. These companies do not precisely bank on your credit score to approve your loan because they tend to have extensive lender networks willing to accept bad credit borrowers.
Some loan companies can even reach third-party lenders outside of their lender networks. These third parties can help if the loan company cannot find any lender to agree to your terms, so you may still be able to obtain a bad credit loan with guaranteed approval.
Plus, if you shape up by making timely payments, these companies may help you clear your bad credit score. Some send your record reports to credit bureaus all over the country, which affects your financial history. And slowly, you are back to applying for loans whenever you need them, hassle-free.
By now, you may be thinking, “Where can I find these loan companies?” That is when you have to slow down and take your time choosing. Fraudulent loan companies can mingle with trustworthy and genuine ones. Knowing how desperate you are for financial help, they advertise as trustworthy lenders and lure you in.
It is crucial to arm yourself with the correct information before choosing a loan company, which is why we have created a handy guide to help you differentiate between real and fake ones.
Let us start with our top picks to get a bad credit loan with guaranteed approval.
List of Top 5 Companies for Loans for Bad Credit With Guaranteed Approvals
Our list of top five loan companies for bad credit loans with guaranteed approvals is:
- MoneyMutual – Overall Best for Bad Credit Loans
- BadCreditLoans – Installment Loans for Bad Credit Score
- CashUSA – Fastest Instant Cash Loans
- Personal Loans – High Chances of Approval for Personal Loans
- Credit Loan – Payday Loans with No Credit Check
#1. MoneyMutual – Overall Best for Bad Credit Loans
If you are looking for an emergency fund, MoneyMutual may be your best bet. Since 2010, MoneyMutual has been linking borrowers and lenders to ease the process for borrowers in desperate need of financial help.
Searching for and finding the right lender in any situation can be difficult. However, it can be especially difficult when your credit is low. With that peculiar problem, few lenders want to work with you, and the requirements may prove unreasonable even when you find a willing one — feeling cornered already?
MoneyMutual tries to make the process easier and bail you out entirely. It provides you with educational materials to help you learn about the short-term loan industry and what you can gain from it. You would also get to know how to use loans without straining your finances. That way, you will not get back into bad credit territory.
MoneyMutual understands and spares no effort to dissipate your fears and suspicions about financial institutions in general, and loan companies specifically. It tries to help you know that taking short-term loans is not a death sentence. Plus, it assures you that it has your back through the process.
The steps to apply for a loan through MoneyMutual are pretty straightforward. You fill in a form indicating your name, age, place of residence, and if you earn up to $800 per month, plus any other required information.
As soon as you fill the form online and get the nod from the company, you get a connection to a lender. On the lender’s site, you get to ask the necessary questions to check compatibility. It is pretty quick and easy, and if you find the lender is incompatible, you have the option to decline that lender. Now, who has the upper hand?
MoneyMutual makes up to $5,000 available as a loan, which is sufficient for some emergencies, and the company charges zero extras from you for the services it renders.
It is up to you to decide when to get your loan sum since MoneyMutual does not determine when you get a payout. Depending on how quickly you apply and get approved and the loan agreement terms, you can receive a loan payout within 24 hours. In an emergency, it is a relief you can tap into funding that quickly.
Plus, MoneyMutual does not share unnecessary information with the lenders. If a lender demands more, the company will notify you before proceeding.
- Quick payout time
- Easy application process
- Adequate customer protection
- No extra charges
- Wide lender network
- Non-U.S. residents are not eligible
With over two million customers, old and new, it is no wonder MoneyMutual tops our list. The reviews tell their own story, and the company keeps coming up with better ways to serve its customers.
The quick payout time worked for many customers who needed immediate help. So, it is one of the company’s features that many customers talked about and prioritized. Plus, the fact that you do not have to pay any charges and the service is hassle-free makes a huge difference.
#2. BadCreditLoans – Installment Loans for Bad Credit Score
The company’s name says it all — it helps you secure loans even with bad credit scores. What makes BadCreditLoans so unique is that the reason why you are taking out the loan does not affect their decision to extend it or not. The company also works to secure loans as quickly as possible.
But before giving you any loan, Bad Credit Loans provides resources to educate you on making the right decisions when taking loans. That education helps you gain the needed know-how to manage the money you get so it does not run out quickly. The resources also educate you on how loans are beneficial, both in the short and long term.
