Online Loans for Bad Credit: Types, Benefits, and Where to Apply
Key takeaways
- Poor credit doesn't automatically disqualify you from getting an online loan. Lenders like Advance America consider factors beyond your credit score, including your income, employment history, and ability to repay.
- Several loan types, such as cash advances, installment loans, and lines of credit, might be available to borrowers with bad credit.
- Seeing if you're eligible for an Advance America loan won't hurt your credit score, allowing you to explore your options before you commit.
- Online loan applications are fast and can be completed in minutes.
- The right online loan depends on how much you need and how you want to repay it.
A bad credit score doesn't tell the whole story. When unexpected expenses come up, there are online loan options that look beyond your credit history, giving you options to get the money you need.
Here's a closer look at how online loans for bad credit work, the benefits, and types of loans you can get with less-than-perfect credit.
What are online loans for bad credit and how do they work?
A bad credit online loan is a personal loan for borrowers with poor credit scores (FICO score below 580 or VantageScore below 601). 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, such as your income, current debts, and employment status. This can increase the likelihood of approval for an online loan.
Bad credit online loans can help when financial emergencies arise. You can use them to cover expenses such as car repairs, medical bills, urgent home repairs, utility bills, or essential everyday costs. These loans can also be used for other expenses such as debt consolidation, moving costs, legal fees, funeral expenses, educational costs, or small-business expenses.
Is it easy to get a loan online for bad credit?
Most borrowers find unsecured loans for bad credit easier to obtain from non-traditional lenders. For example, cash advance lenders may offer fast online applications and consider factors beyond your credit score when reviewing your eligibility.
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!*
Can you get an online loan with no credit check?
If you’re searching for no credit check loans or cash advances because you’re worried your credit history will prevent you from qualifying, you may still have options. However, “no credit check” doesn't always mean your credit information won't be reviewed.
Advance America reviews your credit history as part of the online loan application process, but the review won’t impact your FICO or Vantage scores. We also consider other factors when determining eligibility, including your income and ability to repay, so good credit isn't always required to qualify.
And while searches like “online loans no credit check instant deposit” are common when money is needed quickly, no lender can guarantee approval or an instant deposit before reviewing your application. Advance America offers quick decisions and fast funding, with approved online loans potentially funded as soon as the same business day.*
5 types of bad credit loans
There are several types of online loans that may be available to people with bad credit.
Cash advances
An online cash advance is a small-dollar, short-term loan that can help you cover an unexpected expense or help pay for necessities between paydays.
Once approved for a cash advance, you'll repay the amount in full, plus applicable interest or fees, on your next payday, which is usually within two to four weeks. Advance America offers quick and convenient cash advances to borrowers with all types of credit backgrounds, depending on state availability and eligibility.
Installment loans
An installment loan is another option for borrowers with poor credit. This type of loan lets you borrow more than a cash advance, helping cover larger expenses such as medical bills or car repairs.
With an installment loan, you repay the borrowed amount over time in fixed monthly installments. An installment loan can be a good solution when you have less-than-perfect credit and need extra money to tackle big expenses.
Title loans
A title loan is a secured loan that uses your car as collateral. The amount you can borrow is based on a percentage of your vehicle's estimated value. If you own your car, you can exchange your title for a lump-sum payment and continue driving your vehicle while you repay the loan.
Personal line of credit
A line of credit 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.
There are some key differences in how you access funds for a personal line of credit. With this type of loan, you'll only pay interest on the amount you borrow, making it an excellent alternative to traditional loans. And as you repay what you borrowed, those funds become available again without the need for additional loan applications.
If you have upcoming expenses to plan for but your credit is bad, a personal line of credit may be a helpful solution.
Credit card cash advances
A credit card cash advance is a small loan you can get from your credit card issuer. Since you were already approved for a set credit limit when you received the credit card, there's no additional credit check.
Depending on your credit card issuer, you might be able to withdraw the cash advance from an ATM or request it through the company's website or app. A credit card cash advance typically accrues interest from the day it's taken out (unlike credit card purchases) and may also incur other fees.
Not certain about which loan best fits your situation? Here's a quick side-by-side comparison of the most common bad-credit loan types.
| Cash Advance | Installment Loan | Title Loan | Line of Credit | Credit Card Cash Advance | |
|---|---|---|---|---|---|
| Minimum credit score | May not require a minimum | May not require a minimum | May not require a minimum | May not require a minimum | No additional credit check |
| Loan amount | Small-dollar amounts (varies by state) | Varies by state | Based primarily on your vehicle's value and state laws | Up to your approved limit | Up to your card's cash advance limit |
| Funding speed | Potentially the same business day* | Potentially the same business day* | After approval and vehicle appraisal | Potentially the same business day* | May be available immediately, depending on card issuer and withdrawal method |
| Repayment | Typically due in full on your next pay date | Scheduled payments over time | Payment schedule and terms vary by state | Borrow, repay, and access available funds again without reapplying | Repaid as part of your credit card balance |
| Good for | Smaller, short-term expenses | Larger expenses that need more time to repay | Larger expenses if you have an eligible vehicle to use as collateral | Ongoing or repeat borrowing needs | Quick access to cash using an existing credit card |
Where can you get an online loan with 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 cash advances, installment loans, and lines of credit. We aim to quickly help you get the money you need to cover financial emergencies.
