This is the ultimate guide to getting approved for a personal loan if you have bad credit.
The best part?
We’ll compare loan providers to find you the best bad credit loans with guaranteed instant approval regardless of your credit score or history.
If you need fast cash to consolidate high-interest debt, pay unexpected bills, or finance major purchases but your credit is less than stellar, there are still great loan options for you in 2024 with instant online decisions.
You can get the emergency funds or extra spending ability you need without waiting days or being rejected just because of some mistakes in your past.
Ready to relieve financial stress and get a second chance with fair loan terms? Let’s review the top picks for best bad credit loans so you can get fast cash approval.
Contents
Types of Bad Credit Loans
When researching loans for bad credit, you’ll mainly come across three categories:
1. Personal Loans
Unsecured, fixed-amount loans for consolidating debt, major expenses, or emergencies. Offer fixed monthly payments and terms up to 5 years.
2. Secured Loans
Require an asset like a savings account or vehicle title for collateral. Come with lower rates but risk losing your collateral if payments are missed.
3. Payday Alternative Loans
Smaller loans with term lengths between 1-12 months. There are strict eligibility requirements, but it is valuable for quick cash access.
Whichever loan type you pursue, on-time repayments will positively rebuild your credit over time.
Factors That Improve Bad Credit Loan Approval Odds
Every lender uses a different credit scoring model and criteria when evaluating applicants. But some common factors that can help increase your chances of getting approved for loans for bad credit despite low scores include:
- Higher Income Levels: Lenders want to see if you can afford payments based on provable income. Employed applicants often have better success.
- Lower Debt-to-Income (DTI) Ratio: If less than half your income goes towards existing debts, approval odds increase.
- Collateral Like a Home or Car: Secured loan types factor collateral value heavily, which offsets credit risk.
- Longer Credit Histories: A thin credit file is harder to evaluate, so established histories help even with low scores.
- Recent Positive Payment Histories: It demonstrates responsibility if you’ve made consistent payments lately.
Now that you know what makes for a strong, lousy credit loan applicant, let’s explore this year’s top-rated loan companies offering instant provisional approval decisions.
Best Instant Approval Loans for Bad Credit in 2024
1. Upgrade Personal Loans
- Loans up to $50,000
- Terms from 2 – 5 years
- Soft credit check pre-approvals
- 3.99% – 35.97% APR
Upgrade offers unsecured personal loans with variable APRs starting as low as 3.99% with strong creditworthiness. But they also cater to borrowers rebuilding credit with higher rates. Fees are never charged for prepayments or late payments, and Upgrade utilizes credit reporting technology for instant decisions.
We like Upgrade’s Credit Health feature, which lets you track monthly payments reported to credit bureaus and see your score for free. For transparent loans and tech-focused customer service, Upgrade is a winner.
Fast Application Process
- Check rates through soft credit check without hurting your score
- Fixed rates from 3.99% to 35.97% APR
- Loan decision in seconds
Perks
- Loans from $1,000 to $50,000
- View payments reported to credit bureaus
- Credit Health helps monitor and build your score
2. Payoff Personal Loans
- Loans up to $45,000
- Terms from 2-5 years
- Soft pull pre qualification is available
- Rates from 5.94% – 29.99% APR
Payoff understands that life happens, and sometimes, your credit score drops unexpectedly. Their loan product doesn’t penalize borrowers for rebuilding credit with exorbitant rates or fees.
You can easily verify your rates and loan options through a soft credit inquiry without impacting your score. Payoff’s 2019 PROMISE principles ensure they only lend amounts borrowers can truly afford to repay. Ultimately, it will help you focus on improving your financial health.
Fast Application & Approval Process
- Fixed rates from 5.99% – 29.99% APR
- Loans amount up to $45,000
- Funds are delivered as fast as the next business day
Perks
- 90-day satisfaction guarantee
- No origination, prepayment, or late fees
- Free FICO score access
3. LendingPoint Personal Loans
- Loans up to $25,000
- Terms up to 36 or 60 months
- Instant decisions and funding
- 15.49%–34.99% APR
LendingPoint is the go-to place for high-quality personal loans for near-prime and prime borrowers, thanks to its predictive analytics and machine learning algorithms. Applicants receive instant decisions, and funding is often available before the next business day.
With loans up to $25,000 and terms from 2 to 5 years, their products offer a balance transfer option and multiple ways to receive or repay your loan. While rates aren’t the lowest, prequalification won’t affect your credit score. Overall, they promote lending inclusivity for borrowers across all credit tiers.
Fast Application & Decision Process
- Fixed rates from 15.49% – 34.99% APR
- Apply and get a decision in minutes
- Receive funds as soon as the next day
Perks
- Loans up to $25,000
- Flexible terms from 2 – 5 years
- Multiple repayment methods
4. Avant Personal Loans
- Loans up to $46,000
- Terms from 2 – 5 years
- Encrypted online platform
- Rates from 9.99% – 35.99% APR
Backed by a core belief that alternatives to predatory lending must exist, Avant offers personal installment loans for near-prime applicants. Amounts range from $2,000 to $46,000, which borrowers have 2 to 5 years to repay alongside transparent fixed interest rates.
Avant’s online platform utilizes bank-level security encryption and discretion for applications. Using risk-based pricing, they aim to provide reasonably priced loans based on individual applicant profiles. While borrowers across the credit spectrum may be approved, strong recent payment histories help. We appreciate their focus on trust and transparency when catering to poorer credit borrowers trying to bounce back.
