Personal loans can be hard to qualify for when you have bad credit, especially traditional loans from banks and credit unions. Luckily, there are options with more lenient requirements for borrowers with less-than-perfect credit. However, lenders that accept bad credit usually offset that risk by charging higher-than-average interest rates and fees.
Are there guaranteed approval loans for poor credit?
There really aren’t any loans that have guaranteed approval. Even predatory lenders assess your ability to repay the loan by at least verifying your identity and income. Still, some lenders will try to draw you in with promises of guaranteed approval, and that should be considered a red flag and your cue to tread with caution.
Compare loans for poor credit with lenient requirements
Where can you get high-risk loans with guaranteed approval?
Many high-risk loans are relatively easy to get because they have lenient requirements to qualify but are typically expensive. You can get them online, at storefront locations or through mobile banking apps. These are your options:
Payday loans
Title loans
Installment loans
Cash advance apps
Option 1: Payday loans
How it works: Payday loans are small, short-term loans that you can find online or at physical locations. You can often get approved and funded on the same day, and you’ll usually pay it back on your next payday.
How much you can borrow: Up to $1,500
How much it costs: $10 to $30 per $100 borrowed
Why it’s almost guaranteed: Payday lenders aren’t concerned with your credit score, like some lenders, making it easy for almost anyone to qualify. Lenders still need to verify your identity and income, but they’ll often accept alternative forms of income such as government benefits or unemployment.
Risks: Payday loans are expensive, and with such short repayment terms, they can be difficult to pay back on time. This often leads to a cycle of debt that can be hard to break. Payday loans should typically be a last resort.
Are there guaranteed payday loans
No. Payday loans are easy to get, so they’re almost guaranteed, but you still have to meet the minimum requirements to qualify, and you might need a bank account, too.
How to guarantee approval on a payday loan
There are a few things you can do to ensure you’ll be approved for a payday loan.
Make at least $1,000 a month in income
Don’t have much existing debt
Have an active bank account with a positive balance
Option 2: Title loan
How it works: Title loans are when you use your car (or motorcycle, boat or RV in some cases) as collateral for a loan. Like payday loans, you can get approved and funded right away, but you’ll need to own your vehicle and have a lien-free title in your name. Loan terms are usually 30 days, but exact terms vary by lender.
How much you can borrow: 25% to 50% of your car’s value
How much it costs: Up to 300% APR, but varies significantly by state
Why it’s almost guaranteed: Title loans don’t usually require a credit check, so if you own a car and are over 18, you’ll probably be approved. But you need to be employed or have another source of income, so it’s not a total slam dunk.
Risks: The biggest risk, of course, is losing your car. Some borrowers can also fall into a cycle of debt if they can’t repay the loan and have to roll it over, which adds more interest and fees. About 20% of people end up losing their car from title loan debt, according to the Consumer Financial Protection Bureau (CFPB).
Are there guaranteed title loans
Some title loan lenders do guarantee approval, but only if your car meets their minimum specifications. You’ll usually have to take your car to the lender and have it inspected before you’re formally approved. Plus, you’ll need ID and proof of income to qualify.
How to guarantee approval on a title loan
Here’s what you need to do to increase your chances of getting a title loan.
Have a job or other reliable income source
Have a car that’s paid off
Keep the car in good condition
Option 3: Installment loan
How it works: Many online lenders offer installment loans, which are a lot like personal loans but have smaller loan amounts, shorter terms and much higher rates.
How much you can borrow: Up to $5,000
How much it costs: Up to 500%, but varies significantly by lender
Why it’s almost guaranteed: Installment loans usually have very lenient credit requirements, so most people can qualify, although many lenders will perform a hard credit check. These lenders want borrowers with bad credit because that’s how they make money.
Risks: If you can’t repay your loan early, you could end up paying anywhere from three to five times the amount you originally borrowed and find yourself in an even deeper financial hole
Are there guaranteed installment loans
No. In fact, most lenders that offer installment loans specifically state that there is no guarantee of loan approval. However, if you are only seeking a small loan amount — say, under $500 — your chance of approval is high as long as you meet the minimum requirements.
How to guarantee approval on an installment loan
To increase your chances of getting an installment loan, you’ll need to meet the following criteria.
Have a steady income source
Have an active bank account with a positive balance
Get paid by direct deposit
Don’t have any bankruptcies
Option 4: Cash advance app
How it works: Cash advance apps offer advances up to $1,000 — although most top out at $500 — to practically anyone with income and a bank account. You just request an advance and repay it automatically when your next paycheck lands. Fund transfers can take up to a few days, but most providers offer expedited transfers for a fee.
How much you can borrow: Up to $1,000
How much it costs: No interest, but you might have to pay a monthly subscription fee up to $20.
Why it’s almost guaranteed: Cash advance providers typically don’t even check your credit, so your score is irrelevant. All you really need is a job or a history of regular deposits and an active bank account to qualify.
Risks: Because cash advance apps give you easy access to cash, it can be tempting to rely on them whenever you need a few extra bucks. And, despite the fact that most don’t charge interest, mandatory subscriptions fees and charges for instant transfers can eat into your income over time.
