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Key takeaways

  • Loans for bad credit with guaranteed approval enable people who may not qualify for traditional loans due to their credit history borrow the money they need.
  • Always compare loan terms, interest rates, and fees from various lenders to find the most suitable option. Responsible borrowing includes understanding the total cost of the loan.
  • With the promise of guaranteed approval, the risk of scams increases. Recognize the red flags, such as upfront fees and no credit check promises, to protect yourself from fraudulent schemes.

Bad credit loans with guaranteed approval can be extremely helpful when financial emergencies strike and your credit score isn’t the best. Most lenders require a minimum credit score to qualify, making it difficult for borrowers with poor scores. Fortunately for anyone with less-than-perfect credit, there are exceptions to the rule. Certain lenders offer personal loans for bad credit guaranteed approval.

Now, there is no such thing as “guaranteed approval” but there are lenders who come about as close as you can get. These lenders have very flexible application requirements and look beyond the borrower’s credit score making it possible for just about anyone to secure a loan.

Types of loans for bad credit

There are a variety of types of loans that people with low credit scores can qualify for. From secured loans to bad credit payday loans guaranteed approval and cash advances, there are plenty of ways to borrow money when you have bad or no credit.

Secured Loans

Secured loans require borrowers to offer an asset as collateral. This could be a car, a house, or even a savings account. Lenders are more inclined to offer these loans to individuals with poor credit because the collateral reduces the risk involved. In case of default, the lender can seize the asset to recover the money. This type of loan often features lower interest rates and higher borrowing limits, making it a viable option for those with low credit scores who have valuable assets, but it does come with a higher risk to the borrower.

Unsecured Loans

Unsecured loans do not require collateral and are the most common. Instead, lenders assess whether or not to lend to you based on your credit history, income, and debt obligations. Borrowers with low scores who are approved will be given higher interest rates and additional fees to offset the risk of default. The lender may also require proof of income or a co-signer before agreeing to the loan.

Joint Personal Loans

A joint personal loan involves having a co-borrower with a good credit score or higher income. This arrangement can significantly improve the chances of approval and with more favorable terms as it lessens the risk for the lender. The responsibility for repaying the loan is shared between both parties and both parties’ credit scores will be impacted.

Payday Loans

Payday loans are short-term, high-interest bad credit loans designed to bridge the gap until the next payday. They are for small amounts, usually no more than $500, and have few requirements. Lenders typically do not conduct a credit check as they rely instead on the borrower’s next paycheck. Online payday loans might not even require a bank account.

However, they come with extremely high APRs and fees, making them a costly option. Borrowers should be cautious and consider these as a last resort due to the potential for creating a cycle of debt.

Read more about debt.

Credit Card Cash Advances

A credit card cash advance allows you to withdraw cash against your card’s line of credit. This instant access to funds comes at a cost, including a higher APR and additional fees. While not a traditional loan, it’s a quick option for individuals with low scores who already possess a credit card and need immediate cash.

Bank Agreements

Some banks offer short-term loans or overdraft agreements for their customers in good standing, even those with less-than-perfect credit. These agreements can provide a safety net, allowing you to overdraw your account up to a certain limit at a relatively lower interest rate than payday loans. Check with your bank to see if they offer such arrangements as they can be convenient and less costly.

Cash Advance Apps

Technological advancements have introduced cash advance apps like EarnIn and Brigit. These apps provide short-term loans or paycheck advances with minimal fees, no interest, and no credit checks. Cash advance apps often rely on your banking history and income rather than your credit score, making them accessible to almost everyone. The amounts are typically small, up to $500 per advance, designed to cover short-term needs until your next paycheck.

Payday Alternative Loans (PALs)

Offered by some credit unions, Payday Alternative Loans are designed to provide a more affordable alternative to payday loans. To qualify, you’ll usually need to be a member of the credit union for a certain period. PALs offer lower interest rates and fees than traditional payday loans, with longer repayment terms of up to one year and loan amounts go up to $2,000. PALs are an excellent option for borrowers looking to avoid the debt cycle associated payday loans.

How to qualify

Qualifying for a loan depends on multiple factors. Your income, credit score, and debt obligations are the most important. Lenders want to be sure that you can afford to repay the money.

