Online Loans for Bad Credit

If you have bad credit, you're not alone. According to the Federal Reserve Board, nearly half of Americans have credit scores that fall below 680. If your score is below 680, most traditional banks won't approve you for a credit line, which means you have to look for other funding sources when the unexpected happens.

Many Americans looking for online loans for bad credit decide to apply for a cash advance. In every area of the U.S., there are payday loan lenders that can help you when cash flow problems arise, even if your credit score isn't up to par. At LendUp, we don't have a set credit score requirement. If you have bad credit, you could still be approved or an online loan. Before applying for loans for bad credit online, though, first learn the ins and outs of payday loans.

What Does Bad Credit Mean?

According to myFICO, a company that calculates credit scores, breaks down your score like this:

  • Payment history: 35 percent

  • Amount owed: 30 percent

  • Length of credit history: 15 percent

  • Credit mix: 10 percent

  • New credit: 10 percent

So, if you consistently miss credit card payments, your score will decline. If you've recently taken out a car loan and financed a furniture purchase, all that new credit will lower your score. Over time, if such actions continue, your credit score will continue to drop -- and you'll lose access to credit from traditional lenders.

Obviously, personal things in life can prevent you from upholding a good credit score. While a low credit score affects your access to money, it's not the end of the world. There are still lenders willing to work with people with low credit scores. And you can get that score up again.

At LendUp, our mission to to provide a better, safe payday loan options that you can apply online through your phone or computer.

How Can You Find the Right Loan With Bad Credit?

If you have bad credit, you are probably aware of the less than desirable options available to you. Many of them are brick and mortar payday stores that you need to drive on the other side of town, and many online options are not much better. It’s difficult to know what site to trust when you’re inputting your sensitive information online. And sometimes, you will suddenly get emails from other unfamiliar lenders that you did not contact. Before applying, make sure of the following:

The lender is trustworthy and licensed in your state. Check online reviews and with friends and family (if applicable). Also, check for licensing in your state. Some lenders try to skirt state and federal laws by operating in tribal territory or offshore. At LendUp, we only do business with licensed direct lenders.

The lender gets you the money quickly. Speedy delivery of funds ensures your needs are met. At LendUp, the lenders make decisions instantly, as the application is completed online and only takes five minutes. The money can be in your account the next business day if you submit it on a weekday before 5 p.m. PT.

The lender recognizes responsible behavior. Many payday loan companies repeatedly give you the same rates and loan amounts -- even if you have established a history of repaying on time with them. At LendUp, we want to change this.

The lender has clear terms and conditions. Some payday loan lenders get you with hidden fees, rollovers and unclear interest rates. At LendUp, we are clear with you from the start on how our business model works.

Types of bad credit loans

There are various types of bad credit loans available from many personal loan lenders, catering to different borrower needs and financial situations. These include secured loans, unsecured loans, payday loans, and installment loans.

Secured loans require collateral, such as a car, home, or savings account, and typically offer more attractive rates due to the reduced risk for the lender. Unsecured loans, on the other hand, do not require collateral and are more accessible for borrowers with poor credit.

Payday loans are short-term loans with high-interest rates and are typically repaid with the borrower’s wages. Installment loans are repaid in fixed, regular payments over a predetermined period, making them more manageable for borrowers.

Guaranteed Approval Bad Credit Loans

While the term “guaranteed approval” may be somewhat misleading, some lenders offer bad credit personal loans with high chances of approval, especially for smaller loan amounts. These loans typically come with higher interest rates due to the increased risk associated with lending to borrowers with poor credit.

It’s essential to keep in mind that no lender can truly guarantee approval for a bad credit loan. However, some online lenders specialize in working with borrowers with low credit scores and may offer a higher likelihood of approval for small loans with less stringent eligibility requirements.

What Are the Requirements for Applying for an Online Loan?

At LendUp, you must live in one of the states where payday loans are legal (see rates and terms here). You also must be 18, have a recurring source of income (proof required) and have an active checking account that accepts electronic transfers. During the application, you must provide an email, address and phone number.

For more information on payday loans, check our FAQ.

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.

Frequently Asked Questions

Bad credit loans often come with higher interest rates compared to standard loans. Rates can vary widely based on the lender and your specific financial situation.

Yes, some lenders may perform a hard credit check which can temporarily lower your credit score. However, many lenders only conduct a soft inquiry that doesn't affect your score.

Typically, a credit score below 600 is considered poor, affecting loan eligibility and terms.

Failing to repay can lead to additional fees, increased interest rates, and negative impacts on your credit score. In extreme cases, it could lead to legal action or debt collection efforts.

Some lenders offer loans without a hard credit check, but they may still verify your financial background in other ways.

Yes, these loans are subject to state and federal regulations, which can vary by location and protect consumers from predatory practices.

Get Your Loan with LendUp

LendUp is a fintech service that streamlines the process of connecting borrowers with direct lenders. Our automated platform enables you to easily apply for loans up to $5,000 through a simple online form, designed to match you with loan options that meet your specific needs.

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