Many bad credit borrowers prefer direct lenders to non-direct lenders because they give you unsecured installment loans directly, meaning they are cheaper, more convenient, and easier to qualify for.
We have compiled a list of some of the best personal direct lenders for bad credit. These are not only safe but also affordable and quick-witted! There are many options to help people with no or low scores get back on track in life. We review every major bad credit direct lender available, plus hundreds more alternative payday loans, loan apps, and buy now pay later finance companies that can provide you with short-term funding.
While searching for a bad credit direct lender, be sure to encounter some predatory schemes. Predatory payday loans offer a fast loan but charge an APR of up to 400%! However, we have prepared a list of the best direct personal loan lenders for bad credit that offer up to $100,000 with an APR of up to 35.99%.
We have yet to find many legitimate bad credit direct lenders providing installment loans but only a few. Most direct personal loan lenders provide loans on big marketplaces. We will talk about some of these marketplaces in more detail below.
Our marketplace is the largest financial lending platform in the United States and operates in all 50 states. We partner with the country’s best unsecured personal loan lenders to provide convenient and affordable installment loans. Our network of hundreds of leading banks, financial institutions, and other lending partners allows us to find you a suitable loan offer that best matches your requirements.
Best Direct Lenders for Bad Credit Personal Loans of April 2024: Key Findings
Most personal direct lenders for bad credit are direct online lenders, credit unions, banks, alternative payday loans, and loan apps. However, banks don’t offer loans to people with bad credit.
Some payday loan lenders offer direct personal loans for very bad credit, but we don’t recommend them. These are expensive and short-term loans. Avoid them at all costs!
That’s why our list of direct lenders for bad credit only features direct online lenders, credit unions, alternative payday loans, and loan apps. We also recommended some bad credit lenders that offer direct personal loans on big marketplaces. This is because we needed help finding many direct best personal loan lenders for bad credit offering installment loans.
You can get an unsecured direct lender installment loan ranging from $1,000 to $100,000, with APRs between 5.99% – 35.99%.
The direct lenders for unsecured personal loans for poor credit offer a repayment term ranging from 1 month to 7 years. However, some offer secured installment loans of up to 12 years, like Affinity.
While many unsecured personal loan lenders require a minimum credit score of 0, you can get a bad credit unsecured loan with a minimum credit score of 580 and below.
Why Trust ElitePersonalFinance Guides?
We take pride in being one of the best and most reliable sources for personal loans. Our experts are committed to providing unbiased and honest reviews on all the best lenders we can find. We only work with reliable and legit companies and have extensive experience in the personal loan industry. Our mission is to help you find the best lenders and make informed financial decisions.
At ElitePersonalFinance, we analyze various aspects of the best installment loans before recommending them to you, including their terms and conditions, rates, fees, repayment options, etc. So, check our list of best direct lenders for bad credit and explore your options today!
We seriously scrutinize hundreds of lenders before bestowing them with our recognition as one of the best lenders. Our experts only recommend reliable, legit, and trustworthy companies with a proven track record of providing affordable loans to borrowers with poor or no credit history.
ZippyLoan
Loan Amount:
$100 – $15,000
APR:
5.99% – 35.99%
Min. Credit Score:
0
Approval:
5 Minutes
Terms:
6 Months – 5 Years
Fees:
Loan origination fees vary by lender.
Late payment fees vary by lender.
Most lenders don’t charge prepayment fees.
Qualification Criteria:
Be at least 18 years of age.
Have recurring employment income or government benefits.
Fill out your information through ZippyLoan’s online portal.
Average Borrower Profile:
ZippyLoan connects borrowers with personalized financial product offers from banks and other lenders.
Financing options are available if you have bad, fair, good, or excellent credit.
ZippyLoan connects bad credit borrowers with direct lenders. Unlike most lenders on our list, ZippyLoan is a non-direct lender, connecting you with other lenders instead of working directly with borrowers.
This lender is great for borrowers with bad or no credit. However, unlike many personal loan lenders on our list, like Upgrade, ZippyLoan doesn’t have any income requirements. To be eligible, ZippyLoan requires borrowers to prove their income and be 18 years old to qualify.
Upon registration and loan application, ZipyLoan sends you a list of direct lenders that can offer you financing based on your credit history. There are no fees associated with ZippyLoan, and the best part is that you can get offers from multiple lenders in one place.
ZippyLoan offers loans from $100 to $15,000, with APRs ranging from 5.99% to 35.99%. Approval is fast, typically within one day, and there are no origination fees. Additionally, there are no prepayment penalties, meaning you can pay off your loan early with no additional fees.
Pros:
Offers loan amounts from $100 to $15,000.
Approval takes five minutes, and funding can be available on the same day.
There are no origination fees or prepayment penalties.
Connects you with multiple lenders at once.
Cons:
Your credit score can affect your interest rate.
Loan terms vary by lender.
The interest rate for borrowers with poor credit histories might be as high as 35.99%.
The Impact of Covid-19:
You may be eligible for a hardship waiver from ZippyLoan, even though the company does not offer specific programs to support those impacted by the coronavirus outbreak. Contact ZippyLoan at 1-844-379-8621 or via email at support@zippyloan.com.
As a direct lender, Earnin is an excellent paycheck advance app and an alternative to traditional payday loan apps. Lenders may make initial offers as high as $100. If you make your payments on time, you may qualify for a limit increase of up to $500.
Earnin is a free service. You may be wondering, “How do they make money then? What’s the catch?”
According to their website, they count on tips to keep going. Yet, that is just one of the things. There’s something else that every app that offers a cash advance loan does. These banking apps offer a wider range of banking services, like savings, checking, etc., than their basic counterparts. By offering free or low-interest loans, businesses hope recipients will eventually become regulars and patrons. Although some may see this as a catch, we see it as an opportunity to earn extra cash. Your next question is whether they can also benefit from this catch. With over 10 million downloads, it’s safe to assume they’re successful.
