Getting a short-term loan to finance an expense, cover an emergency, or just to make monthly payments before it is overdue can be a saving grace. But, a problem many borrowers face is that lenders set a minimum loan amount, which can sometimes be in the high four figures.
Therefore, if you only want $500 or so, you will be forced to borrow more than what you require. Extra debt is never recommended because you have to pay interest on it, especially if you have bad credit.
Instead of taking out a big loan, it is better to find a reliable short-term lender. So, to put your mind at ease, we have developed a list of the best organizations that provide short-term loans, despite having a bad credit score.
The Best Short-Term Bad Credit Loans of 2021 [Full Reviews]
MoneyMutual is a leading online lending platform that provides different types of loans in the U.S. It specializes in a wide range of short-term loans, helping people get bad credit loans. With hundreds of customers already using its service, MoneyMutual is on the top of our list.
The different types of loans they offer include payday, short-term, and auto equity, among others. MoneyMutual intends to make getting an online loan easy by providing a hassle-free and safe service.
It is important to note that MoneyMutual acts like a middle man, meaning it only connects borrowers to lenders. It does not give out loans, but it links users to reliable lenders. Due to this, the service they provide is completely free and can be accessed by everyone.
MoneyMutual has been in the industry since 2010 and has created a reliable network of lenders. To apply for a loan, you have to fill out a simple application form that takes five minutes to complete and another five to get approved.
Once MoneyMutual approves the form, you are provided with the information of short-term lenders who can give you a loan.
The eligibility criteria you need to meet to be approved by MoneyMutual is fairly simple:
- Must be 18 years of age or older
- Must have a reliable employment status with a monthly income of at least $800
- Must have an active bank account in your name
- Must have legal proof of identification
- Must have U.S. citizenship
One important thing to remember is that even though MoneyMutual might suggest you to these lenders, it is still a third party. Therefore, they are not liable for any scams or fraudulent deals made between you and the lender. So, it is always recommended to read the terms and conditions thoroughly before signing any contract.
- High Number of Reliable Lenders
MoneyMutual has been linking borrowers and lenders together for over ten years. Over this time, they have added over 60 reliable lenders to their network. They can link you with these lenders through the specific application process based on your credit score, the loan amounts needed, and income status, among other things. Of course, if you are not satisfied with the loan terms, you can always deny it, as there is no obligation from MoneyMutual to accept it.
- Encryption Feature
One aspect of this service is that MoneyMutual proudly talks about the encryption they have on their website. While applying for a loan, users provide a lot of personal and financial information. Therefore, this sensitive information must be safe and secure.
Using Norton’s encryption, MoneyMutual ensures all user data is encrypted and guarantees customers the safety of all of their information.
MoneyMutual prides itself on having transparent business practices with complete clarity in all proceedings. So, they do not charge you any hidden fees throughout the process.
Additionally, all lenders are reliable and open with their dealings with you as well. They highlight some aspects of the contract when finalizing your loan, which include:
- Loan terms
- Interest rate
- Fund amount accepted
- Any fees or extra charges
- Repayment deadline
With all of this information highlighted, there is nothing left to hide by the lender or MoneyMutual.
- OLA Member
MoneyMutual has been an OLA member for quite some time. The Online Lender Alliance is a reputable trade agency that holds several online lenders accountable for following safe practices and proper rules. When a business is part of this association, they are marked to be safe and reliable.
- Short-Term Loans
Due to the wide variety of lenders, MoneyMutual offers its customers loans in a big range. These can be as little as $200 and can go up to $5,000. However, your qualifications and eligibility determine the amount you can get.
Once the loan application is approved, the funds are transferred into your account within 24 hours.
- Wide variety of online lenders
- Free platform and service
- Quick, easy to navigate and user-friendly website
- Norton 256 encryption used to ensure safety of customer data
- OLA member
- Bad credit score loans approved
- Only U.S. citizens can use their services
- Eligibility criteria can restrict some loans from being approved
BadCreditLoans is an online platform that serves users with bad-to-great credit scores. It is another website that assists the loan process by connecting borrowers with lenders, and it provides a quick, hassle-free service, which is completely free.
They are known to give customers loans with amounts ranging from $500 to $10,000. Additionally, they give you a repayment plan that can be easily followed, with the maximum repayment time being 36 months.
These conditions can vary from person to person, and many factors affect them, such as credit score, salary, assets, and many others. The great thing about BadCreditLoans is that they approve applications based on more than just credit scores. Even with bad credit, most of the conditions above stay constant except for the interest rate, which fluctuates according to the market.