All lenders have different requirements. The basic ones borrowers need to meet for are:

loan applications
  • Be at least 18 years old
  • Be a US citizen or permanent resident
  • Have an active checking account
  • Earn a minimum monthly income of at least $800-$1,000 after taxes
  • Have a phone number
  • Have a valid email address
  • Valid government-issued identification
  • Minimum credit score

Payday lenders are less interested in your score and more interested in your income. They rely on your next paycheck to guarantee the loan. Some payday lenders require that you be at your job for at least 90 days before you apply.

A lot of lenders will approve income from sources besides a regular job. You can include Social Security, disability, alimony, child support, and more on your application.

Derogatory marks that can lead to rejection include bankruptcy, tax liens, foreclosures, and other debt collection. If you have these on your credit report, it may be helpful to wait until they drop off before applying.

When you’re ready to apply, prepare the necessary documentation in advance, such as proof of income, employment verification, and identification, to expedite the application process. Being honest and upfront about your financial situation and needs will also help you find the most suitable loan for you. Remember, while the promise of personal loans for bad credit with guaranteed approval is appealing, it’s essential to review the terms carefully to ensure you can afford it.

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Compare interest rates and repayment terms

When searching for bad credit emergency loans with guaranteed approval, it’s crucial to diligently compare interest rates and repayment terms to ensure you’re getting the best deal possible. Just because it’s an emergency you should not slack off and take the first option. This can lead to paying way more than you should.

Before you take out a loan, understand the full cost and research lenders. The extra leg work can help save you from unforeseen costs, hidden fees, excessive fees and help you choose a loan that aligns with your budget.

General Loan Terms

When you’re looking for a loan it’s important to understand basic terminology so you can fully comprehend what you’re agreeing to.

  1. Loan amount: The amount of money being borrowed
  2. Loan Period: The length of time during which the loan is active. It can vary depending on the type of loan and the agreement between the borrower and the lender.
  3. Amortization: The process of gradually paying off a loan through regular payments that cover both the principal amount and the interest. Over time, the balance decreases until it is fully repaid.
  4. Repayment term: The period of time in which the borrower is expected to repay the loan, including interest and fees.
  5. Interest Rate: The percentage charged by the lender for borrowing the funds. It determines the cost of borrowing and is typically expressed as an annual percentage rate (APR).
  6. Collateral: Secured loans require collateral. Collateral is an asset that the borrower pledges to the lender as security for the loan. If the borrower fails to repay as agreed, the lender may seize the collateral to recover the outstanding balance.
  7. Default: Default occurs when a borrower fails to make payments as agreed. It can result in penalties, fees, and damage to the borrower’s credit score.
  8. Prepayment: Prepayment refers to repaying the money before the scheduled repayment term ends. Some lenders charge prepayment penalties, while others allow borrowers to make extra payments or pay off the loan early without any fees.

Average Personal Loan APR by Credit Score

Interest rates vary a lot depending on your credit score. Generally, the lower your score, the higher your APR. Personal loan interest rates range from 6% to 36% but can go into the triple digits in states that allow it. It’s a good idea to know the average APR range for your credit score so you have a benchmark for comparing loan offers.

Credit ScoreAverage APR
720+7.63% – 16.36%


11.88% – 25.78%


17.80% – 35.57%


18.08% – 51.61%


19.90% – 71.55%


21.10% – 112.28%


28.50% – 152.35%

Less than 560

28.50% – 180.63%

Compare Lender APRs

The annual percentage rate or APR is what financial institutions charge for taking out a loan. It is a comprehensive picture of what your loan will cost.

Not all lenders offer the same APRs, even for borrowers with similar credit profiles. Shop around and compare APRs from multiple lenders to find loan with the most favorable rates.

In general, the lower the APR the better. The exception is that sometimes a lender will offer a low APR but a long repayment period. If you add up how much the loan will cost in total, you may find that the loan offer with a higher APR and shorter repayment period is cheaper. In the end, it all depends on what you can afford to pay each month.

Account for Fees

Interest rates aren’t the only cost associated with poor credit loans. Fees can add up and significantly increase the cost of borrowing. When comparing loan offers, consider these fees in addition to the APR to understand the total potential cost of the loan.

Late Payment Fees 

Lenders charge a fee whenever you miss a payment or make a payment late. The fee is typically 3% to 5% of the overdue monthly payment amount.

Loan Origination Fee 

The origination fee is a processing or administrative fee that lenders stick onto the loan. It is generally 1% to 8% of the total loan amount and will be deducted from the funds before you receive them.

Prepayment Penalty 

If you repay the loan before the repayment term ends and you may be hit with a penalty. Not all lenders charge this fee and very few will do so for a personal loan.

