Online Loans for Bad Credit

Did you know you can still get approved for an online loan with a bad credit score? It's true! There are various loan options for people with poor credit, so you may be able to get the money you need regardless of your credit history.

Best of all, many bad-credit loans come with fast online applications that look at factors beyond a credit check, ensuring you get the quick funding you need based on your income or employment status rather than a bad credit score.

Here's a closer look at how online loans for bad credit work, their benefits, and the types of loans you can get with less-than-perfect credit.

What is an online loan for bad credit?

A bad-credit online loan is a type of personal loan available to borrowers with poor credit scores. Unlike traditional loans that you might find at your bank or credit union, bad-credit loan approvals are based on factors other than your credit history.

If you have bad credit, the online lender will consider your income, employment status, and current debts to decide whether to approve you for a personal loan.

Is it easy to get online loans for bad credit?

Yes! Most borrowers find unsecured loans for bad credit easier to obtain from non-traditional lenders. Payday lenders, for example, offer quick applications you can complete online in just a few minutes.

After you apply for an online personal loan, you’ll typically receive a quick or instant online approval decision. This means you may be able to get approved and receive the funds in your bank account within 24 hours — and sometimes even the same day you apply!

online loans you can get approved for with poor credit


Types of online loans for people with bad credit

There are several types of loans for people with bad credit, including:

Payday loans

A payday loan is a small-dollar, short-term loan that can help you cover an unexpected expense or help cover necessities between paydays. Poor-credit borrowers repay this type of loan once they get their paycheck, usually within two to four weeks.

Installment loans

An installment loan is another option for borrowers with a poor credit history. This type of loan lets you borrow a higher amount than a payday loan, which can help with unexpected expenses like a medical bill or car repair. You then repay this personal loan over time in installments, which are fixed monthly payments.

Title loans

Unsecured loans like payday or installment loans only allow you to borrow so much money. A title loan, however, is a type of secured loan that uses your car as collateral, meaning that you can borrow a larger amount based on your vehicle's estimated value. If you own your car, you can exchange your title for a lump sum of cash and keep driving your vehicle while you repay the balance.

Lines of credit

A line of credit differs from other bad-credit loans. It works similarly to a credit card in that you're approved for a certain amount and can withdraw as much or as little money as you need up to your credit limit, although there are some key differences such as how you access funds. With this type of loan, you'll only pay interest on the amount you borrow, making it an excellent alternative to traditional loans.

Credit card cash advances

A cash advance is a small, short-term loan you can get from your credit card issuer without a credit check. Since you were already approved for a certain amount of credit when you received the credit card, you can typically receive funds from a cash advance the same day, within 24 hours, or in a few business days, depending on the lender. Unlike purchases using your credit card, however, cash advances will typically begin to accrue interest from the day of the advance and may involve other fees as well.

Where can I get an online loan for bad credit?

You can get an online loan for bad credit from a reputable lender like Advance America. We offer a wide range of bad-credit loans, including payday loans, installment loans, and lines of credit. We aim to help you quickly get the money you need to cover financial emergencies.

Since Advance America approves borrowers with all types of credit scores, we consider factors in addition to the information obtained from the major credit bureaus. Specifically, we look at things like your monthly or annual income, employment history, and debt-to-income ratio when making our approval decision. We can even pull a soft credit check to give you a pre-approval offer, so you know how much you can borrow without impacting your FICO credit score.

Benefits of personal loans for people with bad credit

Here are some advantages of getting a personal loan from online lenders specializing in less-than-perfect credit:

Easy online applications

Unlike most banks or credit unions, lenders like Advance America offer streamlined online applications. You can complete the application in minutes, whether at home or on the go. It will make the process faster if you have all the required information, including your government-issued identification, proof of income, and bank account information.

Instant loan approvals and quick funding

You'll often receive an instant approval decision when you submit an online application to a legitimate lender. Once approved, your funds will usually be deposited into your bank account within 24 hours. Depending on what time you apply, you may even receive same-day funding!

No minimum credit score requirement to qualify

Having a bad credit score doesn't have to prevent you from receiving loan offers. Many online lenders consider factors in addition to a credit check when making an approval decision. These factors include your annual or monthly income, debt-to-income ratio, and employment status. This may mean there's no minimum credit score requirement to get the loan funds you need.

Do online loans for bad credit affect your credit score?

Applying for an online loan for bad credit may hurt your credit score in the short term. For example, the lender may conduct a hard inquiry into your credit report, which could lower your score by a few points. On the other hand, your FICO score won’t be affected if they only pull a soft credit check.