We determine your ability to repay by reviewing your income, employment history, debt-to-income ratio, and other factors besides your credit score, which allows us to approve borrowers with all types of credit scores. We can even run a soft credit inquiry to provide a pre-approval offer so you know how much you can borrow before applying, all without affecting your FICO score.
Benefits of an online loan if you have bad credit
Here are some advantages of getting a personal loan from an online lender like Advance America:
Easy online applications
Unlike most banks or credit unions, lenders like Advance America offer streamlined online applications. You can complete an application in minutes, whether at home or on the go. The process is fastest if you've gathered all the required information, including your government-issued ID, proof of income, and bank account details.
Fast loan approvals and funding
You'll often receive an instant approval decision when you submit an online application. If approved, your funds are usually deposited into your bank account within 24 hours. Depending on when you apply, you may even receive same-day funding.*
No minimum credit score requirement
A bad credit score doesn't have to prevent you from receiving loan offers. Many online lenders consider factors beyond 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.
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 online loan companies offer a range of loan options, each with its own terms, borrowing limits, and flexible payment options. With so many options, comparing different types of emergency loans is essential.
Popular loans for borrowers with bad or limited credit histories include cash advances, lines of credit, and installment loans, depending on eligibility and availability in your state.
Desired loan amount
Consider how much money you need when comparing bad-credit lenders and their loan options. For example, since cash advances 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. Installment loans offer larger loan amounts, making them a good option for home improvement or debt consolidation.
Flexible repayment terms
Some online loans for bad credit must be repaid in a lump sum, while others have repayment terms of a few months or years. Decide whether you want to repay your loan all at once or over time.
Competitive rates
A low credit score generally means you'll only qualify for high-interest personal loans, but some bad-credit lenders offer more competitive rates than others. Reputable lenders will always be transparent about their rates, so be sure to ask. Remember to account for the interest and fees you'll pay when deciding on your loan amount.
How to get a bad credit online loan
If you have bad credit but are interested in applying for an online loan, here's what you need to do:
1. Get your free credit report and check for errors
Request a free copy of your credit report 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 direct lenders before starting any applications. Check Google and Trustpilot reviews to see what real customers say about their experiences with a lender. Compare your options and choose the best online loan for your budget and financial needs.
3. Gather all loan application documents
Before starting the loan application process, be sure 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 pay stub, or other documentation showing your income and employment history.
4. Fill out and submit your online loan application
Each online application varies by lender. Many lenders serving borrowers with less-than-perfect credit scores have simple application processes.
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 to avoid delays in the approval process.
5. Wait for the loan approval decision
After submitting your loan application online, wait for the lender to complete the 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, typically up to 24 hours.
6. Receive your loan funds
Loan funding methods vary by lender. Some lenders, including Advance America, offer same-day funding, and funds may be deposited into your bank account shortly after approval.* If you prefer to pick up your loan funds in-store, you may receive them by check or prepaid card.
Which bad-credit online loan is right for me?
Online loans for bad-credit borrowers can give you quick access to money to help cover unexpected bills or emergency expenses. But with so many personal loan options, how do you choose?
Know how much you need to borrow
Are you trying to cover a few bills to avoid late fees and missed payment penalties? A cash advance may be the right option. Or are you facing unexpected medical expenses and need a more significant loan amount? An installment loan may be worth considering.
Budget for your loan repayment
Do you need a loan agreement that allows you to repay over several months? Or are you comfortable repaying in a single lump sum? Staying on track with your repayment plan is critical.
Shop around for a bad-credit personal loan
Remember to compare loan amounts, interest rates, and terms to find the right loan.
Get a quick 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. Simply complete our easy online or in-store application to receive your loan offers. If approved, you could receive your funds as soon as the same business day.*
Visit Advance America today to start your loan application.
FAQs about online loans for bad credit scores
Do online loans for bad credit affect your credit score?
Applying for an online loan with bad credit may temporarily hurt your credit score. If a lender requests a hard inquiry into your credit report, it could lower your score by a few points. But your FICO score won't be affected by a soft credit check.
Even though applying for any new loan can temporarily lower your credit score, making on-time loan payments can improve your credit over time if the lender reports to the major credit bureaus. This may enable you to secure more favorable loan terms and competitive interest rates in the future.
Can I get an online loan with no credit check?
Advance America needs information about your credit to process an online loan application. As part of the application process, we'll review your credit history, but this review won't impact your FICO or Vantage scores. We also consider factors beyond your credit score when determining eligibility, so you may still qualify even if you have less-than-perfect credit.
Are online bad credit loans safe?
When you choose a reputable lender, like Advance America, a bad credit loan can be as safe as a standard online personal loan. Advance America is a top direct lender for online and in-person loans — and has been since 1997.
How fast can I receive my money?
Just how fast you’ll receive your funding upon approval depends on the type of loan you apply for and the lender you choose. At Advance America, we offer a fast and convenient application process and quick approvals. Plus, if you apply before 10:30 a.m., you could even receive your funds the same day!*
*Online approvals before 10:30 a.m. ET (Monday-Friday) are typically funded to your bank account by 5:00 p.m. ET the same day. Approvals after 10:30 a.m. ET are typically funded in the morning on the next business day.
Notice: Information provided in this article is for informational purposes only. Consult your attorney or financial advisor about your financial circumstances.
About the author
Bree Ewers is a senior editor, copywriter, and content writer whose work has been featured across the media, small business, and financial industries. She operates Nomad Freelance Content from her home office in Portland, Oregon.