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
- Personal loans for bad credit
- Payday loan for bad credit
- Auto loan for bad credit
- Mortgage loan for bad credit
- Business loan for bad credit
Lenders to consider – Loans for bad credit
1. Personal Loan – OppLoans
OppLoans is a direct online lender offering loans up to $5,000 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 amounts range from $1,000 to $5,000
- No prepayment penalties
- Loan terms up to 36 months
- 350 minimum score required
- Payments reported to credit bureaus
2. Payday Loan – Earnin
Earnin is an app-based payday lender that allows you to get an advance on the wages you’ve already earned — with no fees or interest rates. Your employer must be partnered with Earnin in order for you to use. Borrow up to $100 per day or $500 per pay period. Pay what you choose, even if it's zero. It's that simple. When your paycheck is deposited, Earnin will deduct the amount you cashed out.
- Loan amounts range from $100 per day or $500 per pay period
- No interest rate, fees or costs
- Pay-off due by next pay period
- No credit score required
- There’s no catch and no fine print to worry about.
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.
- 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.
- 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
5. Business Loan – Kabbage
Kabbage offers business loans in 50 states (and Washington, DC). Borrowers are required to be in business for at least one year, have an annual revenue of $50,000 or $4,200+ monthly revenue over last 3 months. Kabbage’s nontraditional approach puts less weight on your credit score than other lenders.
- Loan amounts range from $500 per day or $250,000
- Fixed APR ranges from 20% – 99%
- Loan terms range from 6 – 12 months
- Applicants with a credit score of at least 300 are eligible.
- Proof of income and identity must be provided
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 add 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.