Can You Get an Online Loan with Bad Credit?

Learn how to get an online loan with bad credit. Find out what options are available and tips on how to improve your chances of approval.

Can You Get an Online Loan with Bad Credit?

Are you looking for a loan but have bad credit? You may be wondering if it's possible to get an online loan with bad credit. The answer is yes, it is possible to receive a personal loan online from banks, online lenders, or credit unions without any collateral and be eligible for lower rates. These unsecured loans do not require collateral, unlike a secured loan which requires some form of collateral or security. The borrower's ability to repay the loan and credit stability are factors in the decision on a loan.

There are some lenders that offer unsecured loans for bad credit, including Avant, FreedomPlus, and LendingPoint. However, these lenders have credit rating requirements that are close to the upper limit of the bad credit range, so not everyone with bad credit will be able to qualify. An alternative place to get an unsecured loan with bad credit is a credit union, as credit unions may be less stringent on approval requirements than banks or online lenders. You can also apply for payday loans online with your smartphone, tablet or computer.

These online loans are frequently used to cover unexpected expenses and are usually repaid on the next payday of the borrower. Some states allow loan extensions. If you are comfortable with it, ask family and friends for a loan through loan circles or a loan agreement. Upstart personal loans can be used for many purposes, such as debt consolidation, home improvement, medical costs and other major expenses. If approved, the actual rate and loan amount a customer qualifies for may vary depending on the credit determination and other factors. You can also consider installment loans, which are repaid over time rather than all at once.

This makes them more affordable than payday loans. All of these companies are direct lenders because they provide loan funds directly to their customers, rather than simply matching them with other lenders. Another option is title loans, where you use your car title as collateral in exchange for a loan. You can then repay the title loan through repayments (depending on the schedule offered by the borrower) and get your title released. If you have poor credit, you will also be concerned that you will have a credit check performed while you apply for a loan.

To get an idea of how paying a loan will affect your particular credit rating, try WalletHub's free credit rating simulator. Hanneh Bareham specializes in all things student loans and helps you fund your next education effort. If you're ready to start applying for installment loans, you can use WalletHub's prequalification tool to see your probabilities of approval and what rates are available to you.