However, if you are not a U.S. citizen, you are not eligible for a loan. Plus, if you are a citizen but have no steady income source, chances are you would have a hard time finding a lender. Getting a lender also means paying high interest.
The loan application process is quick and straightforward. To secure a bad credit loan from the company, fill the online form with the required information. You will also add proof of your citizenship, the loan amount you need, and why you need it. Even if the application asks why you need it, your answer does not affect whether or not you secure the loan.
As soon as BadCreditLoans checks and carefully examines your application, it sends it out to specific lenders working with bad credit customers. You will start getting notifications from lenders who are willing to work with you within a short period.
Depending on what your lender agrees to dole out, you can receive a decent amount, which could fall between $500 and $10,000. It might not be large enough to cover some cost-intensive emergencies. However, it might be an excellent place to start if your financial challenges are on a smaller scale.
BadCreditLoans also does not charge extra fees if you use its services to secure a loan, and you could get the loan amount you requested within the next business day if everything goes well.
Repayment is also another benefit, especially if you are a low-income earner. The company gives you up to 36 months to repay, with manageable payment amounts per month.
Your credit score does not play a significant role in the vetting and approval process. So, you have a chance of approval with bad credit. What is more, with up to 36 months to repay loans, you have an opportunity to stretch the plan and work with a comfortable schedule.
- Bad credit is not an issue
- User-friendly application process
- Considerable loan amount
- No extra charges
- Friendly repayment plan
- High-interest rates
- Little or no eligibility with no steady income
What customers liked best about the company was that bad credit does not affect approval. That means you are more likely to get a bad credit loan with guaranteed approval.
Customers also liked that BadCreditLoans did not put them under an obligation to accept the first offer that came their way. So, you could read and agree on loan terms and then sign the agreement. If you do not agree to the lender’s terms, you will get the opportunity to request a new lender.
#3. CashUSA – Fastest Instant Cash Loans
We have already listed some secured and unsecured loan companies that provide educational material to their customers. But CashUSA goes a step further to educate customers on calculating debt and checking credit scores correctly. You also learn how to manage your money and pay loans back in a timely fashion.
Considering how difficult it is to find lenders willing to work with bad credit customers, it is no mean feat from CashUSA. The company also makes the process of securing bad credit loans easy. So, to put it simply, you learn how to manage loans, pay debt and check credit, and get approval for loans with bad credit.
CashUSA’s services are fast and easy to use. The company’s main feature is that it gives loan amounts up to $10,000, including customers with bad credit. Only a handful of loan companies do this, so it is little wonder the company is much sought-after and made our list. Available resources educate you on how to use the loan wisely and get financial freedom.
Your first step is to fill out a form on the company’s site, where you provide your name, email address, desired loan amount, and whether you are in active military service. Then, you will be required to provide detailed information and fill a form stating whether or not you own the house you live in and provide an ID and your social security number.
While it seems like too much information, considering some companies do not ask for so much, you do not have to visit the office in person. You can do everything online. Moreover, that is the last thing you have to do after submitting your application.
CashUSA takes care of the process until it is time to approve a lender. Every borrower gets matched with a lender, and within the network, you can find lenders willing to extend loans to customers with bad credit.
Your personal information is secure with CashUSA. It does not leak or get to any lender without prior notification. And like some other companies, CashUSA does not demand extra fees for using its services.
With a 70-month repayment plan, the schedule is flexible for everyone, especially low-income earners.
- Free service
- Easy payout
- Reasonable loan amount
- Flexible repayment plan
- Quick service
- No extra fees
- High annual percentage rates (APR)
- A substantial amount of application requirements
Having more than a million customers a month says the company is reliable. Reviews show that the company has come through for many customers, and the quick fund transfer has proved very useful.
#4. Personal Loans – High Chances of Approval for Personal Loans
It is one thing to have a vast lender network, and it is an entirely different issue to have extra resources in the event of failing to find what you need within your network. Personal Loans works with third-party lenders when it cannot find lenders within its vast network, and this service can come in handy if you have bad credit.
The company provides fast and secure services. When you submit your application, the company processes it for approval. Then, it allows you to make and agree on the terms. That way, you are involved in every step of the process.
Personal Loans offers high-quality personal loans up to $35,000, which is a pretty decent sum to make available to every customer, both good and bad credit ones. It can cover different emergencies comfortably.
