Loans from
$300 – $5,000

Repayment term
4 – 24 Months

Minimum credit score
No min. to apply

The figures provided are representative of a typical installment loan made or arranged by CreditNinja and are not guaranteed rates or terms that you may qualify for.

Bad credit loans and lenders are designed for people with a less-than-perfect credit score who may struggle to obtain financing through traditional lenders like banks. According to Experian, 34.8% of Americans have a subprime credit score (scores below 670) as of 2019¹, emphasizing the need for accessible financial solutions for this portion of the population.

Luckily, there are lenders that can help, and they can be found online or in person. But knowing the difference between quick personal loans for bad credit and payday loans for bad credit will be very important. 

Who Benefits from Bad Credit Loans?

Some lenders offer a lifeline for individuals with a low credit score, providing much-needed funds for a range of needs. These online loans prove most useful during emergencies such as: car repairs, fixing home appliances, or meeting school costs. For borrowers who can’t secure other financial products like a home equity line of credit from their mortgage, a refinance of a current loan, or a traditional bank loan with low rates, a bad credit loan may be their only financial option. 

Bad credit loans also serve a significant role when unexpected medical expenses crop up. Often, insurance may not cover the entire cost of medical treatment, leaving a substantial amount to be paid out of pocket. So borrowers turn to personal loans for bad credit, or other financial online lenders.

Finally, home repairs are another area where this option can be invaluable. Urgent needs like fixing a leaking roof or addressing damaged plumbing can’t be put off for long. And not everyone can get approved for a line of credit from their mortgage. Anyone experiencing emergencies like these may benefit from an online bad credit loan or other unsecured online loan. 

Pros of Bad Credit Loans Online:

  • Accessibility: Provides financial solutions for those with poor credit, online or at storefront locations.
  • Building Credit Score: Timely repayments can improve your credit score.
  • Covering Emergency Expenses: Addresses unexpected costs like medical bills or car repairs.
  • Flexibility: Various financing options (an online personal loan, payday loans, lines of credit online) to fit your unique needs.
  • Fast Approval and Funding: Quick access to funds, often within days or hours.
  • No Collateral Required: Unlike a secured loan, many are accessible without needing to offer an asset as collateral. 

Cons of Bad Credit Loans Online:

  • Predatory Lending Practices: Some options have hidden fees, misleading advertising, unaffordable repayment terms, aggressive collection practices.
  • High Interest Rates and Fees: Expensive borrowing option due to their riskier nature. These financial products tend to have very high rates. 
  • Short Repayment Terms: Difficulty paying off the total, potential for debt cycle
  • Negative Impact on Credit Score: Late payments, defaulting, or collections harm credit scores. 
  • Potential for Debt Cycle: Difficulty repaying loans may lead to borrowing more, trapping borrowers in debt. This may be referred to as refinancing, or rollover. 

Types of Bad Credit Financing

Type of Loan Interest Rate Range Collateral Required Loan Amounts Repayment Period Suitable For
Loans with a Co-Signer Varies No Varies Varies Borrowers with a creditworthy co-signer
Joint Loans Varies No Varies Varies Borrowers with a creditworthy co-borrower
Unsecured Loans for Poor Credit Higher No Varies Varies Borrowers without collateral
Peer-to-Peer Loans Lower No Varies Varies Applicants seeking lower interest rates
Payday Alternative Loans (PALs) < = 28% No $200 - $1,000 1 - 6 months Borrowers seeking lower-cost payday loan alternatives
Title Loans for Bad Credit High Yes (vehicle) 25% – 50% of vehicle value Varies An applicant with a vehicle
Invoice Financing Varies Yes (unpaid invoices) Based on invoice value Short-term Business owners with unpaid invoices
Equipment Financing Varies Yes (equipment) Based on equipment value Varies Business owners needing equipment
Purchase Order Financing Varies No Based on purchase order value Short-term Businesses needing capital for purchase orders
Hard Money Loans High Yes (real estate) Varies Short-term Real estate investors, startups
Online Line of Credit Higher No Varies Flexible Borrowers needing on-demand cash access
Short-Term Bad Credit Loans High No Varies Up to 1 year Borrowers needing quick financing
Low Credit Payday Loans Very High (around 400% APR) No ~ $500 Short-term (2-4 weeks) Borrowers needing quick cash with poor credit
Merchant Cash Advance (MCA) High No Varies Flexible (based on sales) Businesses with strong credit/debit card sales

How To Qualify for a Bad Credit Loan

Assess Your Credit Scores

A poor credit history or low credit score may not disqualify you for a personal loan online, but can result in higher interest rates or less favorable terms. Your credit scores affect many areas of your financial life. Review your credit report and score ahead of time so you know what to expect. You can get your credit scores by visiting the websites for the top credit bureaus: Experian, Transunion, and Equifax. 

