Direct Lenders for Bad Credit

If you need fast cash to cover an expense but don’t have a great credit score, consider going through a direct lender. These lenders often work with potential borrowers who have fair or bad credit. 

Plus, they can provide you with the funds you need directly, eliminating the need to go through a third party. Better yet, you can get funds as quickly as the same day you apply! 

Let’s dive deeper into what direct lenders for bad credit are, how they work, and what types of loans they offer. 

What are direct lenders for bad credit?

If you need a loan but don’t want to go through a lengthy loan application and review process, consider going through a direct lender like Advance America. Your credit typically doesn’t matter when you go through a direct lender because they consider other factors during the review and approval process. 

Direct lenders for bad credit can give you quick access to the funds you need without going through a middleman. 

How loans from direct lenders work 

Direct loan lenders have a straightforward application and funding process. You simply apply and the lender reviews your application and gives you an approval decision. The process is similar to borrowing money from a bank or credit union. 

Unlike traditional lenders, direct lenders are private entities that fund loans with their own money. When you apply with a traditional lender, they use intermediaries like investment banks and brokers to finance their loans. Additionally, direct lenders aren’t as likely to check your credit. Instead, they consider factors like your income and employment status to determine your ability to repay.

Because everything is done in-house and you aren’t receiving third-party funding, the direct lending process is quick. Everything from filling out and submitting your application to getting approved and funded for the loan is much faster than applying for a traditional loan. 

Types of loans from direct lenders for bad credit 

In general, you have four options when it comes to loans for bad credit. Direct lenders typically offer the following: 

1. Payday Loans 

Payday Loans are small-dollar, short-term loans you repay in full when you receive your next paycheck, usually within two to four weeks. Unlike other personal loans, which have longer repayment terms, Payday Loans are only designed to hold you over until you get paid. 

2. Installment Loans 

Installment Loans give you a lump sum of money upfront. You’ll pay them back over time (anywhere from a few months to several years) via fixed monthly payments or installments. You may want to consider Installment Loans if you need a larger amount of cash all at once. 

3. Title loans 

Car title loans are secured loans that use your car as collateral. Upon approval, you’ll give the lender your title in exchange for a lump sum of cash based on the value of your car. You’ll be able to drive your vehicle as you pay back your loan. If you own your car, a title loan might be a good option. 

4. Lines of Credit 

Lines of Credit are flexible loans. You can withdraw funds as much or as little as you’d like up to your set credit limit, and you’ll only pay interest on the amount you borrow. If you’re unsure of how much cash you need, a Line of Credit may be a smart choice. 

Key benefits 

In addition to there being several different types of bad-credit direct loans to choose from, there are also several benefits: 

Easy to apply 

Compared to the application process at a bank or credit union, applying for a loan from a direct lender is a breeze, even if you have bad credit. The application process takes just minutes, especially if you already have the necessary documents and information.

For most applications, you will need: 

  • Government-issued identification, such as a driver’s license or passport. 
  • Proof of income, such as paycheck stubs or other documents. 
  • Checking account and routing numbers. 
  • Social Security number. 

Quick approval and funding 

In addition to a fast application process, direct loans also offer an expedited approval process. Everything happens in-house, which means your application doesn’t need to get reviewed by an outside party. 

In some cases, you’ll even receive an instant approval decision. Funding times vary by lender but are generally quick. For example, at Advance America, if you apply and get approved before 10:30 AM EST, you’ll receive the funds the same day. 

Good credit not needed 

As the name implies, you don’t need good credit to qualify for a bad-credit loan from a direct lender. Unlike banks and credit unions, which use your credit score and credit report to determine your eligibility, direct lenders use other parameters to evaluate your financial situation. 

Advance America, for instance, looks at your employment and job history, current income, and whether you already have an Advance America loan. While having a good credit score is important, having bad or no credit doesn’t disqualify you from qualifying for a loan. 

You can apply online 

Part of the reason direct online lender applications are so fast is that you can apply from the comfort of your home. Some online lenders also have physical locations. So, if you prefer to deal with someone face to face, you can go to your nearest Advance America location and apply in person. Either way, you’ll have a fast application, approval, and funding process. 

How to apply 

When getting a personal loan from a direct online lender, follow these steps: 

1. Compare direct lenders 

Not all direct lenders for bad credit are created equal. Shop around and find a few options that meet your needs. Then, compare their interest rates, loan terms, and fees. 

Comparing rates, fees, and repayment terms is a good start, but you should also consider real customer reviews to ensure you’re choosing a reputable lender. 

2. Choose a loan 

Once you’ve done your research, figure out which personal loan for bad credit is the best choice for your unique budget and needs. For instance, if you only need a few hundred dollars to tide you over until your next payday, a Payday Loan may be right for you. If you prefer to make monthly payments, you might consider an Installment Loan for bad credit. 

3. Fill out and submit an application 

Next, visit the lender’s website and fill out an application. Be prepared to share basic personal details like your name and birthday as well as financial information like your monthly income. 

4. Wait for approval 

Many direct lenders for bad credit offer fast approvals. Depending on the lender, you might get approved the same day you apply, within 24 hours, or in a few business days. 

5. Receive the funds 

After you’re approved, the lender will likely distribute your loan funds via direct deposit. In some cases where you’ve applied in-store, you might receive your money via check or cash. 

Which is right for me? 

Since there are so many direct lenders for bad credit, you may be wondering which one is right for you. As with any type of financing, the right lender depends on your budget, how much money you want to borrow, and when you need the funds. 

Advance America offers personal loans for bad credit 

Advance America is a direct lender offering loans to borrowers with all types of credit. Our personal loans include Payday Loans, Installment Loans, and Lines of Credit. You can fill out an application online or in-store in just a few minutes. Depending on what time you’re approved, you may receive the funds the same day you apply or on the morning of the next business day. Advance America today to learn more about our money solutions or start your online application now.

About the Author

Jalin Coblentz has contributed to Advance America since 2023. His experiences as a parent, full-time traveler, and skilled tradesman give him fresh insight into every personal finance topic he explores.

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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