Earnin’s instant approval time is among the fastest in the industry. To apply, you must first download their app and create an account. You’ll be required to provide basic information regarding your current job, employment status, bank account, and social security number. Once everything is verified, Earnin will give you a decision within seconds. It’s that simple!
Earnin provides a repayment term of one month, so you don’t have to worry about making repayments for a long time. And best of all, Earnin doesn’t charge origination fees. However, the lender charges a late payment fee of $10 or 5% of the unpaid debt.
Eligibility criteria:
At least 50% of your direct deposit will go to your checking account.
Payment on a predetermined schedule.
A permanent workplace, an electronic timekeeping system at work, or a paper printed/PDF-style timesheet
A permanent workplace, an electronic timekeeping system at work, or a paper printed/PDF-style timesheet
Connect the Earnin app to your bank account.
Pros:
Fast and easy application process.
No interest, fees, or origination fees.
No credit check is required.
Repayment period of one month.
Option to tip the lender for quick funding.
Earnin is a direct lender.
Cons:
Limited loan amounts of up to $500.
A lower sum than you’d get with a traditional personal loan lender.
The initial loan is just $100.
Some banking institutions are excluded from Earnin’s Lightning Speed feature.
Requires access to your bank account.
Charges a late payment fee of $10 or 15% of the debt due if you miss any repayment.
The Impact of Covid-19:
Earnin offers forbearance programs for borrowers affected by the Covid-19 pandemic. Visit their website or contact them directly at (888) 400-8996 or support@earnin.com for more information about these programs.
Brigit is a bad credit direct lender that provides similar cash advance services as Dave and Earnin, including up to $500 with no fees or interest and no need to check credit. You can also have the advance repayment amount subtracted straight from your next paycheck. There shouldn’t be any regions where the Brigit app doesn’t work. However, there are specific requirements that must be met.
It would help if you opened and regularly utilized a bank account. It would help if you also had a positive balance and at least 60 days of activity. Having extra money available every two weeks after getting paid is also very important.
Additionally, Brigit evaluates your “Brigit Score” to decide if you qualify. For instance, using Brigit’s scale, a score could be anywhere from 0 to 100. On the other hand, the alternative lender says that the best FICO scores fall between 40 and 100.
Please remember that you are only eligible for one cash advance at a time, and you will only be able to apply for another once the previous one is paid back in full. On the other hand, approved borrowers should have access to their money in as little as three business days. In contrast to Dave, Brigit provides no-cost, quick funding in as short as 20 minutes. However, Brigit charges a membership fee of over $4 each month. For instance, cash advances have a $9.99 monthly fee.
Eligibility Criteria:
The checking account must be active for at least 60 days with a positive balance.
Paychecks should always leave you with extra money.
Range from 40 to 100 on the Brigit scale.
Membership fees of $4 or more each month.
One cash advance per loan period.
Pros:
No interest, fees, or origination costs are associated with the loan.
No credit check is required.
You can have your money in 20 minutes with no extra charges.
You can link to an external bank account, similar to Earnin.
Cons:
Monthly membership fee of $9.99 for cash advances.
One cash advance per period.
Must be able to access your bank account.
You will be charged a late payment fee if you miss a repayment.
To be eligible, your Bridgit score needs to be between 40 and 100.
The Impact of Covid-19:
Brigit is currently offering forbearance programs to borrowers affected by the Covid-19 pandemic. However, you can contact info@hellobrigit.com for details on any company-specific programs. However, keep in mind that the lender suggests submitting your request through Jess, their automated chat service available around the clock.
Upgrade
Loan Amount:
$1,000 – $50,000
APR:
8.49% – 35.99%
Min. Credit Score:
560
Approval:
1 Day
Terms:
2 – 7 Years
Fees:
Loan origination fee of 1.85% – 9.99%
Late payment fee of $10, after a 15-day grace period
Insufficient funds fee of $10
There are no prepayment fees
Qualification Criteria:
Be at least 18 years of age
Have a credit score of at least 560
Have a DTI ratio that doesn’t exceed 75%
Have recurring employment income or government benefits
Fill out your information through Upgrade’s online portal
Personal loans made through Upgrade feature Annual Percentage Rates (APRs) of 8.49% – 35.99%. All personal loans have a 1.85% to 9.99% origination fee, which is deducted from the loan proceeds. The lowest rates require Autopay and paying off a portion of existing debt directly. Loans feature repayment terms of 24 to 84 months. For example, if you receive a $10,000 loan with a 36 – month term and a 17.59% APR (which includes a 13.94% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 in your account and would have a required monthly payment of $341.48. Over the life of the loan, your payments would total $12,293.46. The APR on your loan may be higher or lower, and your loan offers may not have multiple term lengths available. The actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed-rate loan. There is no fee or penalty for repaying a loan early.
Upgrade is a great bad credit direct lender for borrowers with high-DTI ratios. To qualify, you’ll need to be at least 18 years old, have a credit score of at least 560, and earn recurring income from employment or government benefits. You can fill out your information online through the Upgrade portal and get an offer for a loan almost immediately.
Upgrade offers foxed-rate unsecured personal loans of up to $50,000 with APRs ranging from 8.49% to 35.99% with repayment terms of between 2 and 7 years. To qualify, you need to have an average annual income of $78,000 or an average monthly free cash flow of $800. Additionally, you’ll need a credit score of at least 560, and your DTI ratio cannot exceed 75%.
As a borrower, you’ll benefit from a 15-day grace period for making late payments, and there are no prepayment penalties. However, Upgrade charges an origination fee of between 1.85% to 9.99%. Borrowers with a credit score of over 700 get even better offers from Upgrade. Borrowers who don’t qualify for an unsecured loan can add a cosigner or consider the secured loan options.
