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Loans for Bad Credit: 5 Easy To Get Online Small Loans


When you need cash beyond what you may have in your savings, small loans for bad credit can meet your needs.

  • Reputable lenders are ready to help with small loans for bad credit. Just consider the costs before you commit to a loan offer.

  • Typically, loans for bad credit are going to have higher APRs – there’s just no getting around that fact.

  • The good news is you can get loans for bad credit from online lenders that offer more flexible credit requirements than traditional lenders. Plus managing the loan responsibly will help you get on top of your finances.

Having bad credit is tough. Whenever you use any type of credit account focus on building your credit scores. That means if you have high credit card balances pay them down or completely off in order to improve your scores.

Always make at least the minimum payment each month on credit obligations. Doing so over time will result in better credit scores. Carrying large revolving debt balances and missing payments will drop your credit scores.

General qualifications – small loans for bad credit

There are several basic requirements to get a loan for bad credit:

  • At least 18 years old (19 in Alabama and Nebraska).
  • You must be U.S. Citizen or permanent resident.
  • Have a social security number.
  • Have a verifiable source of income.
  • You must have a valid bank account.

Types of Loans for Bad Credit

Lenders to consider – Loans for bad credit

1. Personal Loan – OppLoans

OppLoans is a direct online lender offering loans up to $4,000 for people with bad credit. OppLoans does not require a minimum credit score to apply. Borrowers should have a regular income that is direct deposited into a traditional bank account. This is a very easy loan to qualify for.

Loan Details

  • Loan amounts range from $500 to $4,000.
  • No prepayment penalties.
  • Loan terms up to 36 months.
  • 350 minimum score required.
  • Payments reported to credit bureaus.

2. Payday Loan – Check into Cash

Check into Cash is a payday lender that allows you to get an advance on your wages ranging from $50 to $1,500, depending on your state. You must be signed up for direct deposit at your employer or a benefits program like unemployment, SSI or retirement. When your paycheck is deposited, Check-into-Cash will deduct the amount you cashed out plus interest.

Loan Details

  • Loan amounts range from $50 per day or $1500 per pay period.
  • Interest rate, fees or costs vary by state.
  • Pay-off due by next pay period.
  • Once approved, leave a store with cash in hand, or have it deposited online as soon as the next business day.
  • Simply repay your Payday Loan, plus fees, within two to four weeks, according to your pay schedule. No surprises.

3. Auto Loan – Auto Credit Express®

Auto Credit Express® offers car small loans for bad credit. Borrowers get pre-qualified for auto financing before you shop. There’s no obligation. You can get approved even if you have bad credit, no credit, bankruptcy, or previous repossession.

Loan Details

  • Good credit, bad credit, no credit.
  • 93% approval nationwide.
  • Quick & Easy application.

4. Mortgage Loan – NACA

NACA (Neighborhood Assistance Corporation of America) helps homebuyers purchase a home with no money down payment and no minimum credit score requirement. Homebuyers must complete a lengthy homebuyer education program and submit all required documents. Borrowers are evaluated based on their personal payment history and other factors regardless of their credit score.

Loan Details

  • Limits are set at $453,100 for single-family dwellings and $679,650 in high-cost areas.
  • No down payment, No closing costs, No points or fees.
  • Must live in their home while they have a NACA mortgage.
  • No credit score consideration.
  • Below market 30-yr and 15-yr fixed rate.

Get more details on NACA mortgage loans and how to prepare for a bad credit mortgage loan.

5. Business Loan – Kapitus

Kapitus offers business loans in 50 states (and Washington, DC). Businesses must meet a minimum $250,000 annual revenue to be considered plus but Kapitus requires companies to be in business for at least 2 years. Kapitus charges additional fees to borrowers who pay off their small business loans sooner than anticipated.

Loan Details

  • Minimum 625 credit score.
  • 2+ years in business.
  • Loan terms range from 3 – 36 months.
  • $250K average annual revenue.
  • Approval in as little as 4 hours.
  • Funding in as little as 24 hours.

Check rates on loans for bad credit without credit score impact

When you apply for new credit, each credit inquiry will take as much as 5 points per inquiry off your credit score. With each of the loan options above, you can check your rate and terms with no impact to your credit scores. A hard credit inquiry that impacts your credit scores occurs only if and when you decide that the rates and terms are the best for you.

Use loans for bad credit to improve credit scores

Loans for bad credit can help improve credit scores. For instance, if you use the loan to consolidate high interest rate credit cards your scores are bound to improve. That’s because the credit scoring system is more favorable to lower credit utilization.

Consolidating credit cards reduces how much you owe on revolving accounts while paying an installment loan does not factor into revolving credit utilization. Plus, an installment loan like small loans for bad credit adds variety to your loan types. Most find their credit scores rise when they consolidate credit card debt into a personal loan.

Online tools can help you manage loans for bad credit more efficiently

Borrowers that have little time to take care of business will appreciate online lenders. Today’s lenders know borrowers are busy with work, family, running errands and a few moments of personal time. Many borrowers rely on smartphones to take care of business. You can stay on top of your financial business by conveniently managing your loan online. Use your lender’s app to:

  • Review statements and recent payments.
  • Update your account information anytime.
  • Make a one-time payment, set up auto-pay or schedule future payments.

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