Moreover, not only does it help you find a lender, but it also assists with the complicated facts and figures of the loan. This includes a budget regarding how much money you can loan and when you can pay it back. This is a great tool for users, as it allows borrowers to properly analyze their options before choosing one.
To get started, all you need to do is fill in the form on their official website. It will ask you basic questions, like the amount of funds you need, why you need to borrow the amount, and proof of identification, among other things. Once submitted, the form gets approved within minutes, and you can browse through your loan options.
Then, the lender offers you a contract, which you can read and negotiate. Lenders will sometimes further review the form you submit on BadCreditLoans, check the income you get against the amount you wish to borrow, and recommend a different amount that works for both you and the lender. If both parties accept the agreement, the money is transferred within 24 hours.
- Personal Loans
BadCreditLoans allows users to apply for a loan for any personal reason. They can get a personal loan with bad credit for multiple reasons, such as:
- Vehicle repair costs or repayments
- Medical expenses
- Monthly payments of utility bills
- Tax payments
- Relocation costs
- Debt repayments
These are just a few examples, but, overall, BadCreditLoans does not care about how you use the loan as long as you can pay it back.
- Customer Reviews
Although the BBB (Better Business Bureau) has not given BadCreditLoans a rating, it has gained most of its reputation from satisfied customers providing good reviews. In addition, customers have praised the company for having a reliable list of lenders that have great terms and conditions.
Another thing people liked about the company is their quick approval and funding process and the fact it works great in emergencies, when you need a short-term loan quickly.
To apply for a short-term loan with bad credit at BadCreditLoans, you need to be eligible for their application criteria, which includes:
- Being 18 years of age or above
- Having identification of permanent residency or citizenship in the U.S.
- Having a checking account in your name
- Having documents to prove employment status
- Having financial stability
- Safe and Secure Website
BadCreditLoans uses state-of-the-art encryption technology to protect your information in the safest way possible. Additionally, the website guarantees its users the complete safety of their personal and financial credentials and prohibits any type of data leaks.
- 100% free service without any hidden charges
- Over 100 listed lenders available
- Customer service is always available
- Quick and simple process with funds available in less than 24 hours
- Encrypted data makes the website safe and secure
- Users with bad credit scores can only get $1,000 loan amounts
- Requires a lot of information
CashUSA is a safe option to consider while looking for short-term loans with bad credit scores. However, before proceeding further, remember that CashUSA is not a direct lender. Instead, the network provides a platform where you can connect with different lenders.
CashUSA does not charge a fee for its services; so, if you want to incur minimal costs while applying for a loan, CashUSA is the way to go. Lenders at CashUSA charge interest between 5.99% and 35.99%, and the repayment period ranges from 90 days to 72 months. Your lender will decide the interest rate and repayment period for your loan.
If you have a bad credit score, you will be charged with a high interest rate and will be given a shorter repayment period. This is because the lender tries to eliminate as much risk as possible.
The CashUSA website features examples of the loan amount, APR, and the repayment period. So, you can visit the website to get an estimate.
- Easy Online Application
The request-making process at CashUSA is fast and convenient. The online form asks for basic information like your name, address, age, valid phone number, SSN, and bank account details.
Once you are done filling in the form, your application is reviewed and your request is approved in a matter of minutes. After the approval, you will be connected to the lender.
From now on, communication will take place between you and your lender. You can discuss loan terms, APR, repayment period, and any other information you deem important. Do not forget to focus on the terms and conditions, because you will have to follow them for the rest of the tenure.
Then, you can confirm and accept the offer with your lender. Once you do this, the lender will transfer money to your account in less than 24 hours. This is because all transactions are made electronically at CashUSA. So, there is no more waiting for days to receive your loan amount.
- Easy Eligibility Requirements
Eligibility requirements may keep many people from applying for loans. However, they are an important factor, because the requirement ensures you are legitimate and wise enough to make financial decisions. Moreover, the network wants assurance you will pay the loan in the future.
Therefore, CashUSA also has eligibility requirements; however, they are comparatively easier to meet. First, you must be at least 18 years old to qualify for the loan, and you must be a U.S. citizen or a permanent resident of the U.S.
In addition, your monthly income should be at least $1,000 after taxes. However, this does not mean you have to be employed, as you can get a loan even if you are self-employed or receiving any kind of support from the government.
