Best Bad Credit Loans: The Top Personal Loan Companies that Accept Poor Credit | Paid Content | Cleveland

If you’ve got a bad credit score and need money, getting a personal loan can seem daunting. This is where the best bad credit loan companies come in.

These personal loan companies specialize in loans for people who have either little or no credit history, or who have low credit scores. The loans have higher interest rates, but if you choose the right one and manage the loan responsibly, they can be super useful.

We look at the best personal loans for bad credit on the market today, and explain the ins and outs of each one and who they might suit best.

Getting a loan is possible and we’re here to help, read on…

6 Best Bad Credit Loan Companies

First Look:

1. Best overall – Bad Credit Loans
2. No minimum credit score – CashAdvance
3. Great for all situations – LoanPioneer
4. Fastest approvals – LeapCredit
5. Best personal loan company for large loans – Upstart
6. Low interest rates – Avant

1. Bad Credit Loans – Best Personal Loans for Bad Credit Overall

Pros

• Easy to use
• Free service
• Lots of lenders to choose from

Cons

• Some lenders only offer small amounts

Company Reputation

Bad Credit Loans do exactly what their name suggests: They provide personal loans to those with poor credit.

And while there’s no information on the website regarding how old the company is, this isn’t a scam company. Indeed, Bad Credit Loans have a “disclosure” page on their site that sets terms and conditions, as well as any other information you need to be aware of, including whether or not they’re compensated each time they share your info with lenders.

The company also enjoys good ratings on consumer review sites.

Things To Be Aware Of

Because the company is a loan marketplace that connects you with lenders, be aware that some of them will only offer specific types of loans (more on this in our FAQ below).

Moreover, while you can request as much as $10,000, it’s not guaranteed that any lender will offer you your desired amount.

Loan Amounts/Fees

You can apply for as little as $500 or as much as $10,000 using this company. Loan terms are fairly short, however, and don’t extend beyond 3 years.

Bad Credit Loans themselves won’t charge you fees for using their free services. If there are any fees involved, these will be decided by each individual lender.

How They Work

Bad Credit Loans is a loan marketplace that connects you with lenders. To begin, you need to fill out a basic form that asks for information such as the amount of money you need, and the reason you want a loan.

Then, the website will crunch your data in their algorithms and suitable lenders will send you offers. It’s then up to you to check each offer carefully before making your decision.

2. Cash Advance – Best for No Minimum Credit Score

Pros

• Zero minimum credit score necessary
• Very convenient
• Totally free

Cons

• Applicants need to be employed
• High interest rates

Company Reputation

Cash Advance was founded in 1997 and has a wealth of satisfied customers, which suggests that it’s a loan company you can trust. It’s a member of the Online Lenders Alliance, meaning it has to adhere to a code of conduct and best practices for online consumer lending. We have no worries on this front.

We also took a look at the Better Business Bureau (BBB), and it turns out that the company has a D-rating. However, upon closer inspection, it appears that this rating is based on how responsive the company is to customer complaints, and as there are no complaints at all on the BBB site, it’s impossible to use this rating as a measure of Cash Advance’s reputation.

Things To Be Aware Of

Cash Advance themselves won’t pull your credit each time you submit a loan request. This is because they aren’t the ones financing loans directly.

However, it’s important to be aware that the third party lenders who will be assessing your information might carry out a credit report. Moreover, this might be soft or it might be hard and it could hurt your credit score.

If you’re concerned about this, it’s a smart idea to talk to the third party lender directly and ask them what type of credit check they’ll be performing.

Loan Amount/Fees

At Cash Advance, you can apply for a loan as small as $100 or as big as $1,000. This makes it ideal for those who need a bit of cash quickly (and who can repay it quickly), but who aren’t looking for large sums of money for huge projects, such as a home renovation.

No loan fees are set by Cash Advance and there is no origination fee. Instead, they are set by each lender in their network. Therefore, take the time to understand each offer before accepting anything.

