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Top Direct Lenders for Bad Credit Borrowers

BadCredify offers a professional tool for finding the best direct lenders for bad-credit consumers who need payday or installment loans.

We aim to help American consumers with bad credit scores who need quick cash. With us, it is easier to figure out your options, so you can pick something that matches what you need and handle money wisely. We’ll check out some direct lenders that consider people with bad credit. From well-known lending services to new financial tech companies, we’ll spotlight places that try to make borrowing easy and flexible even if you have poor credit.

Best Guaranteed Installment Loans for Bad Credit from Direct Lenders Only

★★★★☆

Lendingtree logo

Est.APR

5.99% – 35.99%

Loan amount

$1,000 – $50,000

Min Score

300


More About

PROS

  • Prequalification for multiple personal loans on single platforms
  • Low minimum interest rates
  • No prepayment penalties
  • Fast funding (same-day direct deposit may be available) 

CONS

  • High maximum interest rates
  • Many additional fees (potential origination fee)
  • No co-borrower permitted

OVERVIEW

LendingTre­e serves as a handy platform for seeking personal loans, allowing borrowers to explore a variety of loan offe­rs simultaneously. Many lenders associated with LendingTree can provide loans swiftly. However, the most suitable personal loan depends on your credit score. This score establishe­s eligibility and influences your interest rate.

WHO IT’S FOR

Borrowers with bad credit scores who want to consolidate debt of up to $50,000 or cover other significant expenses.

WHY WE LIKE IT

LendingTre­e has accreditation from the Be­tter Business Bureau, a non-profit group dedicated to customer safety and trust. The BBB rates LendingTree­ as A+, a symbol of excellence­. The BBB’s decisions are base­d on how a company reacts to customer gripes, truth in marke­ting, and openness about company procedure­s.

COMPANY PERKS

  • No prepayment penalties
  • Loan funds in one business day

FEES

  • Origination fees, prepayment penalties, or other fees may be applicable

REQUIREMENTS

  • Be at least 18 years old
  • Prove your US citizenship or permanent residence
  • Provide your bank account information
  • Show your monthly income (at least $25,000 annually income) by providing pay stubs, tax forms, or bank statements
  • Have fair credit (at least 300)
  • Provide an active email address and phone number

TIME OF RECIEVING FUNDS

One business day (same-day funding available)

Editor’s Thoughts

LendingTree can be a handy tool if you want to shop around for personal loans. It allows you to see what kind of interest rates are out there from various places without having to apply all over the place on your own. Most of their lending partners will want to see a credit score of at least 600, but they do have some options for borrowers with scores as low as 300.

★★★★☆

opploans logo

Est.APR

59% – 160%

Loan amount

$500 – $4,000

Min Score

Not specified


More About

PROS

  • Accepts borrowers with damaged credit
  • Same-day funding is possible
  • No origination, late, or prepayment fees
  • Soft credit checks only
  • Convenient loan minimums

CONS

  • Very high APRs
  • Low maximum loan amounts
  • Suspected of loan term misrepresentation
  • Not available in all states

OVERVIEW

OppLoans is an online loan-finding service with a focus on small personal loans for borrowers with damaged credit. It offers loan amounts between $500 and $4,000 for 9, 12, or 18 months. Emergency assistance is available due to fast funding times. However, the company’s loans come with very high APRs between 59% and 160%. Therefore, we recommend using the service only if there are no other options available.

WHOM IT SUITS

Bad credit borrowers looking for last-resort financing options.

WHY WE CHOOSE IT

OppLoans can help applicants with low credit scores get much-needed financial support and rebuild their credit. It offers fast and accessible loan options that can be a helping hand for people in a tight financial spot.