Even better, Upgrade offers customized discounts for borrowers based on their credit score, income, and other lender criteria. You can use an Upgrade personal loan for debt consolidation, home improvements, credit card refinance, auto refinancing, and more. However, the company only finances monthly expenses like rent payments, which could hinder loan repayment. This could be a drawback for some borrowers.
Upgrade beats most bad credit lenders when it comes to convenience and speed. You can complete the entire application process online, and in many cases, you’ll receive an immediate offer for a loan.
Pros:
Upgrade has a fast and convenient online application process.
Wide range of loan amounts of up to $50,000, durations of up to 7 years, and APRs of between 8.49% to 35.99% available.
No prepayment penalties or fees.
Has an Autopay discount of 0.5%.
If you don’t like the terms or don’t qualify for an unsecured loan, consider looking into a secured loan or a loan with a cosigner.
Offers Covid-19 relief loan option for borrowers facing financial hardships due to the pandemic.
Cons:
Doesn’t offer to finance rent payments, which could pose a problem for some borrowers.
Upgrade charges an origination fee ranging from 1.85% to 9.99%.
The Impact of Covid-19:
Borrowers rendered jobless by the pandemic may qualify for a monthly reduction in payments. Additionally, you can get a modification of your loan terms. Find more information about Covid-19 hardship programs here.
LendingPoint
Loan Amount:
$2,000 – $36,500
APR:
7.99% – 35.99%
Min. Credit Score:
580
Approval:
1 – 7 Days
Terms:
2 – 5 Years
Fees:
A loan origination fee of 0% to 6%
Late payment fee of up to $30
Insufficient funds fee of $20
Qualification Criteria:
Be at least 18 years of age
Have a credit score of at least 580
Have a DTI ratio that doesn’t exceed 50%
Have an annual income of at least $25,000
Fill out your information through LendingPoint’s online portal
LendingPoint is an excellent bad credit lender for borrowers with an average annual income of $25,000 or higher. To qualify, you must have a credit score of 580 or higher and a debt-to-income ratio that doesn’t exceed 50%. Additionally, you must make an average of $25,000 annually and be 18 years old to qualify for a personal loan through LendingPoint.
LendingPoint offers flexible repayment terms of between 2 and 5 years and APRs ranging from 7.99% to 35.99%. You can borrow up to $36,500 depending on your creditworthiness and income level, making it ideal for borrowers with bad credit who need a larger loan.
Approval time is typically between 1 to 7 days, making it one of the best bad credit lenders in terms of speed. Moreover, you can use LendingPoint’s loan for various purposes, including home improvements, debt consolidation, and auto refinancing.
LendingPoint charges an origination fee of 0% to 6%, late payment fees of up to $30, and insufficient funds fees of $20.
LendingPoint beats its competition when it comes to convenience and speed. Fill out your information through LendingPoint’s online application portal to get started.
Pros:
Fast and easy online application process.
Wide range of loan amounts, up to $36,500.
Competitive fees and APRs, ranging from 7.99% to 35.99%.
No prepayment penalties or fees.
Offers a variety of loan terms, between 2 and 5 years long.
Cons:
A loan’s origination cost at LendingPoint might range from 0% to 6%.
An overdue payment with LendingPoint might cost you up to $30.
LendingPoint will assess a nonsufficient funds fee of $20.
LendingPoint doesn’t offer loans in Nevada or West Virginia, but that’s the only real drawback.
The Impact of Covid-19:
There is no mention of specific hardship policies on LendingPoint’s site. To find out more about your choices, contact the lender at 1-888-969-0959 or via email at customerservice@lendingpoint.com.
OneMain Financial
Loan Amount:
$1,500 – $20,000
APR:
18.00% – 35.99%
Min. Credit Score:
0
Approval:
1 – 7 Days
Terms:
2 – 5 Years
Fees:
A loan origination fee of 1% to 10%, or $25 to $500
Late payment fee of 1.5% to 15%, or $5 to $30
Insufficient funds fee of $10 to $50
Qualification Criteria:
Be at least 18 years of age
Have recurring employment income or government benefits
Fill out your information through OneMain Financial’s online portal
OneMain Financial is an unsecured direct lender for bad credit that is excellent for borrowers with the lowest credit scores. To qualify, you must be at least 18 years old and have a recurring source of employment income or government benefits. You must also be able to fill out your information through OneMain Financial’s online application portal, which is quick and easy to use.
With low APRs from 18% to 35.99% and loan amounts ranging from $1,500 to $20,000, OneMain Financial is a best-in-class loan provider for those with bad credit. Furthermore, OneMain offers flexible repayment terms of between 2 and 5 years, giving borrowers the time they need to rebuild their credit scores.
Like ZippyLoan, OneMain Financial has state restrictions. For instance, OneMain Financial serves customers in 44 different states. Loan minimums are higher than $1,500 in the states of Alabama (2,100), California ($3,000), Georgia ($3,100), North Dakota ($2,000), Ohio ($2,000), and Virginia ($2,600). Additionally, borrowers in the state of North Carolina are restricted to borrowing no more than $7,500.
OneMain Financial is best known for its fast approval process, which typically takes 1 to 7 days. Moreover, OneMain doesn’t charge prepayment penalties or fees, so you can save on interest by paying off your loan early. However, this lender charges loan origination fees of 1% to 10%, or $25 to $500, late payment fees of up to 1.5% to 15%, or $5 to $30, and insufficient funds fees of $10 to $50, so be sure that you can afford these costs before applying.
Applying for a bad credit personal loan with OneMain Financial may be done in two ways: online or by visiting one of their 1,400+ physical stores spread across the United States and speaking with a loan officer there. An officer will meet with you to verify your information, answer any questions you may have, and have you sign the loan documents.
Pros:
Fast and easy online application process.
Wide range of loan amounts, up to $36,500.
