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How To Get a Small Loan, Even with Bad Credit

Are you grappling with the complexities of securing a personal loan with bad credit? In today's financial landscape, having less-than-perfect credit doesn't mean you have to give up on your dreams or financial goals. This comprehensive guide will walk you through the ins and outs of obtaining a personal loan with bad credit, from understanding what a personal loan is to improving your chances of approval. 

Key Takeaways

  • Yes, there are loans for people with bad credit. Online lenders like Simple Fast Loans are a great option for fast cash.
  • Small loans for bad credit are a great option for borrowers who need emergency cash.
  • There are alternatives for borrowers with poor credit, including adding a cosigner. 

What Is a Personal Loan?

Personal loans are small, short-term loans that can be used to fund any kind of urgent emergency expense.

Borrowers agree to repay the loan amount over a fixed period, typically in regular, monthly payments, which consist of both the principal amount borrowed and interest charges. Personal loans can serve a wide range of financial needs, including but not limited to covering medical expenses, funding home improvements, or handling unexpected emergencies.

With lenders like Simple Fast Loans, you can borrow $200 to $3,000 with online loan, depending on your state. Plus, bad credit is not an issue. Your maximum loan amount can vary according to your financial situation, such as your income level.

What Is Bad Credit?

Bad credit, often referred to as a low credit score, is a numerical representation of your creditworthiness. It's calculated based on your credit history and serves as an indicator of how reliable you are as a borrower.

Credit scores typically range from 300 to 850, with higher scores indicating better creditworthiness. A low credit score, usually below 580, suggests a history of missed payments, high debt balances, or other financial challenges.

Can Bad Credit Affect Your Small Fast Loan Application?

Bad credit can significantly impact your personal loan application in several ways:

  • Limited Loan Options. Some lenders may be hesitant to extend a personal loan to individuals with bad credit, limiting your choices.
  • Stricter Terms. Lenders may impose stricter terms and conditions on loans for bad credit borrowers, including shorter repayment periods.
  • Loan Denial. In some cases, particularly if your credit is extremely poor, your loan application may be denied altogether.

Understanding these implications is essential as you embark on your journey to secure a personal loan with bad credit.

What Are the Options for a Small Loan with Bad Credit?

When seeking a personal loan with bad credit, it's crucial to explore various lending sources to find the best match for your needs. Here are three common options:

Local Banks

Local banks often provide personal loans to individuals with established relationships. They may consider factors beyond your credit score, such as your banking history and account balances. While their rates may be competitive, their approval process can be more stringent.

Credit Unions

Credit unions are not-for-profit financial institutions known for their community focus. They may offer more flexible lending criteria and competitive rates to their members. If you belong to a credit union, consider exploring your loan options with them.

Online Lenders

Online lenders like Simple Fast Loans have emerged as a convenient and accessible option for bad credit borrowers. They often specialize in serving individuals with less-than-perfect credit, offering a streamlined application process and quick funding.

Tips for Increasing Your Approval for a Small, Bad Credit Loan

While securing a personal loan with bad credit may pose challenges, several proactive steps can increase your chances of approval:

  • Demonstrate responsible financial behavior. By showing responsible financial behavior by consistently paying bills on time, avoiding new debt, and keeping credit card balances low. Lenders appreciate borrowers who are actively working to improve their financial standing.
  • Maintain steady employment. Maintaining stable employment can boost your loan application. Lenders often prefer borrowers with a reliable source of income.
  • Monitor your Debt-to-Income Ratio. Keep your debt-to-income ratio in check. Lenders look favorably upon applicants whose debt obligations are a manageable portion of their income.

Taking these actions demonstrates your commitment to financial responsibility, which can mitigate the impact of bad credit on your loan application.

Alternatives Instead of Fast Loans for Bad Credit

While having a high credit score is typically beneficial when applying for loans, obtaining a loan with a lower credit score is still possible. It may require some additional effort and research, but there are options available to those with lower credit scores. 

One option is to look into alternative lenders, such as online lenders, who may be more flexible in their lending requirements. These lenders may consider other factors, such as income and employment history, in addition to credit score, when evaluating loan applications.

