Bad credit loans
A poor credit score shouldn’t stop you from getting the financial support you need. If you have bad credit, you can still apply and be approved for a loan online, and there are several options available to you.
Unexpected expenses can happen at any time. Whether you need a loan to cover an emergency, debt consolidation, a medical bill, or a wedding, an online loan for bad credit could help.
Why choose Integra Credit for bad credit loans online
At Integra Credit, we consider more than just your credit score to help you get the money you need. Personal loans through Integra Credit are easy to understand, and our knowledgeable representatives are here to help answer any questions you may have.
You can easily choose how much cash you need, complete a quick and secure online application, receive a decision, and if approved check your loan options. Most customers receive their conditional decision within seconds and, if approved, can receive their funds as soon as the following business day*.
What is a bad credit loan?
In simple terms, they are loans available to borrowers with poor credit. Many lenders are reluctant or unwilling to offer loans to applicants with a low credit score, and some set a minimum credit score requirement.
Borrowers with lower credit scores are often considered a higher risk to lenders, which is why they can find it more difficult to get a loan. Specialist loans for bad credit can look beyond your credit score to help you find the financing support you need.
Types of bad credit loans
There are many ways that people with bad credit can borrow, and which method is right for you will depend on your financial situation and needs.
Personal loans
A personal loan is a lump sum of money borrowed from a lender, repaid in fixed installments over an agreed-upon period of time. You may be able to get a personal loan with bad credit.
Personal loans are available from a bank, a credit union, or through an online lender. Personal loans can be used for a wide range of purposes:
- Consolidating existing debt
- Covering major life expenses
- Funding a home improvement project
Personal loans can be secured or unsecured. A secured loan requires you to offer the lender an asset as collateral, like a car or property. This makes them less risky for the lender, and therefore, they can be easier to get if you have bad credit.
An unsecured loan does not require collateral, so it can be harder to get with bad credit, but there are still options available.
Joint personal loans
A joint personal loan is taken out by more than one person, referred to as “co-borrowers.” These loans require both co-borrowers to be responsible for repaying all funds borrowed.
Consequently, if the lender reports repayment history to a credit bureau, the loan repayment can affect both borrowers’ credit scores.
Joint personal loans are most common for home mortgages and vehicle purchases. Spouses or parents can also be co-borrowers for joint personal loans.
With a joint personal loan, if your co-borrower has a higher credit score than you, you may qualify for a loan you would not otherwise be eligible for. For example, you may be approved for a larger amount, a lower interest rate, or more favorable repayment terms.
Peer-to-peer loans
With a peer-to-peer loan, you receive a loan from an individual or group rather than a traditional bank.
Peer-to-peer lending, also known as crowd lending, social lending, or P2P lending, is a process in which an online platform matches borrowers and lenders and sets the loan’s rates and terms for the lender or investor.
The application process for a peer-to-peer loan is similar to other online lending options. The peer-to-peer lending company will check your eligibility through a pre-qualification process before matching you with potential lenders.
You may be asked to provide an origination fee, which is paid upfront to cover the cost of loan processing.
24-hour loans or instant cash loans
Instant cash loans, or 24-hour loans, provide quick access to funds, often within the same day. These loans are available to borrowers with bad credit, making them a potential option for those facing urgent expenses or financial emergencies.
You can get an instant cash loan through an in-person visit to a brick-and-mortar lender. However, with the rise of online lending, many borrowers can complete the entire process from home and receive funds within 24 hours.
Online 24-hour loans offer a fast and convenient solution for unexpected costs, helping borrowers bridge short-term financial gaps without lengthy approval processes.
Hard money loans
A hard money loan, or short-term bridge loan, is a secured, asset-based loan requiring collateral to secure financing.
These loans are typically backed by property, such as land, residential homes, or commercial buildings. Unlike traditional bank loans, hard money loans are issued by private investors or investment companies, often allowing for a faster approval process.
Because they are secured by property, hard money loans are an option for borrowers with bad credit, as lenders focus more on the value of the collateral than the borrower’s credit history. They may be suitable if you have significant property equity or if you are purchasing a property you intend to use as collateral.
Line of credit
A personal line of credit works in a similar way to a credit card; you pay interest only on the amount you use, not the total credit available.
Unlike traditional personal loans, which provide a lump sum upfront, a line of credit allows you to withdraw funds up to the approved limit as needed. As the balance is repaid, more funds become available to borrow again.