Competitive fees and APRs for borrowers with bad credit, ranging from 7.99% to 35.99%.
No prepayment penalties or fees.
Offers a variety of loan terms between 2 and 5 years long.
There is no lower credit score is required.
A rate inquiry does not affect your credit score.
Cons:
A loan’s origination cost at OneMain Financial might be anywhere from 1% to 10% or $25 to $500.
An overdue payment with OneMain Financial might cost up to $1.5 to $15 or $5 to $30.
OneMain Financial will assess a nonsufficient funds fee of $10 to $50.
BMGMoney is an excellent direct lender for bad credit to borrowers employed by BMGMoney’s partner companies. To qualify, you must be at least 18 years old, have a recurring source of employment income or government benefits, and work at one of BMGMoney’s partner employers, where BMGMoney deducts from your paycheck. You will also need to fill out your information through BMGMoney’s easy online application portal.
With APRs ranging from 16% to 36%, BMGMoney is a best-in-class niche lender for bad credit borrowers. Additionally, BMGMoney offers flexible loan terms ranging from 6 months to 3 years long, allowing you plenty of time to rebuild your credit score.
One of BMGMoney’s best features is its fast approval process. Typically, it takes 1 to 7 days and requires no minimum credit score. To apply, fill out your information through BMGMoney’s online portal and get ready to rebuild your credit score over time.
And best of all, there are no prepayment penalties or fees with BMGMoney, so you can save on interest by paying off your loan early. However, BMGMoney charges a one-time processing fee of $0 to $49, depending on your residence. So be sure that you can afford this cost before applying.
If you are employed by a BMGMoney partner company and need fast approval for the best direct lenders for bad credit, BMGMoney is a great option. However, BMGMoney’s services are only available in 33 states, so check whether your state is eligible before applying.
Pros:
Fast and easy online application process.
Wide range of loan amounts, up to $10,000.
Competitive fees and APRs for borrowers with bad credit, ranging from 16% to 36%.
No prepayment penalties or fees.
Offers a variety of loan terms, between 6 months and three years long.
Similar to ZippyLoan and OneMain Financial, there is no required minimum credit score.
The process of checking your rate will not affect your credit rating.
Cons:
Only available in 33 states.
Requires employer paycheck deduction, meaning you must work for a BMGMoney partner company to qualify.
The one-time processing fee is $0 to $49, depending on your residence.
The Impact of Covid-19:
Loan repayment procedures at BMGMoney remained unchanged during the pandemic, but assistance is available if needed. Therefore, if you need financial aid in the form of a loan, you can contact BMGMoney by dialing 1-800-316-8507 or emailing customer.service@bmgmoney.com.
OppLoans is an alternative payday lender that offers unsecured direct lender loans of up to $4,000. With a quick and easy online application process, you can get approved for a loan in as little as one day. OppLoans offers extremely competitive interest rates compared to direct-payday lenders, ranging from 59% to 160%. However, compared to bad credit direct lenders on our list, OppLoans offers a smaller repayment of 9 and 18 months.
There is no examination of credit history by the lender. OppLoans looks at your income, employer, and recent transaction history to determine eligibility rather than your credit score. It is expected that applicants can demonstrate an annual income of $18,000. As we’ve already mentioned, their loans are costly, but there are no hidden fees, including those for origination, prepayment, or late payment.
In addition, loan refinancing options are available for borrowers who have paid at least $400 or 15% of their original loan balance. And best of all, you can use an OppLoan personal loan for any purpose, including debt consolidation, travel, refinance, home improvement, and medical expenses.
OppLoans Eligibility Criteria:
Be 18 years old.
A U.S citizen or a permanent resident.
A valid SSN or passport.
A minimum monthly income of $18,000.
You must possess a U.S. bank account at least 90 days old.
To qualified borrowers, OppLoans provides refinancing solutions.
OppLoans is an alternative payday lending service with a lower APR than payday or auto title loans.
Their online application process is quick and easy, making it an ideal option for those in need of urgent funds.
OppLoans does not charge any prepayment, late payment, or origination fees and has flexible repayment options.
Cons:
OppLoans only offers personal loans up to $4,000, which may need more to meet your needs.
The minimum annual income requirement is quite high compared to other bad credit direct lenders.
Has a high APR of 59% to 160%.
The Impact of Covid-19:
OppLoans offers a forbearance program for people affected by the pandemic who can’t meet payments on time. Check out their Covid-19 resource center for more information on managing your finances during this difficult time. Alternatively, contact the lender at (800) 990-9130 or email them at info@opploans.com.
PenFed Credit Union is the best direct lender for borrowers with fair credit. However, to qualify, you must have a minimum credit score of 700 and a maximum DTI ratio of 40%. Additionally, you must have a minimum credit history of 3 years.
PenFed offers unsecured personal loan amounts of $600 to $35,000 with competitive rates and terms starting at six months and up to 60 months. They charge an APR of 5.99% to 17.99%, significantly lower than most payday loans or auto title loans.
PenFed charges a membership fee of $5, a late payment fee of $29, and a returned payment fee of $30. However, PendFed doesn’t charge any origination or prepayment fees.
In contrast to conventional lending institutions like banks and credit unions, the lender does not conduct a hard credit check throughout the application procedure. In other words, consumers can apply for loans without worrying about their credit scores.
PenFed only offers unsecured loans. Loans cannot be guaranteed, but a cosigner can help those unhappy with their offer or not eligible for individual loans.
Borrowers are free to put the funds toward whatever they see fit. Loans from PenFed can be put toward anything the borrower sees fit, including paying off existing debts, home improvements, credit card refinances, etc.
Eligibility Criteria:
Be 18+ years old.
Have a valid SSN or ITIN.
Be a U.S citizen or a permanent resident of the U.S.
Have a minimum credit score of 700.
