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If you want a bad credit loan with guaranteed approval, Capital Bean offers $100 to $35,000 that can be repaid from 1 to 60 months. Check your eligibility in less than 5 minutes using our free online form today.


Some people might have a not-so-good credit score, making it harder for them to get loans from usual banks. A 2019 study said that nearly 35% of Americans have credit scores below 670.

Thankfully, there are special lenders for those with lower credit scores. These can be found online or in person. It’s key to understand the difference between personal loans and payday loans for those with bad credit.

Who Benefits From Bad Credit Loans?

People with not-so-good credit scores sometimes need extra money. Bad credit loans help them during tough times like when their car breaks down, a home appliance stops working, or they have school fees to pay.

There can be sudden medical bills too. Even with insurance, sometimes there’s still a big part of the bill they need to pay themselves. That’s when some might use bad credit loans or borrow money from online lenders.

Also, urgent house problems, like a roof that leaks or broken pipes, need fixing fast. Bad credit loans can help people handle these issues even if they don’t have the best credit.

Pros of Bad Credit Loans:

  • Accessibility: Some people have not-so-good credit scores. Bad credit loans help them by offering money even when other places might not.
  • Building Credit Score: If you borrow money and pay it back on time, it can make your credit score better. That’s a good thing for later!
  • Covering Emergency Expenses: Sometimes, surprise bills come up, like when someone gets sick or the car breaks down. These loans can help pay for those sudden needs.
  • Flexibility: Everyone’s needs are different. That’s why there are various kinds of loans like online personal loans, payday loans, or lines of credit. You can choose what’s best for you.
  • Fast Approval and Funding: What’s great about these loans is how quickly you can get the money. Sometimes, it’s just in a few days or even hours.
  • No Collateral Required: Some loans need you to promise something valuable, like your house, if you can’t pay back. But with many bad credit loans, you don’t need to promise anything. It’s like borrowing without putting your stuff at risk.

Cons of Bad Credit Loans:

  • Predatory Lending Practices: Be careful! Some loan places can be sneaky. They might have hidden costs, ads that don’t tell the whole truth, really tough repayment rules, or they might be too pushy when trying to get their money back.
  • High-Interest Rates and Fees: These loans can cost a lot. Because they’re seen as risky, they come with high costs and extra fees. It’s like buying something but paying a lot more for it over time.
  • Short Repayment Terms: This means you don’t have much time to pay back the money. This can make it hard to pay everything on time, which can lead to even more debt.
  • Negative Impact on Credit Score: If you pay late or can’t repay the loan, it can worsen your credit score. It’s like getting a bad grade on a big test, but for your money habits.
  • Potential for Debt Cycle: When someone can’t repay a loan, they borrow more money to help. But then they owe even more money. It’s like being stuck in a loop where you always owe money, and breaking free is hard.

Types Of Bad Credit Financing

Type of Loan Interest Rate Range Collateral Required Loan Amounts Repayment Period Suitable For
Loans with a Co-Signer Varies No Varies Varies Borrowers with a creditworthy co-signer
Joint Loans Varies No Varies Varies Borrowers with a creditworthy co-borrower
Unsecured Loans for Poor Credit Higher No Varies Varies Borrowers without collateral
Peer-to-Peer Loans Lower No Varies Varies Applicants seeking lower interest rates
Payday Alternative Loans (PALs) ≤ 28% No $200 - $1,000 1 - 6 months Borrowers seeking lower-cost payday loan alternatives
Title Loans for Bad Credit High Yes (vehicle) 25% – 50% of vehicle value Varies Applicants with a vehicle
Invoice Financing Varies Yes (unpaid invoices) Based on invoice value Short-term Business owners with unpaid invoices
Equipment Financing Varies Yes (equipment) Based on equipment value Varies Business owners needing equipment
Purchase Order Financing Varies No Based on purchase order value Short-term Businesses needing capital for purchase orders
Hard Money Loans High Yes (real estate) Varies Short-term Real estate investors, startups
Online Line of Credit Higher No Varies Flexible Borrowers needing on-demand cash access
Short-Term Bad Credit Loans High No Varies Up to 1 year Borrowers needing quick financing
Low Credit Payday Loans Very High (around 400% APR) No ~ $500 Short-term (2-4 weeks) Borrowers needing quick cash with poor credit
Merchant Cash Advance (MCA) High No Varies Flexible (based on sales) Businesses with strong credit/debit card sales

What Alternatives Are There For Bad Credit Loans?