PERKS OFFERED

  • Almost instant approval decisions
  • Financial education
  • TurnUp program
  • Credit-building opportunities

FEES

  • Origination fees: None
  • Late payment fees: None
  • Prepayment penalties: None
  • Non-sufficient funds fees: May vary by state

ELIGIBILITY REQUIREMENTS

  • Be a U.S. permanent resident
  • Live in a qualifying area
  • Be at least 18 years old
  • Have a valid bank account
  • Provide income confirmation (the income should be received via direct deposit)

FUNDING TIMES

Same-day or next-day funding, depending on the time you apply and get approved.

Editor’s Thoughts

OppLoans offers emergency cash when people are in a tight spot. They don’t do hard credit checks or make you wait weeks for money. It helps desperate people with bad scores get funds fast, even the next day. But you must be careful with them. Rates can hit 160%, which is high, and some customers say they lied about loan terms, too.

★★★★☆

sofi logo

Est.APR

8.99-25.81%

Loan amount

$5,000-100,000

Min Score

None


More About

PROS

  • Low interest rates
  • Co-borrowers are allowed
  • No prepayment penalties
  • Flexible loan amounts
  • Wide repayment terms
  • No origination fee

CONS

  • Good credit is required
  • Late fees might apply
  • No co-signer option available
  • No physical branches

OVERVIEW

SoFi is a financial website that provides unsecured personal loans with a credit score minimum of 680. Personal loans from SoFi are also accessible with a co-borrower with good to outstanding credit. Personal loan candidates must, however, have an adequate income and a modest debt-to-income ratio.

WHO IT’S FOR

Applicants with good to excellent credit scores who want to consolidate debt, make major purchases, and cover significant medical bills.

WHY WE LIKE IT

SoFi does not do credit checks on its customers. Instead, it examines applicants’ whole financial condition. If you take out a credit builder loan, this service reports your on-time payments to the major credit reporting bureaus.

LENDER PERKS

  • No prepayment penalties
  • No origination fees
  • Low interest rates
  • Co-borrower option available

FEES

  • Optional fees (up to 6%)

REQUIREMENTS

  • Be at least 18 years old
  • Prove your US citizenship or permanent residence
  • Provide your bank account information and social security number
  • Show your monthly income by providing pay stubs, tax forms, or bank statements
  • Provide an active email address and phone number

TIME OF RECIEVing FUNDS

One business day

Editor’s Thoughts

SoFi gives people looking for personal loans a good range of options, from $5,000 to $100,000, and payment plans from 2 to 7 years. They also offer some nice extras like career coaching, budgeting help, protection if you lose your job, and discounts. One nice thing is they don’t charge any mandatory fees. However, they may allow you to pay an origination fee of 6% of your loan amount if you want a lower interest rate. This service has minimum credit requirements, so those with low credit may only qualify for co-signer options.

★★★★☆

onemain financial logo

Est.APR

18% – 35.99%

Loan amount

$1,500 – $20,000

Min Score

None


More About

PROS

  • Joint and secured loans are available;
  • Wide range of loan options for low credit;
  • Pre-qualifying doesn’t affect your credit score;
  • Convenient options for debt consolidation.

CONS

  • Relatively high interest rates;
  • Charges origination fees;
  • APRs are not disclosed when pre-qualify.

OVERVIEW

OneMain Financial is a reliable financial service that offers personal loans between $1,500 and $20,000 without minimum credit score requirements. With its joint applications, flexible repayment terms, and soft credit checks for pre-qualifying, it can suit borrowers with bad credit. Interest rates are usually high, though.

WHOM IT SUITS

Borrowers with credit issues who want to avoid predatory lenders.

WHY WE CHOOSE IT

The company offers a wide range of secured, unsecured, and joint loan options with flexible repayment terms. Its personal loans are available to underbanked borrowers.

PERKS OFFERED

  • Direct payment to creditors for debt consolidation;
  • Loan cancellation within 7 days;
  • Fast funding

FEES

  • Origination fees: 1% to 10%, or $25 to $500, depending on the state;
  • Late payment fees: $5 to $30, or 1.5% to 15% of your loan amount;
  • Non-sufficient funds fees: $10 to $50 per payment returned.