Fast Application & Provisional Decision Process
- Fixed interest rates from 9.95% – 35.99% APR
- Apply online in minutes for an instant decision
- Receive funds as soon as the next day
Perks
- Loans from $2,000 to $46,000
- Terms from 24 – 60 months
- Zero prepayment penalties
5. CashUSA Loans
CashUSA is a loan marketplace connecting borrowers to lenders offering personal loans, cash advances, and other fast funding options. Those with bad credit can complete a single form to view offers from the extensive lender network.
Loan decisions and funding timeframes vary by individual lender, but the lengths range from 90 days to 72 months. Through CashUSA, borrowers can compare multiple offers side-by-side without filling out numerous applications that hurt their credit.
They make finding, comparing, and narrowing down competitive loan options seamless. Be sure to carefully vet lender terms, legitimacy, and funding time guarantees before committing to avoid predatory contracts. As an intermediary platform, CashUSA itself doesn’t broker loans.
Fast Application & Offer Process
- Fill out one form, view multiple offers
- Directly compare loan details and lenders
- Funding is dependent on the chosen lender
Perks
- Get offers from $500 up to $35k
- The network includes state and tribal lenders
- Loan decision speed varies
6. Citi Secured Credit Card
- Credit limits equal security deposit ($200-$10k)
- No annual fee, 25% refund after 18 months
Rather than loans, bad credit consumers wanting to rebuild smartly also have secured credit card options like Citi Secured. It requires refundable security deposits from $200 to $4,900, which become your credit limits.
What sets it apart from other secured cards is that after 18 consecutive on-time monthly payments, 25% of your initial security deposit will be refunded. There are also no annual fees, which helps users avoid unnecessary costs when rebuilding credit responsibly. It’s an excellent entry point for establishing positive payment histories.
Fast Application & Approval Process
- Refundable deposits from $200 – $4,900
- Instant access to credit line equaling deposit
- Required deposit fully refundable
Perks
- There is no annual fee and no refund after 18 months
- Accessible web and mobile account access
- Make purchases worldwide plus balance transfers
7. OneMain Financial Loans
- Loans up to $20,000
- Terms from 24-60 months
- Available in 48 states
- Rates start at 18%
OneMain Financial positions itself as understanding life’s uncertainties, which often negatively impact credit through little fault of your own- their secured loan offerings back that mission up.
With branches nationwide, OneMain remains one of the largest lenders offering bad credit loans with disciplined underwriting models to promote lending inclusivity. Applicants need income to cover loan payments and the ability to pledge assets worth more than the loan value as collateral. This improves the chances for applicants with credit scores below 600 to get approved and rebuild responsibly.
Fast Application & Approval Process
- Secured loan amounts from $1,500 to $20,000
- Fixed interest rates starting at 18.00%
- Apply online or at 1,700+ OneMain branches
Perks
- Fast approvals and funding
- No prepayment penalties
- Opportunity to build credit history
8. NetCredit Personal Loans
- Loans up to $10,000
- Terms from 16 months to 48 months
- Encrypted online platform
- 34.96% Fixed APR
Our top pick list is NetCredit, which has nearly two decades of lending experience catering to non-prime borrowers with simpler application hurdles. Applicants need a source of income, an open checking account, and a steady employment history. Decisions are fast, thanks to scoring algorithms assessing lending risks.
Once approved, funds hit checking accounts by the next business day, so NetCredit offers valued expediency. We also appreciate their ample educational resources assisting borrowers with improving long-term money management and financial literacy skills. Rates are steep, starting at 34.98%, but prequalification and prepayments are penalty-free if you can pay off balances early.
Fast Application and Approval Process
- Fixed 34.98% APR
- Prequalification only soft credit check
- Decisions in minutes, funds within one day
Perks
- Loans from $300 up to $10k
- Terms from 16 to 48 months
- No origination or prepayment fees
What Is Considered a “Bad” Credit Score?
Before applying for the best loans for bad credit, it helps to understand what most lenders consider “poor” credit. The most commonly used FICO and VantageScore ratings classify credit scores by tier, which dictates eligibility and loan terms:
- 800-850 = Exceptional
- 740-799 = Very Good
- 670-739 = Good
- 580-669 = Fair
- 300-579 = Very Poor
Unfortunately, those with credit scores below 580 will have the most difficulty securing affordable financing rates. While scores don’t solely dictate approval odds, they give lenders critical insight into your borrowing and repayment history and play a major role.
8 Tips for Getting Approved Fast for Bad Credit Loans
Because credit scores heavily influence lending decisions, here are proactive steps you can take to potentially improve your approval chances when applying for loans with bad credit:
- Maintain reliable income sources lenders can verify
- Build longer credit histories despite lower scores
- Make monthly payments on existing debts on time
- Pay down balances below 50% of limits
- Apply for secured loan products requiring collateral
- Bring down debt-to-income ratio as much as possible
- Consider applying with a creditworthy cosigner
- Pre-qualify to identify likely eligibility beforehand
The Bottom Line
Recovering from bad credit setbacks takes diligence and commitment, but getting approved for affordable financing offers hope. We recommend any instant approval of bad credit loans and lenders profiled above as top-notch options this year for urgent borrowing needs.
Remember to carefully compare all terms before signing contracts and leverage tools like prequalification to secure offers that match your situation. Maintain on-time payments moving forward to witness your credit health rebound month after month. You’ve got this!