Bad Credit Loans

Online Loans For Bad Credit

According to research published in 2020 by Experian, the average American owes nearly $100,000 worth of debt and roughly half of the population has a credit score below 680. With finances like these, a large section of the American middle class will struggle to access financial support when they need it. Fortunately, there are loan options for people with bad or even no credit.

Online loans are one of the easiest ways to access financing without going through a bank or credit union. These loans can provide up to $1500 of immediate cash relief without requiring a hard credit check, increasing your odds of approval. As long as you can prove a steady source of income, you could qualify today.

Online loans have helped increase financial inclusion for many Americans struggling with bad credit. If you need a quick cash infusion but won't qualify for a personal loan from a traditional lending institution, you should try payday loans for bad credit.

What is Bad Credit?

Bad credit is a term used to describe a person's negative history with borrowing and repaying money. A bad credit score means you're seen as a high-risk borrower, which can make it difficult to access loans with favorable terms.

There are a number of factors that can contribute to a bad credit score, including:

  • Late or missed payments
  • Defaulting on a loan
  • Bankruptcy
  • Foreclosure
  • Too much debt
A bad credit score can stay on your credit report for up to seven years, making it difficult to qualify for new loans or lines of credit. The only way to increase your score is to pay off your debts and work to build credit using strategic financing.

How Do Credit Bureaus Calculate Credit Scores?

There are actually several credit bureaus that calculate scores but the largest and most respected company—FICO—bases your credit score on the following information:

  • Past payments – Credit bureaus generally award higher scores to borrowers with a long history of making payments on time. According to FICO, this alone accounts for 30% of your score.
  • Credit Utilization – Ideally, you should never use more than 30% of your total credit line. Using more than this signals to credit bureaus that you're bad at controlling your spending / can't make payments relative to your outgoing accounts.
  • New credit – Simply opening a new credit card or requesting a loan can drop your score. Anytime a lender pulls a hard credit check, it signals that you need more support than you already have.
These factors can be hard to control, especially if you're living paycheck to paycheck. You're not alone though and have lending options that won't affect your credit score.

How to Qualify for a Loan with Bad Credit?

If you're struggling to find financing with bad credit, you may be tempted to pawn your possessions or turn to a shady cash advance service. We don't recommend these services, as they can often be predatory and designed to scam you out of your property. Instead, a payday advance could help you make ends meet if you're faced with an unexpected expense.

With a payday advance or a payday loan, you can take out a short-term loan against your next paycheck. These loans are typically for small amounts of $500 or less and can help you cover an emergency bill until your next payday. In order to qualify for a payday loan, you'll need to provide proof of income and have a checking account in good standing.

Online payday loans are one of the best loan options for bad credit because in most cases they don't require a hard credit check. This means that there is a high chance that your application won't be sent to a credit bureau and you won't be dinged for seeking more financial support. It all depends on a particular direct lender though.

How to Apply for a Bad Credit Payday Loan?

Applying for a payday advance with bad credit is easy and can be done entirely online. You can even use your smartphone to fill out the application. The entire process usually takes less than five minutes and you'll know if you're approved instantly. Once you're approved, the funds will be deposited directly into your checking account within 24 to 48 hours during business days. In most cases, you can access the funds before the end of the day.

To begin your application, prepare the following information and documents:

  • Your first and last name
  • Your address
  • A valid email and telephone number
  • Proof of income/employment in the form of your last 2 pay stubs or a bank statement
  • Your bank account details
Once submitted, we'll get to work processing your loan one of the lenders will get in touch with you shortly after that. You'll be able to read the terms and conditions of the loan and, if you agree, the lender will send the funds. To learn more about the terms and conditions of your loan, you can also contact lender's customer service 24/7 with any questions.

Consider The Risks When Taking Bad Credit Loans

No one should have to go through financial hardship alone and there are plenty of loan options available for people with bad credit. Payday advances are one of the best ways to access quick cash without worrying about a hard credit check.

As long as you have a steady source of income, you could qualify for a loan of up to $255. If you're struggling to make ends meet or cover an unexpected expense, apply for a payday advance today and we'll help you!

Please be aware that loans for bad credit are considered to be high risk and expensive loans and should only be used to overcome short-term difficulties. At LendUP.com we support responsible lending. If you cannot afford the loan and will not be able to repay on time, please stay away from such loans.