ELIGIBILITY REQUIREMENTS

  • At least 18 years also;
  • Permanent US resident;
  • Income confirmation;
  • Valid bank account or debit card.

FUNDING TIMES

Within one business day of approval via a direct deposit. Funding within several hours may be offered if you receive the funds on your debit card.

Editor’s Thoughts

OneMain Financial offers personal loans to Americans in most states but not in Alaska, Arkansas, Connecticut, Massachusetts, Rhode Island, Vermont, or Washington, DC. They have around 1,400 physical locations in 44 states where you can apply. The company’s online loans for bad credit from direct lenders can get pricey, but they may work out if you have lower credit and need short-term assistance.

★★★★☆

netcredit logo

Est.APR

34.00 – 99.99%

Loan amount

$1,000 – $10,000

Min Score

Not specified


More About

PROS

  • Next-day funding
  • No application fees or prepayment penalties
  • Bad credit is accepted
  • Flexible repayment terms
  • Convenient minimum loan amounts

CONS

  • Very high APRs
  • Low loan maximums
  • Origination and late payments fees may be charged
  • Not available in all states

OVERVIEW

NetCredit is an online lending company that specializes in small personal loans and credit lines for bad credit borrowers. The service offers flexible loan amounts and repayment terms and may work for emergencies due to its fast disbursement times. However, interest rates and fees are higher compared to most competitors.

WHOM IT SUITS

Borrowers with bad credit in need of fast cash.

WHY WE CHOOSE IT

NetCredit offers cheaper alternatives to regular personal loans and provides bad credit individuals with more flexibility. Additionally, it has fast funding times and allows borrowers to improve their credit.

PERKS OFFERED

  • The ability to change the due date
  • Refinancing with the same lender in some states
  • Credit-building opportunities

FEES

  • Origination fees: 1% to 5%, depending on your state
  • Cash advance fees: 10%
  • Late payment fees: vary by state
  • Non-sufficient funds fees: None

ELIGIBILITY REQUIREMENTS

  • Be a U.S. permanent resident
  • Live in a qualifying area
  • Be at least 18 years old
  • Have a valid email address
  • Have a valid personal checking account
  • Provide income confirmation

FUNDING TIMES

As soon as the next business day of approval.

Editor’s Thoughts

NetCredit is an online lender that helps out people with bad credit. They’ve got over 16,000 good reviews on Trustpilot. The company offers small loans of up to $10,000 for people with low scores. Their key advantage is they transfer money fast and don’t hit you with application or early repayment fees. But if your credit is bad, you’ll pay high interest. 

BadCredify evaluates lenders based on more than 70 rating criteria, including interest rates, repayment terms, eligibility requirements, fees, consumer experience, affordability, and more. Find out more about our full methodology.

Learn more about our methodology

What are Online Direct Lenders for Bad Credit Consumers?

Online direct lenders are companies that give loans directly to individuals through websites and apps. These places focus on helping people who might not get money from regular banks because of their credit history. Direct lenders for bad credit offer all kinds of loans for people with low scores. Some standard loans are personal, payment, payday, and title loans.

Direct Online Lenders vs. Brokers

A direct lender is the one that lends cash directly to borrowers without any middlemen. They look at loan requests, decide if someone qualifies, and send money to people they approve. Direct lenders are fully involved in the loan process, from making loan decisions to transferring money and collecting payments.

Brokers are different. They connect borrowers and lenders instead of lending themselves. They get information from borrowers and find lenders who might want to work with them. Borrowers sometimes need to pay brokers for their work.