Prepare Your Proof of Income

A bad credit loan online will often require proof of steady income to ensure borrowers can repay the total amount. Providing pay stubs, bank statements, or tax returns can help people verify income and improve the chances of approval for a loan for bad credit. Many lenders allow instant verification of this info online, assuming they offer an online application.

Research Lenders

Identify a personal loan and potential lenders that focus on income rather than a minimum credit score, including online lenders, banks and credit unions. Review their reputation, customer reviews, and track record to ensure they’re trustworthy lenders. Instant online lenders may offer more convenience; just make sure to thoroughly research them. It’s important that people understand all of the terms and conditions of bad credit personal loans before getting one. 

Compare Terms & Conditions

Compare interest rates, fees, repayment terms, and other conditions to determine the best online lenders and loans for bad credit. Don’t be afraid to negotiate with lenders or ask questions to clarify any unclear terms, as this can help you make the most informed decision possible. All bad credit personal loans will have many different terms and conditions people need to review before signing on the dotted line. 

Complete Application

Once you finish and submit your quick personal loan application, the lender will review it. During this time, be prepared to answer any additional questions or provide further documentation if requested, as this can help expedite the approval process for lenders. If it’s a joint loan, then the co-applicant will also need to be available to fill in any missing information. An instant online application process can sometimes be much faster than in person.

Choosing the Right Bad Credit Personal Loan

Finding the right quick online loan to apply for isn’t as simple as visiting or Unfortunately, there’s more to it than that. Bad credit personal loans come in many shapes and sizes. Which means there are several factors to consider before applying for instant approval. How much cash do you need? What’s your current credit score? Could you qualify for a personal loan instead? These are a few questions people should answer before getting a bad credit loan. 

Below are some of the most important steps to take when shopping for a personal loan online:

  • Evaluate Your Financial Situation: Review your income, expenses, debts, and determine the loan amount and repayment terms you want from online lenders. The maximum funded amount could be anywhere from $1,000 up to as high as $36,500.² But the amount you get will depend on your specific financial history. Your financial history will also determine whether you get the best interest rate. 
  • Determine Personal Loan Amount and Repayment Terms: Many options tend to offer small cash loan amounts, like payday and title loans, which may only provide a few hundred dollars to people in need. Other options like personal installment loans online can offer more cash, ranging from several hundred to several thousand dollars in some cases. 
  • Identify Suitable Lenders: Consider their reputation, interest rates, fees, terms, and whether they offer instant approval. Each specific lender determines your interest rate. By researching several online lenders and options, you have a better chance of finding a reasonable interest rate and a decent personal loan. 
  • Compare Offers and Terms: Review interest rates, fees, repayment terms, and eligibility. Charges like origination fees and late payment fees will vary from lender to lender, so make sure you know what they are. Any personal loan can come with several types of fees and charges, so make sure to do your research. 

Evaluate and compare lenders to find a quick bad credit personal loan that suits your financial needs and credit score. If the product is right for you, then it’s time to fill out an application and get your cash.

Alternatives to Bad Credit Loans

Credit Union Loans

Credit unions offer various financial services, rates, and refinancing options, including unsecured personal loans that borrowers can apply for in person or online. They often have flexible lending criteria, favorable loan terms, and lower interest rates compared to banks or alternative lenders. To qualify, borrowers need to become members by meeting eligibility criteria.

Home Equity Loans or Lines of Credit

Home equity loans or lines of credit let homeowners borrow against their home’s equity through their mortgage. Both options offer lower interest rates compared to bad credit loans and lenders since they’re secured by the home. However, borrowers need sufficient equity to qualify, and failure to make payments can result in foreclosure.

Debt Management Programs

Nonprofit credit counseling agencies offer debt management programs to help individuals manage debts and improve credit scores to qualify for better rates in the future. Programs involve working with a credit counselor to create a budget and repayment plan, and negotiating with creditors to reduce interest rates or waive fees.

Common Questions and FAQs

This is a type of personal loan offering cash to individuals with low credit or a history of financial difficulties. These personal loans provide financial assistance to those who may struggle to obtain traditional loans due to their credit standing. This could be a secured loan or an unsecured loan. You may even find a personal loan offering instant approval and funding.

A bad credit personal loan will work similarly to a traditional loan, but will come with higher interest rates and fees to compensate for the increased risk to the lender. Borrowers with low credit scores can fill out an application (usually online) and use them for various purposes, such as covering emergency expenses or consolidating debts. CreditNinja always recommends thoroughly reviewing the terms and conditions when considering any online loan, especially bad credit options.