If you have bad credit and are worried about taking out a bad credit loan, there are many alternatives available.


If you do have any savings available, using them may be a more sensible option than taking out a high-interest loan. Although your savings may be gaining interest, this is likely to be less than you would pay on a loan. Therefore, this is likely to be a cheaper option and save you money in the long run.

Borrow From Friends Or Family

Opting to borrow from friends or family will mean that you avoid the expensive interest charges associated with taking out a bad credit loan. Also it will not impact your credit score. If you do choose to borrow money, make sure that all parties are clear on the repayment, namely how much you will be borrowing and when you will be paying it back.

Talk To Your Employer

If you need short-term funds, it may be possible to ask your boss to advance your wages. Many companies are able to do this and it would mean that you would not have to take out a high-interest loan. There is no need to make a repayment on these advances as it is money that you have already earned and comes directly out of your wages.

Consider A Guarantor Loan

Using a relative or friend with good credit to act as a guarantor on your loan will mean you are more likely to be approved. If you default the loan repayment, it will mean that the guarantor has to pay so it is worth understanding the risks before entering into this type of agreement.

Credit Unions

Credit unions provide loans and funding for those who need financial assistance. You will need to be a member of the union but the membership fee tends to be small. Unlike banks, credit unions often offer personalized services and can provide more options for those with a poor credit history.

Debt Management Organizations

Nonprofit credit counseling organizations provide programs to assist people in handling their debts and enhancing their credit ratings. These programs involve collaborating with a credit expert to establish a budget and payment strategy, and discussing with lenders to lower interest rates or forgive charges.

Common Questions and FAQs

What Is A Bad Credit Loan?

A bad credit loan enables those with a poor or very bad credit score to borrow money. These loans will usually have higher interest rates than other loans to reduce the risk of borrowers not making repayments.

Typically, your credit score determines whether or not you can receive a loan, with bad credit making you less likely to qualify successfully; however, there are a growing number of lenders willing to provide loans for those with a bad credit history.

If you have a poor or less-than-perfect credit score, it does not mean that you are ineligible to apply for a loan, even if you have been declined in the past or have defaulted on prior loans. However, you may be subject to different loan terms or interest rates. You may also be required to secure the loan using collateral, for example, having to take out a title loan or car loan.

How Does A Bad Credit Loan Work?

These loans are like regular loans, but they have higher costs because they’re riskier for the people giving the money. If someone has a low credit score, they can ask for these loans and use them to pay for emergencies or put all their debts together.

How Much Does A Bad Credit Loan Cost?

The cost of a bad credit loan will depend on the lender and your financial profile. Typically, bad credit loans come with high APR, with the average title loan or payday loan product charging an interest rate of between 300-600% APR.

The APR calculates interest as an annual rate, as if the product were to last for the entire year. However, these loan products tend only to be short-term, lasting just a few weeks or months.

How Do I Know If I Have Bad Credit?

If your credit report shows defaulted payments, heavy debt or negative repayment histories, this demonstrates risky borrowing behavior and could mean that you have a very bad credit score; however, credit scores are based on a combination of factors.

Information from credit reference bureaus like Equifax, Experian, and Transunion can help you if you think you have a bad credit score. This is a paid service but you can request a free trial which will tell you your credit score.

Who Offers Bad Credit Loans?

Different places like banks, websites, and other places give out these loans. Some places are really good at giving loans to people with low credit. If someone needs a loan and they have bad credit, they can find one online or in stores in their neighborhood.

What Are The Interest Rates With Poor Credit?

Interest rates for these loans are usually higher than regular loans because they’re riskier for the people giving the money. Online, the rates can be different based on who’s lending the money, how much is borrowed, how long you have to pay it back, and the borrower’s credit score. Loans that have something valuable as a backup, like a car, might have lower rates, but they’re riskier for the person borrowing the money.

Am I Eligible For A Bad Credit Loan?

You must meet the following requirements to get a bad credit loan:

  • A U.S citizen
  • 18 years or older
  • Minimum monthly income of $800
  • Have a cell phone
  • Able to afford monthly repayments
  • We consider bad credit histories
  • Have an open checking account to receive your money

Can I Use My Loan For Emergencies?

Yes – you can get instant approval for a bad credit loan and you can use them on emergencies. We know that unexpected expenses will happen – whether you need money to fix your car, a loan to pay for hospital bills, or to help you pay off your bills – then we can help. If you need $500, $750 or even $2,000 we can get you an emergency loan to help you through to the next payday.