Benefits of Using Direct Loan Providers for Bad Credit

Getting loans directly from lenders that work with bad credit can make some parts of the process easier. You may get approved faster since it’s just between you and them rather than having a middleman. Here are other significant benefits to consider:

  • Easy loan application process. Filling out applications is also more straightforward: shorter forms, more explicit instructions, and fewer chances for mistakes.
  • They have personalized customer care. With a direct lender, you may get more personalized help if you have questions or need to adjust payment dates. They also lay out all their rates, fees, and policies so borrowers know what they’re getting into.
  • Reasonable interest rates compared to brokers. Unlike brokers, direct lenders can offer lower interest rates, as there will be no fees for finding a suitable loan offer.
  • Repayment flexibility. Custom options help people manage payments and avoid defaulting.
  • Credit score improvement. Rebuilding credit happens over time by repaying loans properly. Direct lenders may share positive payment info with credit bureaus.

Disadvantages of Dealing with Direct Lenders That Provide Bad Credit Loans

Direct lenders for bad credit loans can seem convenient but have downsides. Check them below:

  • High-interest rates. Their rates are higher than those on traditional loans. Some lenders also use predatory tactics, like hidden fees or aggressive collection methods, to exploit borrowers’ financial struggles.
  • Collateral or co-signer may be required. Some lenders could require to secure the loan with an asset (valuable object or property) or add a co-signer with a better credit score.
  • Short repayment terms. Some options strain borrowers with shorter terms, which result in higher monthly payments.
  • Potential loan defaults. With borrowers already financially unstable, defaults are more common. It may decrease your credit score.
  • Debt cycle. While quick and easy, loans such lenders offer can trap borrowers in debt cycles through overly burdensome terms and rates.

How to Apply for Bad Credit Loans from a Direct Lender?

Here’s what you should do if you want to apply for a bad credit loan from a direct lender:

  1. Shop around for loan providers. Look for lenders that specialize in bad credit loans. Search online or ask people for recommendations.
  2. Check the eligibility criteria. Before applying, check the lender’s requirements regarding age, income, job status, credit score, etc. to see if you qualify.
  3. Gather any documents lenders require, such as your ID card, pay stubs, and bank statements.
  4. Fill out their application and provide accurate info to avoid issues getting approved and submit it.
  5. Get a loan decision. The lender will review and decide if they can give you the loan.

Prequalify for a Direct Lender for Bad Credit

  • Only personalized offers
  • Reasonable interest rates
  • Flexible repayment terms
get online loans for bad credit from direct lenders

Expert Tip: Choose a lender with a minimum credit score of 300 to increase your approval chances.

Terms & Conditions of Direct Lender Loans for Bad Credit

To get one of these personal loans, you must be over 18, have a valid bank account, and give truthful info when applying. But even if you meet these requirements, it doesn’t mean you’ll get approved. The lender makes that call based on your credit, income, job status, and other factors.

These factors will also determine the loan amounts and interest rates you get. Since these are bad credit loans, the rate is usually higher than that of a standard bank loan because the lender is taking on a more significant risk. The annual percentage rate may reach 35.99% or even higher.

The loan agreement will outline the borrowing terms, such as the total loan amount, repayment period, interest rate, payment schedule, and fees. Lenders may charge an origination fee (up to 10%) when the loan is given out. The amount of this one-time fee will also be disclosed in the loan agreement.

If you’re late on a payment, you may have to pay a late fee—the amount of this penalty will also be in the agreement. Other charges, such as prepayment fines or fees for bounced checks, should also be listed in the loan agreement.

Factors to Consider Before Choosing a Direct Lender

Choosing a direct lender is a big decision that requires thoughtful consideration if you want to make the best choice for your money situation. Here’s a quick rundown of the critical things you’ll want to take a look at as you weigh your options:

  • What’s their interest rate deal? Rates can make a massive difference over a loan’s lifetime, so take a good, hard look at what each lender is advertising. Lower is better, generally, but watch for variability, too.
  • Double-check all the fees. Review the origination charges, application fees, and early repayment penalties. Lenders can get you with hidden costs if you don’t pay attention.
  • Don’t overlook the loan terms, too. Check the repayment timeline, monthly minimums, and options if you hit a rough patch. Longer terms are reasonable because of lower monthly payments, but you’ll pay more. 
  • Verify the lender’s reputation. Read reviews, verify credentials, and check in with consumer protection groups. Aim for transparency and good feedback.

