Loans For Bad Credit

You need money and you need it fast. You have good reason for how you want to use the money. The only problem is that you have had some difficulties in repaying your credit card or loans over the recent past, bringing your score down. Bad credit loans could be the solution to help you through this tough period.

In this guide, we will talk through what bad credit loan options are available, and how you can go through the application process quickly and efficiently to get approved for that much needed online loans. Read on to learn more!

  • Bonsai Finance

    Our take: Online marketplace to find you a personal loan offer that matches your needs Show more
    Credit ScoreLoan Size/AmountLoan TermAPROrigination Fee
    All can apply$100 - $15,0001 - 605.99% - 35.99%Varies by lender
    Credit ScoreAll can apply
    Loan Size/Amount$100 - $15,000
    Loan Term1 - 60
    APR5.99% - 35.99%
    Origination FeeVaries by lender
    Our take: Online marketplace to find you a personal loan offer that matches your needsShow more

Why are Easy Loans for Bad Credit Needed?

According to a recent study by the CFPB, one in ten Americans don’t have a credit report with the major credit bureaus. This is called being “credit invisible” and can prevent someone with a good job and the ability to repay a loan from getting a traditional bank loan.

Even worse, for those who do have a credit score, Experian (one of the three major credit bureaus) reports that 34.8%, or more than one in three Americans has what is considered “subprime” credit with a FICO score between 580 – 669.

The above statistics make it clear why easy loans for bad credit are needed: Lots of the US population can benefits from these types of loans!

What is considered bad credit?

When you apply for a loan, the lender will pull your credit report from one of the three main bureaus – TransUnion, Equifax, and Experian. This pull can be either a “soft” pull which has basic data and doesn’t remain on your report, or a “hard” pull that has more details and can directly affect your credit score.

All three of these bureaus provide a score between 300 – 850, based on one of two credit score rating systems – VantageScore 3.0 and FICO 8. Regardless of which bureau or rating system is used, the same five factors determine your score: Payment history, Credit utilization, Length of credit history, Mix of credit types, and Number of inquiries recent past.

When the lender gets this report, they will then classify your credit history. While these ranges are lender specific, here are some general guidelines:

Excellent credit score

Your credit score is between 750 – 850, with anything above 800 considered super-prime. Customers with excellent credit get the best interest rates, and can easily qualify for installment loans from a bank and the best credit cards.

Good credit score

Your credit score is between 700 – 750. A Good credit score is looked at by lenders and credit card companies as relatively low risk, meaning that you’re very likely to qualify. Your rates and terms may be a little higher than if your score were excellent, but you’re quite likely to get a “Yes” wherever you apply.

Fair credit score

Your credit score is between 620 – 700. The Fair credit score is where customers start to transition from a “Prime” to “Sub-Prime” classification by the banks. Because of the higher risk, if you have a Fair credit score, you may start to get declined by banks for larger loans like mortgages, or longer term loans.

Bad credit score

Your credit score is between 300 – 620. At this point, most traditional lenders and credit cards will turn you down. You’ll need to look for alternative lenders who are able to take on higher risk levels and aren’t restricted by government regulations on who they lend to.

Credit scores are quite important, so you should definitely know your score and understand it. It’s not just important for applying for a loan. If you’re applying for a new job, you may have your credit score looked at. Based on a survey of human resources professionals, a credit score is checked 31% of the time for some candidates!

  • Bonsai Finance

    Our take: Online marketplace to find you a personal loan offer that matches your needs Show more
    Credit ScoreLoan Size/AmountLoan TermAPROrigination Fee
    All can apply$100 - $15,0001 - 605.99% - 35.99%Varies by lender
    Credit ScoreAll can apply
    Loan Size/Amount$100 - $15,000
    Loan Term1 - 60
    APR5.99% - 35.99%
    Origination FeeVaries by lender
    Our take: Online marketplace to find you a personal loan offer that matches your needsShow more

What types of Bad Credit Loans are available?