You can apply for a line of credit online, and eligibility with many lenders isn’t solely based on your credit score. This makes them a potential option if you have bad credit and want flexible funds access.
Short term loans
Short-term personal loans differ from traditional personal loans primarily in their repayment periods. While traditional loans may have repayment terms lasting several years, short-term loans can be as brief as a few weeks and are often repaid within a year.
These loans are an option for individuals with bad credit, as lenders may consider more than just credit scores when evaluating applications. Some lenders review additional financial documents, such as pay stubs, to assess overall financial stability.
The approval process for a short-term personal loan is similar to that of traditional loans. Once approved, you receive a funding offer, interest rate, and loan terms, which you can accept or decline. Many short-term loans can be applied for and completed online, providing a fast and convenient borrowing option.
Loans from family
A loan from a family member is a more informal way to borrow money if you have poor credit. Unlike traditional lenders, family members can choose whether to charge interest or set a repayment schedule, and a written contract may or may not be used.
Before entering into a loan agreement with a family member, it’s important to understand the potential tax implications for both the borrower and the lender.
If your goal is to build or improve your credit, this may not be the best long-term solution, as family loans are not reported to credit bureaus.
How to get approved for a loan with bad credit
A low credit score does not have to hold you back from obtaining the funds you need. Following these simple steps can help you increase your chances of approval if you have poor credit:
Check your credit score
Many lenders consider several factors in their lending decisions, but some require a minimum credit score.
Your credit score can change frequently, so knowing your score before you apply can help you determine which lenders may be able to approve your application. You can check your credit score for free at websites like CreditKarma or Experian.
Compare lenders and prequalify
Most new loan applications result in a hard inquiry on your report, which could impact your score. To avoid unnecessary checks, compare lenders carefully before applying to find your best chances for approval.
Some loan providers offer prequalification, which lets you know if you are likely eligible and what rates you could qualify for without affecting your credit score.
Consider your options
A strong credit score isn’t the only way to qualify for a loan. Applying with a co-signer with good credit can improve approval chances and secure lower interest rates.
Alternatively, offering collateral for a secured loan may result in better terms, as lenders have added security. Both options can make borrowing more accessible, even with bad credit.
Bad credit loans FAQs
What’s the difference between bad credit and no credit
Annual Percentage Rate or APR is a standardized measure used to express the cost of a loan for a whole year. You have ‘no credit’ if you’ve never taken out a loan, used a credit card, or had any borrowing history recorded. This is common if you’re new to credit. You have ‘bad credit’ if you’ve used credit before, but your history includes missed payments, high debt, or other negative factors that lower your score.
Can I get a personal loan with bad credit?
When you apply for a personal loan, lenders can consider factors other than your credit score to get a complete picture of your financial health. If you need a personal loan, bad credit alone may not prevent you from obtaining funds.
After a lender considers your entire financial picture, you could still be able to receive approval for the money you need.
Can a bad credit loan help my credit score?
A bad credit loan can help improve your credit score if managed responsibly. Making on-time payments and paying off the loan as agreed can demonstrate positive borrowing behavior, which may boost your score over time.
However, missing payments or defaulting can have the opposite effect, so it’s important to borrow only what you can afford to repay.
How long will it take to receive my money?
This differs by lender. For example, with Integra Credit, funds for loan agreements fully executed by 8pm CT on business days and 3:30pm CT on Sundays are typically sent the next business day. Check with your financial institution’s funds availability policy to learn when it will provide you with access to the funds.
How much can I borrow?
Again, this differs by lender. Integra Credit Installment Loans have a maximum amount of $3,000, depending on your state’s laws. For more information on the maximum loan amount by state, please refer to our Rates and Terms page.
What is the Annual Percentage Rate (APR)?
Annual Percentage Rate, or APR, is a standardized measure used to express the cost of a loan for a whole year. This rate takes into consideration interest owed and any fees a customer will pay as a result of taking out the loan.
Will having bad credit affect my interest rate?
Having bad credit can lead to higher interest rates. A low credit score or a history of missed payments presents risk to a lender, which may result in fewer loan options or higher borrowing costs. While some lenders still offer loans to individuals with bad credit, they often come with less favorable terms.
What are the minimum qualifications to apply?
The minimum qualifications to apply also differ by lender but typically include that you must be at least the minimum legal age to contract in your state of residence, have a valid bank account, have a valid email address, and be a resident of the United States. Please see our Rates and Terms page for more information on which states we service.