Furthermore, you must have a valid bank account in your name. This is because your lender will transfer funds to this account, and you can use it to repay your loan. However, if you do not have a checking account under your name, the lender cannot transfer funds.
Finally, you must provide a work and home phone number and an email address. Therefore, you should make sure you fulfill these requirements; however, simply being eligible does not mean you will find a lender.
- Secure Platform
- Education Center
Other than just providing loans, CashUSA gives all users access to an education center, which has a good amount of information on various financial topics. They have this education center to better inform users of different financial topics and instruments.
- Easy and quick online application process
- Deals with credible lenders in the industry
- Discloses the APR range and repayment period
- Advanced encryption software used to protect user data
- Must earn a disposable income of at least $1,000 per month
#4. Personal Loans
Personal Loans is another safe and reputable online lending platform that acts as a middleman between borrowers and lenders. It offers a fast and flexible way to connect borrowers to a network of lenders.
Users can choose to get a loan from one of the platform’s networks or from an individual lender, with which Personal Loans provides you. They offer a variety of different types of loans but concentrate on giving out your desired personal loan.
Personal Loans provides users with simple, same-day loans with quick approval, and the best part is they do not look extensively at credit score or credit history. So, if you need quick short-term loans for bad credit, this network is the one for you.
In addition, these loans are all-purpose and can be used for any occasion or need, including monthly payments, emergencies, business startups, and unexpected expenses.
With this company, users have the option of choosing from a wide spectrum of lenders and third-party lenders that Personal Loans has worked with in the past.
Moreover, they have advanced encryption on their site, which ensures all of your personal and financial information is in safe hands.
Additionally, a great feature about Personal Loans is that they are lenient with loan repayments. The company aims to help customers out in every step of the process; therefore, they have a relaxation option that clients are given. If you are running late on a repayment, simply call customer support or the lender directly to set a new date for the repayment.
To be eligible to apply for a loan at Personal Loans, the borrower needs to:
- Be 18 years of age or older
- Be a citizen or permanent resident of the U.S.
- Be financially stable and have a source of income
- Have a social security number
- Have a bank account under their name
These are the platform’s basic criteria, but they might fit you into a different criterion based on your form.
- Customer Service
Personal Loans is very customer-oriented; so, if a user faces any issue, they can simply contact customer service at any time of the day. These agents are helpful and straightforward, and they only take minutes to solve your problem. The website also has a live chat feature that can contact you with them, or you can simply email or call them.
- Easy Application Process
Personal Loans helps people avoid the long process of applying for a loan by providing their customers with simple forms that are easy to navigate and easier to fill. If you need a loan and do not have time to go through the whole process, this agency will work great for you.
Since Personal Loans has several lenders, it is not possible to determine a single APR, as it varies. However, the APR is generally between 6% and 40%, and the specific number depends on many different factors, such as income, credit card history, asset-liability status, and amount of funds needed.
Similarly, the repayment period is also dependent on the lender, as it can vary from 4 months to 72 months. However, you might have to pay the loan much quicker if you opt for short-term loans.
- Easy to navigate and user-friendly website
- Available in all 50 states
- Borrowers can change the repayment deadline or extend it
- Approval within minutes
- Short-term loans for bad credit offered
- Customer support available 24/7
- Bad credit holders may get unfavorable loan offers or may not even be eligible
- Loan amounts cannot exceed $35,000
Factors We Considered in Making This List
We researched a number of companies and considered many factors to determine if they were a good short-term lender for bad credit, including:
- Funding Time: Short-term loans are usually required quickly; so, we chose companies that provide funds within 24 hours or less.
- Annual Percentage Rate (APR): The picks on this list charge low APRs from borrowers compared to their competition.
- Approval Eligibility: By looking for companies that offered bad credit short-term loans, the networks on the list considered financial stability over credit scores when approving loan requests.
- Safety and Privacy: When applying for a loan, a lot of information is given out. Therefore, all of the companies on this list respect your security and privacy.
- Other Charges: The following options act as a bridge, connecting you to lenders, and they do not charge any service fee or initial fees. Additionally, all lenders do not charge any fee other than the loan amount and interest.
Things to Consider Before Accepting a Short-Term Loan
Due to the ever-growing popularity of online lending websites, many fraudulent and fake websites have popped up. So, if you are looking for a short-term loan with a bad credit score, it is important to be careful and look out for these factors:
- Interest Rates
The first thing to consider when getting a loan is the interest rate it offers. These interest rates depend on many factors, such as credit score, loan amount, and the time you take to repay it. Interest rates can range from 3.5% to 30% or even more. A general rule is the better your credit score, the lower interest you will have to pay.
