Getting Personal Loan with a Bad Credit - All You Need To Know

If you find yourself with little or no credit score, getting personal loans may be tough. Here's all you need to know along with your best options! | Get Simple Direct Blog

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By Ben Harper

Table of Contents

Part 1: Getting an Urgent Loan with Bad Credit

Part 2: Loans With No Credit History

Personal Loan Options for Bad Credits

Lending Partner APR Loan Amount
Upstart Personal Loans by SimpleDirect 9.99 - 35.99% $1k - $35k Apply Now
Avant Personal Loans by SimpleDirect 9.99 - 35.99% $2k - $35k Apply Now
SoFi Personal Loans by SimpleDirect 5.99 - 16.19% $5k - $100k Apply Now
Prosper Personal Loans by SimpleDirect 7.95 - 35.99% $1k - $35k Apply Now

Part 1: Getting an Urgent Loan with Bad Credit

Facing a financial emergency is one of the scariest things to experience as an adult. If you don’t have an emergency fund to fall back on or even a credit card to use, it can make the emergency itself seem even scarier.

If this happens, you may need an emergency loan. It’s not as hard as you think to get urgent loans with bad credit – you may even be able to get one funded in as little as one day.

Getting an urgent Personal Loan with a Bad Credit

Steps to get Urgent Loans with Bad Credit

With a few simple steps, you can have a variety of urgent loans with bad credit available to you.

1. Gather proof of your income

Lenders need to see you have the income to repay the loan. You’ll need your paystubs covering the last 30 days, the last 2 years W-2s, and a copy of your tax returns (if you’re self-employed or work on commission).

2. Provide proof of your identity

Lenders need to make sure you are who you say you are. Provide a copy of your driver’s license or state ID and a copy of a utility bill or any other bill with your address.

One of the steps to get an urgent loan with bad credit score is to provide proof of your identity.

3. Provide a reason you need the funds

Since this is an urgent or emergency loan, lenders want to know why you need the money. Is it a one-time occurrence or is this ongoing? If it’s a one-off event, they’ll feel better about loaning you the money to bail you out of the situation.

Do Urgent Loan Lenders Usually Pull Credits?

For many urgent personal loan lenders, they usually use a "soft-pull" when you are applying, which will pull your credit but will not impact your credit score. You can usually find related information on credit pulls on the lender's website.

If you are considering checking your rates on the SimpleDirect platform, the good news is SimpleDirect does not pull your credit. It gives you available options based on the information you provide and gives you options in seconds, without impacting your credit.

Check your rates - no impact on credit score

Lending Partner APR Loan Amount
SimpleDirect Personal Loans 5.99 - 35.99% $1k - $50k Apply Now

Are Urgent Loan Lenders Payday Loan Lenders?

Not the ones you see here on SimpleDirect. SimpleDirect works with lending partners that offer personal loans that are paid back through fixed monthly payments.

You should always consider payday loan alternatives such as the lending partners SimpleDirect works with, before selecting payday loan, which typically has a very high interest and short payback window.

Urgent loans with bad credit - are urgent loan lenders payday loan lenders?

Who Provides Urgent Loans with Bad Credit?

It’s easy to find lenders today that offer urgent loans with bad credit as there are many more today than ever.

Our top choices include:

Upstart – Urgent Loans with High Limits

You need at least a 600 credit score to get an emergency loan from Upstart, but they also have the highest loan limits.

Upstart personal loans: Upstart provides personal loans with high limits

Upstart offers loans between $1,000 - $50,000 and APRs from 6.18% - 35.99%. Upstart considers ‘other’ data rather than just your income. They look at your education, job potential, and where you live when determining if you qualify for a loan.

Upstart personal loans

Lending Partner APR Loan Amount
Personal Loans Options from Upstart by SimpleDirect 9.99 - 35.99% $1k - $35k Apply Now

SoFi– Urgent Loans with High Limits

You need at least a 680 credit score to get an emergency loan from SoFi, but they also have the highest loan limits.

sofi personal loans options - SoFi provides urgent personal loans with high limits

SoFi offers loans between $1,000 - $100,000 and APRs from 5.99% - 21.99%. SoFi considers ‘other’ data rather than just your income. They look at your education, job potential, and where you live when determining if you qualify for a loan.

