Personal loans typically charge interest in the form of APR, which is the “annual percentage rate.” In simple terms, APR is the interest rate you will pay for a whole year. APR sometimes also includes fees you must pay to receive the loan, such as closing costs or origination fees.
Bad credit loan rates are typically higher than the interest rates for traditional personal loans. This is because lenders typically raise interest and charge a higher origination fee if they see you as a financial risk. However, some personal loan lenders have lower APR than others.
The bad credit lenders we added to our list all charge fair APR, making them accessible for a wide range of borrowers. Some of these lenders charge as low as 5%, which is lower than the average loan APR for personal loans.
Speed of Funds
Personal loans are notorious for getting money into your bank account quickly. If a bad credit personal loan requires several weeks of processing time before you receive your loan, you may not gain access to the money when you need it, making the loan useless.
Speed of funds was one of the most important aspects we considered when determining the best loans for bad credit. Each of the loan options on our list comes with a fast online application process and can allow you to receive your loan amount within a few business days. Often, you can see your funds in your account within one day after your application goes through.
Sometimes, personal loan companies require you to go through an extensive application process and provide several pieces of evidence to submit your application. Unfortunately, if you have a bad credit score, you may need to apply to several lenders before gaining approval. Filling out several lengthy applications will take a significant amount of time.
As a result, we searched for lenders with short, easy applications. All of the lenders on our list only require you to fill out a few pages of information and advertise that their applications take just a few minutes to complete.
Additionally, because most of these lenders guarantee approval if you meet their eligibility requirements, you won’t need to worry about filling out multiple applications to receive your personal loan. If you want to save even more time, you can apply through one of the lending platforms on our list that connects borrowers to multiple lenders.
The modern lending industry has made it incredibly easy to take out a personal loan. Even if you have a bad credit score, you can apply for numerous personal loans right from your computer or mobile device, receive fast approval, and see your loan proceeds in your bank account within days. You don’t even need to visit a bank or credit union to take out these loans.
While every bad credit loan company can determine its own lending process, you can typically follow this process to get an online loan with bad credit:
Fill out the application on the lender’s website: Typically, you will need to specify your desired loan amount, your purpose for the loan, your monthly or yearly income, and your credit score as part of your application.
Await loan approval: Once you submit your application, the lender will review your information and determine whether you meet its requirements. Most lenders also perform a hard credit check, which may lower your credit score by a few points. This step typically takes a few days at most.
Review your terms: Once the lender sends you an offer, we recommend reviewing the APR, loan duration, origination fees, monthly payments, and penalties closely before accepting the offer.