Where can I get a bad credit loan? Caret RightMain Menu Mortgage Mortgages Financing a home purchase Refinancing your existing loan Finding the right lender Additional Resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Bank Banking Compare Accounts Use calculators Get advice Bank reviews Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Credit Card Credit cards Compare by category Compare by credit needed Compare by issuer Get advice Looking for the perfect credit card? Narrow your search with CardMatch Caret RightMain Menu Loan Loans Personal Loans Student Loans Auto Loans Loan calculators Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Invest Investing Best of Brokerages and robo-advisors Learn the basics Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Home Equity Home equity Get the best rates Lender reviews Use calculators Knowledge base Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Loan Home Improvement Real estate Selling a home Buying a home Finding the right agent Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Insurance Insurance Car insurance Homeowners insurance Other insurance Company reviews Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Retirement Retirement Retirement plans & accounts Learn the basics Retirement calculators Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Advertiser Disclosure
Advertiser Disclosure
We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free - so that you can make financial decisions with confidence.
Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Make Money
The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you. SHARE: Ziga Plahutar/Getty Images October 25, 2022 Aylea Wilkins is an editor specializing in personal and home equity loans. She has previously worked for Bankrate editing content about auto, home and life insurance. She has been editing professionally for nearly a decade in a variety of fields with a primary focus on helping people make financial and purchasing decisions with confidence by providing clear and unbiased information. Bankrate logo The Bankrate promise
At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation for how we make money. Bankrate logo The Bankrate promise
Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next. Bankrate follows a strict , so you can trust that we’re putting your interests first. All of our content is authored by and edited by , who ensure everything we publish is objective, accurate and trustworthy. Our loans reporters and editors focus on the points consumers care about most — the different types of lending options, the best rates, the best lenders, how to pay off debt and more — so you can feel confident when investing your money. Bankrate logo Editorial integrity
Bankrate follows a strict , so you can trust that we’re putting your interests first. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. Key Principles
We value your trust. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. Our editors and reporters thoroughly fact-check editorial content to ensure the information you’re reading is accurate. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers. Editorial Independence
Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information. Bankrate logo How we make money
You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. It’s not uncommon to be turned down for a loan from a traditional bank if your credit score is low. Fortunately, Bad credit loans are available through online lenders, select banks and credit unions, payday lenders and title lenders. Some may be a better fit for your finances than others, so it’s vital to understand how they work before applying. Also, consider the pros and cons of each option to ensure you make an informed decision. Online lenders
Several online lenders offer . The application process is generally streamlined, and you could get a lending decision in minutes. If approved, some lenders also offer same or next-day funding. You can also use an online lending network to view and compare offers from several lenders with a single application. Generally, you can see quotes without impacting your credit since it only results in a soft credit pull. Some online lenders also offer pre-qualification tools on their websites that don’t hurt your credit score. But there’s a downside that comes with online lenders. You’ll likely get a high APR if your credit score is low, as you pose an elevated risk to the lender. must also be considered (if applicable) as they account for 1 to 8 percent of the loan amount. Who this is best for: People who prefer to get a loan without having to visit a local branch. Pros Cons Streamlined application process and fast lending decision Same or next-day funding available Steep borrowing costs Loan origination fees (if applicable) Bank or credit union
Traditional banks are also an option to get a bad credit personal loan. However, they may not be the best choice because most lending decisions are based solely on your creditworthiness and income. So, a lower score may equal an automatic denial if it doesn’t meet the minimum threshold. Credit unions are a bit more lenient than banks. They also evaluate credit scores and income when deciding if you’re a good fit for a loan. The upside of working with a credit union is the relationship factor. Credit unions are member-focused, giving you an advantage and possibly helping you get approved, even with a lower credit score. Who this is best for: Banks or credit unions are ideal for borrowers who are also account holders that want to leverage their relationship with the financial institution when seeking approval. Pros Cons Longer wait times for approvals Established account holders could get approved with lower credit scores Stringent qualification criteria Higher APRs than online lenders Payday lenders
Payday lenders offer small short-term loans of up to $500. Even if you have bad credit, these loan products are easy to get approved for, but there’s a significant drawback. You’ll pay a hefty interest rate, often up to 400 percent, and only have a small window to repay what you owe. Many borrowers cannot pay back the loan by the due date, which is typically your next payday. Unfortunately, this leads to even more fees and a perpetual debt cycle that’s practically impossible to escape. So, despite their convenience, these loans should only be used as a last resort. Who this is best for: Borrowers who’ve exhausted all other options. Pros Cons No credit check required Same-day funding Excessive APRs and steep fees Short repayment period Title lenders
Title lenders also cater to borrowers with bad credit scores. Car title loans are installment loans that are relatively easy to qualify for. You’ll make equal monthly payments over a set period of up to six months in most cases. You could also get a slightly lower interest rate than what you’d get with a payday loan. Still, these loans are risky as they use your vehicle as collateral. And if you fall behind on the payments, your car could be seized to recoup what’s owed to the lender. Who this is best for: People who have the means to make timely loan payments. Pros Cons More favorable interest rate than payday loans Easy to qualify for with bad credit Requires collateral to get approved Collateral is at risk for seizure Bottom line
Bad credit loans can help you get out of a financial bind if you can’t secure funding from a traditional bank. They are sometimes more costly, though, depending on the loan product you select. Familiarize yourself with each option along with the benefits and drawbacks it offers, and get quotes from at least three lenders to find the most competitive loan offer. Depending on the loan terms, you could be better off cutting expenses to free up funds, applying for a credit card or borrowing the funds from a relative or friend. SHARE: Aylea Wilkins is an editor specializing in personal and home equity loans. She has previously worked for Bankrate editing content about auto, home and life insurance. She has been editing professionally for nearly a decade in a variety of fields with a primary focus on helping people make financial and purchasing decisions with confidence by providing clear and unbiased information. Related Articles