As humans, we will always try to save money if needed in an emergency, but sometimes those unexpected bills throw you off and mean you need extra money. It’s called an emergency because it is exactly that, unexpected! If you knew it was coming it wouldn’t be an emergency. Let Capital Bean get you the money you need to get you back on your feet.

Even if you have bad credit we can match you with lenders that can help. We will match you with someone who works with all types of credit and even considers very bad credit applications. When it is an emergency loan we know that you’ll need speedy cash and that is why our application only takes 5 minutes. And you can sometimes get the money in your bank account the very next day.

Can I Get A Loan With Very Bad Credit?

Yes – you can still get a loan even if you have a very bad credit score. At Capital Bean we work with specialist lenders that consider all credit scores. These lenders can help you take out a loan of up to $5,000 even if you have a bad credit score, taking into account other factors such as employment status, income, living status and the purpose of your loan.

Bad credit loan companies are used to working with struggling financial profiles so tend to be more lenient about the requirements. Regardless of whether you have had missed payments in the past, if your current situation is stable (for example you have a steady income and commit to repaying your loan), they are likely to consider your application.

What Are The Fees For A Poor Credit Loan?

For online loans with low credit, there might be some extra costs like fees for starting the loan, fees if you pay early or late, and other charges. It’s really important to know about all these costs before saying yes to a loan, especially if you have bad credit.

What Is The Late Payment Fee For Loan For Bad Credit?

If you pay late, there might be a fee. This fee can change based on your loan, who’s giving you the money, and your past with money. Different loans and lenders have different fees, so it’s good to know what they are.

What Types Of Bad Credit Loans Are There?

There are a few options available for borrowers with bad credit including:

How Long Do Bad Credit Loans Take To Be Approved?

It is possible to get a quick loan and it depends on a number of factors. Many bad credit loan companies can offer same-day loans and a 100% online application. This means that often, in just 24 hours, you can apply, be approved and receive funds.

Usually, smaller amounts are faster to be funded and can be done in as little as 1 hour, depending on the company. Often larger amounts such as $1,000 or $2,000 will need longer to process as the lender may need to check that your income information is correct before approving funds.

If your bad credit loan is a secured loan, the lender will need to check the details of your collateral which may delay the process by a day or two.

How Can I Get A Fast Loan With Bad Credit?

It is possible to get a quick loan and it depends on a number of factors. Many bad credit loan companies can offer same-day loans and a 100% online application. This means that often, in just 24 hours, you can apply, be approved and receive funds.

Usually, smaller amounts are faster to be funded and can be done in as little as 1 hour, depending on the company. Often larger amounts such as $1,000 or $2,000 will need longer to process as the lender may need to check that your income information is correct before approving funds.

If your bad credit loan is a secured loan, the lender will need to check the details of your collateral which may delay the process by a day or two.

What Are The Repayment Options For A Bad Credit Loan?

How you pay back the loan depends on the rules of the loan and who gave it to you. Some loans need you to pay the same amount every month, while others let you pay when you can. It’s important to know how you have to pay it back and make sure it fits with your money situation.

How Long Can I Borrow A Loan For?

At Capital Bean, you can borrow to be repaid over a maximum period of 5 years. Some of our shortest loans are repaid in 2 weeks depending on the amount.

Are Bad Credit Loans Legal?

Yes – in most US states bad credit loans are legal. Some states, however, have laws against payday loans or strict regulations in place. Check out our state pages for more advice and information specific to your location. Make sure you are aware of payday laws and acts where you live before applying.

Can I Improve My Credit Score With A Bad Credit Loan?

If you pay a bad credit loan on time, it might help make your credit score better in the long run. But, before getting the loan, make sure you can afford it and that it won’t hurt your budget.

What Alternatives Exist For Bad Credit Loans?

Other choices do exist. You can borrow money from family or friends, use a credit card that needs something valuable as backup, combine your debts into one loan, get help from places that give advice on credit for free, or look into ways to put all your debts together or settle them.

Is There A Maximum Debt-To-Income Ratio For Poor Credit Loans?

A good Debt-To-Income (DTI) ratio for any loan is 35% or less. Lenders who work with people with bad credit might be more flexible about this ratio. It’s a smart idea to ask this question when you’re looking at lenders for your loan.

Are There Best Practices For Paying Back A Loan?

It’s important to only take a loan if you can repay it on time. After getting the loan, setting up automatic payments is a good idea. Also, always check your account to see how much you owe, the interest adding up, and any extra fees.

