What You Should Know About Bad Credit Personal Loans Guaranteed Approval From Direct Lenders

It might be necessary to undertake a debt when you deal with a large expense you cannot manage to pay for with the money you have now. These major expenses could be home repairs, vehicle repairs, or hospital bills. 

The generally known funding option is a personal loan. This type of loan offers a lump sum of money that is repaid in monthly installments. What’s more, a personal loan can be used to merge or bring high-interest debts together. 

Normally, lenders inspect your credit report to gauge your ability and risk to repay. If you have bad credit, you might find it hard to get a  good interest rate on loan. However, the good news is that some lenders offer personal loans for bad credit. Here’s what you should know. 

Qualifying For A Personal Loan With Bad Credit

Keep in mind that each creditor has its own set of criteria when underwriting standards for personal loans. For the most part, you will be in difficulties to look for a lender that does not scrutinize your credit score and report as part of the personal loan qualification process. 

According to an online lender from Goldman Sachs, Marcus, it can be very hard to be eligible for a personal loan if your credit score is under 660. Take note that some creditors have stricter and more rigorous borrowing standards, and it is particularly difficult to get approved for a personal loan from conventional banks if your credit score is not up to par. 

The good news is that several online creditors are more willing and flexible to offer personal loans for borrowers with bad credit. Remember that your credit report is not the only thing that is considered when applying for a personal loan, which can either hurt or help you. 

Say, for instance, creditors might want to re-assess information about your employment and income, as well as your assets and debts to get a clearer picture of your finances. Additionally, in the approval process today, many lenders use alternative data. 

Meaning, lenders will look at things beyond your credit report, like bank account information or utility payments, helping those with a thin credit file or bad credit. It is a good idea to try to get near guaranteed approval for bad credit personal loans.


The shape and the loan terms of your finances and credit, and the costs of a personal loan can differ significantly, depending on the lender. However, across the board, a personal loan for bad credit costs, for the most part, more than for those with stellar credit scores. 

According to the Federal Reserve, the average interest rate for a twenty-four-month personal loan is 9.50 percent. But for those with poor credit, the interest rate can be very high. Moreover, taking out a personal loan via a bank won’t require you to pay for origination fees. 

Even so, it is hard to be eligible for a bank loan if you do not have stellar credit. A lot of online creditors that are more willing to approve loans for bad credit will usually charge a loan origination fee, increasing the cost of the loan. 

With or without origination fees, it is essential to know that your credit score plays a critical role in determining the interest rate of your loan. Borrowers with good credit can get the lowest interest rates. 

On the other hand, borrowers with bad credit get higher interest rates. Moreover, the term of the loan and the amount you are borrowing can affect your rate as well. 

Getting A Bad Credit Personal Loan

Most conventional banks do not offer or provide personal loans. But those banks that do offer personal loans tend to have stringent credit standards. That said, it might be a better idea to apply with an online lender or credit union, most of which offer bad credit loans. 

Some credit unions and banks also permit online loan applications. Alternatively, you can choose to apply for a bad credit personal loan with an online-only lender who offers quick funding and approval. Make sure to compare lenders because fees, terms, loan amounts, and borrower requirements vary.


When you need money fast for a financial emergency, you might be susceptible to scams, particularly if your credit is not stellar, and you might not be eligible for conventional loans. Some lenders take advantage of borrowers in this position by offering bad credit personal loan scams. 

With that said, make sure to watch out for a few red flags, such as if you are required to pay upfront fees or if you are told that no credit check is required. Ultimately, personal loans can be an excellent way to help you get through some expenses. However, these loans might not be an option with some creditors if your credit score is not strong. 

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