Even though applying for any new loan can negatively affect your credit score, keeping up with your monthly loan payments can improve your credit over time if the lender reports to the major credit bureaus. This may enable you to qualify for loans with more favorable terms and competitive interest rates in the future.

How to get a bad credit loan online

If you're interested in applying for an online loan with bad credit, here's what you need to do:

1. Check your free credit report for errors

Go to to pull copies of your credit reports from the three major credit bureaus: Experian, Equifax, and TransUnion. If you notice any errors, dispute them right away.

2. Compare personal loan lenders for bad-credit borrowers

Research a wide range of direct lenders that offer online loans to people with bad credit. Then, compare all your options and choose the best online loan for your budget, lifestyle, and unique needs. For example, see whether the lender has excellent customer service, flexible repayment terms, or other financial products you may use in the future.

3. Gather all loan application documents

Before starting the loan application process, ensure you have your government-issued ID, such as a driver’s license or passport. You may also need proof of an active checking account, a paystub, or additional documentation showing your income and employment history.

4. Fill out and submit your online loan application

Each online application varies by lender. Many loan companies that work with borrowers with less-than-perfect credit scores have a seamless application process. Go to the lender's website or app and complete the online loan application in minutes. Remember to double-check your information for accuracy before submitting the application, as mistakes can slow down the approval process.

5. Wait for the loan approval decision

After submitting your loan application online, wait for the lender to complete the loan approval process. Loan approval times vary by lender, with some offering faster approval times than others. For bad-credit borrowers, instant approval odds are better if you have a positive payment history and a steady source of income. Borrowers with outstanding debt who don't meet the lender's minimum credit score and eligibility requirements may have to wait longer for an approval decision, but usually 24 hours at most.

6. Receive your loan funds

Loan funding methods vary by lender. Some lenders, including Advance America, offer same-day funding, which means the money is deposited into your bank account shortly after approval. If you prefer to pick up your loan funds in-store, you may receive the money via check or prepaid card.

How to compare online loans for bad-credit borrowers

To make an informed decision, consider the following factors when comparing online loans for people with bad credit:

  • Common types of bad-credit loans: Many bad-credit loan companies offer a range of loan options, each with its own loan terms, borrowing limits, and flexible payment options. With so many viable options, comparing the different types of emergency loans is essential. Popular loans for borrowers with bad credit and limited credit histories include payday loans, auto-secured loans, lines of credit, and personal installment loans.
  • Desired loan amount: Consider how much money you need when comparing bad-credit lenders and their loan options. For example, since payday loans are meant to be repaid in a single payment on your next payday, they typically have a maximum borrowing amount of a few hundred dollars. On the other hand, installment loans offer larger loan amounts, making them a good option when you need a home improvement loan or debt consolidation loan.
  • Flexible repayment terms: Some online loans for people with bad credit must be repaid in a lump sum, while others have repayment terms that can last a few months or years. Decide whether you want to repay a bad-credit online loan all at once or over time.
  • Competitive rates: A bad credit score generally means you'll only qualify for high-interest personal loans, but some bad-credit lenders offer more competitive rates than others. When deciding on your loan amount, consider the interest and fees you'll pay. Reputable lenders will always be transparent about their rates.

Which bad-credit online loan is right for me?

Online loans for bad-credit borrowers can give you quick access to cash to help cover unexpected bills or emergency expenses. But, with so many personal loan options, how do you choose?

Knowing how much you want to borrow is a good start. Are you trying to cover a few bills to avoid late fees and missed payment penalties? A payday loan might be the right option. Or are you facing unexpected medical expenses and need a more significant loan amount? With higher borrowing limits, personal installment loans may be the best choice.

You'll also want to budget for your loan repayment. Do you need a loan agreement that lets you pay back what you borrowed over several months? Or are you comfortable repaying one lump sum? Being able to keep up with your repayment plan is critical.

Shopping around for a bad-credit loan is key. Remember to compare different loan amount options, personal loan rates, and flexible loan terms to find the right bad-credit personal loan.

Get an instant decision when you apply online at Advance America

You may still qualify for an Advance America loan even with a poor credit score. We offer a variety of loan types online, including payday loans, installment loans, and lines of credit. Simply fill out our easy application online or in-store and receive your loan offers. Upon approval, you may receive your loan proceeds in as little as 24 hours.

Visit Advance America today to learn more about the personal loan options for bad-credit borrowers.

The Advance America advantage

Since 1997, Advance America has helped millions of hardworking people with a variety of financial solutions including Payday Loans, Online Loans, Installment Loans, Title Loans and Personal Lines of Credit.
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