The process to apply and get loan approval from the company is pretty detailed. You fill a form online, and on the form, you get an explanation of why they are requesting each piece of information. The process may take a little while, but it is worth the time because it builds trust.
One of the best parts of working with Personal Loans is that the company sends out the filled application and receives responses from lenders. Nobody contacts you for additional information except if necessary and if you are willing to provide it.
If all goes well, your account can get credited within the first 24 hours of application — that is, if the approval process is quick, you agree to terms on time, and you make your account details available.
What is more, the repayment period, which is 72 months, is scheduled to suit most income earners. Plus, if a specific payment period does not serve you, you can request a date change.
Apart from the usual lender network, Personal Loans has other lending choices to help with loans. If it cannot find a suitable lender within its network, the company looks outside, always finding a way to help.
- Considerable loan amounts
- No service fees
- Flexible repayment schedule
- Funds availability within a short period
- Large lender network
- Quick and easy application and connection process
- Possibly significant interest rates for bad credit
Well, it is not every day you get such a flexible repayment plan. Not only did the customers like that they had a long time to pay back comfortably, but they also liked that they could request a date change when it was not comfortable.
#5. Credit Loan – Payday Loans with No Credit Check
Since 1998, Credit Loan has helped and supported more than 750,000 customers. If you are looking for a soft loan approved within a short time, you may want to consider the company. It is almost sure you will get bad credit loans with guaranteed approval from Credit Loan.
Much like other loan companies, Credit Loan supports its customers with educational and informative material. The material shows you practical ways to handle everyday financial struggles and overcome them. This factor makes it easy to use the loan company. Plus, it does not charge exorbitant interest rates.
To apply for a loan, you fill the form provided on the company’s site. But, not to worry, as all of your details are in good hands. This is because TRUSTe and McAfee verify and certify Credit Loan.
Submit your application, and the company sends it out to different lenders. Within a short time, you may get notified and redirected to a lender’s site. Then, the ball rolls into your court to decide whether the lender is one you want to work with or not.
You can decline an offer if you find that a particular lender is not what you want due to the offered terms. Then, you will have to wait for a new lender to take an interest in your application and make an offer.
That is the downside since you may have to wait a while for a new loan offer. So, if you are looking for emergency funds, it may not be the best option to reject a lender, especially if you have bad credit.
The company extends personal loans for bad credit between $250 and $5,000, which is not the highest sum. Still, it could give you a boost when you are cramming for cash. Once you agree to terms with a lender, you may receive the funds into your checking account within 24 hours, as long as you have provided your bank details and your bank does not delay the process.
Credit Loan understands that some of its customers are low-income earners, have bad credit, and their debt-to-income ratio is not appropriate. So, it offers reasonable interest rates. And it seems as if they have tailored their services to make things easy for low-income earners and bad credit customers.
No matter how little or high the loan you take is, the repayment schedule is excellent and favorable. Plus, you pay nothing for the services you receive from the company, which saves you some money.
- Elimination of meetings between borrower and lender
- Low-interest rates
- Easy application process
- Speedy payout time
- Excellent repayment schedule
- Cost-free service
- Relatively low loan amounts
For one, customers liked that their information was secure with the company. Then, they talked about how easy it was to apply and how fast the payout was. They said they would refer the company to anyone looking for a small loan with a quick payout time.
In addition, customers appreciated the reasonable interest rates and the flexible repayment schedule. The service supports the improvement of credit scores by making regular reports to national credit bureaus.
5 Things to Look for When Searching for Bad Credit Loans with Guaranteed Approval
So, you have narrowed down your lending companies, but what should you look out for when choosing a bad credit loan? Here, we discuss five key factors that help you work your way towards bad credit loans with guaranteed approvals.
- How Eligible You Are
Not all bad credit scores are on the same level, so it is crucial to learn about credit scores, what loan companies accept, and which category applies to you. No matter how much bad credit a loan company claims to accept, they often have a minimum. To make the reference easy for you, most loan companies that accept bad credit do not drop lower than 620, going by the Fair Isaac Corporation (FICO) score chart.
Other eligibility factors could come into play, like age, location, your job, how much you earn per month, and how much you owe, if any. Some lenders may be willing to work with bad credit customers. But if you have no steady income source, that could deter many lenders. And even if you do have a source of income, but it is small, they may pull out completely.