Loans for bad creditIf you fall into the bad credit category, but still need a loan, you still have options available. The key is to understand what those options are before you apply. The worst thing you can do is apply for multiple loans at once, which will bring down your score further. Here are the different options available:

Personal loans online

Online loans are issued by what are called “balance sheet lenders,” who are lending money directly from their cash reserves. This is different from a bank, who is lending money from customer deposits.

Because they are lending their own money, balance sheet lenders don’t have the same restrictions as banks, and can lend to high risk (sub-prime) customers.

Peer-to-peer loans

As Peer-to-peer (P2P) loans have received a lot of attention, they are a great option for customers with a bad credit score. In this model, you are borrowing money from an investor, who makes their funds available based on their selected criteria.

As a borrower, you then go into the “exchange” and look for a lender or group of lenders willing to lend to you. Again, there are no restrictions like banks, so high risk customers can qualify.

Payday alternative loans

Payday alternative loans (PALs) are a unique form of lending usually coming from credit unions. This loan was created specifically to help credit union members take out small loans (up to $1,000) at low interest rates of 28%.

The key is that you need to be a member of your local credit union in order to qualify, but if you are, these are the best loans available for customers with bad credit scores.

Cash advance loans

Cash advance loans can come from multiple sources, but is essentially when you get cash now for work you will do in the future. This can come from your employer, a credit card, or from a cash advance company.

Usually the best source to ask first is your company, who can issue a paycheck early without any additional fees (make sure you work those hours!), but credit cards or cash advance companies can be good sources as well.

Payday loans

These are the most expensive form of bad credit loan for a customer. The good part is that virtually all customers will get approved for a payday loan online. The bad part is that the average payday loan carries a 400% interest rate.

You’ll also need to know the state-specific regulations on payday loans, as some states don’t allow them, or restrict the amount or number you can take out. As with all loans, make sure you read the terms and conditions before signing on the line!

Secured loans

There are two types of secured loans generally available: Pawn loans and car title loans. With each of these, you’re providing something you own, like jewelry or a car, and the loan is provided based on the value of the object.

With a title loan, you can still use the car, but with a pawn loan, the shop puts your jewelry in a safe. These loans tend to be quite expensive, but can be a good option if you have something that’s worth more than the loan amount you’re looking for.

Regardless of which type of loan you choose from the above, you should have multiple options available for fast loans for bad credit. Most importantly, you need to find which option provides the best terms and conditions, and won’t put you in a future bind.

Should I get an online loan for bad credit?

As with everything these days, the first place you should start is with an online search. Not only can you get a loan fully online, you can take some very important steps before completing the loan. Here are the top 5 reasons you should search for your loan for bad credit online first:

1. Get pre-qualified for a bad credit loan before applying

When you apply online through a service like Bonsai Finance, lenders will only do a soft credit pull, that doesn’t affect your credit score. They can then provide a pre-qualification that lets you know you’ll get approved. This prevents you from driving out to lenders, filling the application form, and getting rejected.

2. Review terms and conditions without pressure

There’s nothing better than being able to take your time to review the terms on your phone or computer before completing a loan application. Unlike your bank, the internet doesn’t close at 4pm, and you won’t feel the pressure of people in line behind you.

3. Compare offers from different loan companies for bad credit

If you want to compare personal loan offers, you can simply open a new browser window. Then, you can line the contracts up next to each other and see which is best. Trying to do this in your town, and you’ll spend a whole day driving around with a stack of papers in hand.

4. Conduct some research on your lender

It may seem rude to tell a bank loan officer that you want to hear some reviews first, but it’s completely natural online. Every lender will have their reviews (good and bad) linked to their website. You can also check the Better Business Bureau for complaints linked to the lender.

5. Get your loan faster

If you’re applying online, you’ll have any documentation readily available. You can complete the application in a matter of minutes, get approved almost instantly, and then get the money deposited as soon as the same day. Try this at a bank and you’ll be waiting for weeks.

What are the requirements for long term loans for bad credit?