How They Work

As an online loan marketplace, Cash Advance doesn’t finance loans themselves but instead connects you with their network of lenders.

The concept is really simple and it’s largely hassle-free. To find out if you’re eligible for a loan, you just need to submit your information into an online request form. Then, click “get started.”

The software will then pass your information around to its network of lenders. Each one will assess your credit and whether or not you’re worthy before making you an offer. If they decide to make you an offer, they will deal with you directly.

3. LoanPioneer – Best Personal Loan Company for All Situations

Pros

• Accepts borrowers with low credit
• Fairly quick approvals
• Apply for as much as $5,000

Cons

• Some lenders demand high APRs

Company Reputation

LoanPioneer is a personal loan lender that has been around for a few years now, but there weren’t any reviews on consumer review sites at the time of writing. We also weren’t able to verify their lender relationships because they aren’t disclosed within their network.

However, LoanPioneer is based in Texas, it has a mailing address and offers customer support. They also give information out on their website that helps people avoid scams, claiming they’ll never call their customers, and that they don’t ask for a fee or a deposit.

Things To Be Aware Of

LoanPioneer offers loans for various reasons. These include debt consolidation, major purchases, home improvements, emergencies, medical bills, other types of bills – and even vacations.

As such, it’s a really flexible loan marketplace that’s used by thousands of people all over the US. The total amount you can apply for is $5,000.

Loan Amount/Fees

You can borrow as much as $5,000 from LoanPioneer.

LoanPioneer is a marketplace that connects you to a network of lenders. Therefore, they won’t charge you any fees themselves. Their service is free to use and no deposit is required.

How much APR their lenders offer varies from lender to lender. Some offer APRs as low as 5.99 percent, while others are known to offer APRs as high as 35.99 percent.

Other fees, such as administrative transactions, applications, a payment penalty and an origination fee will again depend entirely on the lender and not LoanPioneer.

How They Work

Because LoanPioneer is a loan marketplace, there’s no need to deal with them directly. Instead, you’ll be dealing with local lenders who themselves will perform credit checks. The only requirements at first are that you be at least 18 years old, that you’re a US citizen, and that you have a valid social security number and are employed in some form.

Then, to get started you just need to click the “get started” button on LoanPioneer’s home page before entering your details. These include the size of the loan you need, the reason for your loan and your ZIP code. From there, you’ll be asked for a few more details, but the whole process doesn’t take long at all.

By the end, your details will be passed over to lenders who will then make their decision. Usually, decisions are made within 24 hours and you can request as much as $5,000.

4. LeapCredit – Fastest Approval for Personal Loans for Bad Credit

Pros

• Quotes given within minutes
• Application process super fast
• Great customer support
• No minimum credit score

Cons

Company Reputation

It’s a bit hard to gauge the reputation of LeapCredit because they’re still a fairly new loan platform. They’ve only been around for a handful of years, but it seems that they’ve already helped a huge number of people with bad credit to secure loans.

However, there are reviews on consumer review sites such as TrustPilot and these seem to be on the whole largely positive. Customers praise LeapCredit’s customer service team, their loan options, as well as the overall help they give them when they really need it.

Things To Be Aware Of

Lenders will perform a soft credit check before deciding whether or not you’re eligible. If you’re worried about what future harm a soft credit check might have on your score, you might want to talk things over with the lender beforehand.

Also, LeapCredit isn’t available nationwide. In fact, it’s only available in eight states:

• Alabama
• Idaho
• Mississippi
• Missouri
• South Carolina
• Texas
• Utah
• Wisconsin

Loan Amount/Fees

The most you can apply for at LeapCredit is $3,500.

LeapCredit is a P2P lending platform, and as such, they don’t set the loan fees. Instead, loan fees vary according to state, but it’s worth noting that some states have very high fees. Fees range from 293% to as much as 695%. To find out exactly what the fees might be in your state, you can just enter your zip code on the website.