Have a maximum DTI ratio of 40%.
Have a minimum credit history of 3 years.
Pros:
Low rates and flexible terms.
Offers forbearance for those affected by Covid-19.
No credit check is required.
Access to funds without collateral.
Offers cosigner loan options.
Doesn’t charge origination or prepayment fees.
Cons:
Only open to its members.
Opening a savings account with a minimum deposit of $5 is required for new members to join.
Debt consolidation loans do not include direct payment to creditors from the lender.
There is no way to alter the due date of your payments.
There is no rate reduction for setting up automatic payments.
Charges a late payment fee of $29.
PenFed charges a returned payment fee of $30.
PenFed doesn’t offer secured loan options.
The Impact of Covid-19:
PenFed has a COVID assistance program to help you if you’re having trouble making your monthly payments because of a job loss, disability, natural disaster, deferred payments, forbearance, or another repayment plan or loan modification. Apply for this program here or contact the lender at 1-800-247-5626.
Affinity Credit Union is a great direct lender for bad credit borrowers. Affinity offers unsecured personal loans with competitive rates and terms starting at 12 months and up to 60 months. They charge an APR of 10.49% to 18%, significantly lower than payday loans or auto title loan lenders.
These credit unions are a popular choice since they provide bad-credit borrowers access to unsecured personal loans. If you need money but you are eligible to qualify for an unsecured loan, Affinity Credit Union also has a secured loan option.
While Affinity’s unsecured personal loans come with repayment terms of up to 5 years, the lender’s secured loan options offer a repayment period of up to 12 years.
Like ZippyLoan, PenFed, and OppLoans, Affinity doesn’t charge any origination fees. Additionally, they offer no prepayment penalty, so you can save money by paying off your loan early. However, the lender charges ATM withdrawals outside the network of $2 in Canada and $5 outside of Canada. Other charges include the foreign currency transfer fees of $10 per transaction and an insufficient funds fee of $43.
Eligibility Criteria:
Be 18 years old or above.
Be a US citizen or a permanent resident.
Have a valid SSN or ITIN.
Pros:
Competitive rates and repayment terms.
Doesn’t charge origination fees.
Offers both secured and unsecured loan options.
Offers cosigner loan options.
Doesn’t charge prepayment penalties or origination fees.
Cons:
Charges insufficient funds fee of $43.
After one free monthly transaction, each additional transaction costs $5.
Non-network ATMs, especially those outside Canada, impose significant transaction fees.
Chares foreign currency fees of $10 per transaction.
The Impact of Covid-19:
Affinity Credit Union offers a hardship program for borrowers affected by Covid-19. If you struggle to repay your loan because of a job loss or another hardship due to the pandemic, you may be eligible for a forbearance plan or another repayment option through this program. To learn more about your options, contact Affinity Credit Union directly at 000 1 306-934-4000.
Dave is an excellent bad credit direct lender option for cash advances. This lender offers a cash advance loan of up to $500 without any interest. Fees required by Dave include the following:
Monthly membership fee of $1.
You can choose to pay anything from $1.99 to $5.99 for the convenience of express funding. Those who wait 1–3 days to receive their funds can avoid this cost.
Optional tips from borrowers.
With Dave, you can have your money in less than 24 hours after applying for the loan. In most cases, the lender approves loans within minutes and immediately provides funds to approved applicants.
Dave offers a repayment period of one month, so you don’t have to worry about making repayments for a long time.
And best of all, Dave does not charge origination fees.
Dave is an excellent choice if you’re looking for a fast and easy lender for bad credit with no interest or origination fees.
Eligibility Criteria:
Dave doesn’t care about your credit history. The lender will look at how much money you make, how much you spend, and how much money is usually in your bank account.
Two recent and consistent direct deposits are necessary to prove your income.
If you link a bank account to Dave, they can assess your financial situation and determine your eligibility for a $100 loan.
You must open a Dave Spending Account and activate direct deposit to receive the $500 loan.
Pros:
Fast and easy approval process.
No interest, fees, or origination fees.
No credit check is required.
Repayment period of one month.
Option to tip the lender for quick funding.
Only a $1 monthly fee.
Cons:
Limited loan amounts of up to $500.
Quick funding charges from $1.99 to $5.99.
Inability to alter the due date for payment.
Due to the short grace period, borrowers must repay the loan within one calendar month.
Requires bank account access.
The Impact of Covid-19:
Unfortunately, Dave’s loan app has not disclosed any information about how they handled Covid-19. If you are affected by the pandemic, contact Daveat at 1-888-865-8193 or email support@dave.com.
Klarna’s Pay in 4 is a purchase now, pay later service that allows you to make four interest-free payments without any fees, making it another top-tier direct lender for bad credit with no credit check. Additionally, there are zero upfront costs involved. When you complete your 1st Buy Now, Pay Later buy on the BNPL site, you will receive a $5 bonus. In addition, there is the option of making monthly installments with an annual percentage rate (APR) anywhere between 0% and 24.99% for terms as long as 36 months.
Klarna warns that a rigorous credit check may be necessary for the monthly installment option. Therefore, choosing a long-term loan could affect your credit rating. You can avoid this by selecting the “Pay in 4” option.
There is no stated spending cap for Klarna. The low end of the pricing spectrum is a ten-dollar buy.
However, your specific limit will be based on your account history and the debt you now have with Klarna. For instance, Klarna warns that new users will have additional requirements and that not all Buy Now, Pay Later purchases will be approved.
All BNPL acquisitions will require a personal interview with the lender, although this is standard practice. In contrast, the BNPL site will assess your purchasing power and display the amount when you log in if you have established a credit history with Klarna.
Eligibility Criteria:
You must be a citizen or permanent resident of the U.S.
18+ years old.
Possess a working bank account or credit card.
Pros:
No credit check is great for those with bad or no credit.
A low minimum purchase amount of just $10.