You do not have to go through all kinds of the red tape to qualify for these personal loans no credit check. These loans for people with bad credit have some simple qualifications to help make them available for customers applying online:

Qualified applicants must:

  • Be between the ages of 18 and 65 years old
  • Live in the United States
  • Have a regular source of income that can be verified by banking transactions
  • Have an active cell phone to receive phone calls and SMS text messages
  • Have a bank account where the loan can be deposited

By meeting the outlined criteria, you can get on your way to rebuilding your financial foundation, bad credit history and all.

Can Quick Loans Bad Credit help Rebuild Your Credit Score?

bad credit loans rating

Money loans with bad credit can help address multiple factors that contribute to your credit score. There are two specific factors that can be improved through short term loans bad credit. These are:

Credit utilization: If you use a loan to pay back a credit card, you’ll open up your credit available. You can see an improvement in your credit score in the next credit card billing cycle.

Mix of credit types: If you don’t have any personal loans, getting a bad credit personal loan can provide you with that extra type of loan you’re missing. Add this to a credit card or auto loan and you can see your credit score improve in 1-2 monthly payments.

While personal loans for bad credit can’t completely fix your credit score, they can have a short term impact as noted above. They can also help get you moving in the right direction in the long term to rebuild your credit score over time.

How does Bonsai Finance help with loans for bad credit?

When you need to quickly locate and connect to a lender offering the best bad credit quick loans that fit your situation, you can immediately get lost in a sea of online lender claiming to be the best.

At Bonsai Finance, we simplify and speed up the process. We have detailed knowledge of hundreds of loans for bad credit direct lenders, and can help you find the right lender through a single application form. Instead of applying multiple times which can lower your credit score, we’ll help find a loan fast and easy.

Our representatives take the time to inform you of your options, explain to you what sets one lender apart from another, and ask you for the relevant information that will assist us in finding your perfect loan match.

Frequently asked questions about same day loans for bad credit:

Here are quick answers to some of the most common questions we hear:

Which loan company is best for bad credit?

There are multiple different lenders who focus on bad credit. Some of our highest rated lenders include: Avant, CashNetUSA, and OppLoans. If you search through our listing of best personal loans, we can find which lender matches up to your needs.

Who will give loans with bad credit?

There are multiple loan companies for bad credit, including, PeerForm, and NetCredit, and some others who provide “near me” bad credit loans. The best place to start is through an online search through Bonsai Finance who will help you find out what you might qualify for.

Can I get a personal loan with a credit score of 550?

The short answer is yes! You need to have a source of income, a bank account where the funds can be deposited, and a cell phone. You’ll also need to look at alternate sources like balance sheet lenders, as your credit score will prevent banks from providing a loan.

Can I get a loan with very poor credit?

Very poor credit is an area where Bonsai Finance can help you figure out which lender is best for you. While the number of lenders specializing in very poor credit is limited, and the state-level regulations start to get in the way, we can help you find the loan you need.

How can I get a small loan fast?

Online lenders specialize in improving the speed of application, review, and approval for your loan application. Bonsai Finance can help you get this done quickly and get the funds deposited into account as soon as the next day.

Our Commitment to bad credit loans customers at Bonsai Finance

At Bonsai Finance, we treat each and every customer we serve with dignity and respect. We never pressure you into making an instant decision but simply help put the facts before you and explain their relevance to your situation, based on the information you’ve given us.

Even among bad credit lenders, there are differences in interest rates, fees, loan flexibility, the size of loan you can expect to be approved for, and the time you will be given to repay. We are your experts on the terms and conditions of different lenders. We are committed to helping you locate the loan and lender that are right for you.

At Bonsai Finance, we have already helped millions of customers with below average credit find a loan that met their needs and got them through a financial rough spot. Our whole purpose in existing as a company is to facilitate this kind of “match-making.” And we stand ready to do for you what we have done for others.


When you need some of the existing easy loans for bad credit, there are options available. Bonsai Finance can help you sort through the guaranteed loan options and find the best loan for your situation. And we are available to you 24/7 with a helpful customer service team to answer any questions.

If you want to learn more about personal loans, credit cards, or other financial products and services, be sure to check out our blog. Our well researched articles are written by financial experts who can get you the help you need.