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Anyone Can Qualify For Small Personal Loans
21 Feb 2017

Anyone Can Qualify For Small Personal Loans

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You may have heard of the benefits of taking out small personal loans online but may not be sure whether or not you would qualify for such a loan. Perhaps, you may think that only payday lenders will approve your loan requests due to a below-average credit rating. The good news is that this is almost certainly not the case. Almost everyone who requests small personal loans online is approved.

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Why Do Online Personal Loan Lenders Not Shy Away From Bad Credit?

It may seem incredible to some that bad credit is almost never a reason for disapproval of online personal loans, since it almost always causes “regular” bank loans to be disapproved. Why the difference? Here are some of the reasons:

Banks are strapped with federal regulations that do not always pertain to small, personal lenders. Non-traditional, more independent lenders are freer to assess your real-world likelihood to repay instead of being forced to follow preset formulas handed down to them from “higher ups” in the national banking system.

Lenders of bad credit loans are looking at your ability to repay and your more recent financial dealings (if they look at all) and not at your long-term credit history. Their loans are short-term and so they only care about your short-term ability to repay.

It is not secret that lenders of small online personal loans no credit check make their money from interest and fees attached to those loans. The rates are lower than for payday loans though higher than for bank loans. Lenders of small loans take a risk in order to profit from their providing you fast cash when needed most.

  • 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 Factors Could Cause a Personal Loan to Not Get Approved?

Almost everyone qualifies for small online loans, regardless of having bad credit or not credit. But what requirements are there? And which few might not get approved and why? Here are some answers to those questions:

You need to have a reliable source of income that will continue at least as long as the loan term and provide enough money to realistically make all your installment payments on time.

You need to be legally an adult (18 or older) and have a US-based bank account of some kind.

You might not get approved if you already have an unpaid personal loan outstanding with that lender or if you failed to repay on small personal loans with other lenders in the recent past.


Despite there being a few exceptions, almost everyone who requests small personal loans online is approved regardless of their credit history. If you are looking for larger loan size, you can also explore installment loans for bad credit, that have a longer timeframe to repay as well.

Regardless of which loan product you choose, make sure you read up and understand all the terms and conditions before you finalize your agreement.