No fees or interest are charged on your purchases if you select the “Pay in 4” option.
Klarna offers a convenient online application process and quick approval turnaround time.
Cons:
There is no stated limit on your credit line.
The maximum repayment term for the “Pay in 4” plan is 36 months.
The monthly payment plan offered by Klarna may affect your credit.
The Impact of Covid-19:
During the pandemic, Klarna suspended payments for customers who had lost their jobs or were otherwise severely impacted financially. Additional pandemic-specific choices were accessible in addition to the Buy Now, Pay Later app’s’snooze’ feature, which delays payments for ten days without charging any fees or interest. To contact Klarna, dial 1-844-552-7621 or use the website/live app’s chat feature.
What are Direct Lenders?
Direct lenders are financial institutions that offer loans directly to borrowers. Direct lenders for bad credit are a great option for those who need money quickly and have a less-than-perfect credit history. These lenders offer loans to consumers who may not be able to get a loan from a traditional bank. Bad credit can include past-due payments, defaults, or even bankruptcy.
Direct lenders for bad credit typically do a soft credit check, which will not hurt your credit score. This check allows the lender to see if you are eligible for a loan and how much you could borrow.
Once approved, the money is deposited into your bank account as soon as the next business day. You can use the funds however you please, whether it’s to pay off bills, cover an emergency expense, or make a major purchase.
Direct lenders for bad credit often have more flexible eligibility requirements than banks. In most cases, you must be 18 years or older and have a valid bank account or debit card to apply. You may also need to provide proof of income and residency.
There is no need to worry about your credit score when applying with a direct lender–most of them don’t even look at it!<
How to Find the Best Direct Lender?
Here is a sure way of finding the best direct lender that matches your needs and status.
Compare Different Direct Lenders
Here’s some insider info to help you find the most competitive loan provider. You can compare the interest rates, fees, and rules of various lenders if you shop around. You can then choose the lender whose rates are within your budget and whose loan you can repay without worrying about making ends meet. It will also help you locate a direct lender with a payment schedule that works best for you so that you can avoid late payments as little as possible.
It would help if you also prioritized finding a lender with the highest standards of professionalism and care for its clients. A lender like that is more likely to resolve problems effectively and respond to your questions promptly.
Confirm whether they are Loan Brokers or Direct Lenders
Since many borrowers expect to deal with a direct lender, several online loan brokers present themselves as such. A broker may take your request and resell it to a lender for a fee. That being said, the likelihood of you securing a loan is extremely low. Also, because brokers promote loans from specific lenders, you can never be sure if you are receiving the best offer.
Verifying whether you’re working with a loan brokerage or a direct lender is essential for avoiding unpleasant surprises. Direct lenders handle your application from start to finish without employing any middlemen.
Confirm whether they are Licensed
You should always check whether your chosen direct lender is licensed or not. Different states have different regulations and requirements when it comes to licensing, so you’ll need to verify the license type, issuing agency, and expiration date.
If you’re applying for a loan outside your state, make sure the lender is licensed in both states. You can visit each state’s licensing website or contact the issuing agency directly.
Please take into account their Fees and Interest Rates
The interest rate is one of the most important considerations when looking for a loan. Direct lenders typically charge higher interest rates. Even if a direct lender claims to offer instant loans, it’s important to inquire about interest rates, as some may be quite high and make it difficult to repay the loan.
Remember to find out if any other fees are associated with your situation, as they may add substantially to your overall bill. In this light, it is important to inquire about the lender’s down payment requirements, interest rates, and total repayment amount. This will give you a complete picture from which you can work to make an informed choice.
Approval Time
When working with a direct lender, you can expect your loan application to be processed quickly. Most direct lenders will complete your request within a couple of days, provided you have a strong credit score and are eligible for the loan.
The processing time for direct lenders is typically disclosed upfront. That way, you can determine if the urgency of that solution matches your own.
Consequences Involved
Finally, look at the consequences of your preferred direct lender. There are always repercussions for defaulting on a loan, no matter how small. The interest rate may be raised, or a fine may be imposed.
Depending on the amount, some lenders may even try to seize your property. As a result, you should always inquire about the lender’s late payment policies. That way, you won’t have any surprises later on. Keeping a contingency plan in mind also helps to ensure that you focus on the financial rewards and know the potential risks.
How to Qualify for a Direct Lender Loan
To qualify for a direct lender loan, you must meet certain requirements. The most important factor is your credit score, which must be in good standing. You will also need to provide documentation that proves your income and identity. However, bad credit direct lenders don’t worry much about your credit score more than your ability to repay the loan.
Some lenders may also require a down payment to reduce their risk. It’s important to know these requirements before you apply, as you may only be eligible for a loan if you meet them.
If you have any questions about the qualification process, be sure to contact the lender directly. They will be able to help you understand what is needed to secure a loan.
Are There Private Direct Lenders?
Yes. There are private direct lenders. Private direct lenders are typically small companies or individuals that focus on providing loans to people in need. They typically offer lower interest rates than traditional lenders but take on more risk.
For this reason, it’s important to be honest with a private direct lender about your financial situation and to provide them with the necessary documentation. That way, you can get the loan that you need without jeopardizing your future financial stability.
To find a private direct lender near you, perform an online search or check online marketplaces for these companies. Many also advertise their services online and through local newspapers and magazines.
Direct Payday Lenders for Bad Credit
Direct lenders and payday lenders are two very different things.
Direct lenders are companies that lend you cash directly.
Typically, payday loans are short-term loans for a low amount. Typically, the borrower is expected to pay them back when they receive their next paycheck. Extremely bad credit borrowers can get loans from them, but be prepared to pay exorbitant interest rates. The average annual percentage rate (APR) is extremely high, so we don’t suggest using them. Nonetheless, there are better options for people with bad credit than payday loans now, so we advise you to stay away from them.
