The Best Fast Loans for Bad Credit

10 Fast Payday Loans

Many lenders offer a variety of business and consumer loans even if you have a bad credit rating.

Their offers will vary depending on their assessment of your capacity to pay monthly payments on time. Oftentimes, this factor affects the loan approval even more than credit checks.

If you are looking into getting a loan even with poor credit history, here are 10 examples of bad credit loans you can consider:

1. Personal Loans

Bad credit personal loans are unsecured installment loans. You get a one-time payment of cash fast!

Afterward, you will need to pay back the loan plus interest and, often, an origination fee in regular payments over its loan term.

You can even apply for an online personal loan with bad credit scores with a co-borrower. A co-borrower can be a spouse, parent, or sibling.

This way, the incomes and credit ratings of both parties will be added for extra reassurance of repayment on the side of the lender.

A personal loan is straightforward and has no fuss. No wonder they are one of the fastest-growing consumer lending products in the States.

Generally, a personal loan still has higher interest rates than your traditional bank loans. Many reputable lenders, however, offer friendly and competitive interest rates that will be hard to resist.

Plus, you don’t have to guess how much a loan payment should be. Everything is calculated upon agreement so your loan can fit specifically to your budget.

2. Payday Loans

These are also unsecured loans that do not require collateral. Unlike personal loans, a payday loan offers minimum loan amounts for a lesser repayment period. They are capped at $500.

Borrowers will need to repay the loan within two weeks or by the next payday. It will not require a monthly payment.

Payday lenders will not check your credit score either. You can even get your proceeds within hours on a business day.

But because of their convenience, these loans happen to have exorbitant rates.

High-interest rates and short repayment schedules are recipes for disaster! Many people find themselves stuck in a vicious cycle of debt when mismanaging payday loans.

3. Car Title Loans

These are one of the best bad credit loans you can get. If you own a vehicle and have a clear title to it, you can get cash on the same business day and still get to drive your car!

The online loan application process is quick and easy as long as you have requirements ready.

The loan proceeds you can get from this secured loan will depend on the equity left on your car.

Make sure to pay the loan plus interest and origination fee within the loan term so online lenders will not repossess your vehicle.

4. Pawn Shop Loans

These are also secured loans where lenders actually need to keep your valuable item on collateral, and not just its title.

The lender will give you cash based on the assessment of the value of your item. These can be jewelry, electronics, antiques, or other valuable possessions you may have.

You can get your item back once you make repayments in full. But if you default, they get to keep it.

5. Payday Alternative Loans (PALs)

A payday alternative loan is a short-term loan usually offered by federal credit unions. These have lower interest rates than regular payday loans because they follow strict rules implemented by the National Credit Union Administration (NCUA).

The loan amount for this bad credit loan must be between $200 to $1000 only. APR is also capped at 28% with application fees less than $20.

A PAL II is another bad credit loan alternative that provides the same protection for lenders and borrowers. PAL II, however, offers higher loan amounts of up to $2000, with repayment periods up to 12 months.

The catch? To avail of these loans, you have to become a member of these federal credit unions.

6. Cash Advances

If you own a credit card, you can get a cash advance out of your card’s available balance up to its present limit. This amount will be added to your outstanding credit card balance.

Interest rates on a cash advance will be higher than your regular credit card charges.

As much as possible, only use a cash advance during financial emergencies. Being unable to pay for your credit card due will hurt your credit history.

If you happen to experience credit difficulties, we suggest seeking credit counseling.

7. Peer-to-Peer Loans

This is also known as marketplace lending. Peer-to-peer lending can be offered to individual consumers, businesses, and even to consolidate debt on student loans.

Peer-to-peer lending allows you to acquire a loan from other individuals. This cuts traditional financial institutions like the bank or credit union as the middleman.

These loan options typically offer lower rates as compared to a payday loan. Lenders of these loans also do not mind whether you have good credit or poor credit.

8. Invoice Financing

These are common business loans where businesses collateralize their unpaid invoices until they are paid by customers.

These loan options help ease up businesses with cash flow problems. Because you get instant cash from your invoice, you get to pay bills even when your customers don’t pay you on time.

9. Equipment Financing

When businesses with low credit ratings need to upgrade equipment but do not have enough cash, they can opt for equipment financing.

The idea is that the equipment you purchased is its collateral. The loan amount is equivalent to the value of the equipment. These can come in the form of kitchen appliances, tractors, computers, and even trucks.

You will then need to make regular payments repaying the capital, interest, and origination fee, if any. Once you fully pay the equipment loan, you get to fully own it free of the lien.

10. Loans from Family or Friends

Understandably, borrowing money from family or friends can risk good relationships.

It may be advantageous that they don’t need to know your credit score, but the trust could be strained in the process.

When making the loan agreement, clearly state the details, including the interest, fees, and loan terms.

What Is an Emergency Loan?

Ever had an unexpected expense and didn’t have enough cash to pay for them? Emergency loans are to your rescue!

These loans are usually small in amount, short-term, and can be acquired fast. The downside is often they charge much higher interest.

Pros and Cons of Fast Loans

Fast loans are great because they are easy to access, consider a bad credit score, have fewer requirements, and have flexible loan terms.

However, they can also be expensive.

Plus, lending companies target low-income and minority communities. These people tend to get trapped in a debt cycle simply because repaying the loan in full in a short period with high rates is just unthinkable for their capacity.

It does not help improve their credit scores assessed by major credit bureaus. Worse, lenders have access to your bank account. They can go after your assets if you default.

So make sure you can manage your finances when applying for these fast loans.

Frequently Asked Questions

Got more questions in mind? We got you covered here!

What Is the Easiest Loan to Get Approved for With a Bad Credit Score?

Short-term loans requiring no collateral like payday loans, personal loans, and pawnshop loans are the easiest and fastest to get. These loans were specifically designed to meet immediate cash needs.

Do Banks Give Emergency Loans?

Banks have strict requirements and take their time conducting credit investigations before lending anybody money. It can typically take them 3 to 7 days to release any proceeds. So they are not the best choice in an emergency.

However, bank agreements can be made between the bank and the client if the client has a positive financial history.

How Fast Can You Get an Emergency Loan?

Some lenders can deposit your loan proceeds directly to your checking account within a few hours from your application. Others may take a business day or two.

What Is the Minimum Credit Score Required to Get a Personal Loan?

Generally, you should at least have a credit score of 610 to 640 to qualify for a personal loan.

But if you want a reasonable enough interest rate on your loan, work hard to get at least a score of 690.

Can I Get a Loan With a 550 Credit Score?

Having a score of 550 after a credit check will not get you a loan from the bank, but it may still get you some money from consumer lenders.

However, take note with a poor rating, you pose a high risk to your lenders. Thus, your loan will incur a much HIGHER interest rate.

Conclusion

It’s not the end of the world when you have low credit scores. There are still many ways to get fast cash for your financial needs.

If you badly need the money for debt consolidation, or to catch up on the bills, loans for bad credit are in close reach!

But remember, these loans may come out expensive. Make sure to check your budget to prevent sinking deep into debt.