SoFi personal loans options

Lending Partner APR Loan Amount
Personal Loans with Bad Credit by SoFi 5.99 - 16.19% $5k - $100k Apply Now

One Main Financial – Urgent Loans with no Credit Score Minimum

One Main Financial doesn’t have a minimum credit score requirement, so if you have ‘really bad’ credit, it’s a great option. You’ll pay higher APRs and an origination fee to get it, but it will help you fund your emergency with ease.

One Main Financials’ APRs range from 18% - 35.99% and they’ll loan $1,500 - $20,000.

Rocket Loans – Urgent Loans with Fast Funding

Emergencies usually mean you need the money now. Traditional lenders take days or even weeks to fund loans and even some urgent loans take a few days. Rocket Loans, however, funds loans in as little as one business day.

Borrowers need at least a 580 credit score with Rocket Loans, but you may borrow between $2,000 - $45,000 with APRs ranging from 7.16% - 29.99%.

How to Choose Urgent Loans with Bad Credit

You have many options for urgent loans with bad credit. Our top three choices are just a selection of what’s available. So how do you choose?

Popular Personal Loan Options in US

Lending Partner APR Loan Amount
Upstart Personal Loans by SimpleDirect 9.99 - 35.99% $1k - $35k Apply Now
Avant Personal Loans by SimpleDirect 9.99 - 35.99% $2k - $35k Apply Now
SoFi Personal Loans by SimpleDirect 5.99 - 16.19% $5k - $100k Apply Now
Prosper Personal Loans by SimpleDirect 7.95 - 35.99% $1k - $35k Apply Now

Questions to ask yourself:

What do you need?

Why do you need the funds? Do you need them immediately? Do you need a high loan amount? The answers to these questions will narrow down your options.

What can you afford?

Each lender charges different APRs and origination fees. If there is an origination fee it comes out of the loan proceeds. For example, if you borrow $5,000 and there’s a $500 origination fee, you’d receive $4,500 in hand.

How fast you can repay it?

Each loan has a different repayment period ranging from 2 to 5 years in most cases. The shorter the loan term, the lower the APR, but the higher the payment. Make sure you take a loan you can afford.

Consider how fast can you repay your urgent personal loan if you have a bad credit

Alternatives to Urgent Loans with Bad Credit

If you don’t want the expense of urgent loans with bad credit, here are a few alternatives:

A) Credit card

If you have a credit card with an open balance, you may be able to charge the emergency and pay it back as you can. Credit cards only have minimum payment requirements but do accrue interest daily.

personal loan near me, credit cards is one of the alternatives for an urgent personal loans

B) Ask your employer for a loan

Some employers offer emergency loans, aka cash advances on your paycheck. If you’re comfortable talking to your employer, it may be a good option.

C) Save an emergency fund

As soon as you can, start putting money away for emergencies. Even if it’s only a few dollars at a time, every little bit adds up.

Getting urgent loans with bad credit isn’t as hard as it seems. Make sure you know the loan terms, what it will cost, and how you’ll repay it. They can alleviate the stress the emergency caused and make it easier to start fresh.

Part 2: Loans With No Credit History

Best Personal Loan Options for Applicants with Little or No Credit History

Lending Partner APR Loan Amount
Upstart Personal Loans by SimpleDirect 9.99 - 35.99% $1k - $35k Apply Now
Avant Personal Loans by SimpleDirect 9.99 - 35.99% $2k - $35k Apply Now
SoFi Personal Loans by SimpleDirect 5.99 - 16.19% $5k - $100k Apply Now
Prosper Personal Loans by SimpleDirect 7.95 - 35.99% $1k - $35k Apply Now

You need a credit history to get a loan, but you can’t get a credit history before having a loan. It’s a double-edged sword! Where do you start?

It seems impossible. What lender will give you credit if you don’t have any credit? There are lenders out there that will provide a first-time loan with no credit history, you just have to know where to look and how you can qualify.