How Can I Apply For A Loan With Bad Credit?

Step 1 
Apply Online

Use our 100% free online form to apply in less than 5 minutes.

Step 2 
Instant Decision

You will receive an instant decision on screen from one of our lending partners who will offer the best rates.

Step 3
Receive Money

You have already provided your bank account details so within 1 hour, the same day or the next business day you will get your funds.

Avoiding Bad Credit Risks & Scams

Scams and untrustworthy lenders are some of the risks of taking out a loan with bad credit. These scams can be financially devastating and cause long-lasting damage to your credit. To protect yourself from falling victim to such scams, consider the following tips before filling out an application:

  • Watch out for offers that come out of nowhere, especially for those with bad credit.
  • Look into the lender’s background, what people say about them, and whether they’re registered with official groups.
  • Don’t trust lenders who ask for money upfront or want you to pay in strange ways.
  • Be careful if a lender says “yes” too quickly or promises things without checking.
  • Ensure you can contact the lender and be cautious if they push you too hard.
  • Read the loan papers closely. If something is confusing, ask someone for help.
  • Look at the Better Business Bureau (BBB) to see if people complained about the lender.
  • Keep an eye on your credit reports. If something’s there that shouldn’t be, report it.
  • Trust your gut. If something feels weird or too perfect, stepping back is okay.

Using these tips, you can avoid loan tricks and keep your money safe.


Tips for Improving Your Credit Score

Bad credit can happen for many reasons: having a lot of debt, opening too many accounts, not paying things on time, and other things. If you want better loan deals and lower interest rates, improving your credit is important. Here are some ideas to help raise your credit score and fix your credit history.

  1. Pay on time: How you pay your bills greatly affects your credit score.
  2. Lower your credit use: This means not using all the credit available. Use less than 30% of your credit limit by paying off your debts.
  3. Have different types of credit: Using a mix of credit cards, car loans, and house loans can help your score.
  4. Be careful about credit checks: Companies check your credit when you ask for a loan or a credit card. This can lower your score, so only do it when you need to.
  5. Watch your credit reports: Look at your credit report regularly to ensure everything is correct and that no one uses your information without permission.
  6. Keep old accounts: If you have old credit cards or loans you’ve paid off well, keep them open. They show you have a good history of paying back what you owe.

By doing these things and being smart with your money, you can make your bad credit better and be in a healthier money situation.


Final Facts About Bad Credit Loans

  1. Bad credit loans are for people with scores under 600.
  2. These loans can be things like payday loans, title loans, or personal loans.
  3. They’re easier to get because you don’t need to give something valuable as a promise, but this means the interest rates can be higher.
  4. These loans cost more than regular ones, so think about the total amount you’ll end up paying.
  5. If you want a good interest rate, it’s best to go to a regular bank or a place like a credit union. But, you’ll probably need a better credit score.
  6. Banks and credit unions often give out the most money for personal loans.
  7. Online lenders or other special lenders have easier approval. They can say “yes” faster, but watch out for tricky lending practices.
  8. These loans are good for emergencies, but using them all the time can get you stuck in a cycle of owing money.
  9. If you use them right, they can help make your credit better.
  10. These loans usually have to be paid back faster. Make sure you can handle the monthly payments.

Remember, it’s essential to understand what you’re getting into before borrowing money.


To Summarize

You might not need a certain credit score for bad credit loans, but they often come with:

  1. Smaller loan amounts
  2. The possibility of needing something valuable as a promise or another person to sign with you.
  3. Quicker payback times.

Paying these loans on time can help fix a bad credit score, but it can worsen if you don’t pay.

While bad credit loans can help in tough times, it’s essential to improve your credit for more excellent loan deals in the future. Look at all the choices, the loan rules, the interest rates, and any extra costs. You might see that another personal loan that lets you borrow more and costs less is better for you.


A Note From Capital Bean

At Capital Bean we want to help you find the best money solutions, like the right loans for bad credit or other credit options. We know how important it is to check your current debts, interest rates, and other costs to see if an online loan or a loan for bad credit fits with your money situation.

You should be careful when thinking about a bad credit loan online. If you need expert help, we really suggest talking to financial experts or people who advise on credit. They can guide you about lenders, credit, and different loan types. If you’re struggling with missed payments, lots of credit card debts, or high costs, don’t worry. There’s always a way to a better money future. This might include loans for debt help, personal loans, or even personal credit advice – and we’re here to guide you to the best choice.