Similarly, the longer you take to repay the loan, the higher the interest rate it will have. So, make sure to compare different loan interests before picking the best one.
- Repayment Conditions
After receiving the funds, you will have to pay back the lender in installments. Depending on your contract, lenders can give repayment times ranging from six months going up to seven years.
Lenders also give borrowers the choice of their repayment method to make the process easier. Having the choice of the payment method will make it more effortless to pay back the loan. Some repayment methods include:
- Automated monthly payments taken out automatically from a checking account
- Check mailing
- Online bank transfer
With multiple fake online lending companies out there, you should always pick an agency with good customer reviews and one that has been in the business for some years. These fake companies go to the extent of faking reviews online; therefore, you should only look at reviews from reliable websites. No matter what company you choose, be it Personal Loans or CashUSA, ensure you read through their customer review section.
- Transfer of Funds
Short-term loans are usually taken out in an emergency or when you need the funds urgently. But if these needs are not fulfilled because of delays in funds, what is the point of paying high interest for a short-term loan?
A safe bet is to opt for MoneyMutual, as they approve your request and transfer the funds within 24 hours of applying.
To fill out an online loan application form, you need to disclose a lot of personal and financial information.
They may ask for information like contact details, address, age, and other personal things. Additionally, they will ask about your financial situation to determine your financial stability, which is usually standard.
FAQs: Bad Credit Loans
Q. What is better for short-term loans, online or in-person?
When you consider taking out a short-term loan that does not have extensive credit checks, look for a company with a quick funding time. Short-term loans are meant to be made available quickly, as they are usually used in emergencies. Therefore, online lending companies are a better choice for borrowers who are looking for quick funds. However, both ways have their benefits.
- Online Loans
These types of lenders are great because they can provide the loan quickly. Online loans are the best option if you want to prioritize instant approval and fast money transfer, because funds are usually disbursed in less than 24 hours after approval. In addition, you can easily use that money via credit card.
If this loan is taken in person, the funding can take a few days to a couple of weeks, which is unreliable and uncertain for people who need funding quickly.
- In-Person Loans
If you choose a regular in-person loan, you get the opportunity to meet the lender and negotiate with them about the terms and conditions of the loan. Moreover, if you know the lenders already, they can give you a low APR and interest rate, as they will already trust you.
Q. What fees can lenders charge on loans?
It is important to know that all of the companies on the list provide their services free of cost. They make money by taking a small commission from the lender after you accept their loan. Only fraudulent online lending companies charge users money for simply linking them with a lender.
While some lenders may charge different fees, many have a standard interest rate. However, again, this varies from lender to lender.
Here are some common fees a lender may charge on a loan:
- Interest Fee
This is the most common type of fee and is charged on almost every loan. It is basically the percentage of profit lenders will make from borrowers.
- Late Payment Charges
When a deal is made with a lender, it is important to uphold both sides of it. Therefore, if you break it and miss a due date, lenders will usually charge a late payment fee or a deadline extension fee.
- Origination Fees
This is the fee borrowers have to pay to cover the cost of making the paperwork. Some lenders might charge this fee, while others do not.
- Prepayment Penalties
If the borrower wants to pay the whole amount early, they are charged a penalty. Usually, the more a loan is drawn out, the more costly it is. Therefore, when borrowers want to pay early, the lender will lose money and, as a result, will charge a penalty fee.
Q. How does credit score affect online short-term loans?
Usually, the first thing regular lenders, like banks or credit unions, see when approving a loan request is the credit score. However, this is not the case for online loans. Although they still look at credit scores before approval, they like to take financial stability more into account.
Online short-term loan lenders consider different factors, such as money in the bank, salary, employment status, and funds needed, before approving a loan. This works out a lot better, as a few bad decisions in the past do not ruin your future financial opportunities.
However, some online lenders do look at credit history and credit score to make a decision. For instance, if you have a low credit score or bad credit history, they might not give you a higher amount of money, or they may just charge you a high interest rate.
When considering borrowing a loan, it is not compulsory to borrow a lump sum amount. Instead, you probably just need a small amount to pay your current bills or make a deadline, so your credit does not drop.
Different lenders cater to these small needs in such situations, but their conditions may vary. Therefore, always choose reliable lenders that cater to your needs.
You can get a good deal on your short-term loan even with bad credit if you do your research and negotiate well. Good luck!