Direct payday lenders are no different from payday loans. Yes, there is a clear distinction between the two, but some payday lenders use this term to deceive their customers. The situation is similar to that. Do you have bad credit and need an unsecured loan? Now we’re here. Online payday loans. Because we are a direct lender, we can give out loans even to people with the worst credit. And if you’re keeping up, you’ll notice that every single one of these is correct.
Despite widespread awareness of the fraud that the payday loan industry perpetuates, many borrowers continue to fall for the industry’s tricks.
However, these so-called “direct payday lenders for bad credit” fail to mention that they are not alone in this industry. It’s true that besides payday loans, there are plenty of other loan options that direct borrowers to lenders who are willing to extend them a loan despite their low credit scores and high-interest rates.
To avoid these, always look for ‘personal loans for bad credit provided by direct lenders. These offer a much lower interest rate.
Direct Personal Lenders for Bad Credit
There are still legit bad credit direct lenders who offer legitimate unsecured loans even to those with the worst credit scores.
Unsecured personal loan installments range from $1,000 to $100,000, with interest rates between 5.99% and 35.99%. Individuals with poor credit can borrow up to $10,000 at an interest rate of 15% to 35.99%. All these estimates are just that, estimates; they depend on the lenders and your circumstances. Fortunately, many loan providers look at factors other than your credit score to make a decision.
Additionally, direct personal lenders for bad credit can guide you through the entire process. They will help you improve your credit score and provide low-interest loans to make it possible.
Unfortunately, there are very few direct personal lenders for bad credit. However, we recommend a wide variety of alternative personal loan sources, such as peer-to-peer networks and loan comparison services. The full catalog is available at our marketplace.
In addition, you can find bad-credit lenders and borrowers through these online platforms. You must go to the appropriate registration office to apply for a loan. When you submit your request, it is distributed to numerous lenders, who promptly respond with loan proposals. Please take note that no mention of direct lenders has been made here. You can get a loan from either a direct or a non-direct lender.
So, if you want to save money on low fees, time, and rates, check out the legit companies at our marketplace offering legit unsecured installment loans.
Are Personal Loans for Bad Credit Unsecured?
If you have bad credit, it is very unlikely that you will be able to get an installment loan from your local bank. However, there are still some non-credit checks and direct lenders for unsecured loans out there who can help you with your financial troubles. People with poor credit who need larger loan amounts or a lower interest rate might want to look into secured loans. Borrowers of a secured loan must pledge an asset as security. Lenders will gain peace of mind, causing them to adjust their initial offers. The collateral is usually a vehicle or a bank deposit.
Alternative Payday Loans
Most bad credit lenders are also direct-payday companies, which means they’ll appear to be reputable and safe options until it’s too late (and then will charge extremely high-interest rates). On the other hand, alternative payday loans are great alternatives to traditional ones, offering low-interest rates and flexible repayment terms.
The interest rates are still higher than those of more conventional high-risk lenders. Still, they are significantly lower than those offered by the vast majority of the “direct lenders for bad credit” websites you will find online. The assessed alternative payday loans are superior to the vast majority of direct payday lenders with bad credit that can be found online.
Below is an excellent alternative payday lender. However, only use them when it’s your very last option.
Loan Apps
Loan apps are direct lenders for bad credit amounts between $100 and $500. They typically have no interest and don’t care about your credit history. As a result, they represent an exciting new option for obtaining financial aid. However, loan apps offer a shorter loan repayment period, usually one month.
Additionally, loan apps have membership fees of between $1 and $5.
When you need cash fast but want to avoid jumping through hoops or dealing with complex eligibility criteria, loan apps are an excellent choice.
Like banks, credit unions, and personal lenders, buy-now-pay-later are direct lenders for bad credit. If you have less-than-perfect credit but need immediate credit, a BNPL company might be the right choice for your short-term financial situation.
Typically, BNPL personal loan services offer credit on purchases of $100 or more, so consider a BNPL option before making an expensive purchase. You will only be charged interest on the funds spent over that initial $100, and approval for BNPL financing is usually based on your ability to repay the loan rather than your credit score.
Remember that most Buy Now Pay Later services to charge a fee for late or missed payments and may even charge penalty APRs if you miss multiple loan payments.
Credit Unions offer some of the best rates on personal loans for borrowers with bad credit. A credit union may be a good option if you can’t qualify for a loan through traditional direct lenders or are looking to refinance your existing payday loans. Many credit unions are willing to work with their members to determine an affordable repayment plan that meets their needs.
A great credit union offers great rates and terms to bad credit borrowers.
Are There Bad Credit Direct Personal Lenders for Debt Consolidation?
Yes. Bad credit direct personal lenders offer loans to people with poor credit, but it’s important to understand how the process works.
Most of these lenders will require you to undergo a soft pull on your credit history to determine whether you qualify for the loan. If approved, they may also perform a hard pull on your credit history to assess your risk level.
The interest rate and terms offered by bad credit direct personal lenders may be slightly higher than those offered by traditional lenders, so you must consider debt consolidation knowing this. However, many people find that these loans can help them manage their finances more effectively during difficult times.
Are There No Income Verification Loans and No Credit Check?
No income verification loans still exist. However, you will need to work with a direct lender specializing in this type of cash advance.
These loans are typically offered for short periods and have relatively high-interest rates. However, they can be ideal for people who want to keep their income information private from lenders or cannot prove their income.
To get a no-income verification loan, contact your preferred direct lender and request more information. They should be able to help you understand what is needed to qualify for the loan.
Are There Very Bad Credit Direct Lenders with Guaranteed Approval and No Credit Check?
No! A firm that claims to offer “guaranteed loans” is likely trying to steal your money. It’s true that there are lots of lenders to choose from and that these lenders are regularly tweaking their deals and eligibility requirements, so your odds are improving. More and more lenders are making larger loans and providing better interest rates to borrowers with poor credit. However, no loans are available with guaranteed approval.