There are also late fee costs involved, too, and these can be up to 5 percent. It’s unclear whether there’s an origination fee involved.

How They Work

Like a lot of loan marketplaces, the application process at LeapCredit is hassle-free because you’re not dealing with them directly. Instead, they pass on your details to lenders who check things over before deciding whether or not you’re eligible.

To get started, you just need to pop over to the LeapCredit homepage and enter your details. This shouldn’t take long at all, and in fact, it’s typical for applicants to receive their quote in a matter of minutes.

However, it won’t be until the following business day that a lender has performed a soft credit check and gone over your details. Then, they’ll make their decision. They’ll inform you of this decision as soon as possible, and if you accept their terms you should receive your funding the next day.

5. Upstart – Best Personal Loan Company for Large Loans

Pros

• Borrow as much as $50,000
• Personal loans for bad credit available in 50 states
• Accepts those new to credit
• No minimum credit score

Cons

Company Reputation

Upstart have built themselves a solid reputation over the years for giving personal loans to borrowers with low credit scores, or who are new to credit. Loan amounts vary from $1,000 to as much as $50,000, and all rates and repayment terms are disclosed in clear language on their homepage.

The company also has an FAQ page that answers in detail your most popular questions, and there are numerous positive customer reviews on consumer websites like TrustPilot. Overall, we have no concerns in regards to company reputation.

Things To Be Aware Of

Unlike some of the other loan companies on our list, Upstart charges an origination fee. They also charge late fees and there is a zero rate discount for auto payments.

It’s also worth mentioning that as a borrower you’ve got the choice of just two repayment options. Moreover, Upstart will carry out a soft check during the pre-qualification process.

On the plus side, loans are usually funded within one business day and you’ve got the option of paying creditors directly.

Loan Amount/Fees

It’s possible to borrow as much as $50,000 from Upstart, which makes it the best option for larger loans.

Upstart offers personal loans for between three and five years. Their estimated APRs vary between 6.95 percent and 35.99 percent, which is consistent with other lenders.

How They Work

Upstart is a bit different from some of the other bad credit loan companies we’ve reviewed so far in that they underwrite personal loans themselves. Ergo, they’re not a loan marketplace or P2P lending platform.

The application process is still fairly straightforward, however, and you can check your rate in a matter of minutes before entering your details to see if you’re eligible. Most borrowers have found that they’re instantly approved at this point, before their funds are deposited into their account within one business day.

6. Avant – Best Bad Credit Loans With Low Interest Rates

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Pros

• Great for fair credit
• Comparatively low interest rates
• Funds released within one business day

Cons

• Can’t add a joint applicant

Company Reputation

Avant is a personal loan company that has helped a huge number of satisfied borrowers across the USA. It’s built its reputation on providing loans to those whose credit scores lie in the 600-700 range, and it’s known for offering lower interest rates than its competitors to those with bad credit.

According to consumer review sites like TrustPilot and Consumer Reviews, Avant is a trustworthy company that has no hidden fees, and helps customers build up their credit.

Things To Be Aware Of

Avant offers two types of loans – secured loans and unsecured loans. Unsecured loans are offered in 46 states across the U.S., but secured loans are only available in 40 states. Therefore, it’s important that you find out whether or not your state is eligible before you apply.

It’s also worth mentioning that, unlike some other loan companies in our list, Avant doesn’t let you add a joint applicant or cosigner. This means that if you personally are turned away for a loan, you will simply need to try elsewhere.

Loan Amount/Fees

Avant offers loans between $2,000 and $35,000.

Interest rates and terms depend on how creditworthy you are, but they range from 9.95 percent to 35.99 percent.

There’s a late payment fee of $25, which is lower than most competitors, and zero prepayment fees. However, there doesn’t appear to be an origination fee.

How They Work

Avant offers loans for a variety of situations, including home renovations, emergency expenses, and, of course, debt consolidation.

