Best Direct Lenders for Bad Credit 2021

ElitePersonalFinance
Last Update: June 15, 2021 Loans

Many people searching for loans prefer direct lenders. The main reason is that they think that their loans will be cheaper. Does it always true? Can I get approved from a direct lender if I’m with bad credit? Where to find the cheapest rate?

ElitePersonalFinance researched many direct and non-direct lenders for people with bad credit. Most of the companies that we found are payday lenders, offering too expensive loans. Payday loans’ APR average at 400%. And it wouldn’t be hard to find even more expensive than this number!

The good news! ElitePersonalFinance found some direct and non-direct lenders working with people with bad credit that stay over this, and we will show all of them below.

Here are the best lenders for bad credit from us.

Loan Company: Min. Credit Score: APR: Amount: Type:
OppLoans (Direct Lender) 0 99% – 199% $1,000 – $5,000 Alternative Payday Loans for Really Bad Credit
EvenFinancial (Non-Direct Lender) 550 2.49% – 35.99% $1,000 – $250,000 Loan Comparison Site
BadCreditLoans (Non-Direct Lender) 0 5.99% – 35.99% $500 – $10,000 Personal Loans for Really Bad Credit
CashUSA (Non-Direct Lender) 0 5.99% – 35.99% $1,000 – $10,000 Secured Personal Loans for Really Bad Credit
LendUp (Direct Lender) 0 30% – 1251.43% $100 – $1,000 Alternative Payday Loans for Really Bad Credit
NetCredit (Direct Lender) 0 34% – 155% $1,000 – $10,000 Alternative Payday Loans for Really Bad Credit
RiseCredit (Direct Lender) 0 36% – 299% $500 – $5,000 Alternative Payday Loans for Really Bad Credit
PossibleFinance (Direct Lender) 0 151% – 230% $100 – $2,000 Alternative Payday Loans for Really Bad Credit
FigLoans (Direct Lender) 0 36% – 190% $300 – $500 Alternative Payday Loans for Really Bad Credit
VergeCredit (Direct Lender) 0 Vary $15,000 Alternative Payday Loans for Really Bad Credit
NavyFederal (Direct Lender) 0 7.49% – 18% $250 – $50,000 Credit Union
FirstTech (Direct Lender) 0 10% – 18% Unsecured
3% – 18% Secured
$500 – $50,000 Credit Union
Alliant (Direct Lender) 0 6.24% – 10.24% Unsecured
3% – 18% Secured
$1,000 – $50,000 Credit Union
PenFed (Direct Lender) 0 5.99% – 18% $500 – $35,000 Credit Union
Dave (Direct Lender) 0 0% + Fees Up to $200 Loan App
Brigit (Direct Lender) 0 0% + Fees Up to $200 Loan App
Earnin (Direct Lender) 0 0% $100 – $500 Loan App
MoneyLion (Direct Lender) 0 0% Up to $250 Loan App

Below we will review most of these companies, but before that, a few clarifications.

  • ElitePersonalFinance highly recommends to people with bad credit to wait and avoid getting a loan at all.

Bad credit loans are always more expensive. Our tip: Wait, work on your credit score, and then get a loan.

If this is not possible, read on.

  • This article focuses on direct lenders offering personal loans.

This is what probably most of the people here are looking for. However, there are some of you looking for direct lenders for auto, student, mortgage, business, or other types of loans.

Although personal loans could be used for anything because they don’t come with restrictions on what you can do with your money, so, this means that even those that are not looking for a specific type of loan, different from personal loans, can use their money for it if the terms work for you. However, we recommend they also search for the specific loan that they are looking for.

You can find all loans in one place – EPF Marketplace.


EPF Loan Shop Center

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Are You looking for:

  • Direct lenders vs. non-direct lenders vs. payday lenders

There are critical things that everyone who wants to avoid scams and overpaying on their loans should understand. As we started the article, people search for direct lenders because they think they will pay less. That is not true! There is nothing wrong with getting a loan from a direct lender, but things change when we add bad credit. Our research found that most companies offering this are actually payday loans, offering too expensive loans, averaging 400% APR. We highly recommend that people avoid them!

We found many non-direct lenders that offer personal loans to those with bad credit. These are loan marketplaces, peer-to-peer platforms, loan comparison sites, which we highly recommend, that work with bad credit personal lenders, capping their loans up to 35.99%.

In addition to this, your loan won’t become more expensive, even if you get it through such a platform. These platforms connect people with many lenders. Once people apply, their application gets sends to all companies on the platform. Then lenders start to compete for your loan. And here is another reason for these loans to become less expensive – there is huge competition between lenders in the marketplace.

In the end, the platform gets some fee from the lender if your loan gets released. For you, this means that you pay nothing extra.

At our marketplace, you can find all of the lenders in one place.

  • What types of direct lenders for bad credit are out there?

Online lenders, credit unions, and banks.

If you are with bad credit, don’t waste time with banks. Banks prefer to work with people with good credit. However, online lenders and credit unions could be of help.

Below are the best direct online lenders and credit unions.

OppLoans

Loan amounts $500 – $5,000
Typical APR 59% – 199%
Min Credit Score 0
Time to funding 1 Day
Loan terms 9 – 36 months
Origination fee N/A
Debt-to-income ratio N/A
CHECK RATES

Opploans is a perfect example and probably one of the best direct lenders staying above their competition of payday lenders. Opploans is not a payday loan. Opploans is a type of alternative payday lender.

But before we move on with Opploans, what are alternative payday loans, and how they differ from traditional payday loans?

