Small Personal Loans for Bad Credit

Having good credit is considered by many to be a badge of honor. It means you pay your bills on time and probably have a decent income. A good credit score means you pay less in repayments and can even affect rates for other bills like insurance. It can even be considered in job promotions and new hires. 

A poor credit score can hold you back from opportunities, including getting a personal loan. Yet, it doesn't have to be the final word because some companies specialize in working with people who have bad credit.

Key Takeaways

• Small loans are quick, flexible financial solutions for immediate expenses, even for those with lower credit scores.

• Personal loan approvals consider factors beyond credit scores, and some lenders offer fast options for borrowers with less-than-perfect credit.

What Is a Small Loan?

A small loan, or a small dollar loan, as the name suggests, is a type of personal loan that provides a smaller amount of money — typically ranging from a few hundred to a few thousand dollars. These loans are designed to help cover minor expenses, unexpected costs, or financial gaps that don't require a large loan.

They are commonly used for emergency expenses, minor home repairs, medical bills, or other short-term needs. Small loans usually come with shorter repayment terms than traditional loans, making them a quick and convenient option for borrowers who need funds fast.

If you need a small dollar loan, Simple Fast Loans has online installment loans ranging from $200 to $3,000 with same-day approval. If you are looking for a small loan, you can apply quickly online. 

Features of Small Loans

• Quick access to funds. Small loans often have faster approval times and may even offer same-day funding.
• Flexible credit requirements. While Simple Fast Loans does require a credit check, bad credit borrowers will not be turned away. 
• Customizeable repayment terms. Online personal installment loans can be customized and tailored to for your needs.

What Is Bad Credit?

All credit is associated with a FICO, or credit score. This is a score produced by one or all of the three major credit bureaus which are TransUnion, Equifax, and Experian. While all three will probably show similar scores, each will have its own score based on specific factors such as length of loans, amount of debt, and how many payments are missed, late, or paid on time. 

The FICO scoring system goes from 300 to 800.

•        Great credit is from 740 to 799.
•        Good credit is from 670 to 739.
•        Fair credit is from 580 to 669.
•        Poor or bad credit is from 300 to 579.

Many people with poor credit may think they are one of the few in that range. The truth is 25% of Americans have either poor or fair credit with scores that range from 300 to 649. 

Many people mistakenly assume that bad credit is always a result of financial irresponsibility, but this is not necessarily the case.

Various factors can lead to a poor credit score, such as job loss, significant medical expenses, divorce, death, or other unforeseen circumstances. Despite having bad credit, some lenders are still willing to provide personal loans to those who are in this credit range.

What Is a Personal Loan?

A personal loan is typically an unsecured loan or a loan that you don't need collateral to get. Your signature is the guarantee on the loan along with a review of your credit score, also referred to as a hard credit inquiry. A bank or other financial institution can lend you money with a personal loan that can be used for a variety of purposes.

Every institution has its own set loan amounts for these types of loans and those can typically range from $1,000 to $50,000. 

Financial institutions also have periods for repayment from a few months to five to seven years. 

What To Know About Applying for a Personal Loan

When it comes to personal loans, a certain set of factors are used to determine approval — these will vary by lender. These include annual income, payment history, and debt-to-income ratio. Your income doesn't have to be high, but lenders want to see that you have a reliable source of income.

Lenders will also look beyond your credit score at your payment history and may ask for an explanation if they see a sudden change from on-time payments to missed or late payments. This is where you can tell your story and explain what caused the struggle.

Debt-to-income ratio is a crucial factor that lenders consider when evaluating personal loan applications. This is the percentage of your income that goes towards paying off debt. Lenders generally prefer this ratio to be below 30%. 

Applying for a personal loan can be stressful as some banks and financial institutions require past tax statements, pay stubs, and bank statements from the past three to six months.

Another challenge is that most institutions prefer larger loan amounts, whereas some people may only need a few hundred dollars to cover an immediate need. However, times have changed, and online financial institutions now offer competitive loans to people who need money for various reasons, including those with poor credit.