Now, say you have found a lender who is willing to work with you. That might come at a high cost. The yearly minimum payment they demand may be more than you can handle. However, finding someone with an excellent credit score to sign the agreement with you may help boost the lender’s confidence.
- The Rates on Offer
When you get an offer from a lender, it is crucial to compare the rates to find the most favorable. Learn how to calculate the rates, what is fair, and what other offers are available.
Some lenders are just downright unfair because they know you have bad credit. Others have fluctuating interest rates because they follow the market’s index rate. Therefore, they cannot offer you a steady rate. A few, though, offer rates that are constant and remain so throughout the repayment period.
Therefore, when choosing an offer based on how it favors you, consider the interest rates. Remember, they will last throughout the period you repay, so if the market fluctuates and you have not nailed a fixed rate, you will bear the cost.
- Terms of Agreement
Read the terms of the agreement and understand them before you pen your signature. If the deal seems too ambiguous or high-sounding, hire a lawyer to look it over. Loan agreements with bad credit customers usually come with almost unfair terms.
Carefully looking it over helps you understand the rates, the repayment schedule, and other terms, which is crucial. Ensure you protect your interests in the agreement.
- Repayment Schedule
It goes beyond just agreeing on a flexible repayment schedule with a lender. Consider the interest rate, how long it would take you to repay it, and how much each payment is. These will determine whether or not you can meet the schedule.
Your source of income and how much you earn also play a vital role in the ease of repayment, and the same is true about how much you borrow. Even if you earn well, go for an amount that puts no strain on your income during repayment. You risk tanking your credit score if you fail to make payments and on time, too.
Check out the number of months each lender and loan company offers, compare it to your regular income, and see how it affects the money.
- Service Costs
You may be fortunate enough to find a loan company with no service costs, like those on our list. But, they are the exception. Typically, loan companies tend to collect service charges, and we are not faulting that. The marked difference is in how much each company demands and the services they offer.
Some loan companies and lenders charge when you have insufficient funds for origination fees, bounced checks, and delayed and late payments. Whatever the fees are, it is vital to find a company or lender who charges reasonably.
Guiding Steps to Getting Bad Credit Loans with Guaranteed Approvals
Before you apply for a bad credit loan, you should follow these four steps to prepare yourself for the process.
Step 1: Request Credit Report
It is best to request your credit history about three months before you apply for a loan. That way, you can go through it and detect errors. You can improve your score if you get corrections, thereby improving your chances of getting credible lenders.
From the report, you will also see areas where you need to improve, which is why knowing your credit score before applying is essential and gives you enough time to work on improving it.
Step 2: Plan Expenditure
The most important part is not getting the loan — it is spending it wisely. That is where planning comes in. Decide how much you need, to the exact amount, and plan around it.
Then, create a plan for how you will repay it promptly. It would help if you had a steady income stream, but the repayment plan must not put a strain on it. It gives you credibility if you can provide these details when applying.
Step 3: Learn About Interest Rates
Inform yourself of the going interest rates and how they are likely to change within the repayment period. Most lenders offer exorbitant interest rates to bad credit applicants. Also, many lenders work with the market rate, so the rates you begin with may not remain the same for the entire repayment duration.
Step 4: Beware of Fraud
A fraudulent company will pay more attention to how much it can get as an advance fee than your financial history, and it will keep bugging you to do business with it. So, it helps to learn ways to recognize scams and beware of them, especially if you are new to taking unsecured loans.
Viable Options to Bad Credit Loans
Apart from personal loan companies, you can tap into other sources for a loan if you have bad credit.
- Friends or Relatives
Ask friends and relatives for some of the emergency funds you need. They are usually your best source of help because they are willing to pitch in and will not ask for interest.
You can get a salary advance from your employer. More often than not, employers are willing to help out in emergencies, especially if you are on good working terms with them.
- Personal Assets
Take a look at your personal belongings, as there may be something valuable you can sell. It may be the best way to raise the money you need without owing anyone.
Frequently Asked Questions (FAQs): Personal Bad Credit Loans
Q1. How do I know if my credit score is good?
The Fair Isaac Corporation (FICO) has a chart list that shows grading for different credit score levels. On the chart, the score that is officially considered fair is 580. Most loan companies that accept bad credit will not go below this score. For some, 620 is the minimum credit score, and any score lower than it is considered bad credit.