Qualifying for a First-Time Loan with no Credit History

You’ll need a personal loan with no credit check. They exist, you’ll just pay a higher APR and/or origination fees. Here’s where to start:

1. Credit union

Many credit unions offer no credit check loans. While your loan amount will be limited, usually to $5,000, it’s a start. The application process is simple and the fees are typically low. Today there are many credit unions anyone can belong to, whether you live in a specific area, belong to a specific community, or work for a certain company.

2. Find a co-signer

The right person going onto the loan with you can make a world of difference. Find a family member with good credit who doesn’t mind being on the loan with you. Just make sure you can make good on the debt or you may ruin your relationship as the co-signer is legally liable for the loan if you default.

For a first-time borrowers, you can find a co-signer or co-borrower to increase your chances of being approved.

3. Look for a secured loan

Some banks offer secured personal loans. The collateral makes up for the lack of credit. If you default on the loan, the lender can keep (and sell) the collateral.

Alternatives to a First-Time Loan with no Credit History

If you don’t have a credit history and don’t want to pay the high APRs no credit check loans charge, consider your alternatives:

A) Secured credit card

A secured credit card is often the first step for people trying to rebuild their credit. After a bankruptcy, foreclosure, or other financial distress, a secured credit card helps you build credit. You put down a cash deposit equal to your credit line. You use the credit card like any credit card. If you default (don’t make your payments), the credit card company keeps your deposit.

Urgent bad credit personal loans - consider a secured credit card if you have no credit history

B) Payday loan

If you need money to get you from one payday to the next, a payday loan may be a good option. While they have much higher interest rates, they’re meant to be very short term – a week or two. Payday lenders withdraw the amount you owe from your account on your next payday. If you pay it in full, it’s over fast.

C) Payday alternative loan

If a payday loan scares you, consider a payday alternative loan. Many companies offer advances on your paycheck after confirming your employment and earnings. You can only receive small amounts at first, usually between $100 - $250, but sometimes that’s enough to get you through the issue.

Best personal loan options for borrowers with limited credit history

Lending Partner APR Loan Amount
Upstart Personal Loans by SimpleDirect 9.99 - 35.99% $1k - $35k Apply Now

Is it Hard to get a Loan with No Credit History?

It’s not easy to get a loan with no credit history since lenders don’t have any way to tell if you’re a good borrower, but it’s not impossible.

If you think outside the box and look at your alternatives, you may find a solution that works for you. Before you do, consider the following:

How much is it?

All loans have fees and charge interest. Make sure you’re comfortable with the cost. Is the loan worth it or do you have another way to pay for or handle the issue you’re trying to cover?

Can you afford the repayment?

All loans must be repaid. Some have longer terms than others, which means smaller payments, but more interest over the loan’s term. Make sure you’re comfortable with the minimum required payment so you get the good payment history on your credit report.

Do they report to the credit bureaus?

A good reason to get a first-time loan is to build the credit history. If you take out a loan that lenders don’t report to the credit bureaus, it defeats the purpose. You’ll get your money, but no one will see your good payment habits, leaving you in the same spot.

Urgent personal loan lenders usually report to credit bureaus

Should you get a First-Time Loan with No Credit History?

If you’ve never had a loan and don’t have a credit history, you need to build credit. Outside of being an authorized user on a family member’s credit card, you need to start somewhere. A first-time loan can help you build the credit you need, giving you access to more personal loan and mortgage options moving forward, broadening your horizons, and giving you what you need.

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Ben Harper

Ben is a personal finance writer with SimpleDirect, where he focuses on topics such as personal loans, credit cards, and offering financing.

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Best personal loan options

Lending PartnerAPRLoan Amount
Upstart Personal Loans by SimpleDirect9.99 - 35.99%$1k - $35kApply Now
Avant Personal Loans by SimpleDirect9.99 - 35.99%$2k - $35kApply Now
Sofi Personal Loans by SimpleDirect5.99 - 16.19%$5k - $100kApply Now
Prosper Personal Loans by SimpleDirect7.95 - 35.99%$1k - $35kApply Now

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