Unsecured Loans for Bad Credit: 4 Fast Funding Lenders

Unsecured loans for bad credit can be funded from online direct lenders in 1 business day. You no longer have search from one bank to another for unsecured loans for bad credit.

Fortunately, some online direct lenders cater specifically to people with bad credit. These companies have more flexible requirements than banks and take into consideration more factors than just your credit scores.

Bad credit can make it difficult to get any kind of loan. But with online lenders borrowers can expect more than a one-size-fits-all loan that traditional banks offer.

Online lenders look at your ability to repay the loan and at your broader financial picture—not just your credit score—to determine your eligibility. Some of the factors considered are:

  • Overall financial commitments
  • Bank account history
  • Employment history
  • Ability to repay

People with bad credit have options

With bad credit, it’s important to understand that your options are limited, but there are acceptable solutions. There are two basic types of bad credit loans: secured and unsecured.

Unsecured bad credit loans means that borrowers sign a contract and promise to repay their loan according to the terms and conditions. If a borrower defaults on an unsecured loan, the lender may pursue collection of the money owed through a collections agency or through court legal action.

Secured bad credit loans require borrowers use a valuable item—like a car, a home, or jewelry as collateral to “secure” the loan. This means that if a borrower is unable to repay the loan, the lender is legally allowed to seize the collateral and sell it to recoup their losses.

How online lenders can approve unsecured loans for bad credit

You can get a loan with bad credit but it’s harder to get lower rates. Expect to pay higher interest rates with unsecured loans for bad credit. Lenders off-set potential losses with higher rate loans when making unsecured loans for bad credit.

Online lenders consider basic factors:

  • Considers your ability to repay. Your ability to afford your loan is the single most important factor most lenders consider.
  • Verifiable income. Online lenders will verify your income, look at your bank statements, and verify your sources of income.
  • Performs a soft credit check. Online lenders checks your credit without impacting your credit score with soft pulls. Traditional banks hard pull your credit reports. When a hard credit check is run, it can remain on your credit report for up to two years and take several points away from your credit scores.
  • Flexible terms and repayment plans. When seeking unsecured loans for bad credit bad credit loan, online lenders can offer longer terms which generally translate into lower monthly payments, and a more affordable loan that borrowers will be able to repay.
  • Build a positive credit history. Online lenders that offer unsecured loans for bad credit will report payments to the major credit bureaus that can help improve your credit score over time.

What is the process to get prequalified?

Each lender will have its own qualification process but some common steps are:

  • Step 1: You complete a short application that includes your name and some basic information about your income and financial situation, amount you want to borrow and perhaps what you plan to use the money for, i.e. debt consolidation, emergency, repairs, etc.
  • Step 2: The lender soft pulls your credit which does not impact your credit scores.
  • Step 3: If you prequalify for the loan, the lender will give you a preliminary offer that includes the possible interest rate, loan amount, estimated monthly payment and other terms. Keep in mind that this offer isn’t a final loan approval, so the rate and terms could change.

5 Unsecured Loans for Bad Credit

Loan #1: OppLoans

OppLoans is a direct online lender offering loans up to $5,000 for people with bad credit. OppLoans does not require a minimum credit score to apply. Borrowers should have a regular income that is direct deposited into a traditional bank account. This is a very easy loan to qualify for.

Loan Details

  • Loan amounts range from $1,000 to $5,000
  • No prepayment penalties
  • Loan terms up to 60 months
  • 350 minimum score required
  • Payments reported to credit bureaus

[us_btn text=”Apply Now” link=”url:https%3A%2F%2Frebuildcreditscores.com%2FOppLoans|||” icon=”fa-lock”]

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Loan #2: LendYou

LendYou offers unsecured installment loans to customers with bad credit. LendYou will typically provide a credit approval decision instantly and fund the loan within 1 business day. Borrowers should have a minimum FICO Score of 350.

Loan Details

  • Loan amounts up to $5,000
  • Rates depend on your credit score and state of residency
  • No prepayment penalties
  • Loan terms up to 36 months
  • 350 minimum score required
  • Applicants must have an active and valid checking account

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Loan #3: BlueTrust

loans-for-horrible-credit

Blue Trust Loans has higher interest rates but with the option to borrow more money at longer repayment terms. Blue Trust Loans is higher because they are one of the few direct lenders that offer loans to people with bad credit. If approved your loan will be deposited as soon as the next business day.

Loan Details

  • Loan amounts up to $2,000
  • No prepayment penalties
  • Loan terms up to 6 months
  • No minimum score required
  • You can pay-off the loan debt before its official due date with no penalty fee.
  • Have a checking account in your name.

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Loan #4: BadCreditLoans.org

BadCreditLoans.org has been helping people with bad credit secure loans since 1998. Get an instant decision for loan amounts up to $5,000. Loans can be funded as soon as the next business day. Borrowers should have a minimum FICO Score of 500.

Loan Details

  • Loan amounts up to $5,000
  • No prepayment penalties
  • Loan terms up to 48 months
  • 500 minimum score required
  • Payments reported to credit bureaus
  • Available in ALL States

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Taking out a bad credit loan is a major decision. You may have bad credit today, but it can get better. Make your payments on-time to improve your credit scores. If possible, paying your loan off early stops will save you money because you no longer have to pay the high interest.

 

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