To apply, you just need to visit the website and complete the application process. This only takes a few minutes and it begins with a pre-qualification stage which includes a soft credit check. This will not impact your credit score.

Once you’ve provided information such as your date of birth and social security number, you’ll be asked to enter your desired loan amount, as well as your reason for applying for a loan.

When that’s done, Avant lets you view different loan offers that are based on your criteria and suitability. Once you’ve agreed to a loan, Avant will perform a hard credit check.

Best Bad Credit Loans FAQ

What Are Bad Credit Loans?

Bad credit loans are aimed at individuals who have a poor credit report, or who have no credit history. They have more restrictions than other loans, as well as high interest rates. This is simply because the lender needs to guard against the risk that the individual won’t pay them back.

Types of Loans For Bad Credit

There are several different types of loans for bad credit:

• Secured and unsecured
• Payday loans
• Cash advances
• Bank agreements
• Home equity loans

A standard loan is secured or unsecured. The difference is that, while a secured loan demands collateral such as a car, unsecured loans don’t.

Payday loans, meanwhile, are short-term loans that don’t generally exceed $500, while a cash advance works similarly except it’s offered by a credit card issuer.

Bank agreements, meanwhile, are offered by your bank, while a home equity loan uses your home as collateral. This has the consequence that, if you default on the payments, the lender can seize your home.

What Is a Bad Credit Score?

A bad credit score means that companies will view your credit history negatively. This has the further implication that it’ll be much harder for you to obtain a loan or even access specific services.

In terms of the numbers, a credit score typically ranges between 300 and 850. However, while lenders view a score that’s below 670 as a bad credit score, a score between the regions of 580 and 669 is generally seen as “fair.”

A credit score that falls between 300 and 579 is considered “poor” credit by most lenders. That all said, loan companies have different ways of assessing your credit score and history, which means that some may see your report in a more positive light than others.

What Causes a Bad Credit Score?

A poor credit score can be caused by a number of reasons, including:

• Not sticking to a credit agreement (late and missed payments, for example)
• Credit card debt
• Bankruptcy
• A county court judgment
• Paying just the minimum amount on a credit card each month
• Identify theft
• No credit history (this one might seem unfair, but a credit reference agency has nothing to go on when determining your credit history if you’ve never taken out a loan or a credit card)

What’s The Easiest Loan To Get With Bad Credit?

As we said earlier, there are around five types of bad credit loans. How difficult or easy it is to obtain any of them comes down to your exact credit score, as well as the terms themselves (are they favorable to you?).

Generally, though, payday loans are often the easiest to secure with bad credit scores because they’re small and have higher interest rates, which means companies are more willing to agree to them. However, rather than monthly payments, you typically have to repay the loan much faster than any other type of bad credit personal loan.

Who Are The Best Lenders For Bad Credit Loans?

There are a number of best lenders for bad credit loans, and we’ve reviewed six of them in this article. Cash Advance is a good all-rounder because it’s a fully established, trustworthy loan marketplace that connects you with lenders who are willing to offer loans to those with bad credit.

However, LeapCredit might be a better solution if you need a super fast approval, while LoanPioneer offers loans for most types of situations – including vacations, and accepts those with even a very bad credit score.

Can I Get Small Loans For Bad Credit?

Yes. Cash Advance, for example, offers loans as small as $100. Not all loan companies offer such small amounts, however, which is why it’s important that you thoroughly check a company out before applying for a loan.

Bad Credit Personal Loans: Final Thoughts

Obtaining a personal loan with bad credit is possible and it can get you out of a jam. But it’s really important that you take the time to figure out your credit score before applying for a loan, and that you also have a repayment plan in place.

Once you’ve done that, loan companies like Cash Advance and Upstart are convenient, low-cost and super quick ways of securing a loan, despite your credit score.

Should you manage to secure a loan, it’s still a smart idea to find ways to improve your credit score range so that your overall financial situation improves in the future and you feel more secure.