In brief, these are significantly improved payday loans, which means a higher amount, lower APR, and longer repayment terms for people with bad credit.

We explain them in detail in this article:

https://www.elitepersonalfinance.com/best-payday-loans-alternatives/

We have a full list of all of them at our marketplace:

https://www.elitepersonalfinance.com/marketplace/alternative-payday-loans/

Back on Opploans.

In general, Opploans offers up to $5,000 unsecured installment loans, with an APR averaging between 99% to 199%. However, their loan terms vary by state. Opploans offer loans to those with bad credit. The lender doesn’t perform a credit check. To decide whether you can be approved, Opploans will review your income, workplace, recent transaction history, not your credit score. People should be able to prove an income of $18,000 per year. As we said, their loans are expensive, but there are no origination, prepayment, and late fees.

Opploans allow you to use their loans for any purpose. The most common are:

  • Debt consolidation
  • Refinance
  • Home improvement
  • Travel
  • Extra expenses

Pros:

  • Opploans is a direct lender.
  • People with very bad credit can be approved.
  • No credit check, no hard credit inquiry, meaning your credit won’t be affected.
  • Better than traditional payday loans.
  • An amount of up to $5,000, which is relatively good for those with bad credit.
  • Their APR is cheaper than payday loans.
  • No extra fees.
  • Up to 36 months repayment.
  • Instant funding for those who get approved.

Cons:

  • More expensive loans than payday loans.
  • At least $18,000 provable income is required.
  • Not everyone gets approved. There are NO guaranteed loans!
  • Not available in all states.
  • Not available to people without SSN.
  • No installment loans in all states are available.

Requirements to qualify:

  • Be 18 years or older (or 19 in Alabama).
  • Have a bank account (checking account or saving account).
  • Reside in one of the states where they operate.
  • Have a regular source of income (Income can be from employment or benefits including Social Security, Disability, etc. Please note: alimony, child support, or separate maintenance income is optional to include).
  • Receive paychecks through direct deposit (Due to state regulations, New Mexico residents are exempt from this requirement).

EvenFinancial

Loan amounts $1,000 – $250,000
Typical APR 2.49% – 35.99%
Min Credit Score 550
Time to funding < 1 Day
Loan terms 2 – 7 Years
Origination fee N/A
Debt-to-income ratio N/A
CHECK RATES

EvenFinancial is a perfect example of a non-direct lender that will help many of us get cheaper loans than the other direct lenders listed below. EvenFinancial is a connection service, working with over 300 big loan companies and direct lenders. And there is great news for those with bad credit. EvenFinancial works with many direct bad credit lenders that compete in their marketplace, making your loan cheaper.

Loan comparison sites work with many online lenders, banks, and credit unions, making them attractive places to borrow.

Another reason to prefer to go to loan comparison sites or loan marketplaces are:

  • You apply only once, and your details are sent to multiple lenders. So, you save a lot of time and find the best offer.
  • Connection loan services don’t make your loan more expensive. They get a percentage from the lender only if your loan gets approved, but this doesn’t increase your loan cost.

Let us ask you a question. Which loan would you prefer?

  • A loan from payday direct lender at 400% ARP or
  • A person bad credit loan from a direct lender, but via a platform at 30% APR.

Another reason to include EvenFinancial in this article, although they are not a direct lender, is that they are the only company offering $250,000 installment unsecured personal loans. At this time, the highest that we know is $100,000. If we also add that their APR is perfect of 2.49% to 35.99%, we can say that this is the best personal loan company at the moment.

There is only one disadvantage. EvenFinancial restricts people with less than 550 credit scores from applying.

That’s why we list them at the top of our marketplace.

Those interested in more loan comparison sites can find them at our marketplace. Btw, it’s a great choice to try them.

EvenFinancial allows you to use the loan for any purposes like covering some unexpected expenses, debt consolidation, credit card refinancing, home improvements, etc. You shouldn’t worry about where you will be spending the money.

Pros:

  • High loan amount of up to $250,000 available.
  • APR for people with good credit starts at 2.49%.
  • They partner with over 300 of the largest lenders in the United States.
  • Bad credit lenders are available in their network.
  • Only a 550 credit score is required to apply.
  • Personalized offers are available instantly after you complete the application.
  • No hard inquiry on the application process.
  • No obligations.
  • You save a lot of time.
  • You receive multiple offers at once, which helps you get the best.

Cons:

  • People with very bad credit of less than 550 can’t apply.
  • Not a direct lender.

BadCreditLoans

Loan amounts $500 – $10,000
Typical APR 5.99% – 35.99%
Min Credit Score 0
Time to funding 1 Day
Loan terms 3 – 36 months
Origination fee N/A
Debt-to-income ratio N/A
CHECK RATES

BadCreditLoans is another example of the non-direct lender, but there is a great reason for listing them here, above many direct lenders. BadCreditLoans is a marketplace connecting people with bad credit to direct lenders. At BadCreditLoans, most of you will get times cheaper loans than most of the direct lenders here. The reason is the same as with EvenFinancial. There are many lenders that people can access at once who will compete to give you a loan. The competition always works great for us because lenders will give you cheaper loans and more money.

Like we said about EvenFinancial, there are additional advantages to choose loan connection sites:

  • You apply only once, and your details are sent to multiple lenders. So, you save a lot of time and find the best offer.
  • Connection loan services don’t make your loan more expensive. They get a percentage from the lender only if your loan gets approved, but this doesn’t increase your loan cost.
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