Terms like “loans guaranteed approval,” “guaranteed approval loans,” and payday loan lenders use many more to lure unsuspecting borrowers. In reality, no such loans exist and if you are offered one, run away from these scammers as fast as you can!
There is no such thing as a guaranteed loan, but payday advances do have the best approval odds. Payday loans can be incredibly costly and unsafe. Thus, we don’t suggest or review them.
How to Identify Loan Scams?
There is a wide variety of loan scams out there, but many of them share common strategies. Some warning signs could include the following:
Pressure to Act Now
Scammers frequently demand a quick response from their victims. A scammer or predatory lender could try to trick you into making a quick decision by making you feel like time is of the essence. Don’t do it if you feel pressured into making a financial decision, disclosing private information, or signing a document.
Guaranteed Approval
It would help if you often met several criteria to get a loan from a financial institution. Some lenders do indeed provide poor-credit loans, but a lender who promises approval no matter what is either giving subprime loans or is just out to swindle you.
Loan Cancellation
A lender who says they will take back the loan and their fees after a set period is not interested in helping you out of your financial troubles. These lenders could try to pressure you into paying extra fees to get an extension on your “loan,” or they might even falsely attempt to deduct money from your bank account.
Other Red Flags:
Demanding money before services are rendered or contracts are reviewed.
Asking that you pay with anything that can’t be traced back to you, such as cash, a prepaid card, or cryptocurrencies.
Fake government agencies contactING you through phone or text messages saying you have a debt to them.
Being advised to stop communicating with debt collectors.
What Types of Bad Credit Loans Should I Avoid?
Payday loans: Payday loans are short-term unsecured loans typically taken out in amounts of $1,000 to $1,500 to help borrowers get by until their next paycheck arrives. You can usually discover payday loans offered through brick-and-mortar businesses. However, look online. Payday lending companies typically do not require extensive financial history or proof of stable income before issuing loans, making them accessible to borrowers who may have difficulty repaying their debt. Moreover, these loans are notoriously expensive. CFPB
Pawnshop Loans: Yet another iteration of the payday loan. The only real difference is that they are more affordable, and the vast majority of you will find them to include the phrase “near me” because they are local establishments. They’re high-risk loans, so you should stay away from them.
Auto-title loans: Auto-title loans are a form of collateralized credit. The value of your car serves as security, and the loan amount is usually less than the value of the car. Their typical APR is 300%. They are loans we advise consumers to avoid because of the danger involved. Because of this, most people end up in a never-ending cycle of debt and ultimately lose whatever collateral they had put up. The Consumer Financial Protection Bureau discovered that the typical payday loan applicant carried a balance for nearly 200 days.
How Do We Pick these Lenders?
Those familiar with us are aware that we maintain only reliable lender databases. We select bad credit loans (600) from our pool of available options. We verified which ones are direct lenders and included them below.
We found a few direct lenders, and those we discovered would only give you the best deal if you have good credit.
Because of this, we included indirect lenders in our directory as well. You can get a better deal through these networks since they link you with direct lenders. They offer a cost-free linkup. The money will come directly from the lending institution if your loan is authorized. Your cost will remain unchanged, like dealing with a direct lender through intermediaries.
We also incorporated buy now pay later services, loan apps, and credit unions. They are all “direct lenders.”
Frequently Asked Questions
What Legit Loans can a Person with Extremely Bad Credit Get?
If you have bad credit, your best bet is to apply for a secured, cosigned, or joint loan. If you take out a secured loan but don’t pay it back, the lender can seize the collateral, which might be anything from your automobile to your money. If you want to apply for a loan with someone with better income and credit than you, you’ll need to have them cosign the application.
What Type of Loan does Not Do a Credit Check?
There is no such thing as an unsecured loan without a credit check. Always remember the difference between a soft and hard check. Most private online lenders don’t perform hard inquiries or check credit. Credit unions typically perform rigorous credit checks and inquiry processes. Payday loan companies, auto title lenders, alternatives to payday loans, loan apps, and buy now, pay later apps are all financial institutions that don’t conduct credit checks before extending credit.
The only lenders that do not do a credit check are payday loans, pawn shop loans, auto-title loans, and high-rate installment loans. And these are predatory loans. So again, steer clear of them if you can help it.
Is There a Risk in Bad Credit Loans?
Personal loans with negative credit always involve some degree of risk. Personal loans are often unsecured, meaning you don’t have to put up any of your property as collateral. However, you still need to make your payments on time to avoid having your credit score ding.
What are No-Income Verification Loans?
In contrast to traditional loans, which often necessitate proof of income in the form of pay stubs, W-2s, or tax returns, borrowers in need of a no-income verification loan are not required to provide any of this paperwork. Don’t be fooled by the name, though: When applying for a no-doc loan, you must provide some documentation.
Can I Qualify for a Bad Credit Personal Loan if I am Unemployed?
You can get approved for an unsecured loan even if you have low credit or are currently unemployed, but you will need proof of income. Whether you’ve lost your job unexpectedly or have chosen to leave the workforce (as in the case of retirement), lenders will still give you a chance if you can prove to them that you can afford to make your loan payments on time.
Conclusion
Numerous cons populate the bad credit loan industry. Although not all legitimate lenders who deal with people with bad credit are direct lenders, some do. Their loans are more expensive than a traditional personal loan but much less expensive than a payday loan. This is why those with low credit must take steps to improve it. If it goes up, then you can apply for a loan.
Most borrowers believe that loans from direct lenders are less expensive. Although borrowing money from a direct lender may not be cause for alarm, numerous scammers have successfully manipulated the term “direct lender” to trick unsuspecting borrowers out of their money.
So pay close attention to each direct lender of bad credit before taking out a loan.
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