Personal Loan Options

Online financial institutions like Simple Fast Loans have changed the process of getting personal loans.

Traditional banks started implementing tighter lending criteria a few years ago but online-only lenders like Simple Fast Loans opened up a bundle of opportunities for online banks and lenders to help those denied by banks get personal loans. 

Most banks require at least a 600 credit score to even consider someone for a personal loan but Simple Fast Loans will consider those with lower credit scores. Web-based lenders can also offer quicker decisions and access to loaned money faster than your local bank.

Simple Fast Loans, for instance, offers a decision in just minutes once the system verifies the information given to it about your identity, income, and banking information.

Benefits of Simple Fast Loans

Simple Fast Loans offers loans from $200 to $3,000. Like all personal loans, no collateral is required and the repayment periods are flexible, which means the lender will work with you to pick an accommodating date of repayment. 

That gives you more control over the final agreement, and knowing that you chose the repayment date should eliminate a lot of stress.

Personal loans with Simple Fast Loans can be used for things like home improvement, buying a new home appliance, paying a utility bill, car repairs, medical emergencies like an emergency room co-payment, or other urgent financial needs. 

It could make a difference if you have a refrigerator that breaks down, need new car tires, or need a new water heater for your home. 

The Process of Getting a Personal Loan

Simple Fast Loans makes it easy to apply for a personal loan. The first step is to fill out an online application, where information is verified. The website program will determine your eligibility in just a few minutes. 

Those approved will receive the paperwork to sign electronically. You can do that on the Simple Fast Loans website or by accessing the paperwork through a link sent to an email. Just follow the instructions on the screen to work through the simple paperwork to sign or initial highlighted spaces. 

You don't need to be concerned about the paperwork confusing you because it is a completely guided experience.

You will be sent a text stating your signed loan agreement has been received and your loan is being funded. Once you are approved, money is deposited into your bank account either that day or the next business day. 

Applying with Simple Fast Loans is much easier and less stressful than going through a bank or a traditional institution. Those types of personal loans require a lot of paperwork, and you must wait for days, maybe weeks, to see if you're approved. 

With Simple Fast Loans, you can apply from the comfort of your home on your laptop or computer.  You can also manage your account from the website, so you can always see how much is paid and when the monthly bill is due.

You can also make a payment through the website account. Simple Fast Loans sets up loans to be paid with recurring, automatic payments, but you can pay them off early or make additional payments. There isn't a pre-payment penalty, so paying off a loan early is another way to save money.

What Does Simple Fast Loans Require for an Approved Loan?

Simple Fast Loans will electronically verify three things to consider you for a personal loan: your identity, income, and bank account information. All personal information is securely transmitted and remains secure.

• Those applying for a loan with Simple Fast Loans must meet some basic requirements, such as listing a name, having a current verifiable address,, and having an active checking account in their name.
• Applicants are required to submit proof of identity, which includes either a driver's license or passport. 

Applicants must also provide a Social Security number and income statements to verify regular pay. You will also need to submit banking information to instantly verify your banking account is active so money can be deposited directly into it and payments can be made from it. 

About Simple Fast Loans

Simple Fast Loans provides online personal loans to residents of 26 states, including Alabama, Alaska, Arkansas, Arizona, California, Delaware, Florida, Idaho, Indiana, Kansas, Kentucky, Louisiana, Michigan, Minnesota, Missouri, Mississippi, Nevada, Ohio, Oklahoma, South Carolina, Tennessee, Texas, Utah, Washington, Wisconsin, and Wyoming.

Simple Fast Loans is a no-hassle way for those with bad credit to access personal loan options that meet their needs. This lender also offers a live chat and a customer service phone number, so you have two ways to ask questions or address other concerns. 

Customer service representatives are friendly and helpful and do all they can to address all questions and concerns.

Applying with Simple Fast Loans

The online form makes it easy to apply for a personal loan, even if you have poor credit. It only takes a few minutes to submit the information. Simple Fast Loans never makes you feel bad about your credit score! It is a no-hassle way to find a personal loan that will meet the needs of your current situation.