Need money, need it fast, and have poor credit? You’re not alone. For many people going the traditional borrowing route, via a bank, is just not an option. For whatever reason you may need a combination of bad credit personal loans, guaranteed approval & direct lenders.
You’re in luck because there a lot of borrowers just like you. Borrowers who need money quickly and who will reliably pay back their loans despite a patchy credit history. That’s why many brokers and direct lenders offer loans for applicants with bad credit. Let’s take a look.
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Yes, almost anyone can qualify for a loan, but most lenders are profit-driven and will only lend to you if you present an acceptable credit risk and if the lender charges sufficient interest to cover costs and to compensate for the risk of default.
In easy terms: you won’t be able to borrow if, for example, you were just declared bankrupt. Yet adverse credit history such as missed payments and defaults does not necessarily mean you cannot borrow. On the flipside bad credit will almost always mean that you are charged high interest rates on any loans you take out.
It is hard to go through life and maintain a perfect credit history at the same time. Tough months and unexpected expenses make it difficult to meet obligations month in, month out. That’s why a lot of people have a poor credit history. Thankfully that does not prevent you from taking out a loan. You can even borrow directly from a first-rate lender. Here are your options.
- Rainy Day Lending app. Finally, Rainy Day Lending is a solid option if you need a loan urgently. Rainy Day does not issue loans directly, but its loan matching and approval service can be very quick. In fact, with Rainy Day Lending you can have funds in your bank account as soon as the next business day. Borrow as little as $100 or as much as $2,500.
- Avant app. Looking to borrow directly from a lender? Consider Avant where you can borrow anything from $2,000 through to $35,000. You need a reasonable credit score of at least 580 to qualify but that still means many people with imperfect credit histories will be able to borrow from Avant. Expect higher APRs if your credit history contains missed payments or defaults.
- CashUSA app. For larger loans of up to $10,000 and over consider CashUSA, though you can borrow as little as $500. The company will evaluate your application and connect you to a suitable lender. A wide range of loans are on offer, including loans with terms as short as 90 days and loans with terms as long as 72 months.
- FasterFunds app. Want to apply with a lot of lenders in one go? FasterFunds is a good option as it matches your application with a range of lenders looking for customers with your borrowing profile. You can borrow between $500 and $3,000 with FasterFunds, perfect for an urgent financial need.
- LendUp app. Another direct lender, LendUp is known for charging triple-digit APRs, making it an expensive option. But a high APR could be a suitable option if your alternatives, such as missing an important bill, are worse. LendUp will consider you if you have a poor credit score and could be a good option if you are in a financial emergency.
It would be fantastic if you could get guaranteed approval for a $5,000 loan wouldn’t it? Unfortunately, the concept of a guaranteed approval loan is a myth. Simply put, no financial institution will guarantee to issue a $5,000 loan to you without first checking your creditworthiness. Any lender that simply hands out $5,000 with no checks in place will soon face financial difficulties.
That does not mean you do not have a chance of getting a $5,000 loan. Even with bad credit you can still borrow $5,000 via a lender that is friendly towards applicants with less than perfect credit, such as the Avant app. Just don’t expect a guaranteed loan, instead expect to follow through the standard loan application process, including a credit check.
It can be hard to tell the difference between providers that lend to you directly and providers that act as a broker. Look carefully at the provider website: is it clear that the app issues loans directly, or is there language that implies your application will be run past several lenders in order to find a match?
Just because an app acts as a broker and not as a lender should not deter you from using it. In fact, the ability of a broker to run your application past a lot of lenders may improve your chances of getting a good deal. The Rainy Day Lending app, for example, connects you with up to 50 lenders. Using a broker may also mean that you have a greater chance of being approved for a loan.