They are offered by various lenders, including banks, credit unions, online lenders, and alternative lending institutions. Some lenders specialize in providing personal loans specifically for individuals with low credit. A bad credit loan, or personal loan, can be found online or at storefront locations, sometimes with instant approval.

Terms and conditions for them vary depending on the lender and the specific product. These loans often have higher interest rates and fees, shorter repayment terms, and may require collateral or a co-signer. Learn more about CreditNinja’s online application, terms and conditions at our website!Learn more about CreditNinja’s online application, terms and conditions at our website!

Interest rates are typically higher than those for traditional financing or certain personal loans, reflecting the increased risk to the lender. Rates for low credit loans online can vary widely depending on the lender, loan amount, repayment term, and the borrower’s credit. A secured option may have lower interest rates, but more risk for the borrower.

Fees for a low credit online loan can include origination fees, prepayment penalties, late payment fees, and other charges. It’s crucial to understand all associated fees before agreeing to one.

A late payment fee is charged for not making your payment on time. The late payment fee amount, among other things, will depend on your specific lender. These fees vary widely depending on the type of loan, the lender, and your financial history.

The processing time depends on the lender, the application review process, and the borrower’s circumstances. Online lenders may provide quicker approval and funding than traditional banks, with some offering instant approval and application decisions within minutes and funding within a day or two.

The repayment terms can vary, ranging from a few months to several years. Short-term loans, such as payday loans, may have repayment terms as short as two weeks. While CreditNinja does not offer payday loans, you’re always welcome to repay your loan early without any prepayment fees.

Repayment length depends on the loan terms and the lender. Some companies may require payment within only a couple of weeks (payday loans), while others may stretch repayment out over several months or years. It’s essential to understand the repayment options and ensure they align with your financial situation.

Defaulting can have severe consequences, including damage to your credit score, additional fees, and potential legal action. The lender may also attempt to collect the debt through a collections agency or take possession of any collateral used to secure the loan.

Some lenders may offer loans for bad credit with no credit check, otherwise known as no credit check loans, but they often come with higher interest rates and fees. It’s important to research the lender thoroughly and understand the terms and conditions before filling out an application for a loan with no credit check.

Yes, they can be used to consolidate debts into one loan with a potentially lower interest rate. However, it’s important to carefully review the terms and fees associated with the loan before consolidating debt.

Making on-time payments can potentially help improve your score over time. However, it’s important to ensure that the loan is affordable and fits within your budget before taking out the loan.

Yes, there are several alternatives, including borrowing from family or friends, using a secured credit card, debt consolidation options, seeking assistance from non-profit credit counseling services, or exploring debt consolidation or settlement options.

To find the best loan, research multiple lenders and compare interest rates, fees, and loan terms. Look for lenders with positive online reviews and ratings from other borrowers and review the terms and conditions carefully before filling out an application.

An ideal DTI for any loan or financial product is 35% or lower. Bad credit lenders may have less stringent policies for required DTI. This is a great question to ask the lenders that you’re considering.

First and foremost, it’s crucial to only accept a loan that you know you can pay off on time. Once you have the loan, it’s wise to set up automatic payments to make paying easy. Make sure you also review your account, loan balance, accrued interest, and fees regularly.

If you need easy money immediately and you’re not sure where to turn, rest assured that there are quick options out there for you. While many struggling borrowers turn to costly payday or title options, personal installment loans are becoming a popular alternative that may offer lower rates and better repayment options. 

Should You Refinance a Bad Credit Loan?

When you refinance a loan, whether it’s a student loan, personal loan, or bad credit loan, it means that you’re getting new loan terms. A refinance could mean that you’ll get a new interest rate, a new repayment term, or other new terms or conditions for your loan. Some borrowers even get more money from a refinance, but it depends on the lender and loan in question. 

So, should you refinance your loan? Whether or not to refinance will depend on a number of factors including: the type of loan you have, the lender, whether you qualify for a refinance, and what terms you can get from a refinance. If getting a refinance would mean a lower interest rate or more time to repay your loan, then it may be good. 

Beware of payday lenders offering a refinance, sometimes this is referred to as “rollover.” This means they’ll add more interest and fees and extend your loan. This practice tends to trap borrowers in a cycle of debt. 