If the FICO chart is not what you need, you can request your credit history from major credit bureaus within the U.S. They have a record of credit histories, and you can get yours without any charge.
Q2. Can I improve my credit score?
You can improve your credit score, so keep a record of your financial history and if you are in debt. Make it a point of duty to pay on time, and show consistency in paying back loans, as it builds confidence and trust.
If you are not going to meet any payment schedule when paying back loans, make a report and ask for a change of date. Otherwise, you risk sinking your credit score further and ruining your financial record. That goes beyond just repaying loans, as it affects every type of financial payment.
Keep a regular job and always report for work, as this shows you are responsible. The job does not have to be a big one or pay huge money, but it must be steady. Besides, a job is an excellent way to earn money so you can repay what you owe. And future lenders will be more willing to work with you.
In addition, find someone with an excellent credit score to help along the way. It may be a friend or a relative, but the person should be able and willing to show you how they keep such a good score. Then, you can learn from what they tell you.
Q3. How long does it take to fix my credit score?
The information registered on your financial record plays a vital role in the length of time it takes to fix your credit score. If bankruptcy is part of why you have bad credit, it may take years to fix it.
Foreclosures and charge-offs also take years to fix, but not as long as a bankruptcy case. Merely making payments, no matter how timely, does not fix the credit score on its own.
Working with a credit repair professional may be your best chance of coming out faster for such serious cases. So, do things within your control to fix the credit score, and let the repair professional help you with the rest. While you are at it, keep from getting into more debt.
Q4. How do you get a personal loan without knowing your credit score?
You can find pawn shops that accept valuables as collateral in exchange for giving you payday loans. The amount you receive will depend on the worth of the valuables you deposit, but such pawn shops do not need to know your credit score before they help you. If you do not make scheduled payments, though, you are liable to pay penalties.
Auto title loans are also available, where you deposit your car’s title with a chosen lender for a loan. As soon as you finish paying back the loan with the interest, the title returns to you. But if you cannot pay back the money, the title goes to the lender. The good part is that such lenders do not need to know your credit score before extending a loan.
In addition, you have the option to take a payday loan. But, you must show proof of your monthly earnings before you become eligible to borrow. The earnings must be accessible to the lender so they can deduct monthly payments.
Getting a loan without knowing the credit score is possible, but such a loan usually attracts high costs. It may be exorbitant interest rates or any charge which the lender chooses to impose on you.
Q5. Does bad credit affect you?
Bad credit affects you in more ways than one. You will find it nearly impossible to find a lender when you need a loan. And if you do find one, they may not come bearing favorable terms.
Apart from restrictions on taking personal loans, bad credit restricts you from taking business loans. If you own a startup that requires secured loans or unsecured personal loans to establish it, you may find it hard to secure one. Business loans tend to be bigger than personal loans, and lenders are usually unwilling to part with sizable sums if the borrower has bad credit.
Bad credit even affects where you live and what job you get. Some apartments do not rent to prospective tenants when they discover the tenants have bad credit. And some employers balk at opening their doors to potential employees who have a bad financial record.
So, it does not stop at finding it hard to secure a reliable lender, as bad credit affects different aspects of your life.
Q6. What are ways to avoid loan scams?
No genuine loan company will request more personal information from you than is necessary. If the questions become too much and too detailed, you might need to keep an eye out for foul play. Keep in mind, however, that required personal information is not always a pointer towards fraud. Coming from a reputable company with several decades of experience in the market like those on our list, it is simply a security measure.
If the company you choose asks for any payment before working with you, the company is a scam. And you do not need a new account before you can receive the funds for which you applied. If the company asks you to open one, it is a loan scam.
Also, never change your social security number if a company asks you to do so before accessing a loan. It is even illegal to change it, so you should make an official report.
Bad credit loans with guaranteed approvals are not that hard to find. The loan companies we have listed here are our top five picks to work with, especially in emergencies. As long as you have proof that you can make timely payments, chances are you will find a willing compatible lender.
Take your time to prepare for applying for bad credit loans and short-listing a lender, as that will help you secure better terms and avoid scams. Use your bad credit loan to improve your credit score and replenish your financial standing.
At the same time, you can tap into finances from other resources to meet your financing needs. When you are ready, hire professional help to improve your credit score and access more reliable lenders.