Are there guaranteed cash advances
No. Some cash advance providers promote that image, but real-life customer reviews refute that story. Still, it’s not that difficult to qualify for at least small advances if you’re employed and have a bank account.
How to guarantee approval on a cash advance
Here’s what’ll help you qualify for cash advances.
Have a steady source of income
Have a bank account at least 90 days old with a positive balance
Get paid by direct deposit
Be willing to pay a monthly membership fee
Are there no credit check personal loans with guaranteed approval?
A pawn shop loan is about the closest you can get to a no credit check loan with guaranteed approval. However, you can’t just pawn anything — you need to have something of value that a pawn shop is reasonably sure it can resell if you can’t or don’t repay the loan. Realistically, a pawn shop loan is more of a sale of goods with the option to repurchase those goods within a certain period at what you sold them for, plus a fee.
How to find a legit lender
There are a sea of scams out there — or at least predatory lenders — so it’s important to research before taking out a high-risk loan with the wrong lender. Follow these suggestions to find a legitimate lender.
Research the lender’s credentials. Find out if the lender has the proper licensing in your state and check to see if it’s transparent about rates and fees. You may also want to check with the Better Business Bureau (BBB) to see if the business is accredited and if it has a physical location.
Read customer reviews and complaints. You can learn a lot about a lender by reading about the experiences of real customers. Look on Trustpilot, BBB or other trusted review sites to hear the good, the bad and the ugly about lenders you’re considering. Just be sure to take some of those reviews with a grain of salt.
Understand your state regulations. Each state has different lending laws, particularly when it comes to high-risk loans. For example, some states don’t allow payday loans at all, while other cap rates at 36%. Knowing what’s legal in your state can help you avoid scams and predatory lending practices.
Ask for recommendations. It never hurts to ask your friends and family members if they have any recommendations — they may have been in just the position you’re in now and have some sound advice.
Other ways to increase your chances of guaranteed approval on a loan
There are a few other ways to up your odds of getting approved for a loan.
Try a loan connection service. Loan connection services — or loan brokers — can increase your chance of loan approval by evaluating your qualifications and searching multiple lenders to find the right fit for you.
Apply for a payday alternative loan (PAL). Certain federal credit unions offer PALs to members in good standing at reasonable rates and loan terms. Some banks also offer a version of PALs to existing customers that qualify.
Get a credit builder loan. If your credit score is the biggest obstacle to loan approval, applying for a credit builder loan can help you rectify that problem and set you on the path to financial health.
Get a secured credit card. Similar to credit builder loans, secured credit cards can help you improve your credit score and increase your chances of getting a loan.
Pay down your existing debts. As you whittle away any existing debt you have, it’ll raise your score and lower your debt-to-income (DTI) ratio — another factor lenders use when determining loan approval.
Alternatives to high-risk loans that do not involve taking on more debt
If you find yourself having trouble paying your bills, consider some alternatives to taking on high-risk debt.
Credit counseling. Many non-profit credit counseling agencies offer low- or no-cost counseling to help you get a handle on your finances. Experienced debt counselors can help you create a budget, come up with a plan to reduce your debts and provide other services.
Scale back your expenses. Take a look at your spending habits and see where you can cut back. Some options include looking for cheaper car insurance, canceling some of your streaming subscriptions or looking into a less expensive phone plan.
Get a side job. If you have some free time available, you might want to consider bringing extra money through gig work or freelancing to bring in extra cash each month.
Negotiate with your creditors. There’s no guarantee of success, but you could ask your credit card providers for a lower rate or see if you can negotiate a settlement for less than you owe.
Consider debt settlement. Debt settlement will hurt your credit, but if you can’t pay your debts and think you might be headed for bankruptcy, a debt relief company could be an option.
Bottom line
Legit lenders that offer personal loans don’t guarantee approval. But some loan options, like payday loans, title loans, cash advance apps and installment loans, have easy requirements to qualify, even with bad credit.
Frequently asked questions
What type of loan is the easiest to get with bad credit?
Probably the fastest and easiest loan to get with bad credit is a payday loan, because there are no special requirements to qualify and they’re readily available. For example, you don’t need a car or other collateral, and you can apply online or at a physical location nearby and get funded today.
How to get $2,000 fast with bad credit?
If you have a car that’s worth at least $8,000, you might be able to get a title loan for $2,000 the same day you apply. But you’ll need to have a lien-free title in your name and a regular source of income to qualify.
How can I get money if I’m struggling?
Many federal, state and local programs help people with financial hardships needing necessities like food, rent and utilities. Some small banks and credit unions also offer hardship loans, but you’ll usually need to prove that you’re truly in need.
Lacey Stark is a freelance personal finance writer for Finder, specializing
in banking, loans, investing, estate planning, and more. She has 20
years of experience writing and editing for magazines, newspapers, and
online publications. A word nerd from childhood, Lacey officially got her
start reporting on live sporting events and moved on to cover topics
such as construction, technology, and travel before finding her niche in
personal finance. Originally from New England, she received her
bachelor’s degree from the University of Denver and completed a
postgraduate journalism program at Metropolitan State University also
in Denver. She currently lives in Chicagoland with her dog Chunk and
likes to read and play golf. See full bio
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