Read Lender Reviews

Lender reputation is paramount. Reading reviews from previous borrowers can provide insight into the lender’s customer service, flexibility, and reliability. Reviews can highlight potential issues or positive experiences with repayment flexibility, which can be crucial for bad credit borrowers.

Examine Repayment Terms

Repayment terms dictate the loan’s lifespan and payment frequency. Some lenders offer flexible payment schedules, while others have strict monthly payment requirements.

Your repayment term can significantly affect the total amount you’ll pay back. Short-term installment loans may have higher monthly payments but lower overall interest, whereas long-term installment loans spread out the payments, potentially making them more manageable but increasing the total interest paid.

Understanding the terms can help you choose a loan that fits your budget and payment ability. Additionally, look for loans that allow for early repayments without penalties, as this can save you on interest over time.

By carefully examining these factors, you can make an informed decision. Aim for a loan that offers a balance between affordable payments, reasonable total cost, and fits your budget.

Where to find bad credit loans

Lenders who approve borrowers with poor scores can be found at a variety of institutions. There are of course traditional banks but more and more lenders have moved online. Do your research, look at more than one financial institution, and make sure the lender is reputable.


Traditionally, banks have stringent approval criteria, often sidelining applicants with bad credit. However, some banks have begun offering specialized loan products aimed at those with poor scores. It’s worth inquiring with banks where you have existing relationships, as some may offer personalized terms based on your banking history or offer secured loan options with more lenient requirements.

Credit Unions

Credit unions are member-owned financial institutions known for their more personalized approach to banking and lending. Many offer special loan products for members no matter their credit score, focusing more on their relationship with the institution and overall financial picture. These loans often come with lower interest rates and more favorable terms than those found elsewhere. Membership in a credit union can be based on your location, employer, or other affiliations, so it’s worth exploring the options available to you.

Online Lenders

The rise of online lending platforms has dramatically changed the loan landscape. Many of these lenders specialize in bad credit loans making borrowing more accessible. They often use alternative data to evaluate candidates such as income, employment status, and if you rent or own. Many offer quick decisions so you can get the money you need fast. These loans often do come with higher interest rates and additional fees compared to ones from traditional banks and credit unions.

MoneyMutual is a marketplace that provides bad credit loans online. Borrowers fill out one application and are connected with direct lenders in MoneyMutual’s network. These lenders offer loans from $100 up to $5,000 and many send funding in as little as 24 hours.

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Tips to consider when applying for bad credit loans with guaranteed approval

It is entirely possible to borrow money with bad credit. There are lenders who cater to every demographic. While you can get a loan with a low score you will end up paying more. It may be worth your while to wait a few months and take the time to work on your credit before taking out a loan. A higher credit score could save you a lot of money.

If it’s time-sensitive and you can’t wait, follow these tips to increase your chances of being approved for loan.

Check Your Credit Score

You need to know your credit score so that you know what lenders you qualify for. There is no point in applying for loans where you don’t meet the basic requirements. You can check your rating at PFM Verify and then get your credit reports from

Your credit report is a record of all borrowing data kept by the three main credit bureaus – Equifax, Experian, and TransUnion. Looking over your reports will help you understand past mistakes (late payments are common) and how you can improve your score (pay on time is the biggest factor).

Seek Lenders Who Consider More Than Scores

Some lenders evaluate more than just your credit score considering income, employment, education level, and banking history. Targeting these lenders can increase your chances of loan approval.

Prequalify for Loans Online

Many lenders let you prequalify for loans. Prequalifying allows you to see if you’re eligible and what terms you’re likely to receive without impacting your credit score. The lender will only do a ‘soft inquiry’ during the prequalification process to see a snapshot of your credit history. Only ‘hard inquiries,’ lower your score.

Prequalifying is a great way to compare offers so that you only apply for the one with the most favorable terms. However, it does not guarantee approval when you do formally apply. You may also be approved with different rates and terms. To decrease the likelihood of that happening, be completely honest and put down all your financial information on your prequalification application.

Compare Loan Offers

Don’t settle for the first offer. Comparing multiple online loans helps you understand the market and find the best terms and rates for your situation. Compare interest rates, lender fee structures, repayment terms, monthly payments, and any extra features to find the best offer.

Submit an Application

Once you’ve chosen a lender, gather all necessary documentation for a smooth application process. This includes identification, proof of income, and any other requirements specified by the lender.

Submitting a formal application will trigger a hard inquiry and temporarily lower your credit score. It should bounce back within a few months and grow once you start making on time payments.