Avoiding Bad Credit Risks & Scams

Scams and untrustworthy lenders are a couple of the risks of taking out a loan with bad credit. These scams can be financially devastating and cause long-lasting damage to your credit. To protect yourself from falling victim to such scams, consider the following tips before filling out an application:

  • Be cautious of unsolicited offers targeting borrowers with bad credit. Lenders offering “quick and easy” options might not always be trustworthy.
  • Research the lender’s reputation, reviews, and registration with regulatory bodies.
  • Avoid lenders asking for upfront fees or unconventional payment methods.
  • Be skeptical of guarantees and instant approvals without proper evaluation.
  • Verify the lender’s contact information and avoid high-pressure tactics.
  • Read loan agreements carefully and seek advice if unsure about any terms.
  • Check the Better Business Bureau (BBB) for complaints or negative reviews.
  • Check your credit reports for unauthorized accounts and report discrepancies.
  • Trust your instincts and walk away if something feels off or too good to be true.

By following these guidelines, applicants can reduce the risk of loan scams and protect their financial well-being.

Tips for Improving Your Credit Score

There are a number of common reasons for bad credit: accruing too much debt, opening too many accounts or credit cards, not paying bills or loans on time, refinancing a loan too many times, and more. Or you might not have a credit score at all because you’re young, or a student. 

Improving your credit history is a crucial step in securing better loan terms and interest rates. Here are some easy tips to help boost your credit score, improve your credit history, and get better rates. 

  1. Make timely payments: Your payment history has a large impact on your credit score. 
  2. Reduce credit utilization: Credit utilization refers to the percentage of your available credit being used. Aim to keep your credit utilization below 30% by paying down your balances.
  3. Maintain a diverse credit mix: A mix of different types of credit accounts, such as credit cards, auto loans, and mortgages, can positively impact your credit score.
  4. Limit hard inquiries: Hard inquiries occur when a lender checks your credit for a loan or credit card application. These can lower your credit score, so only apply for credit when necessary.
  5. Monitor your credit reports: Regularly review your credit report for inaccuracies and unauthorized activities.
  6. Keep old accounts open: Older credit accounts with a positive payment history can help increase the age of your credit history, which can positively affect your score. 

By implementing these tips and consistently practicing responsible financial habits, you can gradually improve your bad credit score and enhance your overall financial health.

Final Facts

  • Bad credit loans and lenders cater to individuals with scores below 600. 
  • A bad credit loan can be a payday loan, title loan, personal loan, or other product.
  • These unsecured loans don’t require collateral, making them more accessible but leading to higher interest rates due to increased lender risk.
  • These are costlier than traditional loans, and borrowers should consider the total cost before accepting an offer. 
  • You can get the best interest rate from a traditional lender like a bank or credit union. Although you will likely need a decent credit score to do so. 
  • Banks and credit unions also tend to offer the most money when it comes to personal loans. 
  • Offered by alternative and online lenders, the approval process is less stringent, resulting in faster approval times but potential predatory lending risks.
  • Bad credit loans can cover emergency expenses but may lead to a debt cycle if used for everyday expenses. 
  • Responsible usage can help rebuild credit, leading to better loan terms and lower interest rates in the future. 
  • With shorter repayment terms, borrowers should ensure they can realistically meet monthly payments.

Conclusion on Loans for Bad Credit

Although you may not need a minimum credit score, they usually have lower amounts, may require collateral or a co-signer, and have shorter repayment terms. They may be quick and easy, but it’s crucial to make sure they offer the rates and terms you need. Having a low credit score does limit your ability to get good rates. And you may not qualify for certain financial products like a mortgage, bank loan, or others. 

Bad credit personal loans can provide temporary relief, but improving a bad credit score and financial habits is crucial for securing better loan options and loan rates in the future. Consider all available options and the loan’s terms, interest rates, and fees before deciding if it’s the right choice for you. You may find that a personal loan offering more loan funds and lower rates is better for your situation.

A Note From CreditNinja About Loans for Bad Credit

At CreditNinja, we’re here to assist you on your journey towards finding the right financial solutions and lenders, including the most suitable credit products. We understand how essential it is to carefully assess your existing debt, potential interest rates, and fees, and to figure out whether a quick online loan aligns with your personal financial situation.

A bad credit loan online shouldn’t be taken lightly. Having such a high interest rate for loans can make life more difficult. So it’s important to always consider loan rates when shopping for a financial product from certain lenders. Should you need professional advice, we strongly encourage reaching out to financial advisors or credit counselors for personalized guidance on lenders, credit, personal loans, and online loans. And if you’re dealing with frequent missed payments, handling multiple credit card debts, or facing high-interest rates, don’t stress. There’s always a path to a brighter financial future. It could involve bad credit loans for debt consolidation, a personal loan, or perhaps private credit counseling – we’re here to help you find the quick and easy solution and loan rates you need.



      1. What Is a Bad Credit Score? | Experian
      2. The best personal loans if you have bad credit but still need access to cash
      3. What does it mean to renew or roll over a payday loan? | CFPB
      4. What is a payday loan? | Consumer Financial Protection Bureau

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