When you have a poor credit history, you’re usually not eligible for a loan from a bank or traditional credit lender. However, there are other loan options available. All you’ll need is to show that you can repay the loan by providing evidence of a regular income.
NetCredit Personal Loan Offer
You could borrow up to $10,000 and get an interest rate personalized to your credit score.
- Recommended Credit Range: Fair or better
- Min. Loan Amount: $1,000
- Max. Loan Amount: $10,000
- Loan Term: 6 months to 5 years (varies by state)
- Turnaround Time: 1-3 business days
- Total Costs: Depends on your credit score.
- Unemployment protection
- Confidential and secure online application
Tips on being approved for a loan with bad credit
There’s no one surefire way to ensure you are approved for a loan application. When you’re considering applying for a loan and your credit history isn’t perfect, keep the following tips in mind:
- Check the eligibility criteria before applying. Lenders have set eligibility criteria which you can check on finder.com review pages. Check to see if you meet these criteria, and if you’re unsure, you can call the lender to discuss your situation.
- Order a copy of your credit file. While you may think you have a good idea of your credit history, your credit file is the only true record of your financial history and what lender’s will use to judge your creditworthiness. You can order a free copy of your credit file from the main credit reporting agencies in the US.
- Compare your loan options before you apply. Every application you make shows up on your credit file, so make sure you compare your options before you apply to minimize the amount of applications you make.
Options for a $5,000 loan with a good credit rating
If you have good credit (usually a minimum score of 680 or higher) you could be eligible for a loan from a bank, credit union or standalone lender at a more competitive interest rate than providers who lend to people with bad credit. You may be able to borrow up to a limit of $5,000 without providing collateral.
Loans for up to $5,000 you could apply for today
The loans below allow you to borrow cash for a short period when you may need the emergency money.
Benefits and drawbacks to consider when comparing $5,000 loans
- Online applications are convenient. The convenience of online application forms and quick approval systems can save you time. You’ll also have a chance to compare a range of credit providers, improving your choices.
- There are minimal or no credit checks for bad credit personal loans. Getting a bad credit unsecured loan gives you access to lenders who look at your current financial situation when considering you for a loan, and if you have major credit problems you can consider a no credit check loan.
- Simple repayment terms. You’ll generally have your repayments lined up to when you get paid, and some lenders will give you the option of how to make repayments. Direct debit repayments are offered by most lenders as you don’t have to worry about making the repayments yourself, you just need the money available in your account.
- The loans can be high-cost. Due to high risk of bad credit loans, the lender will usually charge a higher fees. Keep in mind that fees are capped by ASIC.
- Bad credit loans over $2,001 come with high interest. While loans under this amount do not come with interest rates, only set fees, loans above this amount come with much higher rates than that of fair or good credit personal loans.
- Disreputable lenders operate in the bad credit loans space. There are many disreputable lenders operating online who prey on people with bad credit, so make sure you evaluate the lender before you apply.
- Direct debit can lead to overdrawing your account. While direct debit can be positive, it can prove costly if your account becomes overdrawn by your lender automatically withdrawing owed funds.
Things to avoid with bad credit unsecured loans
There are several risks associated with bad credit loans that don’t require collateral. Here’s what to avoid:
- Not being cautious. Taking out a bad credit personal loan can come with high fees and inflexibile terms.
- Not considering the affordability. Make sure you check twice before applying for a bad credit unsecured personal loan up to $5,000–the repayment period is much shorter than standard loans, meaning your repayments can be quite high. Lenders usually offer calculators to show an indication of your repayments.
- Not considering the fees as well as the interest rate. Lenders may charge you an interest rate as well as fees and other charges. Check these before you apply and consider the total cost of the loan.
Quick ways to borrow money
|Type of Lender||Avg. Interest Rate||Avg. Repayment||Turnaround Time|
|Traditional Bank||14%||$1,041.93*||1-3 business days|
|Online Lender||39.20%||$672.24^||1 hour – conditions apply|
|Payday Loan||319.38%||$1,280~||Same day|
|Peer-to-Peer Loan||8.86%||$955.21*||Next business day|
*average repayment based on a $30,000 loan over 3 years | ^ based on a $3,000 loan over 220 days | ~ based on a $1000 loan over 32 days
Need a little less? Compare installment loans from top online lenders
Explore even more loan amounts and repayment terms
Frequently asked questions
How do I apply for a bad credit unsecured loan?
You can apply for any of the lenders on this page by clicking the “Go to Site” button. If you don’t see this button, you can apply directly on the lender’s website.
What happens after I send my application?
This will differ between lenders, but you will usually receive a notification as to whether you have been approved or not (by phone or email) along with further instructions for the next steps.
Are my details secure?
When you apply for a loan online up to $5,000, your details are securely transmitted over an encrypted connection. The majority of sites you apply with use 128-bit or 256-bit SSL encryption to ensure your details are safe and secure.
Can I get a $5,000 loan if I am unemployed?
When an institution lends you money, they want to be certain that you can repay back the debt within the allocated timeframe. If you are unemployed, your income may be limited unless you are receiving benefits. If the majority of your income comes from welfare payments you may be still eligible for a personal loan – but be sure to check with the lender.
Can I repay my loan early?
This depends on the individual lender. When reviewing your loan contract, be sure to voice this question as some payday loan lenders charge extra fees for early repayment.
How long will it take for me to receive approved funds?
Funds are usually deposited into your bank account on the next business day, but it may take longer for larger amounts. It ultimately depends on the lender and your bank.
Is having a checking account necessary?
Most lenders require applicants to have operational checking or savings accounts where they can transfer funds electronically.
Will a late payment on a loan affect my credit?
What happens if I know my payment will be late?
The best solution is to contact your loan provider and inform them. Usually, the lender will be willing to extend the payment deadline and find ways to help you through difficult financial times.