You may have to wait a few days to find out if you are approved. If you are rejected, the lender must send an Adverse Notification Letter telling you of the factors that contributed to your denial. Review the letter and take steps to address the issues before you apply again.

By following these steps, you can increase your chances of obtaining a loan that suits your financial needs and circumstances.

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How to spot scams for bad credit loans

When searching for loans, especially those advertised as “personal loans for bad credit with guaranteed approval,” it’s crucial to remain vigilant to avoid scams. Scammers prey on the desperation of individuals in financial distress, offering false promises of guaranteed funds regardless of your credit score, income, or debt levels. Here are key red flags to watch for:

Upfront Fees: Legitimate lenders do not require payments upfront before approving an application. If you’re asked to pay for “insurance” or “processing” before you receive the money it’s likely a scam. Legitimate lenders will take processing fees, application fees, or origination fees out of the loan upfront – after you’re approved but before they send you the rest of the money.

Lender pressures you to act immediately: Any time it is not a life-threatening emergency and the other person is pressuring you to act immediately it is likely a scam. Proper lenders understand that this is a big decision and you need time to think it over and compare offers. If the lender isn’t giving you that time, run away.

The lender is not registered in your state: All lenders – online or not – must be registered in the state in which they do business. Reputable lenders will note on their site what states they are registered in and which ones they are not. If you’re wondering if a lender is registered where you live, check with your state attorney general’s office.

Their website is not secure: Scammers like to steal information through websites. Do not enter your financial information on just any site. Make sure the website URL has ‘s’ following the ‘http’ and every page that requires personal data has a padlock icon.

No Payment history required: While some lenders offer loans with less of an emphasis credit scores, outright promises of not reviewing your financial data are suspicious – that is unless it’s a payday lender who only needs income information. All reputable lenders will review your financial history to some extent. Most will want to see your payment history, credit score, debt-to-income ratio, and other financial information to verify that you can afford the loan.

Vague Terms and Conditions: Scammers often avoid providing clear details about the loan’s terms, rates, and fees. A legitimate lender is transparent and provides comprehensive details upfront. You should be able to review the interest rate, fees, repayment terms, etc. so that you know exactly what you are agreeing to.

Unsolicited Offers: Be wary of unsolicited offers received via email or phone. Legitimate lenders typically wait for you to initiate contact. This may be a ploy to get your financial information.

Lack of Physical Address: A legitimate lending institution should have a physical address – a post office box does not count. If the lender’s only presence is online and they lack a verifiable physical location, it’s best not to proceed.

By being aware of these warning signs, you can protect yourself from scams and find a legitimate lender who provides loans with lenient requirements.

If you have been scammed, unfortunately, there is not too much law enforcement can do. It is still good to report the crime to your local police department as well as the FTC Internet Crime Complaint Center. This way you can help prevent others from being scammed in the future.

Frequently Asked Questions

Payday loans and credit card cash advances can be considered bad credit personal loans guaranteed approval no credit check due to their extremely lenient requirements. Payday loans do not conduct a credit check and instead, ask for income verification to secure the loan. Credit card cash advances let you take out cash using your credit line that you’ve already been approved for. Both types of no credit check loans come with high-interest rates and fees, making them costly options.

Anyone can apply for a bad credit loan, especially one claiming “guaranteed approval.” The primary audience for loans with guaranteed approval are people with poor scores who do not qualify for traditional loans. Applicants for almost any form of borrowing typically need to demonstrate a stable source of income to prove that they can repay the loan or have a cosigner to increase their chances of approval.

How quickly you get your funds depends on the lender. Many lenders specialize in rapid processing, meaning you could receive the money in your bank account as soon as the next business day. At most, it should three business days to be able to access your funds.

Bottom Line

No matter your situation, you can find a loan. Consider loan marketplaces and online lenders, visit your local credit union, or talk to your bank. Plenty of financial institutions offer loans for poor scores. You may be asked to pay higher interest rates and additional fees but there are reputable lenders who can help. Repay the loan responsibly and you’ll improve your credit score making it easier and cheaper to borrow money in the future.

About the author

Rachel Alulis

Rachel Alulis has been the lead editor for Moneyfor’s credit cards team since 2015 and for the financial rewards team since 2023. Before joining Moneyfor, Rachel worked at USA Today and the Des Moines Register. She then established a successful freelance writing and editing business specializing in personal finance. Rachel holds a bachelor’s degree in journalism and an MBA.