Tips for Getting Approved for Urgent Loans for Bad Credit from a Direct Lender

Getting a loan can be tricky when you need cash fast but have bad credit. Here are some tips to better your chances:

Verify your credit score

Check your credit score to see where you stand and to get a sense of what kind of loan you may actually get approved for. Also, look for any mix-ups that need fixing.

Improve your credit history

Even though improving your history takes some time, it will help you out down the road. Pay your bills on time, pay down high-interest credit card balances, and limit new credit checks to see progress.

Rely on a co-signer

If you have a family member or friend with solid credit, see if they can co-sign the loan. Having a co-signer can make the lender feel better about lending to you, meaning you may get a lower rate or be able to borrow more. 

Shop around for bad credit direct lenders

Look at different lenders – regular banks and online ones for bad credit scores. Compare interest rates and fees to find the best terms for you.

Opt for secured loans

If you’ve got assets like a car or house, consider putting them up for collateral on a secured loan. The lender can take your stuff if you don’t pay, so they’re more likely to approve you even with bad credit.

Prove your steady income

Lenders want to see you’ve got steady money – a job, freelance gigs, government money. Show pay stubs, tax returns, etc., to prove your income. It will help convince them you can handle the payments.

Bottom Line

We’ve proven why going straight to the source for loans can be helpful if your credit isn’t great. Online direct lenders for bad credit (that offer guaranteed approval decisions) can offer many advantages over traditional banks when your credit score is poor.

You’ll usually get approved much faster since online direct lenders can make rules. Unlike third parties, they charge no fees for offering you a loan. Plus, bad credit borrowers are also welcomed. Overall, direct lenders are set up to provide customized solutions to assist people in overcoming money challenges that banks aren’t always able to match.

Accessibility and openness are also major pros of direct loans. By cutting out intermediaries, borrowers can get cash promptly without unnecessary obstacles when unexpected expenses arise. It allows people to handle pressing financial needs immediately instead of waiting around. 

In addition, online direct lenders offer a more personalized approach than big banks. You get more one-on-one attention to address your specific situation. This personal touch, plus a responsibility to lend carefully, helps borrowers gain stability and eventually rebuild their credit over time.

Methodology

BadCredify makes it easy to get a personal loan. We make checking rates from good lenders straightforward without dinging your credit. We review more than a hundred lenders available on the lending market.

We don’t want you to spend useless time searching for suitable lenders. BadCredify provides full information about solid companies, so you don’t do all the research yourself. We review their interest rates, repayment terms, minimum credit score requirements, and other crucial financial information during the application.

FAQs

How do you find direct lenders for bad credit personal loans when no one will approve you?

You can search for them online through BadCredify. We will help you find suitable no-denial payday or installment loans you’ll receive in your bank account from the comfort of your home. Can’t get a personal loan with a guaranteed approval decision from traditional banks? We will find you online lenders that also offer instant funding options.

Why would I not get approved for a payday loan?

Two of the most common reasons are having a low income or bad credit. Lenders also look at your other debt, your job’s solid, whether your applications are filled out, your age, and where you live. Recent bankruptcy or military service can decrease your chances, too.

What are the alternatives if you can’t get a loan?

You can rely on payday alternative loans from credit unions. You can also get financial assistance from government programs or borrow money from friends and family members.

Can I get a secured loan from a bad credit direct lender?

Of course. Providing collateral will decrease the interest rates and show the lender you are less risky. However, not all lenders offer this option.

Where can I find direct lenders for poor credit?

You can find them on our platform. Provide personal details, and we will find you loan providers that match your needs. If you pre-qualify through our website, it won’t affect your credit score.