Ask a Friend for Money

It’s not the glossiest option, but you may have friends or relatives who are willing to lend you some money. They may be more agreeable if you suggest putting the loan agreement into writing and including the terms of payment.

Even if you have a close personal connection, you shouldn’t let money be a possible source of conflict, so draft a legal agreement just like you would with any lending institution.  

Talk to Your Employer

If you are a trusted employee or have a pressing need for a loan, your employer may consider granting you a salary advance. You can either approach your boss directly or submit a request to the human resources department.

If this comes in the form of a loan, it is essential to clarify the loan's terms, such as the loan amount and payment method (installments or lump sum), to prevent any surprises when you receive your next paycheck.

Check the Requirements

As the company name implies, Simple Fast Loans prefers to keep things straightforward when customers apply for a personal loan. When considering an application, the company only has a few requirements and uses a short online application process.   

To apply for a loan, you will need:

  • A valid government-issued ID with a photo, such as a driver’s license or passport
  • Social Security number
  • A personal income statement
  • An active checking account that is under your name

You must also be at least 18 years old and not be an active member of the military or a dependent of one.

Benefits of Working with Simple Fast Loans

When you’re under financial stress, the last thing you need is a complicated and confusing loan application. If you have any questions about these requirements, you can check the Simple Fast Loans’ FAQ or contact customer service through Live Chat.

  • Convenient online application. You don’t have to go out of your way to apply for a personal loan. You can fill up the form anytime and anywhere — skipping the traffic, the long lines, and the cost of transportation.  
  • No required collateral. Even if you don’t have a perfect credit score, you don’t have to back up your loan with collateral.
  • Fast loan decisions. Once you fill out the form, you get an instant decision on whether you qualify and how much you qualify for. You don’t have to go through the stressful wait and worry whether you can get the loan or not.
  • Immediate payouts. Simple Fast Loans understands that many financial needs are time-sensitive, so your money will never be delayed after approval. If your loan is approved before 2 pm Eastern Time, you can get the money the same business day. If it is approved after that cutoff time, you will get it the next business day.   
  • No hidden charges. Simple Fast Loans is always clear and transparent about the terms of the loan, including interest and fees. These are clearly listed in your loan package, and you can always ask for clarification. 
  • Nationwide network. Choosing a professional, registered lender with a proven track record is important. With Simple Fast Loans’ nationwide network that reaches thousands of customers around the United States, you know you’re working with a trustworthy lender.

Start a Loan for Bad Credit

Do you have a financial emergency and need to raise money right away? The solution may be just a few clicks away. Use our online application form to find out if you can qualify for a bad credit loan.  

Related Frequently Asked Questions (FAQs)

Readers who researched fast, simple loans for bad credit also read up on these topics:

What Should I Do If You're Denied for a Personal Loan?

While a loan denial can be discouraging, it's not the end of the road. Here's a step-by-step guide on what to do if your personal loan application is denied:

  1. Contact the lender to understand the reasons for the denial. This information can help you address specific issues.
  2. Check your credit reports for inaccuracies and address any errors promptly.
  3. If you haven't already, explore the option of adding a co-signer to your application.
  4. Continue to work on improving your credit and financial stability by following the strategies discussed in this guide.

Remember that a denial is not a reflection of your worth as a person. It's a business decision based on your financial circumstances at a particular moment.

Why Does a Loan Cost More with Bad Credit?

Obtaining a loan with bad credit often comes with higher costs due to several factors:

  • Increased Risk. Lenders view borrowers with bad credit as higher-risk individuals. To compensate for this risk, they charge higher interest rates. These rates reflect the lender's assessment of the likelihood of the borrower defaulting on the loan.
  • Limited Options. Borrowers with bad credit may have limited loan options. This scarcity of choices can lead to higher interest rates and fees.
  • Shorter Terms. Lenders may offer loans with shorter repayment periods for bad credit borrowers. While this can reduce the overall interest paid, it also results in higher monthly payments.

In summary, the increased cost of loans for bad credit is a result of the additional risks and limitations associated with lending to individuals with less-than-perfect credit histories.

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